Food Revolution Day, launched May 15, 2015 by Chef Jamie Oliver, raises awareness about diet-related illnesses amongst today’s children and how food education and traditional cooking practices can restore them back to health.
Each day, we watch as the world continues to meld, becoming increasingly global at an unprecedented rate. Nations that have never before been connected are interacting regularly and people are searching for new ways to do things, different sights and new tastes. Not only is this opening the door to advances in global development, a world where everyone has enough to eat, it also has the potential to lead to the dismissal of traditional ways of life, especially as it relates to food, cooking and the cultural importance of food. As many nations begin to adopt what has been called the ‘Western diet’ (i.e. fast food, highly processed foods or foods that are high in fat, with little nutritional content), both malnutrition and obesity plague the health of many nations.
The generations of today are faced with some harrowing facts: we are the first to have shorter life spans than our parents and 42 million children under five are overweight or obese with dangerously high cholesterol levels. On the other hand, at least 11 percent of the global population is malnourished and half of all deaths occurring in children under five are due to diet related illnesses caused by poor nutrition.
So what do we do with this paradoxical situation where half of the world’s population is not getting enough to eat and the other half has too much? According to Chef Jamie Oliver, creator of Food Revolution Day, the only way to stave off malnutrition and obesity is through governmental policies designed to implement compulsory food education into classrooms in order to educate children on where their food comes from, obesity and healthy eating practices.
The Jamie Oliver Food Foundation said, “Food Revolution Day is an annual campaign, which uses the power of Jamie’s global voice to shout about important food issues, driving individuals and businesses to take part in impactful change and pushing governments to improve their food policies in support of better public health.”
Chef Jamie Oliver has long contributed to advancing food education in G20 countries (countries with the largest economies or growing economies), and he has gained the support of international personalities, like Usain Bolt, Kylie Minogue, Ed Sheeran, Matthew McCounaughey and Ryan Reynolds.
Food Revolution was inspired by a variety of food education programs throughout the world. It uses examples from Mexico, Brazil, Japan, England and other nations to demonstrate how the implementation of food education into school policies has changed eating habits and diet among children. For example, The School Food Plan created for schools in England places an emphasis on growing, eating and cooking nutritious food and ensuring children in schools receive adequate dietary provisions while learning.
While the daily hustle and bustle of modern life has greatly affected the number of families who are cooking for children, supporters of Food Revolution Day are calling on the global community to realize what it is doing to the health of children and the possible impact on future generations. Proper nutrition is a prerequisite for a lifetime of productivity and without it, millions continue to suffer. Movements such as Food Revolution Day call for change in the way we think about food and it advocates for mindful consumption. After all, the abundance that some partake in is not shared by all.
Those who are interested in joining The Food Revolution and supporting compulsory food education can sign the petition at change.org/JamieOliver
– Candice Hughes
Sources: CS Monitor, National Geographic, Food Revolution Day, Jamie Oliver Foundation
Photo: Flickr
Roots Up’s Dew-Collecting Greenhouse
As of June 2014, 2.7 million Ethiopians experienced “Crisis and Emergency” levels of food insecurity according to the World Food Programme. Only a quarter of arable land in Ethiopia is being used for agriculture and the limited technology available to subsistence farmers means many crops rely on rainfall for water. This is an increasingly risky move as droughts the world over get longer and harsher. Yet, a low-tech, self-watering greenhouse designed by the nonprofit Roots Up could help Ethiopian farmers increase their yields.
The Dew Collector greenhouse is designed to collect both rainwater and condensation. As temperatures rise during the day, water evaporates from the plants inside the greenhouse. The farmer can open a flap at the top of the building to allow cool evening air in, which causes the water to condense into dew that is then redirected into a collection tank for re-use. The water collected from the greenhouse’s condensation is so pure that it can be used for drinking and bathing, not just irrigation.
According to Mathilde Richelet, the co-founder of Roots Up, “People have access to very little drinking water all year long… They have a long way to the river, which is practically dry during the dry season, and this water has a very high level of turbidity. So the dew-collector greenhouse has several purposes. First, it will allow farmers to collect the appropriate amount of safe drinking water needed for the body a day. Then, farmers can irrigate their plants.”
Elegant solutions like the Dew Collector greenhouses are going to be vital in the next few years. Ethiopia is facing an ongoing drought and an influx of refugees from neighboring countries gripped by violent conflict. The world at large faces similar problems. The World Food Programme reports that 805 million people are undernourished worldwide, and 2013 saw the world’s population of refugees top 50 million for the first time since World War II. A growing population of displaced people combined with a growing water shortage due to climate change spells trouble for countries in conflict-ridden parts of the world.
