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THE GREAT ESCAPE
Why so much doom and gloom when things are
getting better?
DAVID HULME
Brooks World Poverty Institute
Effective States and Inclusive Development Research
Centre
Institute for Development Policy and Management
“THINGS ARE GETTING WORSE”
PUBLIC SENTIMENT IN THE WEST
ENVIRONMENTAL DEGRADATION
 The world emits 48% more carbon dioxide from the
consumption of energy now than it did in 1992
 A 2°C rise is “guaranteed” within one generation
 Beyond a 2°C rise, climate change is likely to have
catastrophic and irreversible effects
 Forest destruction and ocean pollution continues
INEQUALITY
Today, 80 people own as
much wealth as half the
world’s population and in
the next year the combined
wealth of the richest 1%
will overtake that of the
other 99% of people
EXCLUSION
21 million men, women
and children around the
world are in a form of
slavery
• Gender
• Ethnicity
• Race
• Religion
• Disability
“THINGS ARE GETTING BETTER”
THE GREAT ESCAPE?
RISING INCOMES
 Global real GDP per capita has risen by 320%
between 1950 and 2010 ($3,500 to $11,200)
 GDP per capita in UK has risen by over 500%
between 1950 and 2010 ($6,939 to $36,320)
STRONGER POVERTY REDUCTION
STRONGER POVERTY REDUCTION
The extreme poverty rate has been halved, but major challenges remain
Proportion of people living on less than $1.25 a day, 1990 and 2010
LONGER LIFE EXPECTANCY
Greater gender equality
Primary school net enrolment rates by sex and region
1999 and 2007
THE CASE OF BANGLADESH
GDP per Capita Bangladesh 1970 - 2010
$0
$1,000
$500
1970 2010
MORE ON BANGLADESH
WHY ARE THINGS GETTING BETTER?
“IT’S THE ECONOMY, STUPID!”
 Growth - Global GDP per capita
has increased by 320% since
1950
 Extreme poverty ($1.25 a day)
worldwide reduced by half
 1990-2010: From 47% to 22% in
developing countries
 700 million people lifted out of
extreme poverty
 But are growth and free trade
really all you need?
“IT’S SOCIAL POLICY, STUPID!”
“IT’S THE POLITICS, STUPID!”
1980….Anocracy and Autocracy Rule!
“IT’S THE POLITICS, STUPID!”
2012….Democracy (and Anocracy) rule!
“IT’S THE CONVERSATIONS, STUPID!”
 Creation of useful knowledge
(especially public knowledge)
and its diffusion
 People talking about washing
hands (lowers infant
mortality), about simple
book-keeping (raises
productivity) – using mobiles
(increases connectivity and
access to information)
OK THEN… WHY SO GLOOMY?
THE MISINFORMED
 The nature of contemporary media:
 Sensationalism
 Rolling news
 Focus on all that is bad
 Example 1 - Bangladesh
 Example 2 – University of Manchester PhD
students:
 More than 50% of broadsheet coverage of the last
10 years was kidnap and death of Linda Norgrove
THE INFORMED – OUTRAGE
 Slow pace of progress given the affluent world in
which we live
 Reallocation of less than 1% GDP would erradicate all
extreme poverty
 If focused, the technological and organizational
capabilities of humanity would permit total MDG
achievement
 Moral requirement to do better and do more
 Hence the need for OUTRAGE!
THE INFORMED – NEW CHALLENGES
 Spiralling inequality
 Number of millionaires worldwide is to increase by
about 53% in the next five years, to 53.2 million
 By 2016 the top 1% will be richer than the rest of the
world combined
 Ineffectiveness of institutions regulating
international finance
 In Africa, for every $1 of aid that enters the
continent, $10 of illicit finance / resources leaves
the continent
THE INFORMED – NEW CHALLENGES
Inequality…
 Slows down poverty
reduction
 Undermines the evolution of
democracy and effective
institutions
 Facilitates Regulatory Capture
WHAT CAN WE DO
Do not despair.
Do not be complacent.
Think and act!
AT MANCHESTER
 Create policy relevant knowledge
 Coproduce this knowledge with our partners
 Shift from poverty reduction focus to reducing
poverty and inequality worldwide and
promoting climate justice
 Communicate this knowledge to policy elite in
the rich and poor worlds
 Raise public understanding of global
development
PERSONAL CHOICES
 Make contributions to an NGO:
 humanitarian (Médecin Sans Frontiers)
 development (Oxfam or SCI)
 human rights (Amnesty International)
 radical-campaigning (War on Want)
 even Southern (BRAC International).
