Hannah Wasserman, Stacy Kim, James Wright and
              Chris Yamamoto
How, Why and What we can Do
• Almost half the world (3 billion+) live on less than
  $2.50 a day
• 3 of every 4 living on less than US$1/day live in
  rural areas
• 22,000 children die each day due to poverty
• For every $1 in aid a developing country receives,
  over $25 is spent on debt repayment
• 1998 global spending
   o US$17 billion on pet foods in Europe & the US
   o ~US$6 billion basic education for all
   o ~US$9 billion water & sanitation for all
   o ~US$12 billion reproductive health for all
     women
   o ~US$13 billion basic health and nutrition
• Visualize poverty
   o   http://povertydata.worldbank.org/poverty/home/
• Definition: The       • Absolute:
  state or condition      struggling to have
  of having little or     basic needs
  no money, goods,        (food, clothing, he
  or means of             althcare, shelter)
  support               • Relative: being
                          below a certain
                          threshold, compar
                          ed to others;
                          similar to income
                          inequality
• Structural adjustment
   o   Economic structure reshaped to ensure repayment of
       debt
• International aid
   o   Drives local farmers out of the market
• Food and agriculture issues
   o   Food prices
   o   Land conditions & natural disasters
• Corruption
   o   Centralization of power
• Warfare
• Colonization
• The poverty trap
   o   When poverty is high, the poor have no way of
       getting out of the mess
Economic conditions
• Food productivity
• Employment and sharing of benefits
• Technology



Social conditions
•   Food & water
•   Health
•   Education
•   Housing


Political conditions
• Leadership
• Citizen participation/empowermen
• http://www.povertyover.org/
• A farm family's income/capita can
  increase by:
   o Saving
   o Trade
   o Technology
   o Resource Boom
• Social mobility is crucial in order for
  individuals to maintain a standard
  of living above the poverty line
Where, How and Who’s Fighting Against it
Cultural
• Gender
• Race/Ethnicic   Income
 MDG Goal 3: Promote Gender Equality and
  Empower Women
   Eliminate gender disparity in primary and
    secondary education by 2005 and all levels of
    education no later than 2015

 Where do we stand?

 The Girl Effect
The Girl Effect


                                         In Nicaragua, 45 percent
                                         of girls with no schooling
  Today, more than 600
                                        are married before age 18
  million girls live in the
                                        versus only 16 percent of
    developing world.
                                               their educated
                                                counterparts.



                                             When a girl in the
  Approximately one-                     developing world receives
   quarter of girls in                     seven or more years of
developing countries are                   education, she marries
     not in school                        four years later and has
                                             2.2 fewer children



                                         An extra year of primary
                                            school boosts girls’
  Out of the world’s 130
                                         eventual wages by 10 to
   million out-of-school
                                        20 percent. An extra year
youth, 70 percent are girls
                                        of secondary school: 15 to
                                                25 percent
More than 80% of the world live in
  countries with an increasing income gap

                                                                               The richest 20%
  The poorest 40% of the world account                                         account for 75%
   for the only 5% of the global income                                          of the world
                                                                                   income

                                                                                An analysis of long-term trends
                                                                               shows the distance between the
                                                                              richest and poorest countries was
  GDP of the 41 HIPC (567 million        The wealthiest nation on earth has                  about:
people) is less than the wealth of the    the widest gap between rich and
 world's 7 richest people combined        poor of any industrialized nation              3 to 1 in 1820
                                                                                        44 to 1 in 1973
                                                                                        72 to 1 in 1992
 Inequality Within Countries
  Economic Distribution
  Poverty in the midst of growth
  Western Inequality [Video]
• Inequality Between Countries
 • Post WWII
 • Globalization
o   Global Occupy Movement
o   World Economic Forum
Why does this happen?
  •    http://www.mtholyoke.edu/acad/intrel/globdebt.htm
Growth over time
  • Uncontrollable circumstances
      o Natural disasters
      o Collapse of markets for exports
      o Sudden rise in interest rates
      o Fluctuations in exchange rates
      o Decreases in income
      o Currency may depreciate
      o Global markets are volatile
  • Examples: Argentina, Moldova
If we write off the debt, what happens?
  • "Debt forgiveness"
  • There are three options a country has when it is unable to
     remedy their debt:
      o Debt forgiveness
      o Debt restructuring
      o Default
What have been strategies
Debt->Poverty-           Debt->Poverty-
     >Inequality              >Inequality


