Showing posts from category poverty.
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VIDEO—Daryl Collins: Portfolios of the Poor—How the World’s Poor Live on $2 a Day
›February 12, 2010 // By Michelle Neukirchen“The poor face a triple whammy,” Daryl Collins, senior associate at Bankable Frontier Associates and co-author with of Portfolios of the Poor: How the World’s Poor Live on $2 a Day, tells ECSP Director Geoff Dabelko. The Woodrow Wilson Center hosted Collins and her co-author, Jonathan Morduch, for presentations at the Center and on Capital Hill last September. “They not only have low incomes, they also have very irregular and unpredictable incomes…. The $2 doesn’t come every day. If you did have $2 every day, you’d be solving half of your problems.”
Whether farmers challenged with seasonal incomes or small entrepreneurs fighting to cope with irregular daily wages, Collins has found that the poor strive to actively manage their financial lives. Households, however, often lack the regulated financial tools necessary to do so, sometimes leading to creative, local solutions.
In Portfolios of the Poor, lessons from the field uncovered a social grant system in South Africa that provides old-age pension holders and people with young children dependable monthly income supplements. Through comparison studies with countries without similar grant systems, Collins and her co-authors found the importance of dependable cash-flows staggering. “There was a whole financial engagement that could take off around that regularity,” she said. “You didn’t see [that] in India and Bangladesh.” -
Collier and Birdsall: Plunder or Peace
›January 22, 2010 // By Julien KatchinoffIn a preview of his new book The Plundered Planet: Why We Must – and How We Can – Manage Nature for Global Prosperity, Paul Collier dispelled the common perception that Africa’s indentified resource reserves are the world’s largest. In actuality, it is estimated that up to four-fifths of the value of subsoil assets in the African continent are yet to be discovered. “That is the big story,” Collier remarked. “Here are assets which could finance transformation….but historically haven’t.” Instead, these resources have been plundered.
In a recent event hosted by the U.S. Institute of Peace, Paul Collier, professor of economics and director of the Center for the Study of African Economies at Oxford University, and Nancy Birdsall, president of the Center for Global Development, discussed how resource-rich environments in developing countries have been traditionally misused. The two also proposed strategies to disrupt these processes and transform resource “curses” into deeply needed support for peace and stable development.
Conflict and instability in countries whose economies are heavily invested in natural resource have often hindered local development and security. Many of these countries—including Cambodia, Angola, Indonesia, and DRC—have suffered from one of two forms of plunder:
Types of Natural Resources Plunder:
1. Where the few steal from the many:
Natural assets are, by definition, without natural owners, and therefore lie as easily taken common goods. “This process of expropriation opens up a whole array of dysfunctional variants, many of which are violent,” Collier noted.
2. Where the present steals from the future:
Intertemporal mismanagement is a possibility, as unlike man-made assets, natural assets belong to all generations.
Operating from a worldview of weak sustainability, where profits from natural assets are reinvested for the benefit of future generations, Collier suggested that natural resource rights are more akin to “rights of stewardship” than traditional property rights. “We may well transform that value into something that is more productive, but if we pull up natural assets from the ground, we should leave to the future something that is equivalently valuable.”
Collier argued that the successful harnessing of natural resources for stable and sustainable development depends on the application of a tenuous decision chain:
Natural Resources Decision Chain:
1. Discovery Process:
Failure in this phase stems from poor property rights, and the time consistency problem—uncertainty that conditions and regulations that make expensive upfront investments profitable today will remain in place in the future.
2. Appropriate Taxation:
Currently, as a result of poor negotiations or limited information regarding the status of resources, governments are unable to craft tax regimes which effectively capture resource rent.
3. Avoiding the Delta:
Sustainable management any discovered subsoil assets must avoid a local “Nigerian Delta” catastrophe. Clearly designating the government as the sole responsible agent for resource rents may limit such failures.
4. Saving the money:
To avoid plunder of the future by the present, Collier suggested that, though politically difficult, a proportion of revenue streams must be delineated from general accounts.
5. Building the capacity to invest in the country:
Collier deemed the inability of resource-rich countries to attract diversified investment as the “killer link.” Governments must use returns from subsoil assets to fund “investment in investment”—directing public capital toward transportation and utility infrastructure, education, health, and other short-term projects. Once in place, such projects encourage future public and private investments, thereby multiplying long-term returns.
