Global Poverty & U.S. Jobs

“From an economic perspective, what happens in one country has ripple effects throughout the world.”
– Chris Policinski, CEO Land O’Lakes

“We have no choice but to stay engaged in the world. 95% of the people we want to sell something to live somewhere else, and America’s access to and leadership in foreign markets is critical. We’re the largest exporter by a significant factor, and we need to capitalize on that.”
– Thomas J. Donohue, President U.S. Chamber of Commerce

“We need to stop viewing it as aid. It’s an investment.”
– Sen. Chuck Hagel (R-NE)

“Reducing global poverty is in our nation’s best interest, and a sustained collaboration between the private sector and the government is needed in this regard.”
- Carly Fiorina, Former CEO of Hewlett-Packard Company

“The growth of the developing world presents a major economic opportunity for American business today and a thousand opportunities tomorrow… We urge American companies to roll up their sleeves, get out there and engage with the economic opportunities that are emerging across the world. This is a moment to lean forward and take the kind of informed risks that have led to some of our greatest successes.”
- Former Secretary of State, Hillary Clinton

Key Points: Global Poverty and U.S. Jobs

  • History has shown that as people transition from barely surviving into becoming consumers, it opens new markets for U.S. companies and creates American jobs.
  • 1 out of 5 U.S. jobs is export-based and 45 percent of our exports now go to developing nations.
  • From Germany to South Korea, nearly all of the United States’ top trading partners were once recipients of U.S. foreign aid.
  • Foreign Policy Magazine describes the world’s poor as the largest untapped market on earth.

Less people in poverty = More consumers.

 

top corporate logos
TOP COMPANIES TELL CONGRESS TO PROTECT AID PROGRAMS
In June of 2011, more than 50 major companies sent a letter to Congress urging that the International Affairs Budget be protected. Above are a handful of the major companies who believe it’s in the economic interest of their companies for the United States to increase foreign aid spending and address poverty.


THE MARSHALL PLAN
After World War II, with GIs coming home in search of work, U.S. leaders did the unthinkable… They invested the equivalent of $110 billion in today’s dollars, overseas, rebuilding our allies and enemies alike. The return on investment for providing aid to Europe has been enormous. The U.S. now exports $240 billion of goods annually to EU nations. Read the transcript of the Marshall Plan Speech.

50% of U.S. exports now go to developing nations. This rapidly growing consumer base is the direct result of poverty rates dropping in those nations.
(Center for Global Development)

AID = INVESTMENT

 Below are some of the past struggling nations where the U.S. assisted the poor and the return on investment the United States receives today:

Nations Assisted Total Aid Provided During that Time Period Annual U.S. Exports (2010)
EU
(Marshall Plan)
$12.7 billion $240 billion
South Korea
(1960 - 1979)
$5.6 billion $38.8 billion
Brazil
(1960 - 1974)
$2.8 billion $35.4 billion
India
(1969 - 2005)
$13.4 billion $19.2 billion
China
(1980 - 2003)
$2.6 billion $91.9 billion
Taiwan
(1960's)
$1 billion $26 billion
Indonesia
(1967 - 1998)
$6.4 billion $6.9 billion
Turkey
(1960 - 1994)
$4.5 billion $10.5 billion
Mexico
(1960 - 2005)
$1.7 billion $16.3 billion

95%
of all potential consumers of U.S. goods and products -- live outside of the United States. For American farmers and businesses to prosper, the U.S. must be globally engaged and investing in transforming poor regions into consumer regions.

Warren Buffet Buffett

Supporting Documents:

Boeing’s Largest Order Ever Comes from an Indonesian Airline

In November of 2011, when Boeing announced the largest deal in the company’s history, 230 jets, most people were shocked to learn that the deal wasn’t with a North American or European Airline. The $22 billion deal went to Indonesia’s Lion Air. Once among the poorest countries in the world, aid investments by the U.S. and it’s allies have improved living conditions for millions of people in Indonesian resulting in a rising middle class. Aid investments have not only improved life for millions of people in the region, but as the world’s fourth most populated country, with over 248 million people, Indonesia’s poverty-reduction has created millions of new consumers of U.S. goods and products.

(The Seattle Times)


Meet the New Consumers of U.S. Products:

The World’s Fastest Growing Economies

    1. Angola 11.1
    2. China 10.5
    3. Myanmar 10.3
    4. Nigeria 8.9
    5. Ethiopia 8.4
    6. Kazakhstan 8.2
    7. Chad 7.9
    8. Mozambique 7.9
    9. Cambodia 7.7
    10. Rwanda 7.6
      Annual average GDP growth % (2001-2010)

      (The Economist)

1 Billion Potential Techies in Africa

Tech companies are racing to get more Africans connected to the internet. Google has launched Project Loon which will use high-altitude balloons to beam WiFi to remote regions. FaceBook plans to provide WiFi to Africa via 11,000 solar-powered drones. Microsoft now has 22 offices in Africa. The company’s 4Afrika initiative is focused on accelerating growth on the continent and getting people access to technology.

marriot_poverty

Marriott Bets $200 million on Africa’s Future

Predicting Africa is the next Asia, in 2013 Marriott agreed to a $200 million deal that would give it an extra 23,000 rooms across Africa.

“Africa has significant untapped potential for travel and tourism, both as a destination and source of new global travelers. The continent’s GDP is anticipated to grow at over five percent annually over the next several years which we expect will raise more people into the emerging middle class,”
– Arne Sorenson, Marriott CEO.