Roots Up aims to launch the first of its greenhouses in Northern Ethiopia this year, with support from the University of Gondar. Its long-term goal is to train farmers in northern Ethiopia to use affordable technology to become financially and technologically independent. This training will help wean the community off expensive food aid programs and set them up with a sustainable alternative. Eventually, Roots Up hopes to help farmers in north Gondar establish profitable agricultural enterprises of their own, such as growing fruit trees.
Amazing innovations like the training programs and greenhouse that Roots Up have created are fantastic and will eventually improve the lives of many people. However, these alone will not solve the underlying problems causing these challenges. The international community must continue its efforts to stop climate change and peacefully resolve conflicts if countries like Ethiopia are to continue to grow and thrive. Hopefully the next decade will see progress on all fronts.
– Marina Middleton
Sources: Mic, Roots up, Inhabitat, Fast Company
Photo: Inhabitat
What Are the Root Causes of Poverty?
To understand the root causes of poverty, poverty must first be defined. Poverty is qualitatively defined as having inadequate access to basic human needs, such as food, water and shelter. The World Bank routinely uses the metric of living on less than $1.25 a day to provide a rough estimation of the underlying financial conditions of poverty. According to the World Bank, around one billion people globally fell under the category of surviving under $1.25 a day in 2011. Poverty is a multifaceted issue that exists based on the interplay between many root causes. But what are these conditions that preface poverty itself?
Food insecurity is one commonly noted characteristic of impoverished societies around the globe.
One reason for the lack of stable food supply is weather, especially extreme weather events. In many countries, extreme weather can wreak havoc not only on crop yields but entire economies. The extreme weather can cause further food insecurities for impoverished individuals via rising food prices as less food is being supplied to the market. Mother Nature can play a critical role in the lives of those in poverty by reducing the ability of a population to feed itself.
Another key factor in the cycle of poverty is lack of education or access to education.
A U.N. report showed that 171 million could be lifted out of poverty if all impoverished students had access to education enabling them to read. Across the globe, those who are least educated tend to most likely be impoverished. The correlation between insufficient education and poverty is a strong one and the reasons are clear-cut. Without education (or access to it), the impoverished face an upstream battle in the labor markets. It is much more difficult to find a higher quality occupation, or trade that pays better wages, when a person is illiterate or lacks other skills learned in school. This lack of human capital creates barriers for those in need of better opportunities and perpetuates the cycle of poverty.
The third root cause of poverty is man-made.
Political strife in the present or recent past plays an important role in the manifestation of poverty. Violence, instability and corruption, brought about by a country’s political divides, contribute to volatile economies and enormous bloodshed. Day-to-day life can be completely disrupted for the population and the conditions of poverty begin to appear: lack of shelter, food and finances. The issues sometimes worsen as poverty can lead to more civil or social unrest, prolonging conflict and instability.
Other common root causes of poverty include insufficient labor rights and discrimination, as witnessed in the “Untouchable” caste system in India. These social injustices further entrench the unfortunate cycle of poverty.
Poverty is the result of insufficient opportunities for a human being to survive, grow and prosper. Knowing what causes poverty and treating poverty are two entirely different dilemmas. Due to the fact that many of these causal factors can be dependent on one another, there is no easy solution to breaking the cycle of poverty. Yet, by attempting to understand the underlying reasons for the existence of poverty, society can make strides in the struggle against it.
– Martin Yim
Sources: World Bank, BBC, U.N.
Photo: Flickr
Does Urbanization Reduce Poverty?
Urbanization is the process of moving people from rural areas into urban areas. Organizations like the World Bank have found success in this process all over the world. However, there can be some disadvantages to relocating people from slums to cities. Regardless of the cons, urbanization has improved the lives of many in China, Ghana and Latin America.
One benefit of urbanization is increased access to resources like clean water and food. In African rural areas, mothers walk miles for clean water. The World Bank has directly improved lives in Ghana with labor reallocation; the idea of increasing productivity by managing human capital. Moving people to jobs requiring more productivity has contributed to economic growth in Ghana, as well as increases in income for families who typically work in agriculture.
However, without proper monitoring, urbanization does not always work. According to the World Bank, “if not managed well, [it] can also lead to [the] burgeoning growth of slums, pollution, and crime.” This then raises the question of whether urbanization is really a good idea. Much of the world is becoming more urbanized and the U.N. believes this is a good way to reduce poverty.
