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The End of Poverty

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Malawi. The perfect storm. Bangladesh. On the ladder of improvement. India ... Bumper crops, Malawi. http://news.scotsman.com/topics.cfm?tid=503&id=1434172002 ... – PowerPoint PPT presentation

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Title: The End of Poverty


1
The End of Poverty
  • Jeffrey Sachs
  • Director, UN Millennium Project

2
Portrait of 4 Countries
  • Malawi
  • The perfect storm
  • Bangladesh
  • On the ladder of improvement
  • India
  • Center of an export services revolution
  • China
  • The rise of affluence

Malawi
http//www.terradaily.com/images/epidemics-aids-ma
lawi-malnourished-afp-bg.jpg
3
MalawiA perfect storm
  • Villages devastated by AIDS
  • Only children and grandmothers left
  • Poor soils, poor yields
  • No one to work the fields
  • Little food to eat
  • Malaria, but no medicines
  • No nearby clinics
  • In cities, are clinics
  • No AIDS medicine
  • Patients come to die.
  • 1 a day could save them

Grandmother with 15 orphaned children
4
BangladeshOn the ladder to development
  • Per capita income doubled since independence
    (1971)
  • Infant mortality 1/3
  • Sweat shops in Dhaka
  • Women walk 2 hours to work
  • First step out of extreme poverty
  • Microcredit more available
  • Health care more available
  • And birth control
  • Women now more empowered
  • Want education
  • Want fewer children

Rice milling
http//courses.dce.harvard.edu/phils4/3406.JPEG
5
IndiaCenter of an Export Services Revolution
  • Several steps up the ladder of development
  • Information Technology companies
  • College grads earn 250-500/month
  • Service U.S. companies
  • Buy U.S. computers
  • Northern India still largely rural and poor

IT workers in Bangalore, India
http//newsimg.bbc.co.uk/media/images/41089000/jpg
/_41089458_indiaintel203.jpg
6
ChinaThe rise of affluence
  • Beijing one of the worlds economic capitals.
  • Average Annual income 4,000
    per capita
  • Urban professionals
  • Affluence, travel, trendy
  • Foreign investment
  • And technology
  • Competitive enterprises
  • Exported 400 billion in 2004

Beijing
http//i1.trekearth.com/photos/32961/beijing1.jpg
7
Ascending the ladder of economic development
  • Rural Population
  • Malawi 84
  • Bangladesh 76
  • India 72
  • China 61
  • USA 20
  • Employment in Services
  • Malawi 25
  • USA 75

Rural India
http//filer.case.edu/org/uisa/images/index/coming
tomeeting.jpg
8
Ascending the ladder of economic development
  • 5 billion people are on the ladder of economic
    progress
  • Poor, low, middle, high income
  • Rising incomes, education, sanitation, health,
    possessions
  • 1 billion people are not on the ladder of
    economic progress
  • Extreme poor
  • Unable to escape from extreme material
    deprivation
  • Trapped by disease, physical isolation, climate
    stress, environmental degradation, extreme
    poverty

Mexico on the ladder
http//www.loscabosguide.com/tequila/cabowabo.htm
9
(No Transcript)
10
Our generations challenge
  • The end of poverty
  • Help the poorest escape extreme poverty
  • To get a foothold on the ladder of development
  • Ensure that the moderately poor have a chance to
    climb the ladder
  • Give development assistance
  • Eliminate trade barriers

World Bank water project, S. Africa
http//web.worldbank.org/WBSITE/EXTERNAL/OPPORTUNI
TIES/GRANTS/DEVMARKETPLACE/0,,contentMDK20200526
pagePK180686piPK180184theSitePK205098,00.html
11
Effect of the Industrial Revolution
12
Effect of Industrialization
  • Urbanization
  • Due to improved agriculture
  • Food prices fall
  • Employment in cities
  • Social Mobility
  • Hierarchies unravel
  • Market based economy
  • Gender roles change
  • Employment rather than child-rearing for women
  • Division of Labor
  • Specialization increases
  • Efficiency goes up



Urban worker, Brazil
13
How does prosperity spread?
  • Transmission of technologies
  • Science-based methods to organize production
  • Historical examples
  • Steam engine
  • Factory machinery
  • Railroads
  • Global steamers
  • Suez, Panama canals
  • Electrification
  • Internal Combustion engine
  • Nitrogen-based fertilizer

http//indiana-transit-museum.visit-indianapolis.c
om/
14
Why some countries fail to thrive
  • Poverty trap
  • Poor rural villages lack
  • Trucks
  • Paved roads
  • Power generators
  • Irrigation channels
  • Human capital is low
  • Hunger
  • Disease
  • Illiteracy
  • Natural capital is depleted
  • Trees cut down
  • Soil exhausted
  • Need more capital, but unable to save for future

Rural village, Sierra Leone
http//imageevent.com/dyet/octoberjsessionidvzm4
aori21.lion_s
15
Why some countries fail to thrive
  • Physical geography
  • Landlocked
  • high mountains
  • No coast, navigable rivers, or harbors
  • Ex Bolivia, Ethiopia, Tibet
  • Arid
  • Tropical diseases
  • Malaria
  • Problems can be overcome
  • But it costs more

