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World Atlas: Countries With The Lowest Income In The World April 16, 2017

Posted by OromianEconomist in Economics.
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Countries With  Very Low per Capita GNIs: Malwai, Burundi, Central African Republic, Liberia, the Democratic Republic of Congo, Niger, Gambia, Madagascar, Guinea, Guinea-Bissau, and Ethiopia are all struggling with extreme poverty. Within them, GNI per capita rates vary from 250 to 550 international dollars. This often becomes even more concerning when considering that income disparities often leave the general population in an even poorer state the already bad numbers would suggest. Collectively, these countries need strong economic reforms to begin to fight poverty and increase the welfare of their citizens and secure stronger standings on the global economic scene.

Countries With The Lowest Income In The World

These following countries have the smallest Gross National Income (GNI) per capita worldwide.


The Gross National Income, or GNI, represents the sum of a nation’s Gross Domestic Product (GDP) plus any other net income received from overseas. Therefore, the gross national income measures both the domestic income of a country and the income it receives from abroad.The GNI per capita measures the average income earned by a person in a given country and is calculated by simply dividing the total GNI of the country by the total size of the population. Generally, GNI per capita is used to compare the state of wealth of a population and the standard of living in a country with those of other nations. GNI per capita is expressed in international dollars, and is based on Purchasing Power Parity (PPP), how far the money will go in buying commonly purchased goods in relation to that money’s ability to do the same elsewhere on the planet. When determining a country’s development status, GNI becomes an important economic factor. Taking into account all the considerations listed above, it becomes quite easy to understand why the countries with the smallest GNIs per capita tend to be developing countries which struggle with poor Infrastructure in terms of social welfare and economic development alike.

Malawi’s Economic Issues

According to World Bank data, the country with the smallest GNI per capita is Malawi, with 250 international dollars of income per person. Although the country enjoys a democratic and stable government, the economy continues to operate within a poor fiscal environment, characterized by the country’s high debt levels. The social environment is characterized by a proliferation of inequality and poverty, with over a half of the population being considered as poor, and one-quarter of it living in extreme poverty. The low agricultural productivity is one of the main obstacles in reducing the poverty, further worsened by increasing erratic weather patterns.

Post-Conflict Poverty in Burundi

Burundi, with a GNI of 270 international dollars, is the country with the second smallest GNI per capita. Even if the country is in the process of transitioning from a post-conflict economy to a stable, peacetime economy, poverty remains at troublingly high levels. The country is focusing on developing its basic social services, modernizing the public finance sector, and upgrading institutions and infrastructure across the board. Though it possesses a modernized industrial establishment, it above all relies on the agricultural sector, energy production, and mining for the majority of its revenues. The growing economy will increasingly offer more employment opportunities, and hopefully improvements in the standard of living will be quick to follow.

Underdeveloped Resources in the Central African Republic

The Central African Republic has the third-smallest GNI per capita value (330 international dollars). While it’s true that the country has recently been devastated by a political crisis, the Central African Republic was among the countries with the highest poverty rates well before the recent tumultuous events. The country possesses abundant natural resources but, unfortunately, they are generally very underdeveloped. Subsistence agriculture represents almost one-third of the gross domestic product. Exports of diamonds and wood, while relatively significant domestically, have clearly not been enough to raise the economy to the level of a major global power.

Liberia’s Epidemic

Liberia’s economy was gravely affected by the Ebola crisis that swept Africa for much of the new millennium. Indeed, the outbreak essentially reversed many of the important gains the country has made in the fights against political and economic insecurity and poverty. The quarantines implemented due to the Ebola epidemic affected the production and exports of rubber as workers were restricted in their daily travels, and contamination from African goods became a global concern. The weak business environment constrains the growth of manufacturing industries, and most of the important sectors suffered production disruptions due to the epidemic. The economy of Liberia definitely needs effective implementation of an economic recovery plan

Other Countries With Low per Capita GNIs

Besides these countries, the Democratic Republic of Congo, Niger, Gambia, Madagascar, Guinea, Guinea-Bissau, and Ethiopia are all struggling with extreme poverty as well. Within them, GNI per capita rates vary from 380 to 550 international dollars. This often becomes even more concerning when considering that income disparities often leave the general population in an even poorer state the already bad numbers would suggest. Collectively, these countries need strong economic reforms to begin to fight poverty and increase the welfare of their citizens and secure stronger standings on the global economic scene.

