Poverty inequality and debt

Poverty, Inequality and

DebtHannah Wasserman, Stacy Kim, James Wright

and Chris Yamamoto

PovertyHow, Why and What we can Do

Statistics• 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 USo ~US$6 billion basic education for allo ~US$9 billion water & sanitation for allo ~US$12 billion reproductive health for all

womeno ~US$13 billion basic health and nutrition

• Visualize povertyo http://povertydata.worldbank.org/poverty/home/

Definition & Types of Poverty

• Definition: The state or condition of having little or no money, goods, or means of support

• Absolute: struggling to have basic needs (food, clothing, healthcare, shelter)

• Relative: being below a certain threshold, compared to others; similar to income inequality

Causes of Poverty• Structural adjustment

o Economic structure reshaped to ensure repayment of debt

• International aido Drives local farmers out of the market

• Food and agriculture issueso Food priceso Land conditions & natural disasters

• Corruptiono Centralization of power

• Warfare • Colonization• The poverty trap

o When poverty is high, the poor have no way of getting out of the mess

Determinants of Change

Poverty & Development

• http://www.povertyover.org/• A farm family's income/capita can

increase by:o Savingo Tradeo Technologyo Resource Boom

• Social mobility is crucial in order for individuals to maintain a standard of living above the poverty line

Global Inequality

Where, How and Who’s Fighting Against it

Types of Inequality

Gender InequalityMDG Goal 3: Promote Gender Equality

and Empower WomenEliminate 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

Investing in GirlsThe Girl Effect

Education

The growing gap

Income Inequality:Inequality Within Countries

Economic DistributionPoverty in the midst of growthWestern Inequality [Video]

• Inequality Between Countries• Post WWII• Globalization

The Tipping Point

o Global Occupy Movemento World Economic Forum 

Debt

Click icon to add picture

DebtWhy does this happen?•     http://www.mtholyoke.edu/acad/intrel/globdebt.htm

Growth over time• Uncontrollable circumstances

o Natural disasterso Collapse of markets for exportso Sudden rise in interest rateso Fluctuations in exchange rateso Decreases in incomeo Currency may depreciateo Global markets are volatile

• Examples: Argentina, MoldovaIf 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 forgivenesso Debt restructuringo Default

What have been strategies

Debt inhibits growth and interest rate fluctuates.

Vicious cycle that continues throughout time

Debt results in less money spent on educational, health and government programs for people.

How do all three relate?Debt->Poverty-

>InequalityDebt->Poverty-

>InequalityResults in inequality

and poverty because not fair amount of resources and programs

The rich can afford the poor cant.

EXAMPLE

Haiti debt

Possible Solutions

Relieve Hunger and Poverty

Universal Education For all

Reduce Child Mortality

http://www.youtube.com/watch?v=v3p2VLTowAA

Millennium Development GoalsGoals Pitfalls

Trying to take on to much to soon

Some Countries on track while others no progress

“East Asian Miracle”High growth without great Inequality because…….

Getting Fundamentals RightExport push policiesFree trade, free capital market and limited

government intervention

DownfallsSusceptible to financial crisisCould lead to great inequalityAfter hearing the finding what is your opinion do we

needlimited government intervention or increased

government atthe local level? State? Federal? In developing

countries?

Income Redistribution

Many argue that the redistribution of wealth from the rich to the poor will create equality

across the board.

Education, Government and Health ReformsWater Management Project

Agricultural Research projects

Integrated Rural Development

EducationUniversal Education until you are 18

provided by the government?

GovernmentMust pass Ethics and morality test?

Jubilee 2000Initially spread through church initiatives

G8US, 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

Activity 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?

ConclusionNeed GOOD government

Meet basic human needs for all

Use of technology

Communication between government and People

NGO, NPO, Citizen appointed Commissions

Final Thoughts……..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?