Central Texas & Global Central Texas & Global

Poverty Relief Org, Inc.Poverty Relief Org, Inc.

All that is necessary for the All that is necessary for the triumph of evil is for good triumph of evil is for good people to do nothingpeople to do nothing

- EdmundEdmund BurkeBurke

Mission StatementMission Statement

Central Texas & Global Poverty Central Texas & Global Poverty Relief Organization, Inc. Relief Organization, Inc.

empowers victims of extreme empowers victims of extreme poverty through educating poverty through educating communities to their plight, communities to their plight,

encouraging charitable encouraging charitable partnerships for their aid, and partnerships for their aid, and

facilitating their movement onto facilitating their movement onto the ladder of developmentthe ladder of development

Part I: What is extreme PovertyPart I: What is extreme Poverty

Part II: Brief History of PovertyPart II: Brief History of Poverty

Part III: Why countries fail or succeedPart III: Why countries fail or succeed

Part IV: SolutionsPart IV: Solutions

What is Poverty?What is Poverty?

Relative povertyRelative poverty

Moderate PovertyModerate Poverty

Extreme PovertyExtreme Poverty

U.S. - $21,000 for U.S. - $21,000 for family of 4; ca. family of 4; ca. ~$14 per day~$14 per day

Less than $2 per Less than $2 per day – 2.7 billion day – 2.7 billion peoplepeople

Less than $1 per Less than $1 per day - ~1.4 billion day - ~1.4 billion peoplepeople

Dollar StreetDollar Street

Gapminder.orgGapminder.org

http://www.visualizingeconomics.com/wp-content/uploads/world_gdp_pop_v2.jpg

Source: Data from Chen & Ravallion 2004Source: Data from Chen & Ravallion 2004

Source: Data from Chen & Ravallion 2004Source: Data from Chen & Ravallion 2004

RegionsRegions China

• 1981: 84% in extreme poverty ($1.25/day), by 2005: 16%• Since 1978 has been the world’s most successful economy

India• According to the new World Bank estimates on poverty based on

2005 data, India has 456 million people living in extreme poverty, 41.6% of its population, down from 60% IN 1981.

Africa• GDP stagnant from 1965-2000• Only recently started to increase, but is it sustainable? Drivin by

rise in commodity prices• Over 50% living in extreme poverty in Sub-saharan Africa

Why Can’t They Get Out?Why Can’t They Get Out? The Poverty Trap - poverty itselfThe Poverty Trap - poverty itself

GeographyGeography

• Land-locked with bad NeighborsLand-locked with bad Neighbors

• favor killer diseasesfavor killer diseases

DebtDebt

Governance FailuresGovernance Failures

• 76% of bottom billion societies have been through a prolonged period of bad governance & 76% of bottom billion societies have been through a prolonged period of bad governance & poor policiespoor policies

• Some of the leaders of the bottom billion societies are among the global super-richSome of the leaders of the bottom billion societies are among the global super-rich

Cultural barriersCultural barriers

Lack of InnovationLack of Innovation

Demographic TrapDemographic Trap

Why Can’t They Get Out?Why Can’t They Get Out?

ConflictConflict• Collier estimates cost of civil war ~$64billionCollier estimates cost of civil war ~$64billion• Country has ~50% chance of relapsing into conflict after a civil war within a 10yr Country has ~50% chance of relapsing into conflict after a civil war within a 10yr

periodperiod

Resource RichResource Rich• b/c resource rich countries do not need to tax, they do not invite public scrutiny b/c resource rich countries do not need to tax, they do not invite public scrutiny

as muchas much• Attraction to resources provoke conflictAttraction to resources provoke conflict• Less drive to diversifyLess drive to diversify

Millennium Development Millennium Development GoalsGoals

UN member states unanimously agreed in 2002 UN member states unanimously agreed in 2002 to the MDG’sto the MDG’s• Cutting poverty in half by 2015Cutting poverty in half by 2015• End Extreme Poverty by 2025End Extreme Poverty by 2025• Achieve universal primary education by 2015Achieve universal primary education by 2015• Promote gender equalityPromote gender equality• Reduce child mortality by 2/3 by 2015 (for age <5yrs)Reduce child mortality by 2/3 by 2015 (for age <5yrs)• Improve maternal health - reduce mortality by 3/4 by Improve maternal health - reduce mortality by 3/4 by

