Jeffrey Sachs: Ending Poverty in Our Generation

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Wednesday, October 13, 2010
Jeffrey Sachs
Director, Columbia University Earth Institute
“Ending Poverty in Our Generation: Still Time if We Try”

Ending extreme poverty is not a dream but a practical possibility. Improvements in science, technology, and global networks make possible advances in wellbeing at unprecedented rates. Yet a high degree of social organization is needed for success. Sachs will sketch the main contours of an effective global effort against poverty, hunger, and disease to the year 2025.

Sponsored by the Rockefeller Center for Public Policy at Dartmouth College
http://rockefeller.dartmouth.edu

Published in: News & Politics, Technology
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Jeffrey Sachs: Ending Poverty in Our Generation

  1. 1. Ending Poverty In Our Generation: Still Time if We Try Prof. Jeffrey D. Sachs Director of the Earth Institute at Columbia University Rockefeller Center for Public Policy and Civic Leadership Dartmouth College October 13, 2010
  2. 4. <ul><li>The Poverty Trap: </li></ul><ul><li>Income is below subsistence </li></ul><ul><li>Saving is zero or negative </li></ul><ul><li>Population growth, climate change, environmental </li></ul><ul><li>degradation, poor governance, and conflict </li></ul><ul><li>are all leading to further decline </li></ul><ul><li>The Solution: </li></ul><ul><li>Targeted Investments to End the Poverty Trap </li></ul><ul><li>Raise income and saving, reduce population growth, reverse </li></ul><ul><li>environmental degradation, and create self-sustaining growth </li></ul><ul><li>The Millennium Development Goal Strategy </li></ul>
  3. 5. A Parable of a Millennium Village Subsistence is $300 per person Initial Income (Output) is $200 per person (“sub-subsistence”) Saving is zero when income is below subsistence ($300) Saving is 50% of net income above subsistence ($300) Improved inputs (fertilizer-seed) raise net income by $2.50 for each $1 of input up to a maximum of $250 of inputs All saving is devoted to agriculture inputs up to $250 All saving beyond $250 is devoted to capital improvements with marginal productivity of 0.3
  4. 6. Three Scenarios: No Official Development Assistance (ODA): Poverty Trap Two-Year ODA for inputs: Temporary boost to income, not sustainable Four-Year ODA for inputs: Boost to income is sustainable After four years, the household has built up income sufficiently to self-finance inputs on an ongoing basis
  5. 7. ODA Levels in Three Scenarios
  6. 8. Income Levels in Three Scenarios
  7. 9. Household Saving in the Three Scenarios
  8. 10. Input Use: Sustainable Input Use with Four-Year Input Subsidies
  9. 12. Africa is a big and diverse continent!
  10. 13. Five Core Interventions <ul><li>Food production: Agricultural inputs </li></ul><ul><li>Access to primary education (school meals, IT) </li></ul><ul><li>Access to health care </li></ul><ul><li>Access to infrastructure: roads, electricity, telephony and IT communication, safe water and sanitation, irrigation </li></ul><ul><li>Business development </li></ul><ul><li>Built on Community-Led Development and Local Professional Management </li></ul>
  11. 14. <ul><li>AGRICULTURE </li></ul><ul><li>Fertilizer </li></ul><ul><li>High-yield Seeds </li></ul><ul><li>Treadle Pumps and Supplemental Irrigation </li></ul><ul><li>Agricultural extension </li></ul><ul><li>HEALTH </li></ul><ul><li>Construction of clinics (Level 3) </li></ul><ul><li>Upgrading hospitals (Level 4) </li></ul><ul><li>Medical supplies </li></ul><ul><li>Improved staffing and salaries for health workers </li></ul><ul><li>Training of Community Health Workers </li></ul><ul><li>Improving access to family planning services </li></ul><ul><li>EDUCATION </li></ul><ul><li>Construction of high-quality classrooms </li></ul><ul><li>Books and supplies </li></ul><ul><li>Teacher training </li></ul><ul><li>Mid-Day Meals </li></ul><ul><li>Computers </li></ul><ul><li>Internet connectivity in some schools </li></ul><ul><li>School-to-School Program </li></ul><ul><li>INFRASTRUCTURE </li></ul><ul><li>Extending Cell phone coverage throughout the village </li></ul><ul><li>Internet connectivity in schools, health centers </li></ul><ul><li>Road grading, road construction </li></ul><ul><li>Increasing access to water resources, innovative electrical systems </li></ul>TARGET SECTORS AND EXAMPLES OF INTERVENTION STRATEGIES
  12. 17. FUNDING STRUCTURE Source: Earth Institute, Millennium Promise Donors Partner organizations (e.g. NGOs, corporate) Local and National Governments Village members $60 $20 $30 $10 Village costs per person per yr US dollars
  13. 18. Outcomes in Sauri, Kenya Comparison of 2005 and 2009
  14. 19. Harvests of Development, 2010, www.millenniumvillages.org
  15. 24. Mwandama, Malawi
  16. 25. Sauri, Kenya
  17. 26. Sauri, Kenya
  18. 27. Mayange, Rwanda
  19. 28. Bonsaaso, Ghana
  20. 30. THE MILLENNIUM DEVELOPMENT GOALS <ul><li>Eradicate extreme poverty and hunger </li></ul><ul><li>Achieve universal primary education </li></ul><ul><li>Promote gender equality and empower women </li></ul><ul><li>Reduce child mortality </li></ul><ul><li>Improve maternal health </li></ul><ul><li>Combat HIV/AIDS, malaria and other diseases </li></ul><ul><li>Ensure environmental sustainability </li></ul><ul><li>Develop a global partnership for development </li></ul>
  21. 31. Note that 7 million of the 8.8 million deaths occurred in Sub-Saharan Africa and South Asia
  22. 32. The Lift-Off Since 2000 in Global Financing for Health (yet still only one-third of recommended levels) Source: OECD Development Assistance Committee
  23. 34. Some Choices for America
  24. 38. Towards a Global Ethic
  25. 40. “ So let us not be blind to our differences, but let us also direct attention to our common interests and the means by which those differences can be resolved. And if we cannot end now our differences, at least we can help make the world safe for diversity. For in the final analysis, our most basic common link is that we all inhabit this small planet. We all breathe the same air. We all cherish our children's futures. And we are all mortal.” John F. Kennedy American University June 10, 1963

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