Gross National Income (GNI) per Capita

Rank Country GNI Per Capita (USD)
1 Malawi $250
2 Burundi $270
3 Central African Republic $320
4 Liberia $370
5 Congo, Dem. Rep. $380
6 Niger $410
7 Madagascar $440
8 Guinea $470
9 Ethiopia $550
10 Guinea-Bissau $550
11 Togo $570
12 Mozambique $600
13 Mali $650
14 Uganda $670
15 Afghanistan $680
16 Burkina Faso $700
17 Rwanda $700
18 Sierra Leone $700
19 Nepal $730
20 Comoros $790
21 Haiti $820
22 Zimbabwe $840
23 Benin $890
24 Tanzania $920
25 South Sudan $970
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Gates Foundation: Spearheading the neoliberal plunder of African agriculture. #Africa May 11, 2016

Posted by OromianEconomist in Uncategorized.
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Odaa OromooWhy Bill Gates’ ‘big bet for the future’ is wrong

 

“The Gates Foundation has rapidly become the most influential actor in the world of global health and agricultural policies, but there’s no oversight or accountability in how that influence is managed. This concentration of power and influence is even more problematic when you consider that the philanthropic vision of the Gates Foundation seems to be largely based on the values of corporate America. The foundation is relentlessly promoting big business-based initiatives such as industrial agriculture, private health care and education. But these are all potentially exacerbating the problems of poverty and lack of access to basic resources that the foundation is supposed to be alleviating.”

Read more at:-

Gates Foundation : Spearheading the neoliberal plunder of African agriculture

IRIN: Alarm bells are ringing for a food emergency in Ethiopia. The UN says 15 million people will need help over the coming months. The government, wary of stigma and therefore hesitant to ask for help November 19, 2015

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???????????Ethiopia in 2015, catatrphic famine, over 15 million people affected

 

HOW BAD IS THE DROUGHT IN ETHIOPIA?

IRIN  humanitarian news and Analysis

19 November 2015

Alarm bells are ringing for a food emergency in Ethiopia. The UN says 15 million people will need help over the coming months. The government, wary of stigma and therefore hesitant to ask for help, has nevertheless said more than eight million Ethiopians need food assistance. Extra imports to stem the crisis are already pegged at more than a million tonnes of grain, beyond the government’s means. Inevitably, comment and media coverage compare the current situation with 1984 – the year Ethiopia’s notorious famine hit the headlines. Reports suggest this is the worst drought in 30 years. One declares it a“code red” drought. So how bad actually is it?

The country of close to 100 million people is huge, spread over an area of more than a million square kilometres that ranges from semi-desert to swamp to mountain ranges and fertile farmland. The weather systems and agricultural patterns are diverse and complex. Even within the higher-altitude areas of the country, the most densely populated, the typical rainy seasons vary and crops are grown at different times of the year. This year, the weather has been prone to even greater variation due to the global climate phenomenon El Niño, last seen in 1997-1998.

Ethiopia produces more than 90 percent of its own food. Last year, the cereal harvest was estimated to be 23 million tonnes, but imports in recent years averaged 1.2 million tonnes – just five percent of that. So even if 2015 and 2016 are bad years (the impact of a poor harvest is felt months later as food stocks run out), the vast majority of Ethiopian people will support themselves and eat produce from their own country. But in a giant like Ethiopia, 15 percent of the population is 15 million people – more than the entire humanitarian caseload of the Syrian crisis. An extra five percent of cereals is another 1.2 million tonnes.The costs and logistics become formidable at this scale.

WEATHER

The weather is only one part of the equation in whether people go hungry. Politics, economics, the availability of seeds and fertiliser, conflict, trade and labour markets, population pressure, social habits, and a host of other factors matter too.

While the science and sociology of food security is complex and layered, international agencies working on drought and hunger-prone countries, including Ethiopia, use a scheme called the Integrated Food Security and Humanitarian Phase Classification Framework (IPC) to simplify the mass of underlying data into a five-step scale – from minimal food security pressure to famine. Some parts of northern Ethiopia are already flagged as being in “Phase 4”, one step from the worst category. More are expected to follow, unless sufficient resources can halt the slide.

Even getting a single view of one year’s weather, let alone human interaction with it, is no simple matter.

For more than 30 years, meteorologists have gathered a giant archive of satellite data for Ethiopia. US satellites, in particular METOP-AVHRR, churn out petabytes of data. Triangulating that with other sources, including ground-based measurement, farm assessments, nutrition, and price monitoring provides a rich toolkit to estimate vegetation, rainfall, soil moisture and temperature – ultimately giving an idea of food on the table.

Considering all the variables, the drought and famine watchdog FEWS NET, established in the wake of the 1984 famine, has used direct, but not alarmist, language to describe the prospects: its latest report for Ethiopia is titled “Large-scale food security emergency projected for 2016”. The UN’s Food and Agriculture Organization, meanwhile, warned: “food security conditions sharply deteriorated.”

Political sensitivity, donor pressures, logistics, media distortion, inefficiency and scepticism may yet conspire to tip more Ethiopians into “Phase 4.” Even in the best-case scenario, the financial resources will be hard to find – $270m is still needed for 2015 alone, according to UN’s emergency aid coordination body, OCHA, and needs are set to rise sharply (the US, the UK and China have pledged relatively early to the response, according to the government).