20152015• Combat HIV/AIDS, malaria - by half by 2015Combat HIV/AIDS, malaria - by half by 2015• Ensure environmental stability (halve by 2015 number of Ensure environmental stability (halve by 2015 number of

people w/o safe drinking waterpeople w/o safe drinking water• Development of Global Partnership for development Development of Global Partnership for development

(debt relief, tariffs, access to affordable meds)(debt relief, tariffs, access to affordable meds) Gapminder.orgGapminder.org

Unfulfilled commitmentsUnfulfilled commitments 1978 Pledge of “health for all by year 2000”1978 Pledge of “health for all by year 2000”

1990 World Summit for Children in 1990 - universal access to primary 1990 World Summit for Children in 1990 - universal access to primary education by 2000education by 2000

Target of 0.7 % of GNP devoted to ODATarget of 0.7 % of GNP devoted to ODA

1996 World Food Summit – goal reduce the number of hungry people by 1996 World Food Summit – goal reduce the number of hungry people by half half

• Roughly from then 800 million to 400millionRoughly from then 800 million to 400million

• Result, as of 10/2009 1.02 billion live in hungerResult, as of 10/2009 1.02 billion live in hunger

Possible SolutionsPossible Solutions

AidAid

Debt CancellationDebt Cancellation

Laws & Trade PolicyLaws & Trade Policy

Solutions - AidSolutions - Aid

Eradication of Small PoxEradication of Small Pox

• Fulfilled in 1980 by WHOFulfilled in 1980 by WHO

Campaign for Child SurvivalCampaign for Child Survival

• GOBI interventionsGOBI interventions

Green Revolution in Asia & MexicoGreen Revolution in Asia & Mexico

• HYV of crops first in Mexico then in AsiaHYV of crops first in Mexico then in Asia

Solutions - AidSolutions - AidSolutions - AidSolutions - Aid Collier estimates that 40% of Africa’s military spending is Collier estimates that 40% of Africa’s military spending is

inadvertently financed by aidinadvertently financed by aid

• In some cases it may help to prop up bad governmentsIn some cases it may help to prop up bad governments

Aid also, like natural resource revenues makes other Aid also, like natural resource revenues makes other exports uncompetitiveexports uncompetitive

Aid can be inflationaryAid can be inflationary

Far too much aid goes to middle income countries instead Far too much aid goes to middle income countries instead of the bottom billion – why? Pressure on aid agencies to of the bottom billion – why? Pressure on aid agencies to show they are doing something worthwhileshow they are doing something worthwhile

Food dumpingFood dumping

DebtDebt Poorest 49 countries debt ~$375billionPoorest 49 countries debt ~$375billion

• Africa ~$295billionAfrica ~$295billion

How did this happenHow did this happen

• 1. Odious debt1. Odious debt

• 2. Rise in interest rates during global recession & fall in commodity prices2. Rise in interest rates during global recession & fall in commodity prices

Jubilee 2000 – HIPC & MDRI initiativesJubilee 2000 – HIPC & MDRI initiatives

• Recently, World Bank & IMF estimate that more than half of the countries Recently, World Bank & IMF estimate that more than half of the countries that were included in HIPC & MDRI are now under risk to re-incur that were included in HIPC & MDRI are now under risk to re-incur unsustainable debt levelsunsustainable debt levels

Why Drop the DebtWhy Drop the Debt

• 1. Worsening of poverty1. Worsening of poverty

• 2. Odious debt2. Odious debt

Solutions - Laws & Trade PolicySolutions - Laws & Trade PolicySolutions - Laws & Trade PolicySolutions - Laws & Trade Policy

Corrupt politicians will stack their money in Corrupt politicians will stack their money in western bankswestern banks

• Solution – limiting bank secrecySolution – limiting bank secrecy

Need international standards – ex: Resource rich Need international standards – ex: Resource rich countries like Angola - a verified auctioncountries like Angola - a verified auction

• Transparency Laws – ex: EITITransparency Laws – ex: EITI

Addressing tariff & non-tariff barriers & unfair Addressing tariff & non-tariff barriers & unfair subsidiessubsidies

Cost of these are near zero – why is it not done?Cost of these are near zero – why is it not done?

