global poverty

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who were SAPs prescribed by?
World Bank and IMF from 1950s onwards
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what ideology did it follow?
neoliberalism, spearheaded by Washington Consensus
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what did SAPs entail?
poor countries to reduce spending on health/education as debt repayment made priority
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what is one of the impacts?
countries must increase their exports - often through commodities
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what % of Africa's export earnings are commodities?
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how many $ on average do poor countries pay in debt?
average of $2.30 in debt service for every $1 of aid
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example of food aid hindering in mid 1980s
84% agricultural exports to Latin America were given to local gov to sell to the people, undercut local producers
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example of natural disasters causing poverty
2 years after cyclone Nagris hit Myanmar, debt loads of fishermen have doubled
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another example of effects of natural disasters
2007, loss of soloman islands after tsunami was 95% of national budget
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international poverty line=
$1.25 a day
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second tier poverty line
$2 a day, over 2.5billion live below this, little change since 1981
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how many people does Mali have living below $1 a day
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if the line set at $2.5 a day, how many live below?
half the world's population
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for a basket of good that would cost $1 in USA
47.5% of people in SSA and 36% in South Asia couldnt afford that basket
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extreme poverty is
sometimes refered to as "poverty severity index"
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what is extreme poverty?
living on less than $1 a day, UN estimates 1 billion - "bottom billion"
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absolute poverty is
sometimes refered to as the "head count index", depends on cost of living
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what is absolute poverty?
when somebody lives below the defined poverty line, varies from country to country
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relative poverty is
sometimes refered to as "poverty gap index"
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what is relative poverty?
this refers to a band within a country, e.g the poorest 10% of a population
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how many children live in absolute poverty in SSA?
62% and 82% deprived of at least one basic need
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statistic for HDI
in 1995, health expenditure in USA highest but at least 22 other countries had better i/m rates
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sri lanka PQLI
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saudi arabia PQLI
in the 30s
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in 1960, what % of worlds population lived in countries with PQLI of less than 50
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in 1995?
only 11%
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what happened to SSA PQLI?
between 1960-1995, rose from 21 to 50
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improvements in PQLI in the poorest countries?
between 1960-1995, PQLI of poorest rose from 31 to 64
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statistiscs for reduction in global poverty
malnutrition declined by 1/3 since 1960, proportion not in primary education fallen by more than 1/4
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statistics for reduction in global poverty [2]
death rates in less developed world amongst children cut by 1/2
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negative side...evidence of poverty
1/5 in ldw still live in poverty, 1 billion illiterate, women disproportionately poorer, hiv still spread
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why did levels of poverty in south asia reduce?
due to rapid economic development, fell to only 10% in 2005 [from 60%]
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per capita income of SSA countries
7 countries grew by more than 2% a year, degree of optimism
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africa's triple whammy=
agriculture, disease and infrastructure and tech
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who were development traps proposed by?
jeremy sachs
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how many? and what are they?
refered to as Africa+, lisr of 6 development traps to explain the plight of these countries
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who in africa+ ?
haiti, bolivia, yemen
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name them
violence/conflict, bad governence, historical, environmental, natural resource and tech
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causes for optimism
OECD have set targets for aid budgets at 0.7% of GNP, some experiencing sustained growth
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causes for optimism [2]
a second 'green revolution' could improve food security, increasing fair trade
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what is possibly the biggest development for Africa?
chinese investment, in form of 'soft loans' and FDI
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soft loans to angolia fiven in exhange for 10,000 barrels of oil
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example of africa's resource deposits
50% world gold, 45% world diamonds and oil
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example of increase in investment
1995, china imports from africa less than $2,500 mill, in 2005, over $20,000
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another example
almost 800 chinese companies in 50 african countries employ 1 million acfricans
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how much is trade worth with africa?
around $100 billion
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750,000 chinese currently working in africa
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how did debt cycle start?
in 1970s, developing countries debt burdens increase
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stage 2
they took loans dfrom western banks at favourable interest rates
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stage 3
banks had lots of money as took deposits from oil-rich nations cashing in on petro-dollars
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stage 4
developing countries developed negative trade defecits, as prices of their exports dropped
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stage 5
global depression emerged
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africa's triple whammy number 2!
escalating debt repay, diminishing aid, falling commodity prices
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how much of the earnings from exports spent on debt?
up to half spent on interest payments, leaving less money for health
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who is in HIPC?
38 least developed countries, 29 in SSA
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what year?
1996, poverty made them eligible for help from world bank and IMF
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when were there further reductions?
2005 when UK held G8, given to 18 HIPCs, saving 1.5 billion
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two conditions
good financial management,money spent on healthcare and education
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in 2008, how many?
27/38, recieved $85 billion ina id,
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when were MDG?
united nations summit in september 2000, aims to be met by 2015
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how many signed up
118 member countries
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how many goals?
8 goals with 18 targets and 48 indicators to measure profress
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goal 1
eradicate extreme hunger
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goal 2
achieve universal primary education
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goal 3 and 4
promote gender equality and reduce child mortality
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goal 5
eradicate HIV/AIDS
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what did Sachs say?
idenitified 17 'quick wins' where millions lives could be saved with minimal outlay
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in order to achive aid must
double to around 1.5% GDP, in 2011, UK only country to meet their target
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41 million enrolled in primary, 2 million recieve HIV treat, economic growth 65 in SSA
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over 500,000 women died in SSA from preg complic, inadequate infra, natural disasters
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50% in poverty, obstacles to MDG include cyclone Aila, child mort reduce by 2.8%
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progress in human devel, will achive MDG by 2015, unequal devel in rural and urban
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big progress, since 2005 used poverty reduction strategy to translate global MDG to action
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Card 2


what ideology did it follow?


neoliberalism, spearheaded by Washington Consensus

Card 3


what did SAPs entail?


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Card 4


what is one of the impacts?


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Card 5


what % of Africa's export earnings are commodities?


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