The United Nations Population Fund, or UNFPA, recognizes the growth in urban culture and believes it can help solve many problems in developing countries. Although there is a rise of inequality in urban areas, according to UNFPA, “urbanization has the potential to usher in a new era of well-being, resource efficiency and economic growth.”
Urbanization is a controversial idea and another potential solution is rural development. According to the World Bank, “it can be done with complementary rural-urban development policies and actions by governments to facilitate a healthy move toward cities.” Development of rural areas allows people to stay where they are and adopt certain aspects of urban culture, such as increasing access to clean water and food while improving living conditions.
Whether it is urbanization or rural development, it is vital to implement new ways to help people in developing countries as cities and economies grow. The mentioned solutions above are two of many that could help reach the goal of ending poverty by 2030.
– Kimberly Quitzon
Sources: World Bank, Spy Ghana, UNFPA
Photo: Flickr
EU Proposes Quotas for Dealing with Migrants
The European Union has proposed a new law to address Europe’s growing migration crisis after months of criticism and accusations of inaction. For several years, migrants have been making the dangerous journey from Africa, Asia and the Middle East across the Mediterranean into Europe. Thousands drown along the way.
The situation has become particularly bad this year as conflicts in Africa and the Middle East have sent more migrants seeking asylum. A record 1,800 people have died trying to make the crossing since the beginning of the year. Italy, Malta and Greece, the primary landing points, are struggling to cope with the influx of refugees.
The European Commission has proposed a new quota system to house the refugees across Europe. It requires EU members to accept a certain number of refugees based on their population, GDP, unemployment rate and current number of asylum applications. The Commission is also exploring ways to crack down on traffickers and assist migrants in making the crossing safely.
Under EU law, asylum seekers are legally entitled to remain in Europe. Economic migrants are not, but this rule has been loosely enforced and many are allowed to stay anyway. The European Commission is also working to improve cooperation with countries of origin to improve deportation procedures for those who do not qualify for asylum to avoid taking in too many people.
The new proposals have proven controversial, particularly the quota system. Critics say the EU is attempting to force countries already struggling with a large influx of immigrants to take in even more. There are fears the law could lead to an anti-immigrant backlash and boost public support for parties on the far-right.
Several EU governments have publicly voiced opposition to the law. The United Kingdom has been the most vocal opponent of the plan, but since it has an opt out clause as part of its agreement with the EU, the quota system will most likely not apply to it. Several eastern and central European countries have also voiced their opposition, including Estonia, the Czech Republic and Hungary.
The U.K. Tory government also opposes the measures aimed at tackling human trafficking and helping immigrants across the Mediterranean, saying it will just encourage more to make the journey.
But many other European governments are in favor, including Germany, Italy, Greece and Austria. France has sent mixed messages, with some high ranking officials expressing support and others expressing opposition, but most expect it to vote in favor of the law. Since most of the large EU members back it, the law is expected to pass. It remains to be seen how it will be implemented and whether it will adequately address the problem.
– Matt Lesso
Sources: BBC, France24, New York Times, BBC
Photo: Flickr
Rohingya Refugee Crisis
Thousands of migrants are currently stranded in boats off the coasts of Thailand, Malaysia and Indonesia. Several thousand have made it ashore, but the governments of these countries are refusing to allow those who remain at sea to land. Most of the boats are overcrowded and on the verge of sinking. Local fishermen and villagers have rescued hundreds from sinking boats off the coast of Sumatra. It is estimated that 6-8,000 remain stranded at sea.
The passengers are primarily migrants from Bangladesh looking for work and Muslim Rohingya fleeing persecution in Burma. There are approximately one million Rohingya living in Burma, but as a non-Buddhist minority they are denied citizenship and forced to live in segregated ghettos where poverty, disease and starvation are rife. The Burmese government refuses to recognize them and insists they are illegal migrants from Bangladesh despite the fact that many have roots in Burma that go back many centuries.
Over 100,000 Rohingya have fled Burma in recent years as sectarian tensions have increased. Hundreds have been killed in violent clashes. The Burmese military junta was notorious for persecuting minorities and despite a transitional government, this persecution continues. Many minorities flee and refugee camps on the Thai border house thousands of asylum seekers.
But no group has endured the level of persecution suffered by the Rohingya, whom the United Nations claims is one of the world’s most oppressed minorities. Since they live in the western part of the country and are forced into segregated camps, the Rohingya must flee by boat.
