Extreme poverty
Food for Thought

Wildfires in Russia. Revolution in the Middle East. Rising oil prices — these seemingly unconnected events have cumulated in a weak global harvest that will place additional burden on families whose budgets are already stretched thin.
According to a United Nations press conference earlier this month, food prices hit record levels earlier this year. Citing data gathered from the World Bank, the UN reported that rice posted gains of 21 percent, whereas corn and wheat jumped 64 and 68 percent from last year. While this increase has yet to be reflected in markets and grocery stores, a rise is surely on its way.
In the press conference, the UN noted that the world’s poorest people, living on less than $2 a day, are now spending an average of 15 percent more to cover basic nutritional needs. What is more, the World Bank estimates that the spike in food costs has pushed a further 44 million people into extreme poverty.
To help get a better sense of how rising food prices are impacting people in different parts of the world, check out this great graphic developed by a UC Berkley graduate student. The graphic draws on data collected by the Economic Research Service of the USDA.
However, it's important to remember that much is lost in these statistics. Household grown food, or food resulting from bartering is not measured. The data also misses the effect of food or crop subsidies.
There are other critical questions as well, such as who in each country will bear the burden of increasing prices. Traditionally such hardships are placed on those least able to respond and as food prices continue to rise, the poverty rate is likely to follow.
Comment of the Week: Slumdog Millionaire Ignites Conversation
Cynthia Changyit Levin's comment about how the Oscar-winning Slumdog Millionaire has sparked conversation and shined a light on poverty in India caught our eye. That's why Cynthia is this week's winner of the comment of the week contest. Her comment:
No matter what people may think about how poverty was portrayed in Slumdog Millionaire, it has definitely sparked a discussion. I have seen poverty-focused editorials, op-eds, and news articles inspired by this film printed in local papers, Newsweek and even the current Entertainment Weekly. But my favorite place to hear it discussed was at a party attended by upper middle class suburban moms. When I heard a woman say "I had no idea that level of poverty existed in India or anywhere!" I was satisfied to think that the film had broken through to her so that she would open the dialogue about global poverty in as unlikely a place as a birthday celebration.
It's great to hear that the film is making an impact among people that weren't previously aware of issues of extreme poverty. Thanks for the great comment!
Sub-Saharan Africa's Working Poor to Increase in 2009
A staggering 82 percent of workers in sub-Saharan Africa are classified as "working poor" — those who are working but are still in poverty. The International Labor Organization expects that percentage to grow, sobering news to a region that has experienced it's best economic growth in more than four decades.
The ILO numbers indicate, however, that GDP growth is on the decline and many on the subcontinent are becoming discouraged in looking for work. The high percentage of youth workers in the region is making matters worse, the UN news agency reports:
The region has the world’s youngest working population and 75 percent of available jobs there are considered “vulnerable,” according to ILO. The agency estimated that one-third of job-seeking youths have simply given up or are working in jobs that pay less than $2 a day.
Small farmers who are being hurt by the drop in grain prices are a prime example of vulnerable workers. Many of these small farmer's have poured a large percentage of their resources into one venture and could be financially ruined if their investments sour. Family businesses often "employ" family member that work for no pay. These workers are also considered vulnerable and are still counted as being employed even though they don't actually earn wages, skewing the region's unemployment figures.
If the ILO’s predictions come true, 19 to 26 million people, many in these vulnerable positions, will join the ranks of the working poor, adding to the throngs of people struggling to meet the most basic of day-to-day needs.
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