UniversityMVConsortiumJune2006

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The Role of the Universities

In the Millennium Villages Project

Jeffrey D. Sachs

June 5, 2006

Severe malaria

Severe malaria

COUNTRIES REQUIRING URGENT EXTERNAL ASSISTANCE

(Total: 27 countries)

FAO/GIEWS December 2005

CORRUPTION LEVELS COMPARABLE TO ASIA

Economic Growth

1990-2003

Africa

Asia

8.0

4.0

2.0

Decreasing Corruption Increasing Corruption

Demographic Comparison of South Asia and

Sub-Saharan Africa

20

15

10

5

0

U5 Mortality

(per 100)

Total Fertility

Rate

Pop Growth

(2003-2015)

Africa

South Asia

THREE GREAT CHALLENGES

•Green Revolution

•Health Revolution

•Connectivity Revolution

GREEN REVOLUTION:

Seed, Soils, Water, Climate, Pathogens

FAO Index of Net Food Output per Capita, 1961-2000

160

150

140

130

120

110

100

90

80

19

61

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

World E SE Asia South Asia Sub-Sahara

The Yield Gap

Reported Grain yield levels

Some observations from sub-Saharan Africa

8

7.5

7

6.5

6

5.5

5

4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

Zambia

Tanzania

Kenya

Uganda

Ethiopia

Burkina Faso

Niger

Botswana

Zimbabwe

Observed

On-farm

Official

On-farm

On-station Commercial farmers

Per Hectare Fertilizer Use by

Markets 2002/03 (kg/ha)

Nutrient Mining in Agricultural Lands of

Africa

1995 –97 2002 –04 kg/ha

HEALTH REVOLUTION:

Infectious disease control, human resources, public awareness, logistics

Malaria Ecology Index

Sub-Saharan Africa has the Highest Prevalence of Nine Neglected Tropical Diseases

Condition Cases in Africa

Hookworm

Ascariasis

Schistosomiasis

Trichuriasis

198 million

173 million

166 million

162 million

Trachoma 33 million

Lymphatic Filariasis 46 million

Onchocerciasis

Trypanosomiasis

Dracunculiasis

18 million

0.5 million

<0.1 million

Proportion of Global

Burden in Africa

27%-34%

14%-22%

89%

20%-26%

40%

38%

99%

100%

100%

Geographic Overlap of Hookworm and

Malaria

CONNECTIVITY REVOLUTION:

Roads, rail, ports, telecommunications, internet

A Comparison of Railway Networks in Africa and India

THE ECONOMIC STRATEGY

•Rural Sector: Millennium Villages

•Urban Sector: Millennium Cities

•Demographic Transition

Rural Sector

Community-led development through

Millennium Villages

Urban Development

Promote global competitiveness in urban areas

Millennium Cities Project

Demographic Transition:

Total Fertility Rate below 3.0 by 2015

Maternal empowerment, girls’ education,

Child survival, contraceptive availability,

Family planning

MILLENNIUM VILLAGES

A NEW STRATEGY TO

END EXTREME POVERTY IN AFRICA

THROUGH

COMMUNITY-BASED DEVELOPMENT

Income per capita

COMPARATIVE GROWTH DYNAMICS

OF AFRICA AND ASIA

Saving

Dissaving

Basic

Needs

Level

Africa

Poverty Trap

Asia

Self-Sustaining Growth

The Strategy for Ending Extreme Poverty

Millennium Villages:

•Raise Farm Incomes and Household Saving

•Introduce Microfinance

•Introduce Contract Farming

•Reduce Population Growth Rates

•Bolster Urban Demand and Jobs

Based on Millennium Village Successes:

•Scale Up

Africa Has (So Far) Missed the Green Revolution

Yield (tons per hectare)

2.0

1.0

1960

2005

Sub-Saharan Africa

2005

1960

South Asia

CROP

YIELDS

Raising Farm Incomes

A “Green Revolution”

Economic

Surplus

DECLINING

SOIL

NUTRIENTS,

UNSTABLE

CLIMATE,

MONOCULTURE

REBUILDING

SOIL NUTRIENTS,

RAINWATER

HARVESTING,

CROP

DIVERSIFICATION

CURRENT

CRISIS

MILLENNIUM

VILLAGES

Area Planted to Food Declines, While Food Production Rises

Area planted to

Food

Area planted to Food

Area planted

To cash crops

Contract Farming (some examples)

Nestle (dairy)

Carrefour

Land o’ Lakes

Rosebud (cut flowers)

Starbucks

Arachide de Bouche (peanuts)

ITC

South African Breweries

Guiness Nigeria PLC (sorghum)

Agribusiness Development Steps

:

