Persistent Poverty in Africa: Why and How Christian Ivy Leaguers Can Help Chris Barrett September 27, 2012 Cornell Chapter of the Fellowship of Christian Athletes

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 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. Source: World Bank, PovCalNet Africa is now home to 65% of the world’s ultra-poor, up from 12%. Persistent ultra-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 Many Are Born Poor and Stay Poor But Why Do Others Become Poor, Replacing Those Who Escape Poverty? Becoming 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’ Staying ultra-poor

Who has a real shot at escaping poverty? Under-five mortality rate = 18% Elem. school completion rate = 48% 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”

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

Reasons: Humanitarian/ethical - Golden rule/Gospels Economic - Future markets/suppliers Security/geo-political - Prospective source of insecurity Environmental - Conservation of forests, wildlife Health - Controlling pandemics Why should we care?

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?

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.” What can you do?

“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. You CALS 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? WWJD?

Thanks for your interest!