As with many complex systems, Collier warned that the chain is only as strong as its weakest link. If one link fails, “the chain won’t pull the country from poverty to prosperity.” On the other hand, if each link holds, the value is tremendous. ”[Y]ou really can pull the country from poverty to prosperity over the course of a generation. There are no fixes in economics that are faster than that.”
Ultimately, Collier and Birdsall emphasized that success depends upon the development of an informed and competent “critical mass” of people. Even the strongest decision chain will fail if it is not underwritten by a majority of the population. Birdsall reiterated the need for public participation in the process, possibly through direct income distribution or responsible interventions by non-vested third parties.
Photo: Courtesy of Oxford University Press. -
VIDEO—How the World’s Poor Live on $2 a Day
›January 22, 2010 // By Dan Asin“Most people think that if you’re living on $1 a day or $2 a day, it’s impossible to save,” Jonathan Morduch tells ECSP Director Geoff Dabelko in a discussion of his book, Portfolios of the Poor: How the World’s Poor Live on $2 a Day. The Woodrow Wilson Center hosted Morduch and his co-author, Daryl Collins, for presenations at the Center and on Capital Hill last September. “[I]n fact, because of being poor—not despite it—households were spending a lot of time building up for the future.”
“What was really critical about what this new work was showing was that poor households were strategizing, they were making decisions,” says Morduch. “They were, essentially, juggling, active in ways that had been hidden from sight with the bigger surveys.” Now revealed, this knowledge creates opportunities for policymakers to help poor households in new ways, such as reducing regulatory costs for financial institutions seeking to service poor communities.
Morduch says microfinance and microcredit schemes are doing well, but that they are not enough to serve poor communities’ entire financial needs. “The next steps involve embracing what’s already going on and making products, devising products, that are even more flexible or even more appropriate,” he says. Households have a diverse range of needs, from food and water to financing health care and education, and Morduch says these diverse needs merit diverse solutions. -
Reforming Development: New Year’s Resolutions for Policymakers
›The foreign policy headlines are dominated by terrorism, Iraq and Afghanistan, the Arab-Israeli dispute, and North Korea and Iran’s nuclear weapons.
Under the radar, however, a quiet revolution is going on. Policymakers from the Pentagon to Capitol Hill are proposing ways to modernize development policy to meet the demands of foreign policy in the 21st century.
Development Seeking Its Place Among the Three “D”s—Diplomacy, Development and Defense
Three major efforts launched in 2009 are expected to be completed in 2010:- The State Department’s “Quadrennial Diplomacy and Development Review” of operations at State and USAID is due in Fall 2010; preliminary recommendations are scheduled for this month.
- The White House’s review of global development policy will involve all government agencies with development programs. Headed by National Security Advisor Jim Jones and NEC head Larry Summers, the team will report out in the next few months.
- Congress, which for a long time has paid little attention to these issues, also is making development reform a priority. Both the Senate and the House are writing new legislation to replace the current bill, which was last overhauled in 1961.
A new policy framework is long overdue. Everyone agrees that the Obama administration inherited a system that is broken and must be fixed. But how? I propose seven New Year’s resolutions for policymakers trying to revamp development.
1. Address all the myriad issues that impact American interests and for which development aid could be an important policy tool.
Promoting development is critical to a diverse range of cross-cutting issues:- preventing violent conflicts
- restoring economic growth and dampening financial instability
- expanding global trade
- dealing with global climate change
- dealing with global pandemics and other health challenges
- eliminating absolute poverty
2. Lay out a government-wide “national development strategy” that sets clear goals and objectives for US development policy—and doesn’t just tinker with organizations and budgets.
Development promotion, broadly defined, must be an important part of the solution. But any new strategy must go beyond just reforming the aid program.
While needed, new policies and programs are costly. The sooner they are put into place, however, the lower the long-term costs of not addressing them will be.
3. Include all the parts of the U.S. government that are now engaged in promoting development.
Existing development capacities are spread throughout the executive branch, and, in some cases, the private sector. Currently 25 departments, 25 agencies, and almost 60 offices are involved in making or implementing development policy. There is no central oversight, planning, budgeting, implementation, or evaluation.
There must be a central point within the government that monitors and coordinates all development programs. Past experience indicates that only the White House, with a strong presidential mandate, can effectively pull off this coordination. Many previous attempts at reform have foundered because the executive branch refused to take congressional initiative seriously.
4. Reflect on lessons learned over the past 60 years.- While liberalized trade and economic openness can improve growth, each country must craft its own strategies.
- Growth is important, but it alone will not eliminate poverty. Measures that directly address poverty are important for their own sake, and if done right, will enhance economic growth as well.
