David Hulme presentation at a Your Manchester Insights Event for University of Manchester Alumni.
David Hulme discusses what is getting worse in development, what is getting better, and what we can do to alleviate the doom and gloom.
People are living longer, global GDP has risen by over 300% and extreme poverty has been reduced by over half, yet discourse is dominated by doom and gloom. Improvements in the economy, social policy and politics have lead to these improvements but there is still much to be done on inequality, and climate change.
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David Hulme: Why so much doom and gloom when things are getting better and better?
1. THE GREAT ESCAPE
Why so much doom and gloom when things are
getting better?
DAVID HULME
Brooks World Poverty Institute
Effective States and Inclusive Development Research
Centre
Institute for Development Policy and Management
4. ENVIRONMENTAL DEGRADATION
The world emits 48% more carbon dioxide from the
consumption of energy now than it did in 1992
A 2°C rise is “guaranteed” within one generation
Beyond a 2°C rise, climate change is likely to have
catastrophic and irreversible effects
Forest destruction and ocean pollution continues
5. INEQUALITY
Today, 80 people own as
much wealth as half the
world’s population and in
the next year the combined
wealth of the richest 1%
will overtake that of the
other 99% of people
6. EXCLUSION
21 million men, women
and children around the
world are in a form of
slavery
• Gender
• Ethnicity
• Race
• Religion
• Disability
9. RISING INCOMES
Global real GDP per capita has risen by 320%
between 1950 and 2010 ($3,500 to $11,200)
GDP per capita in UK has risen by over 500%
between 1950 and 2010 ($6,939 to $36,320)
11. STRONGER POVERTY REDUCTION
The extreme poverty rate has been halved, but major challenges remain
Proportion of people living on less than $1.25 a day, 1990 and 2010
17. “IT’S THE ECONOMY, STUPID!”
Growth - Global GDP per capita
has increased by 320% since
1950
Extreme poverty ($1.25 a day)
worldwide reduced by half
1990-2010: From 47% to 22% in
developing countries
700 million people lifted out of
extreme poverty
But are growth and free trade
really all you need?
22. “IT’S THE CONVERSATIONS, STUPID!”
Creation of useful knowledge
(especially public knowledge)
and its diffusion
People talking about washing
hands (lowers infant
mortality), about simple
book-keeping (raises
productivity) – using mobiles
(increases connectivity and
access to information)
24. THE MISINFORMED
The nature of contemporary media:
Sensationalism
Rolling news
Focus on all that is bad
Example 1 - Bangladesh
Example 2 – University of Manchester PhD
students:
More than 50% of broadsheet coverage of the last
10 years was kidnap and death of Linda Norgrove
25. THE INFORMED – OUTRAGE
Slow pace of progress given the affluent world in
which we live
Reallocation of less than 1% GDP would erradicate all
extreme poverty
If focused, the technological and organizational
capabilities of humanity would permit total MDG
achievement
Moral requirement to do better and do more
Hence the need for OUTRAGE!
26. THE INFORMED – NEW CHALLENGES
Spiralling inequality
Number of millionaires worldwide is to increase by
about 53% in the next five years, to 53.2 million
By 2016 the top 1% will be richer than the rest of the
world combined
Ineffectiveness of institutions regulating
international finance
In Africa, for every $1 of aid that enters the
continent, $10 of illicit finance / resources leaves
the continent
27. THE INFORMED – NEW CHALLENGES
Inequality…
Slows down poverty
reduction
Undermines the evolution of
democracy and effective
institutions
Facilitates Regulatory Capture
30. AT MANCHESTER
Create policy relevant knowledge
Coproduce this knowledge with our partners
Shift from poverty reduction focus to reducing
poverty and inequality worldwide and
promoting climate justice
Communicate this knowledge to policy elite in
the rich and poor worlds
Raise public understanding of global
development
31.
32. PERSONAL CHOICES
Make contributions to an NGO:
humanitarian (Médecin Sans Frontiers)
development (Oxfam or SCI)
human rights (Amnesty International)
radical-campaigning (War on Want)
even Southern (BRAC International).