Sahara desert
http//www.curious-software.com/images/desert.jpg
16
Why Some countries fail to thrive
  • Fiscal Trap
  • Government cannot pay for infrastructure
  • Population poor
  • taxation not feasible
  • Government corrupt, or incapacitated
  • cannot collect tax
  • Debt load too high
  • Revenue goes to interest
  • Debt cancellation may be only solution

http//www.worldvision.com.au/seekjustice/readmore
.asp?sectionid7articleid117
17
Why Some countries fail to thrive
  • Governance Failures
  • Governments should
  • Promote infrastructure
  • Create an environment conducive to investment
  • Crime free
  • Bribery free
  • Protect property
  • Defend borders
  • Poor governance results in
  • State Failure
  • War, revolution, anarchy
  • Economic failure

Singapore
http//www.asiatravel.com/singapore/panpac/index.h
tml
18
Why Some countries fail to thrive
  • Cultural Barriers
  • Religions that block the role of women
  • Deny economic or political rights
  • Deny education
  • Result
  • Undermines half the populations contribution to
    development
  • Slows demographic transition
  • Blocking religious or ethnic minorities
  • Prevented from jobs, schooling
  • Extreme ethnic cleansing

http//politicalhumor.about.com/library/images/blt
alibanwomen.htm
19
Why some countries fail to thrive
  • Geopolitics
  • Trade barriers erected by foreign countries
  • Impede economic development
  • May target a despicable regime
  • Often ends up impoverishing population
  • Without toppling the regime

North Korea
South Korea
http//www.rotten.com/library/history/countries/no
rth-korea/
20
Why some countries fail to thrive
  • Lack of innovation
  • Small market for new inventions
  • No profits no inventions
  • Endogenous growth cycle
  • Big markets encourage invention
  • Inventions promote big markets
  • Low income countries
  • 37 population
  • 11 GDP
  • 1 patents
  • Need foreign investment to bring technology
  • Key to East Asian economies
  • Sweat shops are first step
  • Starts at port cities

Sweat Shop in Dhaka, Bangladesh
http//www.siu.edu/perspect/05_fall/images/sweats
hop.jpg
21
Why some countries fail to thrive
  • The demographic trap
  • High fertility rates in the poorest countries
  • Poor families choosing to have many children
  • Disastrous
  • Cannot invest in each child
  • High fertility next generation
  • Demographic transition can occur fast
  • Ex. Iran
  • 1980 fertility 6.7
  • 2000 fertility 2.6
  • Education for girls is key

Iran
http//www.middle-east-online.com/pictures/big/_10
613_iran-women-13-7-2004.jpg
22
Five Development Interventions
 
 
  • 1. Boost Agriculture
  • Fertilizers
  • Cover crops
  • Irrigation
  • Improved seeds
  • Storage facilities

Kg fertilizer/Ha of cropland
http//www.overpopulation.com/faq/Natural_Resource
s/Food/fertilizer_per_hectare/maps/africa.html
23
Five Development Interventions
  • 2. Improve basic health
  • Village clinics
  • One doctor for 5,000
  • Free anti-malarial bed nets
  • Effective medicines
  • Malaria
  • Aids
  • Birth attendants
  • Reproductive health services

Sierra Leone Hospital
http//www.kambiahospital.org.uk/
24
Five Development Interventions
  • 3. Invest in Education
  • Meals for all children at primary school
  • Improve quality of education
  • Improve attendance
  • Vocational training
  • Modern farming
  • Computers
  • Electrical wiring
  • Diesel mechanics
  • Carpentry
  • Adult Education
  • Hygiene,
  • HIV/AIDS

School meal, Ghana
http//newsimg.bbc.co.uk/media/images/41111000/jpg
/_41111190_10_schoolhildyghana.jpg
25
Five Development Interventions
  • 4. Power, Transport and Communications
  • Electricity in villages
  • Lights, computers, pumps, refrigeration, food
    processing
  • Trucks, roads
  • Bring fertilizers, fuels
  • Transport harvest to market
  • Transport people to hospital
  • Mobile phone
  • Connect with outside world

Kenya village
26
Five Development Interventions
  • 5. Safe drinking water and sanitation
  • Health benefits
  • Save hours of toil for women and children

Carrying water, Zimbabwe
http//www.bobjanet.demon.co.uk/urchin/4life/zim.h
tm
27
Five Development Interventions
  • Total cost to village
  • 70 per person/year
  • Benefits
  • Double or triple food yields
  • Reduction of chronic hunger
  • Improved school attendance
  • Reduction of water-borne disease
  • Rise in cash incomes
  • Sales of grain and cash crops
  • Food processing, carpentry, small manufacturing,
    horticulture, aquaculture, animal husbandry
  • Reduction in AIDS deaths

Bumper crops, Malawi
http//news.scotsman.com/topics.cfm?tid503id143
4172002
28
The giving gap
  • The U.S. is far behind
  • on its pledge of 0.7 GNP
  • Usual excuses
  • Corruption and misrule
  • Thus money down the drain
  • Bush (2004)
  • the greatest power on the face of the earth, we
    have an obligation to help the spread of freedom.
    We have an obligation to feed the hungry.
  • U.S. aid to sub-Saharan Africa
  • 3 per African (2002)
  • 6 cents per African received after expenses and
    emergency aid

http//www.hebdo.bf/actualite2/hebdo304/george-bus
h.gif
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