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Identifying Root Causes of Hunger: Government, Trade, Business and the Environment


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Title: Identifying Root Causes of Hunger: Government, Trade, Business and the Environment

Identifying Root Causes of Hunger Government,
Trade, Business and the Environment
  • Peter A. Stanwick
  • Department of Management
  • Auburn University

Presidents Response to Hunger
  • Great peaceful crusade to give the worlds
    under-developed areas vigorous strength to combat
    hunger and disease.
  • He proposed expanded trade, technical assistance
    and loans to help raise economic levels.

Presidents Response to Hunger (Continued)
  • Ways should be found to bring more involvement of
    private investment.
  • This crusade would raise barriers against
    tyranny and the war which tyranny breeds.

Presidents Response to Hunger (Continued)
  • Ways should be found to bring more involvement of
    private investment
  • This crusade would raise barriers against
    tyranny and the war which tyranny breeds.
  • President Dwight D. Eisenhower
  • November 10, 1958

Government and Trade Policies
  • Move Toward Biofuels
  • Climate Change
  • Government, NGO and Private Sector Partnerships
  • Funding of Civil Wars
  • Impact of Fair Trade
  • Business Relationships
  • What can be Done?

Inefficient Use of Oil
  • Industrialized agriculture uses 50 times more
    energy than traditional farming methods
  • It takes the equivalent of 6 barrels of oil to
    raise a single cow to market.
  • It takes 10 calories of oil energy to produce one
    calorie of food.
  • (Source Steve Brooks. Time Running Out for
    Hungry Ones as the World Watches and Waits. The
    Western Mail. June 26, 2008)

  • 82 rise in food commodity prices from 2006 to
    2008 is directly related to shifting farm land to
    biofuel commodities.
  • The net result is that an additional 260 million
    people were driven to hunger due to biofuels

  • Farmers are subsidized by the United States
    government and by the European Union.
  • In 2007, US subsidy was 16 billion.
  • In 2007, EU subsidy is 18 billion.
  • Aid to farmers in developing countries in less
    than 4 billion
  • (Source Ashley Seager. 260M Driven Into Hunger
    by Push for Biofuel-ActionAid. The Guardian.
    July 3, 2008.)

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  • Accounted for almost 50 of the growth in global
    demand for major food crops in 2007.
  • In 2008, 1/3 of the corn produced in the United
    States went for ethanol production.

Climate Change
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Climate Change
  • Of the 37 identified countries which have
    hunger/famine issues, 22 had suffered significant
    adverse weather conditions which resulted in the
    loss of crops and/or seeds.
  • Climate Change had a direct and/or indirect
    impact on these adverse weather conditions.

Climate Change
  • Climate Change could
  • Reduce by 50 rain fed crops in Africa by 2020.
  • Put 50 million more people at risk of hunger.
  • Have 1 billion people in Asia having water
    shortages due to melting glaciers.
  • (Source CBC News. Countries Abusing Human
    Rights by Failing to Fight Global Warming "Oxfam.
    September 9, 2008.)

Climate Change
  • Approximately 3 billion people use primitive
    stoves fueled by crop waste, wood, coal and dung
    to cook their food.
  • Smoke from the fires kill 1.9 million people
    annually from lung and heart diseases and low
    birth rates.
  • The stoves produce millions of ton of soot that
    increases global warming.

Climate Change
  • Soot or Black Carbon is the number 2 contributor
    to global warming after carbon dioxide.
  • Soot particles warm the air and melt the ice by
    absorbing the suns heat when they settle on

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Impact of Soot
  • Soot may account for up to half of the Arctic
  • Soot can travel great distances.
  • Himalayan glaciers are expected to lose 75
    percent of their ice by 2020.
  • These glaciers are the source of most of the
    Asian rivers.
  • Short term result will be widespread flooding.

Using a primitive stove in Koluha, India
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Dung Cakes
Pollution From Cooking Fires
Global Alliance for Clean Cookstoves
  • Goal to provide 100 million clean-burning stoves
    in villages in Africa, Asia and South American by
  • Have approximately 60 million in funding from
    governments, aid organizations and the private
    sector. Of the 60 million, 50 million was given
    by the United States government.