They flee alongside Bangladeshi migrants and pay large amounts of money to human traffickers, who frequently abuse them and cram them into unsafe and overloaded vessels, just like in the Mediterranean. As Thailand has recently begun cracking down on human trafficking, many are now fleeing for Malaysia and Indonesia.
But each time they have attempted to land, authorities have turned them away and sent them to another country, which Human Rights Watch has referred to as “human ping-pong.” Most of the ships have been abandoned by the smugglers and left to float offshore. There have been reports of fighting over food, people dying of disease and starvation and even stories of people throwing others overboard to lighten the load and keep the ship from sinking.
Migrants have been fleeing in record numbers this year. Indonesia and Malaysia say they already have too many Rohingya to accept any more. The governments of Thailand, Malaysia and Indonesia are all meeting to discuss the issue. The United Nations and several NGO’s are also involved and are pledging millions of dollars in aid to assist the countries in dealing with the refugee crisis.
Fifteen countries have been invited to a summit in Thailand at the end of the month to discuss the crisis and come up with a solution. Burma has also been invited but says it will not attend and refuses to accept any responsibility for the problem. The first obstacle is finding a place to set up camps to house the migrants. But perhaps the most difficult and lengthy part will be identifying and processing them and sorting out economic migrants from asylum seekers. The former will be sent home, while the latter will be sent abroad to third countries.
– Matt Lesso
Sources: The Guardian 1, Yahoo, BBC, The Guardian 2, The Guardian 3
Photo: Flickr
Food Revolution Day
Food Revolution Day, launched May 15, 2015 by Chef Jamie Oliver, raises awareness about diet-related illnesses amongst today’s children and how food education and traditional cooking practices can restore them back to health.
Each day, we watch as the world continues to meld, becoming increasingly global at an unprecedented rate. Nations that have never before been connected are interacting regularly and people are searching for new ways to do things, different sights and new tastes. Not only is this opening the door to advances in global development, a world where everyone has enough to eat, it also has the potential to lead to the dismissal of traditional ways of life, especially as it relates to food, cooking and the cultural importance of food. As many nations begin to adopt what has been called the ‘Western diet’ (i.e. fast food, highly processed foods or foods that are high in fat, with little nutritional content), both malnutrition and obesity plague the health of many nations.
The generations of today are faced with some harrowing facts: we are the first to have shorter life spans than our parents and 42 million children under five are overweight or obese with dangerously high cholesterol levels. On the other hand, at least 11 percent of the global population is malnourished and half of all deaths occurring in children under five are due to diet related illnesses caused by poor nutrition.
So what do we do with this paradoxical situation where half of the world’s population is not getting enough to eat and the other half has too much? According to Chef Jamie Oliver, creator of Food Revolution Day, the only way to stave off malnutrition and obesity is through governmental policies designed to implement compulsory food education into classrooms in order to educate children on where their food comes from, obesity and healthy eating practices.
The Jamie Oliver Food Foundation said, “Food Revolution Day is an annual campaign, which uses the power of Jamie’s global voice to shout about important food issues, driving individuals and businesses to take part in impactful change and pushing governments to improve their food policies in support of better public health.”
Chef Jamie Oliver has long contributed to advancing food education in G20 countries (countries with the largest economies or growing economies), and he has gained the support of international personalities, like Usain Bolt, Kylie Minogue, Ed Sheeran, Matthew McCounaughey and Ryan Reynolds.
Food Revolution was inspired by a variety of food education programs throughout the world. It uses examples from Mexico, Brazil, Japan, England and other nations to demonstrate how the implementation of food education into school policies has changed eating habits and diet among children. For example, The School Food Plan created for schools in England places an emphasis on growing, eating and cooking nutritious food and ensuring children in schools receive adequate dietary provisions while learning.
While the daily hustle and bustle of modern life has greatly affected the number of families who are cooking for children, supporters of Food Revolution Day are calling on the global community to realize what it is doing to the health of children and the possible impact on future generations. Proper nutrition is a prerequisite for a lifetime of productivity and without it, millions continue to suffer. Movements such as Food Revolution Day call for change in the way we think about food and it advocates for mindful consumption. After all, the abundance that some partake in is not shared by all.
Those who are interested in joining The Food Revolution and supporting compulsory food education can sign the petition at change.org/JamieOliver
– Candice Hughes
Sources: CS Monitor, National Geographic, Food Revolution Day, Jamie Oliver Foundation
Photo: Flickr
Tesla’s New Home Battery: The Powerwall
As we burn up some of our nonrenewable resources, we face a grim ultimatum: continue using the same resources until we’ve depleted them all (which could have catastrophic consequences) or find a way that everyone on Earth can benefit from electricity without burning our nonrenewable resources. Elon Musk, the CEO of Tesla Motors, is trying to find a way to solve this and he has recently created a battery that may do just that.
