Term Paper – How to Save People in Extreme Poverty in Africa

A dollar seems pretty worthless. It is just a green piece of paper with which you cannot even buy a single hotdog. Then, would you believe the fact that more than 1.3 billion people in this world live under $1 per day (Sachs “Can…” 56)? In other words, approximately one-sixth of the people on this planet struggle for adequate nutrition, sanitized drinking water, safe shelter, and basic health care. They are said to be in extreme poverty.

Especially, most sub-Saharan countries suffer from extreme poverty. Actually, many countries in that region do not even have the statistics to assume the number of people in extreme poverty. Even in countries that are able to estimate the number of those people, the numbers are devastating. 76.6% of the population in Rwanda (2000), 73.9 in Malawi (2004), 74.7 in Mozambique (2003), and 88.5% in Tanzania (2000) live under $1.25 per day. In total, 50.91% of the total population in sub-Saharan Africa (2005) is severely poor (Poverty).

Extreme poverty in Africa is a very important problem for not only the African continent but also the world. It is directly related to the future growth of this world. In the status quo, advanced nations stagnate because there are no people to buy their products. Developing nations also have a similar problem. Some might say that we have a huge market called “China,” but that single power engine is unstable and carries a malignant tumor called “one-party dictatorship.” We need another power engine, and that is Africa. Thus in this paper, I would like to examine and analyze the causes of extreme poverty in Africa and how to save people in Africa from extreme poverty.

Then, a question arises: “Why are these people poor?” There are two answers for this question.

The first answer is that there are domestic problems existent in sub-Saharan countries. There are four types of these domestic problems.

First, poverty itself is the cause of economic stagnation. When people are poor, people use “their income merely to stay alive” (Sachs 57). Therefore, saving rate is extremely low in least-developed countries (LDCs). According to World Bank statistics, saving rates in LDCs were 10%, which was about a half of saving rates in low-income countries (Sachs Table1 57). In addition, negative savings such as cutting down trees or mining resources are not calculated because of the lack of information. Thus the actual saving rate would be much lower than the statistics provided. Without savings, there are no investments, and without investments, there is no growth.

Second, natural environment stagnates growth in sub-Saharan countries. Most of the times, LDCs do not have favorable conditions for economic growth. They are hindered by high transportation costs caused by mountainous terrains, lack of navigable rivers, coastlines, and natural harbors. Arid climate and lack of rainfall reduces agricultural productivity, which is essential for sustaining the population and stimulating economic growth. Tropics have favorable conditions for lethal diseases such as malaria, schistosomiasis, or dengue fever. Map 10 in Sachs’ book well describes the health threat that these countries face. All these geographic factors should also be considered when planning to help LDCs in Africa to stand up.

Third, governments of LDCs in Africa often fail to do their jobs. The best method of stepping up the development ladder is having a government-led development plan. However, in LDCs in Africa, the government may lack ability and lack the resource necessary to pay for the infrastructure required for economic growth. Social services, such as basic health care, are unthinkable for governments with extremely small budgets. If the government cannot do them, at least it should create an environment where private companies can do those jobs and gain profit. However, governments in Africa do not even do that much. In fact, in extreme cases like Somalia, the government has no control over its territory.

Fourth, there are cultural factors. In some countries, cultural and religious norms prohibit women from participating in economic activities. Prohibiting a half of the population is problematic, especially if the country is aiming for economic growth. Also, the population of LDCs in Africa is exploding, due to cultural prejudice against women. In Sachs’ book, we can see that countries with low GDP per capita have high fertility rate at the same time (65, Figure 1). This fact means that they have to feed more than five children with their income which is already extremely small.

The second answer for the question, “Why are these people poor?” can be found outside these countries. It is that advanced nations exploit LDCs in Africa.

Advanced nations insist on free trade among all nations, but the problem with free trade is that it inflicts detrimental damage to LDCs. Free trade refers to the state where countries trade goods with the least possible tariffs. Most of the times, LDCs’ government budget consists of tariffs because it is impossible to tax their citizens. Then it is obvious that free trade would reduce the LDCs’ government budget and restrict them from investing on infrastructure or social services, ultimately resulting in staggering growth. Also, free trade means that cheap products from foreign countries (usually international corporations) can be even cheaper. This will lethally damage young, domestic industries in LDCs, preventing fast growth. In the Ivory Coast, tariff cuts of 40% in 1986 virtually wiped out the country’s chemical, textile, shoe, and automobile industries (Chang 68).