 Debt inhibits growth    Results in inequality
  and interest rate        and poverty because
  fluctuates.              not fair amount of
                           resources and
 Vicious cycle that       programs
  continues throughout
  time
                          The rich can afford
 Debt results in less     the poor cant.
  money spent on
  educational, health     EXAMPLE
  and government
  programs for people.    Haiti debt
Millennium          • Goals for year 2015
 Development Goals

                        • High growth without great
 “East Asian Miracle”
                          Inequality

                        • Macro Credit or Micro Credit
Income Redistribution

Education Government • AR, WM, IRD and NRM Projects
 and Health Reforms

                        • Cancellation of Debt
    Jubilee 2000
Goals                      Pitfalls

 Relieve Hunger and        Trying to take on to
  Poverty                    much to soon
 Universal Education       Some Countries on
  For all                    track while others no
 Reduce Child Mortality     progress




http://www.youtube.com/
   watch?v=v3p2VLTowA
   A
 High growth without great Inequality because…….
   Getting Fundamentals Right
   Export push policies
   Free trade, free capital market and limited
    government intervention

 Downfalls
   Susceptible to financial crisis
   Could lead to great inequality
  After hearing the finding what is your opinion do we
     need
  limited government intervention or increased
     government at
  the local level? State? Federal? In developing
     countries?
Many argue that the redistribution of wealth from the
rich to the poor will create equality across the board.


  Macro               • Macro Credit: Trickle
                        Down
Credit and            • Micro Credit: Trickle up
Micro Credit

                      • Micro Finance:
    Micro               Financial Service to low
   Finance              income. Loan service
 Water Management Project

 Agricultural Research projects
 Integrated Rural Development

 Education
  Universal Education until you are 18 provided
   by the government?

 Government
  Must pass Ethics and morality test?
 Initially spread through church initiatives

 G8
   US, UK, Canada, Japan, Germany, France, Italy,
    and Russia

 Congress committed 769 million to debt relief

 How responsible are church organizations in
  recognizing and addressing issues around
  the world? What role should they have in
  addressing poverty, inequality and debt
 Imagine you have recently been elected into
  office in an underdeveloped country. You have a
  choice to try to alleviate Poverty, Inequality or
  Debt. Which one do you choose and write out 5
  steps you take to address the issue. What
  organizations do you get involved with? How
  much money do you allocate? How long will the
  process take? What made helped you make
  your decision on which are to choose?
 Need GOOD government

 Meet basic human needs for all

 Use of technology

 Communication between government and
  People

 NGO, NPO, Citizen appointed Commissions
 Is it possible to end poverty, inequality or
  debt? Is it possible to end either of the
  three?

 What will it take to get leaders around the
  world to unite by creating a clear plan and
  IMPLEMENTING it into our everyday lives?