Powerwall is a home battery that uses solar power in order to provide the battery with a charge. The battery is capable of powering an entire house when utilities are low. When a storm comes rolling into town and knocks the power out, the Powerwall is capable of providing the emergency power.
The compact design of the battery allows you to mount it on any wall that is desired; it is also an aesthetically pleasing piece of equipment. The entire system that collects and distributes electricity through the Powerwall is relatively simple. There are three essential parts:the Solar Panel, the Home Battery (Powerwall) and the Inverter.
The solar panel, which is installed on the roof, collects and converts sunlight into electricity. That surplus electricity is stored in the Powerwall during the day or even when the rates of the utility grid are low. The Inverter converts the electricity from DC to AC. AC is the type of electricity used for household electronics.
Building an invention as groundbreaking as this has many benefits. The battery can provide financial savings to its owner by charging during low rate periods when demand for electricity is lower, and, conversely, discharging when the rates are high. Owning a Powerwall also increases the consumption of solar power generation, which is one of the cleanest, renewable energy sources around. This allows for reduced CO2 emissions.
As this technology progresses, it can be used to address poverty and help provide electricity to areas that aren’t near power plants. Once there is a way to produce these types of rechargeable lithium-ion batteries cheaply, then we will be able to see them popping up in developing, remote areas, such as sub-Saharan Africa. The U.S. Congress has made bringing electricity to remote areas in Africa a major goal. The U.S. Agency for International Development is headlining that mission under the Electrify Africa Act.
The Powerwall is considered the automobile of its industry; it is pioneering technology. Once there are even better ways to produce the Powerwall, the technology will become more accessible. Once more accessible, more people will be able to utilize renewable energy. This is the underlying purpose of this technology; to reduce the amount of nonrenewable energy used by burning fossil fuels by providing a renewable alternative.
– Erik Nelson
Sources: Congress, Tesla Motors 1, Tesla Motors 2
Photo: Wired
Ukraine Tries for Debt Relief
This past March, Ukrainian Finance Minister Natalie Jaresko and Prime Minister Arseny Yatseniuk succeeded in securing an impressive amount of aid from the International Monetary Fund, but their work to bring Ukraine to financial stability has only just begun. The restructuring that the IMF and Ukraine agreed on calls for Ukraine to save $15.3 billion over the next four years, a number that would only be attainable if some of Ukraine’s creditors forgave a portion of their principle. So far, nobody seems willing.
After the violence last year sent Ukraine’s economy into a tailspin of high interest rates and dwindling federal bank reserves, the international community stepped in to lend Ukraine a hand – and several billion dollars.
Last April, the IMF approved a two-year loan of $17 billion to Ukraine, but soon deemed the plan insufficient to build reform while the government was busy fighting pro-Russia separatists in eastern Ukraine.
This March, the IMF approved a loan that would deliver $17.5 billion over the next four years, with $10 billion of the money being delivered this year. An official statement by IMF Managing Director Christine Lagarde in Berlin called the program “very strongly front-loaded during the first year.” She went on to express optimism about the plan, saying, “Ukraine has satisfied all the prior actions that were expected and required of it in order to start running the program. … We are off to a good start.”
‘Front-heavy’ loans like this are supposed to kick-start the rebuilding process and bring faltering economies out of their downward spirals. That money was combined with an additional promise of $7.5 billion from other international organizations and an expected $15.3 billion in debt relief.
Even with this assistance and the optimism of the IMF, the Ukrainian economy is expected to contract by 5.5 percent in 2015, before rebounding and growing by an estimated two percent in 2016. While the outlook of the IMF and the Ukrainian government is cautiously optimistic, their goal remains lofty. By 2020, they aim to reduce Ukraine’s debt down to $56.1 billion, from the estimated debt in 2015 of $74.9 billion.
Ukraine’s debt can be broken into four very rough categories: there is debt to international organizations like the IMF, which is unlikely to change. There is debt to friendly governments like the United States, which would also be hard to change. The remaining two kinds of debt are Ukraine’s $17.3 billion in sovereign Eurobonds and $31.4 billion in domestic debt. These are the debts the Ukrainian government has the best chance of re-negotiating, but simple interest alterations won’t be enough. To meet its goal, the Ukrainian government will have to reduce the principle of these debts.