- Similarly, good governance and democracy are important for growth, but are also important goals in their own right. Participatory decision-making is critical to program success.
- Conflict, with its high human costs, is not caused by poverty and lack of development, but makes the solution to other problems much more difficult.
- Investments in poor people, and particularly poor women, pay high dividends. Measures increasing access to education and health, redistributing productive assets (credit and land), and supporting small-scale rural and urban enterprises are particularly effective.
The United States is now one of many players in the development game. In fact, in all but a few countries, it is not even the major aid provider. In Southeast Asia, China, Japan, or India are more likely to be the major donors; in Africa, it is the European Union or China.
Furthermore, many nongovernmental funders have joined the field. The Gates Foundation has spent more than $12 billion on its Global Health Program. Ford and other U.S. foundations are seeking to rebuild African universities, and companies like Mars and FedEx are running technical assistance programs. In addition, American private voluntary agencies have raised over $10 billion in private funds—more than some European aid donors.
Trade and private financial transactions dwarf official development assistance (ODA). For instance, remittances from migrants to their home countries are approaching US$300 billion a year, nearly 50 percent more than all ODA. Frankly, trade liberalization and financial stability will have greater impact on development than any increase in ODA.
As a result of these seismic shifts, U.S. development policy needs to be smarter and more strategic, mobilizing new and different ways to engage governments, corporations, universities, foundations, and civil society (as is now being done for with HIV/AIDS).
6. Make fundamental changes to existing aid structures, which have atrophied over the years.
Currently, USAID is not equipped to deal with the challenges of the 21st century. It is considerably understaffed and lacks the necessary technical skills, particularly in agriculture and institution-building. The agency has no capacity to think strategically about the global development environment and lacks a voice at policy tables. Furthermore, new independent development agencies, such as the Millennium Challenge Corporation and PEPFAR, have proliferated
A revamped U.S. aid program needs a strategy that would:- Give responsibility for formulating and implementing development strategies to the user country, thereby transferring ownership and increasing effectiveness. Providers, of course, can then choose whether or not they want to support the country’s strategy.
- Agree on a more rigorous, transparent, performance-based approach to allocating ODA.
- Give equal priority to global problems, regional needs, and country priorities.
A long-term commitment is essential because these significant changes will not be implemented overnight. It will take the next three years of President Obama’s tenure (and perhaps longer) to change long-embedded policies and practices. Remember, the Defense Department was established in 1948, but did not fully integrate the three services until the Goldwater-Nichols Act of 1986—almost 40 years later.
New Year’s resolutions are often broken as the tough work of fulfilling them becomes all too apparent. But breaking these resolutions will adversely affect U.S national interests in the coming decades. As Secretary of State Clinton argued recently, development “is a strategic, economic, and moral imperative – as central to advancing American interests and solving global problems as diplomacy and defense.”
The administration and Congress now have an opportunity to set development policy on a new course. Let’s hope they take it.
John Sewell is a senior scholar at the Woodrow Wilson International Center for Scholars. -
Making the Connections: An Integration Wish List for Research, Policy, and Practice
›January 3, 2010 // By Geoffrey D. DabelkoNew York Times columnist Nick Kristof is likely a well-known voice to New Security Beat readers. His ground-level development stories from around the world expose a range of neglected issues that usually struggle for mainstream media coverage: maternal health, microcredit, human trafficking, family planning, sanitation, micronutrients, and poverty, among others.
Kristof brought many of these threads together Half the Sky, a book he coauthored with his wife Sheryl WuDunn. I asked about the challenges of addressing these connected problems when I interviewed the couple and two frontline White Ribbon Alliance maternal health practitioners this fall at the Wilson Center.
Now Kristof is asking readers to suggest topics for him to cover in 2010. My suggestions to him are actually a wish list for the wider development community. In short, how can scholars, policymakers, practitioners, and communities better research and analyze these connected topics and then fashion integrated responses? I posted my comment on Kristof’s blog, On the Ground (and I ask your indulgence for the less than polished writing):I’d love for you [Kristof] to explore the challenge of integration from both problem and response perspectives. People in poverty lead integrated lives (just like we wealthier folks do), face connected challenges, and need integrated or multiple responses. Single-sector programs may deliver quicker, more obvious, and/or more countable impacts (or parallel advantages for single-discipline research endeavors). Yet time and time again we see such approaches only partially meeting needs or not meeting them sustainably. There is also a persist danger of undercutting others’ efforts and/or creating high opportunity costs.
