Archive - Jun 30, 2009
Better Understanding Indian Poverty

If you want to understand how to fight poverty, ask poor people what it means to be poor.
That philosophy underlies the new World Bank book Moving Out of Poverty in India: Empowerment and Democracy. The authors of the book collected the life stories of thousands of Indian villagers who have experienced poverty.
Among other findings, the authors found that aid agencies should stop looking at the total number of the poor as a diagnostic and start looking at the numbers of those entering and those leaving poverty.
The report’s core finding, as identified by the authors, is that aid agencies should not track the total number of poor as a measure for success. Instead, aid workers should focus on the number of people escaping poverty and the number of people descending into poverty. These separate processes drive the overall poverty level and their causes are different.
The study found that villagers frequently descend into poverty because events force them to sell off their assets. Villagers told tales of people falling sick, family members dying, education bills coming due, weddings — all of which required the selling off of precious land. With the loss of land, or other assets, the villagers were less well off, and less prepared for the next catastrophe.
Villagers often escape poverty because their family members are able to help them. Family support is essential because few report access to credit from the private or non-profit sector. Extending credit opportunities through building new microfinance programs, extending financial institutions into the rural sector, providing public sector jobs, or other means, can help those who lack wealthier family members.
The study found that focusing on the overall poverty level can lead aid workers to address the wrong problems. Using the overall rate as a measure for success in poverty reduction can also be misleading. A static overall rate can, for example, hide great changes in those becoming better off and those becoming worse off, which combined would cancel each other out and leave the net poverty level unchanged.
One Billion Are Hungry
Last week the UN announced that the number of people suffering from hunger now totals one billion worldwide.
Not too surprisingly, a BBC article points out that the vast majority of the world's hungry live in developing countries. Only 15 million are in the developed world. In contrast, 265 million live in sub-Saharan Africa and more than two times as many — 642 million to be exact — live in the Asia-Pacific region.
Since the economic crisis hit, there are about 100 million more people that are hungry. The UN attributes this rise in world hunger to unemployment and low wages. This is turn hurts people's ability to buy and grow food.
Jacques Diouf, the director general of the UNFAO, focused on agricultural investment as one of the solutions to help developing countries address hunger issues. Diouf is quoted by the BBC as saying, "Investment in agriculture must be increased because for the majority of poor countries a healthy agricultural sector is essential to overcome poverty and hunger and is a pre-requisite for overall economic growth."
At a time when need has never been greater, Mercy Corps has been able to expand our capacity to address hunger in the communities where we work.


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