•Identify potential commodities and markets

•Agronomic expertise

•Community Organization

•Discussions with potential international buyers and investors

•Millennium Cities initiative to create business-friendly environment

•Millennium Project policy discussions with national government

•Sanitary and phyto-sanitary conditions

•Infrastructure: storage, electricity, road transport

•Assistance with contract negotiations

•Assistance with venture capital financing and management

Examples of Opportunities for Contract Farming

Cut flowers

Vegetables: asparagus, broccoli, peas, fine beans, Brussels sprouts, artichoke

Fruits: pineapple, mango, watermelon, passion fruit, papaya

Spices: vanilla, cardamom, peppers

Cane sugar

Ethanol from cane sugar

Cotton

Dairy

Honey

Starch

Cocoa

Coffee

Peanuts

Cashews

Wood pulp

Carbon sequestration offsets

Rosebud Corporation:

Located on the shores of Lake Victoria, two rose-growing farms have a total land area of over 600 acres. The farms are both within 30 minutes of

Entebbe International Airport. www.rosebudlimited.com

Blue Skies, Ghana in Partnership with

Royal Ahold, Netherlands

The Health Strategy:

Disease Prevention and Health Promotion through:

Insecticide-treated bed nets

Improved water points and sanitation

AIDS awareness

Micronutrient supplementation

De-worming

School feeding

Antenatal Care

Reproductive health services

Disease Treatment through clinical services for:

Malaria

Tropical parasites

Diarrheal disease

Respiratory infection

AIDS treatments including Antiretrovirals

DOTS for TB

Safe delivery

REDUCED MORTALITY, FERTILITY, AND POPULATION GROWTH

MORTALITY FERTILITY POPULATION GROWTH

BEFORE AND AFTER THE MILLENNIUM VILLAGE PROJECT

180

160

140

120

100

80

60

40

20

0

Under-5 Mortality Rate (female)

Baseline (UN medium forecast)

Accelerated mortality transition

Year

Total Fertility Rate

6.0

5.0

4.0

3.0

2.0

1.0

0.0

20

05

20

10

20

15

20

20

20

25

20

30

20

35

20

40

20

45

20

50

Year

Baseline (UN medium forecast)

Accelerated Fertility

Transition

2000

1500

1000

500

0

African Population (millions)

Baseline Projection

(UN medium forecast)

Accelerated Mortality

Transition alone

Accelerated Mortality and Fertility Transition

Year

$30

$25

$20

$15

$10

$5

$0

Recommended

Current

Sector ODA Per African Per Annum: Recommended versus Current

Source: OECD DAC, 2003

Note: ODA net of Technical Cooperation

SCALING UP ACROSS AFRICA

Planting season

Country

Kenya

Rwanda

Uganda

Malawi

Mali

Nigeria

Ghana

Senegal

Ethiopia

Tanzania

# of

Research

Villages

2

1

1

1

1

2

1

1

1

1

6

5

5

10

5

2

7

6

10

# of Millennium

Promise

Villages

2006

Population in villages Jan Feb Mar Apr May Jun Jul Aug Sep Oct

10 60,000

Nov Dec

15,000

40,000

35,000

55,000

40,000

30,000

30,000

55,000

30,000

Total 12 66

Source:Earth Institute; Millennium Promise

390,000

Scaling Up the Millennium Villages:

Proving Success in 2006

From 100 Villages in 2006 to 1,000 Villages in 2007, through

NGO Partnerships

Millennium Villages at the G8 in 2007

Mobilizing Official and Private Donor Support during 2007-2015

Donor Costs Needed for Scaling up the

Millennium Villages

$60 per capita x 500,000,000 rural poor = additional $30 billion per year

U.S. part: approximately (1/2) x $30 billion =

$15 billion per year

Needed overall U.S. aid to Africa = approximately

$25 billion per year

• If we fail to act:

•8 million Africans will die each year of preventable or treatable causes

•Africa’s poverty will worsen

•War, violence, and threats of terror will escalate

•The population in Africa will soar

•Global disease transmission will be much more likely

•U.S. energy security will be imperiled

•Environmental degradation will accompany rapid population growth

MILLENNIUM VILLAGES: AN AFFORDABLE SOLUTION

Village costs per person per yr

US $

Total village costs

(5000 people) per yr

US $

Total village costs over 5 yrs

US $ million

$10 Village members

Local and National

Governments

Partner organizations (e.g.

NGOs, corporate)

$30

$20

Millennium

Promise Donors

$50 250,000

$300,000

1.25

$1.5m

+ Management Costs

Source: Earth Institute, Millennium Promise

50,000 0.25

$30

$25

$20

$15

$10

$5

$0

Recommended

Current

Sector ODA Per African Per Annum: Recommended versus Current

Source: OECD DAC, 2003

Note: ODA net of Technical Cooperation

U.S. Budget Spending

600

500

400

300

200

100

0

Budget Category

Aid to Africa

Pentagon Spending

Investing in our National Security

Defense

$550 billion

Defense

Aid to Africa

$4 billion

Current

Aid to Africa

$25 billion

For a safer America

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