To illustrate the complexity of weather patterns in Ethiopia and attempt to demonstrate a link with El Niño, IRIN analysed 30 years of satellite imagery to provide some visual evidence of the complex and erratic picture of weather in the Horn of Africa. Read more in the following link

http://newirin.irinnews.org/dataviz/2015/11/19/how-bad-is-the-drought-in-ethiopia

Africa is still struggling with poverty July 9, 2015

Posted by OromianEconomist in Africa, Africa Rising, African Poor.
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???????????Africa is still struggling with poverty

http://www.pewglobal.org/2015/07/08/a-global-middle-class-is-more-promise-than-reality/

Over the last few years, sub-Saharan countries have seen significant economic growth. Seven of the ten fastest growing economies in the world between 2011-2015 come from Africa.

But this economic growth has not quite translated into significant poverty reduction. As analysts point out, the number of people on the continent living under $1.25 a day has risen from 358 million in 1996 to 415 million in 2011.

Tanzania for example, which saw an average of 6% GDP growth over the last several years, has grappled with this disconnect. “At the macro-level, we may be doing well, but it does not touch the unemployed or those involved in the informal economy,” a former cabinet minister told Quartz.

However, the latest data from the Pew Research Centre shows that there has been significant poverty reduction in some African countries.

The reduction of poverty and increase in the ranks of the slightly better-off “low-income” category is good news, but the challenge remains that many African countries have not been able to transition people into the middle class.

Africa is still the poorest region in the world overall: With nine out of 10 people either poor or low-income, the continent his home to 20% of the world’s poor, the data show. In some countries virtually the entire population is poor or low-income. The picture is somewhat brighter in Seychelles, Tunisia, South Africa, Morocco and Egypt, where 20% are either middle income or better

  Africa is still struggling with poverty   Read more at: http://qz.com/449199/africas-economic-growth-still-isnt-creating-enough-of-a-middle-class/

Africa remains the poorest region

(Gulf News, NEW YORK, 10 July 2015): The dramatic lurch of hundreds of millions of people from poverty since the millennium began has not resulted in a truly global middle class, a new report says.

Instead, the improvement in living conditions for almost 700 million people has been a step forward from the desperate existence of $2 or less a day into a low-income world of living on $2 to $10 daily, the Pew Research Center says.

Its report, released Wednesday, looks at changes in income for more than 110 countries between 2001 and 2011, the latest that data for such a large range of countries was available.

The report comes just two days after the United Nations announced success in key development goals adopted by world leaders at the start of the millennium, including the lifting of more than one billion people out of extreme poverty.

Also worth noting: Europe and North America’s global share of the upper-middle income population fell from 76 per cent to 63 per cent by 2011 as the Asia-South Pacific region got richer. Africa remained the poorest region, with 92 per cent of its population either poor or low-income by 2011, and in Cote d’Ivoire, Kenya, Madagascar and Zambia, “poverty actually increased significantly.”

For years, reaching middle class has been held out as a goal for people in a growing number of countries. China’s rise in particular, with 203 million people there moving into a middle-income life over the decade starting in 2001, has resulted in what the report calls a “pivot to the east.”

More than half of the world’s middle-class population was living in the Asia and South Pacific region by 2011. That’s a jump from 31 per cent to 51 per cent in a decade. Largely because of Asia, the report says the world’s middle-income population nearly doubled over that time, from 399 million to 784 million.

But the gains are hardly seen everywhere. The report shows that while commodity-rich South America and a strengthening Eastern Europe, including Russia, also made strides into the middle class, Africa, India and many parts of Asia have yet to do the same.

The Pew report calls its overall findings “the uneven geography of the emerging middle class.”

The poverty rate for India, Asia’s other population giant, fell from 35 per cent to 20 per cent over the report’s period, but its middle class only grew from 1 per cent to 3 per cent. The report notes that India’s economic reforms began in 1991, 13 years after China, though the scope and pace of the countries’ reforms have varied.

South America almost reached the point where half of its population is at or above middle-income, at 47 per cent.

And despite China’s rise, more than three-fourths of its people were still poor or low-income. The only other countries seeing a significant shift into the middle class, where the poverty rate fell by at least 15 per cent and the middle-income population grew by at least 10 per cent, were Bhutan, Moldova, Ecuador, Argentina and Kazakhstan.

Among countries with a large number of high-income people, or those living on more than $50 a day, the United States stood out from its Western peers by slipping as its economy stalled. Its high-income population actually edged down, from 58 per cent in 2001 to 56 per cent in 2011.

Factors like conflict and falling oil prices likely have affected the findings for some economies, such as Russia’s, in the past few years, the report notes.

http://gulfnews.com/news/americas/usa/africa-remains-the-poorest-region-1.1547689#.VZ60puHsczY.twitter