 Find ways of reducing your personal carbon footprint
 Buy fair trade products and let retailers know this is your
preference
 Ask your pension fund about ethical investment
PERSONAL CHOICES
 Think about your views on development issues
 Think about whether you support multilateralism
and agencies such as the UN when talking with
others
 Use your personal networks – social groups,
mosque, church, temple, choir and friends – to
discuss ideas about “what should be done”
 Question your constituency candidates
….become an activist?
CONCLUSION
THINGS ARE GETTING BETTER
THE SKY IS NOT FALLING DOWN!
WE HAVE TO DO MUCH BETTER
Brooks World Poverty Institute
http://www.bwpi.manchester.ac.uk/
Institute for Development Policy and Management
http://www.manchester.ac.uk/idpm/
Effective States and Inclusive Development Research Centre
http://www.effective-states.org/
Humanitarian and Conflict Response Institute
http://www.hcri.manchester.ac.uk/
Chronic Poverty Research Centre
http://www.chronicpoverty.org/
International Research Initiative on Brazil and Africa
http://www.brazil4africa.org/

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David Hulme: Why so much doom and gloom when things are getting better and better?

  • 1. THE GREAT ESCAPE Why so much doom and gloom when things are getting better? DAVID HULME Brooks World Poverty Institute Effective States and Inclusive Development Research Centre Institute for Development Policy and Management
  • 4. ENVIRONMENTAL DEGRADATION  The world emits 48% more carbon dioxide from the consumption of energy now than it did in 1992  A 2°C rise is “guaranteed” within one generation  Beyond a 2°C rise, climate change is likely to have catastrophic and irreversible effects  Forest destruction and ocean pollution continues
  • 5. INEQUALITY Today, 80 people own as much wealth as half the world’s population and in the next year the combined wealth of the richest 1% will overtake that of the other 99% of people
  • 6. EXCLUSION 21 million men, women and children around the world are in a form of slavery • Gender • Ethnicity • Race • Religion • Disability
  • 9. RISING INCOMES  Global real GDP per capita has risen by 320% between 1950 and 2010 ($3,500 to $11,200)  GDP per capita in UK has risen by over 500% between 1950 and 2010 ($6,939 to $36,320)
  • 11. STRONGER POVERTY REDUCTION The extreme poverty rate has been halved, but major challenges remain Proportion of people living on less than $1.25 a day, 1990 and 2010
  • 13. Greater gender equality Primary school net enrolment rates by sex and region 1999 and 2007
  • 14. THE CASE OF BANGLADESH GDP per Capita Bangladesh 1970 - 2010 $0 $1,000 $500 1970 2010
  • 16. WHY ARE THINGS GETTING BETTER?
  • 17. “IT’S THE ECONOMY, STUPID!”  Growth - Global GDP per capita has increased by 320% since 1950  Extreme poverty ($1.25 a day) worldwide reduced by half  1990-2010: From 47% to 22% in developing countries  700 million people lifted out of extreme poverty  But are growth and free trade really all you need?
  • 19. “IT’S THE POLITICS, STUPID!” 1980….Anocracy and Autocracy Rule!
  • 20. “IT’S THE POLITICS, STUPID!” 2012….Democracy (and Anocracy) rule!
  • 21.
  • 22. “IT’S THE CONVERSATIONS, STUPID!”  Creation of useful knowledge (especially public knowledge) and its diffusion  People talking about washing hands (lowers infant mortality), about simple book-keeping (raises productivity) – using mobiles (increases connectivity and access to information)
  • 23. OK THEN… WHY SO GLOOMY?
  • 24. THE MISINFORMED  The nature of contemporary media:  Sensationalism  Rolling news  Focus on all that is bad  Example 1 - Bangladesh  Example 2 – University of Manchester PhD students:  More than 50% of broadsheet coverage of the last 10 years was kidnap and death of Linda Norgrove
  • 25. THE INFORMED – OUTRAGE  Slow pace of progress given the affluent world in which we live  Reallocation of less than 1% GDP would erradicate all extreme poverty  If focused, the technological and organizational capabilities of humanity would permit total MDG achievement  Moral requirement to do better and do more  Hence the need for OUTRAGE!
  • 26. THE INFORMED – NEW CHALLENGES  Spiralling inequality  Number of millionaires worldwide is to increase by about 53% in the next five years, to 53.2 million  By 2016 the top 1% will be richer than the rest of the world combined  Ineffectiveness of institutions regulating international finance  In Africa, for every $1 of aid that enters the continent, $10 of illicit finance / resources leaves the continent
  • 27. THE INFORMED – NEW CHALLENGES Inequality…  Slows down poverty reduction  Undermines the evolution of democracy and effective institutions  Facilitates Regulatory Capture
  • 29. Do not despair. Do not be complacent. Think and act!