This will not be a task for the faint of heart. The largest private bondholder, asset management company Franklin Templeton, has hired heavy-hitting consulting group Blackstone to advise them during talks, a sure sign that they don’t plan to surrender much. However, the toughest creditor is probably Russia, who holds $3 billion of Ukraine’s Eurobond debt, and has proven intractable to negotiation about restructuring so far.
If Prime Minister Yatseniuk and Finance Minister Jaresko can negotiate a manageable plan for debt repayment, Ukraine’s economy has the potential to make an impressive comeback.
– Marina Middleton
Sources: IMF, Bloomberg 1, Bloomberg 2, Reuters
Photo: Flickr
The Importance of Technology for Development
Technology is constantly developing and with its exponential growth there is much to look forward to in its role in ending world poverty.
“The effect of the Internet in broadening and enhancing access to information and communication may be greatest in poorer nations,” according to Harvard University. If developing countries gain more access to the Internet it can be a driving force to lift families out of poverty. The knowledge provided through the internet can maintain health, educate families, and open doors for boys and girls who are unable to attend school.
Technology Sparks Development
Another benefit the Internet offers for the poor is the ability to get microloans. Microloans give people the chance to start a business who cannot typically afford it. Businesses like SamaSource and Regent Park’s Access Microloan program have helped women to start catering businesses and finish their education. “SamaSource is an innovative social business that connects women and youth living in poverty to work opportunities via the Internet from Africa,” according to The Huffington Post.
Microloans are helping families and communities come out of poverty. When women have the capabilities to start up their businesses, they have the opportunity to invest their money in other areas in their lives. Children and communities benefit from flourishing women who are lifted out of poverty. Microloans sustain development in poor countries and expand economic growth.
The U.N. recognizes the benefits that internet access offers to developing countries. “Through both simple and sophisticated techniques, the Internet can help eradicate poverty, educate people, sustain the environment and create healthier populations,” says the U.N. As developed countries continue to progress in the field of technology, developing nations are falling behind.
However, access to the Internet is improving. Google has recently invested $1 billion in satellites to provide Internet access to people in developing countries. Along with Internet acess, businesses are also investing in mobile technology. Mobile banking services allow families to monitor their and better spend their money.
Technology is the golden ticket to achieving the goal of ending poverty by 2030.
– Kimberly Quitzon
Sources: Harvard, The Huffington Post, United Nations
Photo: SAP:Business Innovation
Economists Predict Growing Global Equality
In the 10 year period between 2003 and 2013, the Gini coefficient, a measure used to represent income distribution, of the entire world fell from 69 in 2003 to 65 in 2013. In addition, the world’s average income rose from $1,000 to $2,000. These statistics reveal that income inequality is shrinking overall.
A new paper called, “The Future of Worldwide Income Distribution,” by economists Tomas Hellebrandt and Paolo Mauro of the Peterson Institute for International Economics found that not only has the world’s distribution of wealth become more evenly spread, but even more global equality can be expected in the next 20 years.
By surveying household incomes of over 100 countries that make up the majority of the entire world’s economy, Hellebrandt and Mauro were able to estimate the reduction of poverty by 2035. “To make the comparison fair, incomes in each country are converted into U.S. dollars using PPP (Purchasing Power Parity) exchange rates that take into account differences in the cost of living across countries and so ensure that a dollar of income in India or China can purchase the same value of goods and services as a dollar of income in the United States,” said Hellebrandt.
Hellebrandt and Mauro believe that “rapid growth in emerging-market economies” will be the main force pulling nations out of poverty. As the economy grows in sub-Saharan Africa and China, and with China and India’s residents beginning to have more westernized consumption habits, the gap between the poor and the rich is expected to decrease.
This improvement is much needed as the economists also calculated that around 80 percent of the entire world’s population is below the U.S. poverty line. This is the equivalent of 5.5 billion people. In other words, most people are actually poorer than the poorest living in the U.S.
“With rising incomes in developing and emerging-market economies, hundreds of millions of people will be lifted from abject poverty to ‘working poor’ levels where they can afford a more adequate and varied diet and basic consumer goods, and additional hundreds of millions will move from modest consumption levels to a degree of affluence currently associated with advanced economies,” Hellebrandt and Mauro explain in their paper.
If Hellebrandt and Mauro’s hypothesis is correct, we could be in for an equal, fair and sustainable future.
– Melissa Binns
Sources: The Economist, The Huffington Post, Social Science Research Network
Photo: Global Equality