These questions topped my wish list to Kristof last night while procrastinating on other writing. What would be on your wish list for Kristof, the development community, or even just New Security Beat? We at the Environmental Change and Security Program (ECSP) would love to hear from NSB readers so we can keep covering the questions that interest you.
So which integrated research, policy analysis, or field-based programs explicitly recognize that trends that appear to be on the periphery are hardly peripheral? At the same time, if programs try to be all things to all people, they can become bloated, unrealistic, and/or unsustainable.
For example, are the Millennium Villages examples of the former or the latter? How about the much smaller programs under the population-health-environment grouping? What went wrong with Campfire programs to cause so many to abandon the approach? Have the loosened restrictions on what constitutes an appropriate PEPFAR intervention addressed this integration problem, or will politics (exclusion of family planning in PEPFAR, for example) mean we cannot capture the full benefits of integration?
And the big Kahuna: how is the rhetoric and analytical argument around the 3Ds (defense, development, and diplomacy) made real and practicable in the field (as in the United States we anticipated early this year the results of the Quadrennial Defense Review (QDR), Quadrennial Diplomacy and Development Review (QDDR), and Presidential Study Directive on Global Development Policy (PSD))?
And finally, does our (read donors’) penchant for measuring impact and quantifying results force us to narrow interventions to the point of missing key connections in cause and effect of the problems we are trying to address? Is there a better mix of defining and measuring success that captures the challenges and benefits of integration? -
VIDEO – Integrating Population, Health, and Environment (PHE) in Ethiopia
›December 4, 2009 // By Sean Peoples“Incorporating environment, population, and health is a timely issue. Unless we focus on integrated approaches, our Ethiopian Millennium Development Goals cannot be achieved,” says Negash Teklu, executive director of the Consortium for Integration of Population, Health, and Environment (CIPHE), in this short video.
I interviewed Teklu and three other members of CIPHE in Yirgalem, Ethiopia, where they spoke of the importance of PHE integration; why it is vital to involve the community in development projects; and practical steps for implementing integration at the grassroots level.
Everyone agrees that Ethiopia faces serious challenges. Much of the economy is based on agriculture, but drought is all too common, and the land is exacerbated by continual overuse. High rates of population growth coupled with limited resources and uncertain crop yields leaves many people vulnerable to hunger and malnutrition. In addition, the country’s health system struggles to provide comprehensive care.
To combat these interconnected problems, the members of CIPHE truly believe that an integrated PHE approach that uses multi-sectoral interventions will best serve the needs of their fellow Ethiopians.
“If we follow the integrated PHE approach, economically we can be beneficial,” Mogues Worku of LEM Ethiopia told me. “We can share a lot of resources among the different sectoral organizations. At the same time with limited resources we can attain our goal by integrating the different sectoral offices and organizations, even at the grassroots level.”
This video will be the first of many on population, health, and environment problems and solutions in Ethiopia. Subscribe to our ECSP YouTube channel or the New Security Beat blog to see the latest videos. -
Reporting From Kenya: U.S. Editors Cover Health, Environment, and Security
›November 4, 2009 // By Sajid AnwarThe global recession has “been very hard on journalists,” explained Andrea Crossan, radio producer for BBC’s “The World”. “With these kinds of cutbacks, you really feel it when it comes to foreign coverage.” Along with Stephanie Hanson, associate director and coordinating editor of CFR.org, and Margaret McElligott, senior producer for washingtonpost.com, Crossan spoke about the International Reporting Project’s (IRP) Gatekeeper trip to Kenya at a Wilson Center event sponsored by the Environmental Change and Security Program.
“You’ve seen a lot of areas of the world that just aren’t getting the coverage these places deserve, and Africa is one of those places,” said Crossan, partly due to the expense of travel, security, and satellite equipment. IRP, a project of The Johns Hopkins University’s School of Advanced International Studies, aims to fill gaps in foreign reporting left by extensive budget cuts by offering U.S.-based editors and journalists opportunities to report on international stories.
“I’ve traveled a fair amount with the BBC, and I’ve seen some really difficult living conditions for people. I’ve never seen anything like I’ve seen in Kibera,” said Crossan. “We can look at all of the things we are talking about today”—environment, health, security—“through what’s happening in Kibera.”
Poverty and Pirates
At a meeting at the University of Nairobi, a student criticized foreign reporting of Kenya, saying that it “only seems to cover poverty and pirates,” said Crossan. That’s a slight improvement over previous years, when U.S. coverage focused on “witches and war,” noted an audience member.
