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

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

4. The Poverty Trap:
Income is below subsistence
Saving is zero or negative
Population growth, climate change, environmental
degradation, poor governance, and conflict
are all leading to further decline
The Solution:
Targeted Investments to End the Poverty Trap
Raise income and saving, reduce population growth, reverse
environmental degradation, and create self-sustaining growth
The Millennium Development Goal Strategy

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

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

7. ODA Levels in Three Scenarios

8. Income Levels in Three Scenarios

9. Household Saving in the Three Scenarios

10. Input Use: Sustainable Input Use with Four-Year Input Subsidies

12. Africa is a big and
diverse continent!

13. Five Core Interventions
• Food production: Agricultural inputs
• Access to primary education (school meals, IT)
• Access to health care
• Access to infrastructure: roads, electricity,
telephony and IT communication, safe water and
sanitation, irrigation
• Business development
Built on Community-Led Development and Local
Professional Management

14. AGRICULTURE
• Fertilizer
• High-yield Seeds
• Treadle Pumps and
Supplemental Irrigation
• Agricultural extension
HEALTH
• Construction of clinics (Level 3)
• Upgrading hospitals (Level 4)
• Medical supplies
• Improved staffing and salaries
for health workers
• Training of Community Health
Workers
• Improving access to family
planning services
EDUCATION
• Construction of high-quality classrooms
• Books and supplies
• Teacher training
• Mid-Day Meals
• Computers
• Internet connectivity in some schools
• School-to-School Program
INFRASTRUCTURE
• Extending Cell phone coverage
throughout the village
• Internet connectivity in schools, health
centers
• Road grading, road construction
• Increasing access to water resources,
innovative electrical systems
TARGET SECTORS AND EXAMPLES OF INTERVENTION STRATEGIES

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

18. Outcomes in
Sauri, Kenya
Comparison
of 2005 and
2009

19. Harvests of Development, 2010, www.millenniumvillages.org

20. 0
5
10
15
20
25
30
35
40
45
50
2006 Q3, 2007 Q4, 2007 Q1, 2008 Q2, 2008 Q3, 2008 Q4, 2008
Institutional Deliveries in Ruhiira cluster (% of total births)
Institutional Deliveries inUganda cluster (% of total births)

21. 1.6
1.7
1.8
1.9
2
2.1
2.2
2007 2008
Utilizationrates ofhealthclinics inRuhiira Cluster (No. ofvisits per personper year)

24. Mwandama, Malawi

25. Sauri, Kenya

26. Sauri, Kenya

27. Mayange, Rwanda

28. Bonsaaso, Ghana

30. THE MILLENNIUM DEVELOPMENT GOALS
1. Eradicate extreme poverty and
hunger
2. Achieve universal primary
education
3. Promote gender equality and
empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria and
other diseases
7. Ensure environmental
sustainability
8. Develop a global partnership for
development

31. Note that
7 million of the
8.8 million deaths
occurred in
Sub-Saharan
Africa and
South Asia

32. The Lift-Off Since 2000 in Global Financing for Health
(yet still only one-third of recommended levels)
Source: OECD Development Assistance Committee

34. Some Choices for America

36. Figure 12.3: Pentagon Spending and Malaria
Needs
0
0.5
1
1.5
2
2.5
3
3.5
Two Days'
Pentagon
Spending (FY 2007)
Malaria Control for
Africa (annual)
Bed Nets for all
African Sleeping
Sites (five years'
coverage)
President's Malaria
Budget (FY 2007)
BillionsofU.S.$
Source: Data from Congressional Budget Office (2007) and Teklehaimanot, McCord and Sachs (2007)

38. Towards a Global Ethic

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