Find ways of reducing your personal carbon footprint
Buy fair trade products and let retailers know this is your
preference
Ask your pension fund about ethical investment
33. PERSONAL CHOICES
Think about your views on development issues
Think about whether you support multilateralism
and agencies such as the UN when talking with
others
Use your personal networks – social groups,
mosque, church, temple, choir and friends – to
discuss ideas about “what should be done”
Question your constituency candidates
….become an activist?
35. THINGS ARE GETTING BETTER
THE SKY IS NOT FALLING DOWN!
WE HAVE TO DO MUCH BETTER
36. Brooks World Poverty Institute
http://www.bwpi.manchester.ac.uk/
Institute for Development Policy and Management
http://www.manchester.ac.uk/idpm/
Effective States and Inclusive Development Research Centre
http://www.effective-states.org/
Humanitarian and Conflict Response Institute
http://www.hcri.manchester.ac.uk/
Chronic Poverty Research Centre
http://www.chronicpoverty.org/
International Research Initiative on Brazil and Africa
http://www.brazil4africa.org/
Hinweis der Redaktion
Key stats:
The world has reduced extreme poverty by half: In 1990, almost half of the population in developing regions lived on less than $1.25 a day. This rate dropped to 22 per cent by 2010, reducing the number of people living in extreme poverty by 700 million.
Stats and growth/poverty overlap – Dani Rodrik (http://www.imf.org/external/pubs/ft/fandd/2000/12/rodrik.htm):
‘Experience has shown, however, that growth and poverty reduction go largely hand in hand. The questions we should be asking are (1) what kinds of policies lead to both growth and poverty reduction? and (2) would a poverty focus facilitate the adoption of such policies?’
[…]
In theory, a country could enjoy a high average growth rate without any benefit to its poorest households if income disparities grew significantly—in other words, if the rich got richer while the incomes of the poor stagnated or declined. This outcome is rare, however; income distribution (for example, as measured by the Gini coefficient) tends to be stable over time within countries.
Moreover, to the extent that income distribution changes, its relationship to economic growth varies from country to country. Growth has been accompanied by greater equality of income in Bangladesh, Egypt, and Taiwan Province of China, for example, but by greater inequality in Chile, China, and Poland. This suggests that the magnitude of the poverty reduction payoff from growth depends, in part, on a country's specific circumstances and policies.’
What does a high correlation between growth and the incomes of the poor tell us? Practically nothing, for the reasons outlined above. All it shows is that income distribution tends to be stable and fairly unresponsive to policy changes
Thomas Pogge defines his idea of a Global Resource Dividend as follows: “states and their governments shall not have full libertarian property rights with respect to the natural resources in their territory, but can be required to share a small part of the value of any resources they decide to use or sell.”
‘Having initially called it a tax, he has come to refer to the payment they must make as a dividend “because it is based on the idea that the global poor own an inalienable stake in all limited resources. As in the case of preferred stock, this stake confers no right to participate in decisions about whether or how natural resources are to be used and so does not interfere with national control over resources, or eminent domain. But it does entitle its holders to a share of the economic value of the resource in question, if indeed the decision is to use it.”
Proceeds from the GRD are to be used in the relief of the worst extremes of global poverty, with the aim of ensuring that all human beings can meet their own basic needs with dignity. Pogge does not believe that an impossibly large amount would need to be raised, and speaks of an initial maximal figure of 1 per cent of aggregate global income. Such a sum could be raised, he argues, by targeting a small range of selectively chosen resources.’
(Pogge, T. (2002) World Poverty and Human Rights, (Cambridge: Polity Press) pp.196-7 and on the 1% figure – p.205; cited in Hayward, Tim (no date) ‘Thomas Pogge’s Global Resources Dividend: a critique and an alternative’ Journal of Moral Philosophy Vol.2.3: 317-332, https://www.era.lib.ed.ac.uk/bitstream/1842/914/3/Hayward-on-Pogge.pdf)
Credit Suisse report 2014: The number of millionaires worldwide is to increase by about 53% in the next five years, reaching 53.2 million in 2019’ and ‘Wealth inequality has increased since 2008, especially in emerging economies like China and India.’
Oxfam: ‘By 2016 the top 1% will be richer than the rest of the world combined’