Summary - Solutions

Pity may represent little more than the Pity may represent little more than the impersonal concern which prompts the impersonal concern which prompts the mailing of a check, but true sympathy is mailing of a check, but true sympathy is the personal concern which demands the personal concern which demands the giving of one's soul.the giving of one's soul.

- - Martin Luther Martin Luther

King, Jr.King, Jr.

2233

ResourcesResourcesJeffrey Sachs – The End of Poverty****Paul Collier – The bottom Billion***William Easterly – White Man’s Burden*Ted.com – Paul CollierTed.com – George Ayittey*Ted.com – Patrick AwuahTed.com – Euvin NaidooTed.com – BonoTed.com – Hans RoslingTed.com – Jacqueline NovogratzTed.com - Bjorn Lomberg Youtube.com – Intelligence squared Aid to Africa Debate***Youtube.com – Davos annual meeting 2007 – Promise of Africa***Youtube.com – Davos annual meeting 2007 – Scaling Innovation in Foreign Aid**Youtube.com – Davos Annual meeting 2008 – Bill Gateswww.globalissues.org www.globalissues.org – articles:

1. US & Foreign Aid** 2. Causes of Poverty

3. Poverty facts & stats4. Structural Adjustment**5. Third World Debt6. Food Aid

www.gapminder.org" www.gapminder.org – 1. Human Development Trends 2005***

2. Dollar Street***3. Gapminder World**

Joseph Stiglitz - Making Globalization WorkJoseph Stiglitz - Fair TradeDambisa Moyo - Dead Aidwww.copenhagenconsensus.orgwww. one.orgwww.jubileeusa.org

Our ApproachOur Approach

Mission StatementMission StatementCentral Texas & Global Poverty Central Texas & Global Poverty Relief Organization, Inc. Relief Organization, Inc. empowers victims of extreme empowers victims of extreme poverty through educating poverty through educating communities to their plight, communities to their plight, encouraging charitable encouraging charitable partnerships for their aid, and partnerships for their aid, and facilitating their movement onto facilitating their movement onto the ladder of developmentthe ladder of development

EducateEducate Attend montly educational meetingAttend montly educational meeting

~2-3 topics relating to extreme poverty will be discussed ~2-3 topics relating to extreme poverty will be discussed over a span of ~2hrsover a span of ~2hrs

Topics for future meetings will be proposed & volunteers Topics for future meetings will be proposed & volunteers may sign up for a topicmay sign up for a topic

Of course we welcome those who just want to learn & not Of course we welcome those who just want to learn & not presentpresent

Learn more about the issue of extreme Learn more about the issue of extreme poverty on your own – our website & poverty on your own – our website & resource list can be helpresource list can be help

PartnerPartner Participate in our monthly meetingsParticipate in our monthly meetings Prepare a topic to present at the meetingPrepare a topic to present at the meeting Volunteer as a presenter either in supporting or Volunteer as a presenter either in supporting or

lead rolelead role Periodically – at an intro CTGPRO meetingPeriodically – at an intro CTGPRO meeting Quarterly – at your place of workQuarterly – at your place of work

Volunteer as a background supporterVolunteer as a background supporter Findings venues where we can presentFindings venues where we can present Preparing in set-up prior to presentationsPreparing in set-up prior to presentations Helping to develop our websiteHelping to develop our website

FacilitateFacilitate Advocate applying smart aidAdvocate applying smart aid

Identify & support organizations using smart aidIdentify & support organizations using smart aid Laws & Trade policy – Identify known high yield Laws & Trade policy – Identify known high yield

policy interventionspolicy interventions Promoting debt relief when appropriatePromoting debt relief when appropriate Leading back to EducateLeading back to Educate

Endpoint: we reach that critical mass of informed citizens Endpoint: we reach that critical mass of informed citizens whereby change is possible provided we heed Edmund whereby change is possible provided we heed Edmund Burke’s warning:Burke’s warning:

