"Globalization: Why Extreme Poverty Should Matter to the Developed World."

1. "Globalization: Why Extreme Poverty Should Matter to the Developed World." Brookdale Community College February, 2009 José Lúcio, PhD New University of Lisbon and Columbia University

2. "Globalization: Why Extreme Poverty Should Matter to the Developed World." STRUCTURE OF PRESENTATION: • Main Concepts • Poverty in the Developed Countries and in the Developing World - “Social Exclusion vs Poverty” • Causes of Poverty – traditional approaches • “The Four Traps” • Consequences of Poverty • Does Globalization affects Poverty? Three possible answers • Why Extreme Poverty should matter? • What can we do? José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

3. "Globalization: Why Extreme Poverty Should Matter to the Developed World." • Main Concepts Two analogies: • A Game of Monopoly • Chairs and Music Poverty and “Being Poor” Moderate Poverty Extreme Poverty Poverty Line Misery Line José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

4. "Globalization: Why Extreme Poverty Should Matter to the Developed World." 2. Poverty in the Developed Countries and in the Developing World • “Social Exclusion” – a New Poverty a.1. Multidimensional concept a.2. To be Excluded means to “not be there” b) What it is New Poverty/New Urban Poor? b.1. People cease to be “necessary” b.2. Ageing and New Urban Poverty c) How can we measure Social Exclusion? c.1. Unemployment c.2. “Street Life” d) What it is to be Poor in the Developing World: d.1. The “Forty Year Gap” in the Pursuit of Happiness d.2. “Fresh Water in the Pipe” e) What it is the Bottom Billion? e.1. 58 countries e.1. One Billion People José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

5. "Globalization: Why Extreme Poverty Should Matter to the Developed World." 3. Causes of Poverty – Traditional Approaches • Lack on Income • Lack of access to Basic Infrastructure • Poor Public Services • Underdevelopment of transport and communication networks • Isolation José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

6. "Globalization: Why Extreme Poverty Should Matter to the Developed World." 4. The Four Traps - A modern approach to the Problems of Poverty in the Poor Countries • The Conflict Trap • The Natural Resource Trap • Landlocked with Bad Neighbors • Bad Governance in a Small Country José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

7. "Globalization: Why Extreme Poverty Should Matter to the Developed World." 5. Consequences of Poverty • Bad nutrition • Infant Mortality • Low self-esteem • Corruption and Lack of Democracy • Incapacity to Change • Low Productivity / Salaries / Income José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

8. "Globalization: Why Extreme Poverty Should Matter to the Developed World." 6. Globalization and Poverty – Three Possible Answers a) Globalization Induces Poverty b) Globalization Reduces Poverty c) Globalization Requires Specific Public Policies related with Development and Poverty Alleviation José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

9. "Globalization: Why Extreme Poverty Should Matter to the Developed World." 7. Why Extreme Poverty Should Matter? Two Different Perspectives: • It should matter because there is something called Solidarity • It should matter because Problems don’t know any borders or barriers José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

10. "Globalization: Why Extreme Poverty Should Matter to the Developed World." 8. What can we do? Previous notes: The Tasks ahead are significant and hard to accomplish, but do nothing it is one thousand times worse than trying to change even the smallest of things The success of strategies, endorsed by the Developed World, implies a strong participation and a will to change from the Developing Nations

11. "Globalization: Why Extreme Poverty Should Matter to the Developed World." • The Conflict Trap a.1. Costs of War spread beyond geographic and time boundaries a.2. Strategies to promote growth are essential to keep the “war risk” at a minimum b) The Natural Resource Trap b.1. It is absolutely vital to avoid the Middle East 2 b.2. Strong dependency on a single natural resource it is a way to guarantee future problems b.3. To give economic assessment in order to promote diversity it is the basic task ahead

12. "Globalization: Why Extreme Poverty Should Matter to the Developed World." c) Landlocked with bad neighbors c.1. Increasing trade c.2. Improve economic integration c.3. Improve coastal access c.4. Become a Haven for the Region c.5. Improve air transportation and E-Services c.6. Encourage Remittances c.7. Create an Investor- Friendly Environment c.8. Rural Development c.9. Attract Aid

13. "Globalization: Why Extreme Poverty Should Matter to the Developed World." d) Bad Governance in a Small Country d.1. What it is the cost of bad governance that might lead to a Civil War? Around 65 billion dollars per conflict d.2. Projects and Corruption d.3. To help build a clear decision-making process must be considered as vital task for the future

14. "Globalization: Why Extreme Poverty Should Matter to the Developed World." Some final thoughts about “What Can We Do”: • As a World of Development • As a Nation • As a Community • As Individuals José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt

15. "Globalization: Why Extreme Poverty Should Matter to the Developed World." CONCLUSION To Reduce Poverty it is not only a matter of Solidarity To Reduce Poverty it is a way to Promote Development and to Guarantee a more Peaceful World José Lúcio, PhD – February 2009 jmrl@fcsh.unl.pt