Poverty: World, Mexico, USA Copyright Community Links International, 501c3 March 2012

1 out of 5  $1.25 per person per day threshold for extreme poverty is a standard adopted by the World Bank and other international organizations to reflect the minimum consumption and income level needed to meet a person's basic needs.  1/5 of the world’s population (1.4 billion people) fall below this line  They lack the ability to fulfill basic needs, whether it means eating only one bowl of rice a day or forgoing health care when it’s needed most. 2 Source: World Bank, World Development Indicators, 2008

What is Poverty?  “Poverty is pronounced deprivation in well being.” (World Bank, 2000)  Poverty is multi-dimensional  Reality varies from one country to another  Pronounced differences in quality of life across populations  Many indicators contribute to quality of life 3

Well-being  Capability to function in society  Poverty arises when people lack key capabilities - inadequate income or education, or poor health, or insecurity, or low self-confidence, or a sense of powerlessness, or the absence of rights such as freedom of speech. 4

Measuring Poverty 5 IndicatorDescription IncomeHow much we earn HousingWhere and how we live NutritionWhat & how much we eat ConsumptionThings we buy and use every day EducationAccess to and ability to go to school Medical careAccess to and ability to seek medical and dental care

Consumption and Income  Two common & useful indicators of poverty  Measured across many segments of population  Wealthy = those with access to many good & services in a variety of forms  Poor = those with access to limited goods & services  Monetary values are assigned to the range of wealthy vs. poor 6

World Poverty Levels 7

Poverty in Mexico 8 Food Supply Poverty insufficient resources to meet basic nutritional needs. This group doesn’t have enough food let alone anything else 14% of Mexico Asset Poverty insufficient resources to meet basic needs of nutrition, health and education. Income is not enough to secure all 3 21% of Mexico Concentrated in rural areas where there are no hospitals and only elementary schools Patrimonial Poverty insufficient resources to meet all basic needs including food, clothing, housing, health services, education & public transportation. People cannot afford all these things 44-60% of Mexico Numbers vary depending on official Mexican govt statistics versus unofficial statistics 113 million Total Mexico Population in 2010 Source: World Bank, World Development Indicators

Poverty in Mexico  60% of Mexicans live in some state of poverty as measured on previous slides  14% of Mexico population cannot buy enough food; lives on less than $1/day. This is part of the.88 billion people worldwide  5 million more Mexicans fell below the $1/day poverty line between (causes linked to shift from US purchase of biofuels versus crude oil) 9

Poverty in USA  2010 Poverty rate = 15.1% (46.2 million)  2010 real median US household income = $49,445  2010 family poverty rate = 11.7% (9.2 million)  $22,314 = the weighted average poverty threshold for a family of four in 2010  16.3% without health insurance coverage  2010 was the 4th consecutive annual increase and largest number in the 52 years for which poverty estimates have been published 10 U.S. Census Bureau, published 09/13/2011 Income, Poverty and Health Insurance Coverage in the United States: 2010

Side-effects of Poverty 11 Poverty means….  Lower Life expectancy at birth  Less access to improved sanitation  Fewer Years of education  Lower Literacy Rate  Smaller Urban population  Fewer Usage / Access to Phones, Computers, Internet  Fewer Cars / Less access to transportation  Lower Carbon Dioxide Emissions

Side-effects of Poverty 12 Poverty means….  More Deaths under age 5  More Deaths caused by infectious disease  Higher Fertility Rate  Higher Population growth  Increased Net Migration Rate

Inequality in Poverty  2% of the population owns 50% of the world’s total wealth / global assets  1% owns 40% world global assets  10% owns 85% world global assets  50% of world's adult population account for 1% global wealth  wealth = physical and financial assets, e.g. personal savings, home, land, stock ownership, -less debts 13 Source: Study by Helsinki-based World Institute for Development Economics Research of the United Nations University, 2000,

1964 Border Industrialization Program  Where—border towns such as Tijuana  Why---end of Bracero program led to high unemployment in border towns  How---Factories along the border where built in order to easily transport products to US  What---most factories, or “maquiladoras,” make TVs, electronics, and textiles. Copyright Community Links International, page 14

1994 NAFTA - North American Free Trade Act  Designed to remove trade barriers between Canada, United States, and Mexico  Results: huge increase in migration towards the border towns with maquiladoras --corn subsidies  Increased number of maquiladoras Copyright Community Links International, page 15

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