All that is necessary for the triumph of evil is for good All that is necessary for the triumph of evil is for good people to do nothingpeople to do nothing

AppendixAppendix

Provisional Net ODA from DAC Donors to Developing Countries Provisional Net ODA from DAC Donors to Developing Countries

20062006

Source: Source: OECD Development Statistics OnlineOECD Development Statistics Online

Provisional Net ODA/GNI Ratios for DAC Donors 2006Provisional Net ODA/GNI Ratios for DAC Donors 2006

Source: Source: OECD Development Statistics OnlineOECD Development Statistics Online

25 Sourced & Verifiable Facts on Global Poverty

To make it on this list a statistic must be from a trusted primary source with a clear “as of” date. All statistics are sourced and cited at the bottom of the page.

1.As of 2008, 79.8% of humanity lives on less than $10 per day. (5.15 billon people) (1)

2.As of 2008, 48.6% of humanity lives on less than $2.50 per day. (3.14 billion people) (1)

3.As of 2008, 40.2% of humanity lives on less than $2 per day. (2.60 billion people) (1)

4.As of 2008, 21.7% of humanity lives on less than $1.25 per day (1.40 billion people) (1)

5.As of 2008, 13.6% of humanity lives on less than $1 per day. (880 million people) (1)

6.As of 2008, the world’s richest 20% consume 76.6% of private consumption (1)

7.As of 2008, the world’s richest 10% consume 59.9% of private consumption (1)

8.As of 2009, 25,000 children under 5 years old die each day due to poverty (2)

9.As of 2006, access to piped water into the household averages about 85% for the wealthiest 20% of the population, compared with 25% for the poorest 20%. (3)

10.As of 2007, every year there are 350–500 million cases of malaria, with 1 million fatalities: Africa accounts for 90 percent of malarial deaths and African children account for

over 80 percent of malaria victims worldwide. (4)

11.As of 2007, 1.6 billion people — a quarter of humanity — live without electricity (5)

12.As of 2007, the GDP (Gross Domestic Product) of the 41 Heavily Indebted Poor Countries (567 million people) is less than the wealth of the world’s 7 richest people combined.

(6, 7,

13.As of 2009, the poverty line in the USA for a single individual is drawn at $10,830 per annum or $29.67 per day. (9)

14.As of 2006, 10.6 million children die every year from causes that are easily preventable – equal to 29,000 children every day (10)

15.As of 2006, half of these deaths 29,000 daily deaths of children occur in just six countries – China, the Democratic Republic of the Congo, Ethiopia, India, Nigeria and Pakistan

(10)

16.As of 2006, 2 million children die every year from pneumonia and other acute respiratory infections, making it the leading cause of death of children under five years of age

(11)

17.As of 2006, 1.6 million children die every year from Diarrhoeal disease, primarily from the resulting severe dehydration that can quickly result in the failure of vital organs in

young children (11)

18.As of 2006, 1.1 million children die every year in Africa from malaria, making it the largest cause of death for children under five in Africa. (11)

19.As of 2006, 657,000 children under the age of 15 are infected with HIV every day, most through transmission of the virus from mother to baby during pregnancy, childbirth or

breastfeeding (11)

20.As of 2006, 500,000 children die every year from measles. (11)

21.As of 2008, on the whole, people are healthier, wealthier, and live longer today than 30 years ago. If children were still dying at 1978 rates, there would have been 16.2

million dealths of children globally in 2006. In fact there were only 9.5 million such deaths. This difference of 6.7 million deaths is equivalent to 18,329 children’s lives being

saved every day. (12)

22.As of 2007, each year, more than 500,000 women die from treatable or preventable complications of pregnancy and childbirth. (13)

23.As of 2007, in sub-Saharan Africa, a woman’s risk of dying from complications from childbirth over the course of her lifetime is 1 in 16, compared to 1 in 3,800 in the

developed world. (13)

24.As of 2005, an estimated 15.2 million children had lost one or both parents to AIDS (14)

25.In 2008, net disbursements of official development assistance (ODA) reached $119.8 billion. That is equivalent to 0.3 per cent of developed countries’ combined national

income. (15)