Persistent Poverty in Africa:
Why and How You Can Help
Chris Barrett
Cornell University
October 12, 2012
TST BOCES New Visions Life Sciences Program
Persistent ultra-poverty
Rapid, large-scale poverty reduction is possible …
as demonstrated by a generation of rapidly falling
global poverty rates, especially in East Asia.
100
Poverty: Per Capita Expenditure < $2.50/day
95
East Asia: 1.3 b in 1981, 0.9 in 2005
% of Population
90
Africa: 320 mn in 1981, 610 in 2005
85
80
75
70
65
60
World: 2.8 bn in 1981, 3.1 in 2005
55
50
1975
1980
1985
Source: World Bank, PovCalNet
1990
1995
2000
2005
2010
But no real
progress in
sub-Saharan
Africa in the
last 25 years.
Persistent ultra-poverty
The big challenge is the persistence of
concentrated ultra-poverty … in Africa,
where it has almost doubled in a generation.
30
Ultra-poverty: Expenditure per capita < $0.62/day
25
% of Population
20
Africa: 84 mn in 1981, 143 mn in 2005
15
World: 704 mn in 1981, 221 in 2005
10
Africa is now
home to 65%
of the world’s
ultra-poor,
up from 12%.
5
South Asia: 116 mn in 1981, 47 mn in 2005
0
1975
1980
1985
1990
Source: World Bank, PovCalNet
1995
2000
2005
2010
Becoming ultra-poor
Many Are Born Poor and Stay Poor
But Why Do Others Become Poor,
Replacing Those Who Escape Poverty?
1) Health Shocks (malaria, HIV/AIDS, etc.)
2) Conflict/war
3) Natural Disasters (drought, flood)
4) Unemployment
The public and private safety nets we take for
granted rarely exist in SSA
Staying ultra-poor
Once Poor,
Why Do People Remain Poor?
- Poor early childhood health/nutrition
- Limited education
- Lack access to finance to invest in livestock,
land, improved technologies
- Underdeveloped markets
- Social exclusion (race, gender, ethnicity, etc.)
… all keep the poor from making enough to
invest in growing richer … ‘poverty traps’
“May the odds be
ever in your favor”
Who has a real shot at escaping poverty?
Under-five mortality rate = 18%
Elem. school completion rate = 48%
14-16 yr old HIV/AIDS positive = 8%
Face regular violent conflict = ~20%
… Only 20-30% have a good shot at an African
middle class life under current education, health
and security situation
.. And most face a much higher likelihood of dying a
preventable, poverty-related death (cholera,
typhoid, measles, childbirth …)
Changing the odds
How Do Some Climb/Stay Out of Poverty?
- Maintain good health: avoid illness/injury
- Education
- Some cash to invest: savings, loans, gifts,
remittances … it takes $ to make $
- Reasonable, reliable access to markets
- Peace
… Not much different from the US!
All are scalable … we can change the odds?
Why should we care?
Reasons:
Humanitarian/ethical
- Golden rule
Economic
- Future markets/suppliers
Security/geo-political
- Prospective source of insecurity
Environmental
- Conservation of forests, wildlife
Health
- Controlling pandemics
How does the world help?
Net aid given by governments:
~7.5 ¢ per day per person (overstated due to “tying”)
Private gifts (foundations, companies and individuals):
~ 6 ¢ per day per person
Develop new technologies, better institutions, smarter
policies through businesses, governments, NGOs:
- health care (incl. lower pricing by drug companies)
- improved information/communications technologies
- agricultural, water, energy, transport and other
technologies (universities/research institutes)
- policy research (universities/think tanks)
- (good) job creation by businesses
What can you do?
1) Recognize, be grateful for and make good use of
the opportunities you have here in the US! Young
Africans only dream of your opportunities.
2) Be informed and speak up to our political leaders
3) Sponsor a child, buy alternative gifts this
Christmas season, etc.
Luke 12:48: “To whom much has been given, much is
expected.”
Margaret Mead: “Never doubt that a small group of
thoughtful, committed citizens can change the
world; indeed, it's the only thing that ever has.”
“Most of the people in the world are poor, so if we knew the
economics of being poor we would know much of the economics that
really matters. Most of the world’s poor people earn their living
from agriculture, so if we knew the economics of agriculture we
would know much of the economics of being poor.”
- Theodore W. Schultz
Opening sentences of 1979 Nobel Prize in Economics lecture
Africa is the world’s most agrarian/rural continent.
Life sciences majors have uncommon capacity to help!
If you had been
born to a poor
woman in rural
Africa, what would
you want others to
do for you?
Thanks for your interest!