McElligott, who previously worked for AllAfrica.com, agreed that U.S. media coverage of Africa is becoming richer, with fewer instances of racism accompanying reporting. “The world is so much smaller now,” with email, Facebook, blogs, and video providing additional venues and in-country contacts, she said.
The Kenyan press is the “most trusted institution” in the country, said Hanson. They expose corruption, report on health issues, and call the government to task. With the decline in U.S. journalists posted abroad, the support and stories provided by Kenyan reporters is crucial to getting coverage in the international media.
While pitching international stories to U.S. audiences might be a hard sell, “if it’s a good, compelling story, it will go up in a prominent place” with or without a U.S. angle, said McElligott. “It’s just about telling human stories,” said Crossan.
Kenya on the Edge: Drought and Conflict“In the last months we’ve seen the food crisis grow in Kenya,” said McElligott. On the group’s visit to Laikipia, she noted the impacts of soil degradation, unsustainable water extraction from rivers, and the lack of governmental regulation. Lack of land and water is forcing pastoralists to travel miles away from home in order to feed cattle and goats.
“We’re desperate for water here,” said Laikipia resident Niyok Npanyaki in an IRP video report. “We’ve decided that if water is cut off, we’ll go to the water source on Mount Kenya, even if the government doesn’t let us. Otherwise we will die. People don’t start wars for no reason. If I am hungry, but if you have food, I’ll come to you and find it.”
“Loss of natural resources puts people under extreme pressure and people will go to extreme lengths in order to get those fundamentally important natural resources,” says Dr. Anthony King, director of Laikipia Wildlife Forum, in the video. Adding to the tension between farmers and pastoralists is the easy access to firearms in the Horn of Africa. “Almost every pastoralist will have an automatic weapon,” says King.
The IRP fellows visited the headquarters of the UN Environment Programme in Nairobi, but found it difficult to gauge the effectiveness of UNEP at addressing Kenya’s drought and deforestation. According to Crossan, UNEP has invested in a number of local programs, but the UNEP officials they spoke with seemed frustrated that the Kenyan government was not more involved in tackling the country’s environmental problems.
“Something I struggle with in my own work is trying to understand what actual effect these large multilateral agencies have on the ground. What is the World Bank actually doing in Ghana? What are they actually doing in Kenya?” said Hanson. “Does the money get distributed? Who does it go to? Having more Kenyans or Ghanaians who could report on these things and look into them in terms of transparency and accountability would be incredibly helpful.”
Malaria: A Disease of the Poor“Malaria was, to be honest, not a disease that was really on my radar,” said Hanson. “I had, in a way, discounted its importance to what has happened on the continent.” At a children’s critical care unit in Nyanza Province, one of the poorest areas in Kenya with one of the highest rates of HIV and malaria, she saw beds filled with sick children. “This was shocking to me.”
When a family member is stricken with malaria, the burden of care is typically falls upon the mother, who often must travel long distances to the nearest hospital—“some of them had walked hours with a sick child,” said Hanson—leaving their other children at home and farms largely untended.
“When these women have to leave their farms to come to the clinic, they’re losing work days on the farm,” said Hanson. “That just means that their farms are less productive. They have less money to send their children to school, give their children medical care, and feed their children.”
“These macro-political issues—disputed elections, post-election violence—are actually connected to daily issues like malaria infections, hospital capacity rates, agricultural yields, and without a government that can address those things it is very difficult to see how a place like Kenya can move forward,” concluded Hanson.
Drafted by Sajid Anwar and Meaghan Parker.
Edited by Meaghan Parker. -
VIDEO: Nicholas Kristof On Comprehensive Approaches to Family Planning
›October 2, 2009 // By Wilson Center Staff“Poor countries can’t begin to deal with food issues, with economic pressures, with conflict and shortages of water and grassland that may lead to social conflict, unless they begin to deal with population problems,” journalist Nicholas Kristof tells ECSP Director Geoff Dabelko in a video interview.
But “the single most effective contraceptive isn’t any kind of device,” Kristof says, “it’s girl’s education. And that has the most extraordinary impact on birthrates.” Unfortunately, this approach to family planning has “been neglected in the last 20 years.”
Empowering women and girls may be our best strategy for fighting poverty, claim Kristof and WuDunn in their new book, Half the Sky: Turning Oppression into Opportunity for Women Worldwide, which was launched at the Wilson Center.
Half the Sky tells the transformational stories of women and girls who are the “face of statistics” on four appalling realities: maternal mortality, sexual violence, and lack of education and economic opportunities.