Persistent Poverty in Africa: Why and How You Can Help Chris
Barrett Charles H. Dyson School of Applied Economics and Management
March 24, 2014 Hosted by Heifer International chapter, Cornell
University
Slide 2
Rapid, large-scale poverty reduction is possible as
demonstrated by a generation of rapidly falling global poverty
rates, especially in East Asia. Source: World Bank, PovCalNet The
poor are in South Asia The poor are mainly in South Asia and no
real progress in sub-Saharan Africa in the last 35 years.
Slide 3
The big challenge is the persistence of concentrated
ultra-poverty in Africa, where it has almost doubled in a
generation. In 1981 Africa was home to 12% of the worlds ultra-poor
now >75%. The ultra-poor are African Source: World Bank,
PovCalNet
Slide 4
The persistence of African ultra-poverty Longitudinal data
reinforce the story - In the US, the median poverty spell length is
only 4.5 months. The overwhelming majority of US poverty is
transitory. - In rural Africa, we dont know the median spell
length! Most poverty is chronic, with complex and multiple
causation.
Slide 5
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 Many
Are Born Poor and Stay Poor But Why Do Others Become Poor,
Replacing Those Who Escape Poverty? Becoming ultra-poor
Slide 6
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 Staying ultra-poor
Slide 7
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 ) May the odds be ever in
your favor
Slide 8
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 Changing the odds
Slide 9
Reasons: Humanitarian/ethical - Golden rule Economic - Future
markets/suppliers Security/geo-political - Prospective source of
insecurity Environmental - Conservation of forests, wildlife Health
- Controlling pandemics Why should we care?
Slide 10
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 How
does the world help?
Slide 11
Original survey of 406 hhs in 2 locations: Ruli (Dairy cows)
and Kirehe (Meat goats) Three treatment groups: Beneficiaries vs.
qualified prospective beneficiaries vs. never will be beneficiaries
Central findings: Dietary intake: - Households that receive a dairy
cow consume 9.34 more liters of dairy per person, >3x intake of
control hhs. - Families that received a donated meat goat increased
monthly meat consumption by 0.20 kilograms per person, ~2x intake
of controls hhs. Do your donations matter? Ex: Heifer Intl animal
donation projects in Rwanda Source: Rawlins, Pimkina, Barrett,
Pedersen & Wydick (2014), Got Milk? The Impact of Heifer
International's Livestock Donation Programs in Rwanda on
Nutritional Outcomes, Food Policy 44(1): 202213. Child (0-5 yr)
nutritional status: - Meat goats: stat sig +0.5 SDs weight-for-age,
+0.4 SDs weight-for-height z-score, but a only a stat insig 0.1 SD
effect on height-for-age z-score. - Dairy cows: stat sig +0.5 SDs
height-for-age z-score, but only a stat insig +0.4 SDs
weight-for-age z-score.
Slide 12
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 loved ones alternative gifts for
holidays and special events. 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. What can you do?
Slide 13
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 worlds 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 worlds most agrarian/rural continent. CALS majors
have uncommon capacity to help!
Slide 14
If you had been born to a poor woman in rural Africa, what
would you want others to do for you?