20 Founding Partners
  • The Global Alliance for Clean Cookstoves include
    The United Nations Foundation, Shell Foundation,
    U.S. Department of State, U.S. Environmental
    Protection Agency, World Health Organization
    (WHO), German Federal Ministry for Economic
    Cooperation and Development (BMZ), Deutsche
    Gesellchaft für Technische Zusammenarbeit (GTZ),
    Morgan Stanley/Morgan Stanley Foundation,
    UN-Energy, World Food Programme, UN Environment
    Programme (UNEP), UN Industrial Development
    Organization (UNIDO), U.S. Agency for
    International Development (USAID), U.S.
    Department of Energy, U.S. Department of Health
    and Human Services (National Institutes of
    Health Centers for Disease Control and
    Prevention), UN High Commissioner for Refugees,
    SNV Netherlands Development Organization, Shell,
    Government of Peru, and the Government of Norway

Global Alliance for Clean Cookstoves
  • WHO says that soot is the fourth greatest health
    risk factor in developing countries after unclean
    water and sanitation, unsafe sex and

Global Alliance for Clean Cookstoves
  • Use an entrepreneurial model in which small local
    companies would manufacturer or buy the stoves
    and would take into account local differences in
    fuel choices, food consumption patterns and
    methods of cooking.

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Global Alliance for Clean Cookstoves
  • Stoves cost 20 and most are solar powered.
  • Those that are not solar powered use fuel more
    efficiently by first pulverizing the fuel and
    then adding a small fan to improve combustion of
    the materials.

Global Alliance for Clean Cookstoves
  • The stoves do not last for a long time.
  • The are produced at a low cost and a high volume.
  • They will need to be replaced every three to
    five years.
  • Therefore, the small businesses will have a
    perpetual business making and/or selling the

Funding of Civil Wars Blood Diamonds
  • Conflict or Blood diamonds are diamonds which
    have been mined in areas where there is a civil
    war and the proceeds of the diamond sales have
    been used to purchase military arms.
  • Prolonged civil wars only increase the number of
    people in that country who do not receive food on
    a daily basis.

Challenges of West African Nations
  • West African countries such as Sierra Leone,
    Congo, Angola and the Ivory Coast have diamond
    deposits which are a few feet from the surface,
    usually in marshy areas in river bets.
  • Very easy for rebel forces to quickly seize
    diamond operations.

Negative Impact of Blood Diamonds
  • Approximately 4 percent of all diamonds sold in
    the 1980s and 1990s were considered conflict
  • Al Qaeda used the illegal diamond trade to lauder
    millions of dollars.
  • Wars funded in Africa by diamonds resulted in 3.7
    million deaths and 6 million people being
    displaced from their homes.

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Fair Trade Products
  • Fair trade means that farmers have received a
    fair wage for their work through the higher
    prices that were charged for the product.
  • In the United States, Fair Trade products are
    available at 16 national retailers, including
    Sams Club, Kroger, Wegmans, Whole Foods Market

Fair Trade
  • Underlying questions
  • Where does the additional money for every pound
    of coffee go?
  • What about the fixed rates for pounds of coffee?
  • For example, Costa Coffee took advantage of the
    Fair Trade image by adding 18 cents to every cup
    of coffee, even though fair trade coffee only
    cost them between one and two cents extra per cup

NGOs Partnerships
  • Map International provides an electronic and
    mobile banking platform for the people of Uganda.
  • Goals include providing 2 million people in
    Uganda with access to bank accounts.
  • Enroll up to 600,000 government employees with
    direct deposit.
  • Expand across the country so that people can
    securely retrieve and transfer money.

Private Sector Partnerships (UNDP Business Call
to Action)
  • Cadbury developed the Cadbury Coca Partnership to
    encourage coca developed in Africa, Southeast
    Asia and the Caribbean.
  • The partnership develops sustainable farming for
    the local communities.
  • Creates new sources of income in 100 coca farming
  • Addresses key factors such as child labor,
    health, gender diversity and environmental

  • Develop and improve local supply chains for
    barley around the world.
  • Promote sustainable livelihoods for small barley
    farmers in developing countries.
  • Establish centers throughout key barley-growing
    regions to provide farmers with certified seeds,
    agricultural skills training and technical

Thompson Reuters
  • Help Indian farmers improve their productivity
    and remove barriers to growth.
  • Provide up to 250 million farms with information
    to improve yields, reduce market inefficiencies
    and increase incomes.

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Can One Person Make A Difference?
  • In 1984, Bob Geldof, lead singer of the group The
    Boomtown Rats, was watching a BBC documentary on
    the famine conditions in Ethiopia.
  • On November 24, 1984, he and some friends
    recorded a song in one day.

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Can One Person Make A Difference?
  • YES