ÒThe Bottom BillionÓ:

The Persistence of Poverty in a Globalizing World

 

 

á     Who are the Òbottom billionÓ? Where do they live? Why are they and the countries they live in ÒtrappedÓ in poverty?

 

á     And what can be done create the conditions and start the process that will break this cycle and lead to long-term, sustainable growth and rising living standards.

 

Key Terms

1) Third World vs. Developing World

2) Extreme Poverty

3) The ÒBottom BillionÓ

4) Population Explosion

5) Green Revolution

6) Development Traps

7) Millennium Development Goals

 

 

I. Poverty in an Age of Development and Relative Prosperity

 

á     Wealth Growth, 1975-2002

á     Declining Poverty

 

á     World GDP since 1820

 

á     ÒFirst WorldÓ, ÒSecond WorldÓ, ÒThird WorldÓ, ÒDeveloping WorldÓ

 

á     GDP Map

 

á     Rich (c.1.2 billion), Middle Income (c.2 billion), Poor (3.5 billion)

 

á     The Extreme Poor (1.1 billion) (Map  Percentage) – ÒThe Bottom BillionÓ

o  Jeffrey Sachs and Paul Collier

 

 

II. Why are ÒBottom BillionÓ Stuck in Poverty and Underdevelopment?

 

á     The Legacy of Colonialism and Neo-Imperialism

 

á     The Curse of Demography: The Population Explosion

o  Medicine

o  The Green Revolution

 

á     Development Traps

o  The Poverty Trap

o  The Conflict Trap

o  The Resource Trap

o  The Geographic (Landlocked) Trap

o  The Bad Governance Trap

o  Disease, Demographic, Cultural Traps

 

 

III. What can be done?

 

á     International Development Assistance: How Much? To Whom?

o  Millennium Development Goals

o  Development Assistance as Percentage of GDP

 

á     Stimulating Trade

 

á     Canceling Debt

o  Debt Service as Percentage of Revenue

 

á     Targeted Aid Projects

 

á     Encouraging and Empowering Reformers

 

á     Military Intervention to End Cycle of Conflict

 

IV. Why should the rich, developed world – and the developing world – care about the bottom billion? (Compassion + Self-Interest)