  • 30. AT MANCHESTER  Create policy relevant knowledge  Coproduce this knowledge with our partners  Shift from poverty reduction focus to reducing poverty and inequality worldwide and promoting climate justice  Communicate this knowledge to policy elite in the rich and poor worlds  Raise public understanding of global development
  • 31.
  • 32. PERSONAL CHOICES  Make contributions to an NGO:  humanitarian (Médecin Sans Frontiers)  development (Oxfam or SCI)  human rights (Amnesty International)  radical-campaigning (War on Want)  even Southern (BRAC International).  Find ways of reducing your personal carbon footprint  Buy fair trade products and let retailers know this is your preference  Ask your pension fund about ethical investment
  • 33. PERSONAL CHOICES  Think about your views on development issues  Think about whether you support multilateralism and agencies such as the UN when talking with others  Use your personal networks – social groups, mosque, church, temple, choir and friends – to discuss ideas about “what should be done”  Question your constituency candidates ….become an activist?
  • 35. THINGS ARE GETTING BETTER THE SKY IS NOT FALLING DOWN! WE HAVE TO DO MUCH BETTER
  • 36. Brooks World Poverty Institute http://www.bwpi.manchester.ac.uk/ Institute for Development Policy and Management http://www.manchester.ac.uk/idpm/ Effective States and Inclusive Development Research Centre http://www.effective-states.org/ Humanitarian and Conflict Response Institute http://www.hcri.manchester.ac.uk/ Chronic Poverty Research Centre http://www.chronicpoverty.org/ International Research Initiative on Brazil and Africa http://www.brazil4africa.org/

Editor's Notes

  1. Key stats: The world has reduced extreme poverty by half: In 1990, almost half of the population in developing regions lived on less than $1.25 a day. This rate dropped to 22 per cent by 2010, reducing the number of people living in extreme poverty by 700 million. Stats and growth/poverty overlap – Dani Rodrik (http://www.imf.org/external/pubs/ft/fandd/2000/12/rodrik.htm): ‘Experience has shown, however, that growth and poverty reduction go largely hand in hand. The questions we should be asking are (1) what kinds of policies lead to both growth and poverty reduction? and (2) would a poverty focus facilitate the adoption of such policies?’ […] In theory, a country could enjoy a high average growth rate without any benefit to its poorest households if income disparities grew significantly—in other words, if the rich got richer while the incomes of the poor stagnated or declined. This outcome is rare, however; income distribution (for example, as measured by the Gini coefficient) tends to be stable over time within countries. Moreover, to the extent that income distribution changes, its relationship to economic growth varies from country to country. Growth has been accompanied by greater equality of income in Bangladesh, Egypt, and Taiwan Province of China, for example, but by greater inequality in Chile, China, and Poland. This suggests that the magnitude of the poverty reduction payoff from growth depends, in part, on a country's specific circumstances and policies.’ What does a high correlation between growth and the incomes of the poor tell us? Practically nothing, for the reasons outlined above. All it shows is that income distribution tends to be stable and fairly unresponsive to policy changes
  2. Thomas Pogge defines his idea of a Global Resource Dividend as follows: “states and their governments shall not have full libertarian property rights with respect to the natural resources in their territory, but can be required to share a small part of the value of any resources they decide to use or sell.” ‘Having initially called it a tax, he has come to refer to the payment they must make as a dividend “because it is based on the idea that the global poor own an inalienable stake in all limited resources. As in the case of preferred stock, this stake confers no right to participate in decisions about whether or how natural resources are to be used and so does not interfere with national control over resources, or eminent domain. But it does entitle its holders to a share of the economic value of the resource in question, if indeed the decision is to use it.” Proceeds from the GRD are to be used in the relief of the worst extremes of global poverty, with the aim of ensuring that all human beings can meet their own basic needs with dignity. Pogge does not believe that an impossibly large amount would need to be raised, and speaks of an initial maximal figure of 1 per cent of aggregate global income. Such a sum could be raised, he argues, by targeting a small range of selectively chosen resources.’ (Pogge, T. (2002) World Poverty and Human Rights, (Cambridge: Polity Press) pp.196-7 and on the 1% figure – p.205; cited in Hayward, Tim (no date) ‘Thomas Pogge’s Global Resources Dividend: a critique and an alternative’ Journal of Moral Philosophy Vol.2.3: 317-332, https://www.era.lib.ed.ac.uk/bitstream/1842/914/3/Hayward-on-Pogge.pdf)  
  3. Credit Suisse report 2014: The number of millionaires worldwide is to increase by about 53% in the next five years, reaching 53.2 million in 2019’ and ‘Wealth inequality has increased since 2008, especially in emerging economies like China and India.’ Oxfam: ‘By 2016 the top 1% will be richer than the rest of the world combined’