Technological innovation is essential for countries floundering in poverty. However, it is impossible for people in LDCs to lead the innovation because they don’t have the incentive to do so. They can’t patent new technologies because the government is not functioning properly. Also, their technology brings little change to the society due to isolated conditions. Therefore, technology transfer from advanced nations is essential for LDCs.

However, advanced nations do not distribute any of their knowledge. In fact, they actually strengthen protection for their ideas. In 1998, the US Copyright Term Extension Act extended the copyright protection period from ‘life of the author plus 50 years, or 75 years for a work of corporate authorship’ to ‘life of the author plus 70 years, or 95 years for a work of corporate authorship’(Chang, 134). This act of extension is a clear warning for LDCs to never dream of using advanced technologies. It’s pretty ironic considering the fact that the so-called “advanced nations” today have actually violated myriads of intellectual property rights to stand where they are right now.

If there are problems, we need answers. There are three ways that we can ensure continuous economic growth in impoverished countries.

First, we need more aid. International aid is essential for LDCs because they do not have the ability to develop by themselves. Currently, rich countries are willing to give about $80b for LDCs in the form of official development assistant (ODA). This amount might seem a lot, but it is actually only a half of what the UN Millennium Project has estimated that LDCs require for continuous growth (Sachs “Can…” 61, 64). Also, affluent countries were recommended and they even promised to provide 0.7% of their gross national income (United Nations par. 43), but most countries excluding some in the Scandinavian peninsula have reached this goal. Therefore, we must provide a much more quantitative aid for LDCs in Africa.

Second, we need to be preventing problems, not cleaning up after them. In the status quo, too much money is spent to clean up the mess. Almost all money is used to provide food, medicine, and medical service to the people. However, in a much more fundamental level, the money can be used to buy bed nets and reduce the number of people infected by malaria. Fertilizers nourish the soil and irrigation systems permanently provide water. Highways, airports, and other necessary infrastructures can be built to solve the fundamental problem of LDCs. The point is “preventing,” not “after-servicing.”

Third, we need to provide continuous and sustainable help. Most help provided in the status quo are sporadic. We need to provide help that will continue even after the hand of help disappears. The state of water pumps in Africa is a perfect example of ill-managed help. On average, about 1000~1500 people, and in extreme cases more than 3000 people, use a single water pump in Africa (Kim). Therefore, water pumps are often broken. One was broken just after three months of installation. If we implement aid like those water pumps, people in extreme poverty will not be able to utilize those pumps in a short period of time. Therefore, we need to establish a method or a system that not only provides help but also manages the help given.

For timid individuals, this topic might seem gigantic and like an enormous burden. However, a substantial number of people are now becoming aware of problems in LDCs, and many of those people are willing to help. Do not back off for fear that nobody is acting; if you move, everyone else will. Your action and your words have the power to save a three-year old child dying of malaria in Zambia. Be active. Do what you can do, and you will change the world.

 

Works Cited

Sachs, Jeffrey D. The End of Poverty: Economic Possibilities for Our Time. London: Penguin, 2006.

 

Chang, Ha-joon. Bad Samaritans: The Guilty Secrets of Rich Nations and the Threat to Global Prosperity. London: Random House Business Books, 2008.

 

Sachs, Jeffrey D. “Can Extreme Poverty be Eliminated?” Scientific American Sep. 2005: 56-65

 

Kim, Doo Sik. “아프리카 물 문제와 식수개발사업.” 워터저널(Water Journal) Nov. 2007: 24

 

Poverty headcount ratio at $1.25 a day (PPP) (% of population). World Bank, Development Research Group. 7 Apr. 2011.

<http://data.worldbank.org/indicator/SI.POV.DDAY/countries>

 

United Nations. Resolutions Adopted by the General Assembly at its 25^th Session: A/RES/2626. 9 Apr. 2011.

< http://daccess-dds-ny.un.org/doc/RESOLUTION/GEN/NR0/348/91/IMG/NR034891.pdf?OpenElement>

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