1. Measuring Poverty Developed/Developing Canada Megaprojects World Bank
IMF
SAPs
HIPC
Off Shore Farming

2. Measuring Poverty Across the Globe
The most common measure is the poverty line which is the minimum income required to pay for basic needs
Developing Country poverty line is 1.25$ per day per person according to the World Bank
yet they are people in the same country who make up to 5$ a day who remain poverty stricken
What about people in Canada who make 10$ an hour that live in poverty?

3. Measuring Poverty in Developed and Developing Countries
The standard World Bank international number of 1.25$ per person per day cannot be applied to all countries
We must look at individual countries to determine at what level people are unable to afford minimum food, shelter, healthcare, and education services and what obstacles are there

4. Measuring Poverty in Canada
Statistics Canada uses a low-income cut-off (LICO) to determine those living in poverty
LICO is defined as a household that spend more than 70% of its income on food, clothing, and shelter
Before tax income
Yet the federal government agency NCW or National Council of Welfare uses after tax income to measure poverty

5. Why Can’t We Feed the World?
1 billion people in developing countries go hungry every day, yet the world has enough food to feed 6.79 people on Earth
WHY?
Poor people cannot afford the food that is available
Farmers who do not own their land and migrant labourers are the first to feel the effects of drought, crop failures, or economic downturns

6. Megaproject Investment
After WWII , the International Monetary Fund and World Bank were set up as UN agencies to give loans and development assistance to help improve standards of living
Encouraged developing countries to invest in megaprojects to promote economic growth
1960s Western banks loaned billions to African countries
Western banks encouraged the IMF and World bank to pay off debt of developing countries
Lenders changed but debt remained

7. Impact of Mega Projects
Many of these initiatives caused environmental damage
Global economic downturns impact developing nations so that they cannot repay debts
Some loaned money is embezzled into bank accounts of corrupt dictators
Money at times has been used to fund conflict over development

8. Structural Adjustment Programs (SAPs)
Today, African countries alone owe 227 billion
The IMF told these countries to restructure their economies to repay the debt using Structural Adjustment Programs (SAPs)
Pursue foreign investment, cash crops for export and private companies to run government services

9. Cycle of Debt Many negative effects of SAPs
Poor countries forced to sacrifice spending on health and education to meet the demands of SAPs and repay debt
Some countries forced to increase prices on staple foods and electricity
Resources become under control of foreign investors
SAPs benefit the investor

10. Multinational Corporations restrict the ability of developing national to pay off debt
HOW?
Natural resources of developing nations are under the control of Multinational Corporations
farmers forced to sell products to these Multinational Corporations at low prices so little to no profit is made and debts cannot be paid
EX. West African Cocoa farmers

11. Heavily Indebted Poor Countries Initiative
Launched in 1996 by the International Development Association (IDA) and International Monetary Fund (IMF)
The goal is to ensure that poor countries are not crippled by debt
Provides debt relief to poor countries with external debts that severely burden export earnings or public finance
By 2008, 57 million US was committed to help HIPC

12. Canada and the HIPCI Called for a easing of debts owed by HIPCs
The goal is to reduce the debt load of HIPCs so their scarce resources can go towards poverty reduction rather than interest payments
Canada has forgiven all overseas development aid debt to all HIPCs except Myanmar because it is governed by a military dictatorship

13. Loans Are Not Aid
Since 1986, Canada’s bilateral aid for development has been in the forms of grants as opposed to loans
10 Latin American countries have been allowed to pay debts by investing in environmental and other sustainable development projects in their own countries

14. Off Shore Farming
Wealthy countries with little agricultural land or water purchase or lease farmland from poor countries. Food is grown and then shipped back to the country that owns the land

15. Concerns About Off Shore Farming
Environmental concerns with use of pesticides/herbicides
Hard for local farmers to prove they own the land
Threatens food production of developing countries
EX Ethiopia
Saudi Arabia owns land in Ethiopia and got its first shipment of food at the same time the UN World Food Program was helping to feed 10 million people in Ethiopia