Poverty inequality and debt

  • 1.
    Hannah Wasserman, StacyKim, James Wright and Chris Yamamoto
  • 2.
    How, Why andWhat we can Do
  • 3.
    • Almost halfthe world (3 billion+) live on less than $2.50 a day • 3 of every 4 living on less than US$1/day live in rural areas • 22,000 children die each day due to poverty • For every $1 in aid a developing country receives, over $25 is spent on debt repayment • 1998 global spending o US$17 billion on pet foods in Europe & the US o ~US$6 billion basic education for all o ~US$9 billion water & sanitation for all o ~US$12 billion reproductive health for all women o ~US$13 billion basic health and nutrition • Visualize poverty o http://povertydata.worldbank.org/poverty/home/
  • 4.
    • Definition: The • Absolute: state or condition struggling to have of having little or basic needs no money, goods, (food, clothing, he or means of althcare, shelter) support • Relative: being below a certain threshold, compar ed to others; similar to income inequality
  • 5.
    • Structural adjustment o Economic structure reshaped to ensure repayment of debt • International aid o Drives local farmers out of the market • Food and agriculture issues o Food prices o Land conditions & natural disasters • Corruption o Centralization of power • Warfare • Colonization • The poverty trap o When poverty is high, the poor have no way of getting out of the mess
  • 6.
    Economic conditions • Foodproductivity • Employment and sharing of benefits • Technology Social conditions • Food & water • Health • Education • Housing Political conditions • Leadership • Citizen participation/empowermen
  • 7.
    • http://www.povertyover.org/ • Afarm family's income/capita can increase by: o Saving o Trade o Technology o Resource Boom • Social mobility is crucial in order for individuals to maintain a standard of living above the poverty line
  • 8.
    Where, How andWho’s Fighting Against it
  • 9.
  • 10.
     MDG Goal3: Promote Gender Equality and Empower Women  Eliminate gender disparity in primary and secondary education by 2005 and all levels of education no later than 2015  Where do we stand?  The Girl Effect
  • 11.
    The Girl Effect In Nicaragua, 45 percent of girls with no schooling Today, more than 600 are married before age 18 million girls live in the versus only 16 percent of developing world. their educated counterparts. When a girl in the Approximately one- developing world receives quarter of girls in seven or more years of developing countries are education, she marries not in school four years later and has 2.2 fewer children An extra year of primary school boosts girls’ Out of the world’s 130 eventual wages by 10 to million out-of-school 20 percent. An extra year youth, 70 percent are girls of secondary school: 15 to 25 percent
  • 14.
    More than 80%of the world live in countries with an increasing income gap The richest 20% The poorest 40% of the world account account for 75% for the only 5% of the global income of the world income An analysis of long-term trends shows the distance between the richest and poorest countries was GDP of the 41 HIPC (567 million The wealthiest nation on earth has about: people) is less than the wealth of the the widest gap between rich and world's 7 richest people combined poor of any industrialized nation 3 to 1 in 1820 44 to 1 in 1973 72 to 1 in 1992
  • 15.
     Inequality WithinCountries  Economic Distribution  Poverty in the midst of growth  Western Inequality [Video] • Inequality Between Countries • Post WWII • Globalization
  • 17.
    o Global Occupy Movement o World Economic Forum
  • 19.
    Why does thishappen? • http://www.mtholyoke.edu/acad/intrel/globdebt.htm Growth over time • Uncontrollable circumstances o Natural disasters o Collapse of markets for exports o Sudden rise in interest rates o Fluctuations in exchange rates o Decreases in income o Currency may depreciate o Global markets are volatile • Examples: Argentina, Moldova If we write off the debt, what happens? • "Debt forgiveness" • There are three options a country has when it is unable to remedy their debt: o Debt forgiveness o Debt restructuring o Default What have been strategies
  • 20.
    Debt->Poverty- Debt->Poverty- >Inequality >Inequality  Debt inhibits growth  Results in inequality and interest rate and poverty because fluctuates. not fair amount of resources and  Vicious cycle that programs continues throughout time  The rich can afford  Debt results in less the poor cant. money spent on educational, health  EXAMPLE and government programs for people.  Haiti debt
  • 21.
    Millennium • Goals for year 2015 Development Goals • High growth without great “East Asian Miracle” Inequality • Macro Credit or Micro Credit Income Redistribution Education Government • AR, WM, IRD and NRM Projects and Health Reforms • Cancellation of Debt Jubilee 2000
  • 22.
    Goals Pitfalls  Relieve Hunger and  Trying to take on to Poverty much to soon  Universal Education  Some Countries on For all track while others no  Reduce Child Mortality progress http://www.youtube.com/ watch?v=v3p2VLTowA A
  • 23.
     High growthwithout great Inequality because…….  Getting Fundamentals Right  Export push policies  Free trade, free capital market and limited government intervention  Downfalls  Susceptible to financial crisis  Could lead to great inequality After hearing the finding what is your opinion do we need limited government intervention or increased government at the local level? State? Federal? In developing countries?
  • 24.
    Many argue thatthe redistribution of wealth from the rich to the poor will create equality across the board. Macro • Macro Credit: Trickle Down Credit and • Micro Credit: Trickle up Micro Credit • Micro Finance: Micro Financial Service to low Finance income. Loan service
  • 25.
     Water ManagementProject  Agricultural Research projects  Integrated Rural Development  Education  Universal Education until you are 18 provided by the government?  Government  Must pass Ethics and morality test?
  • 26.
     Initially spreadthrough church initiatives  G8  US, UK, Canada, Japan, Germany, France, Italy, and Russia  Congress committed 769 million to debt relief  How responsible are church organizations in recognizing and addressing issues around the world? What role should they have in addressing poverty, inequality and debt
  • 27.
     Imagine youhave recently been elected into office in an underdeveloped country. You have a choice to try to alleviate Poverty, Inequality or Debt. Which one do you choose and write out 5 steps you take to address the issue. What organizations do you get involved with? How much money do you allocate? How long will the process take? What made helped you make your decision on which are to choose?
  • 28.
     Need GOODgovernment  Meet basic human needs for all  Use of technology  Communication between government and People  NGO, NPO, Citizen appointed Commissions
  • 29.
     Is itpossible to end poverty, inequality or debt? Is it possible to end either of the three?  What will it take to get leaders around the world to unite by creating a clear plan and IMPLEMENTING it into our everyday lives?