Transcript ODI-UNICEF CONFERENCE 9TH-10TH NOVEMBER, 2009 The global economic crisis-integrating children in the policy responsesUNICEF, LONDON 11/6/2015

ODI-UNICEF CONFERENCE
9TH-10TH NOVEMBER, 2009
The global economic crisis-integrating
children in the policy responsesUNICEF, LONDON
11/6/2015
THE IMPACT OF THE GLOBAL ECONOMIC CRISES ON
THE SOCIO-ECONOMIC CONDITIONS OF
VULNERABLE GROUPS IN DEPRIVED SOCIETIES:
HISTORICAL EXPERIENCES AND LESSONS FROM THE
‘LOST DECADE’ FOR AFRICA IN THE 1980’S.
AUTHORS
1. PRINCE OSEI-WUSU ADJEI (PHD)
Lecturer, Department of Geography and Rural
Development, Kwame Nkrumah University of Science and
Technology, Kumasi, Ghana
[email protected]
2. REV. PETER OHENE KYEI (PHD)
Rector, Pentecost University College, Accra, Ghana.
[email protected]
POVERTY KILLS
LET’S KILL
EXTREME POVERTY
AMONG CHILDREN AND
VULNERABLE GROUPS
OUTLINE OF PRESENTATION

GLOBAL CHALLENGE/ STATEMENT OF THE PROBLEM

LEARNING OBJECTIVES

NATURE AND DIMENSIONS OF THE 1980’S AFRICAN CRISIS
(LOST DECADE FOR AFRICA)

POLICY PRESCRIPTION AND ECONOMIC IMPACT

SOCIAL COST OF POLICIES ON CHILDREN AND
VULNERABLE CARE-GIVERS

SOCIAL SAFETY NETS

POLICY LESSONS AND RECOMMENDATIONS
GLOBAL CHALLENGE (PROBLEM STATEMENT):
20% of the people of the world continue to live in
absolute poverty
The number of poor people is estimated to increase by
46 million in 2009 and an additional 200,000 to
400,000 of infants are likely to die as a result of the
economic crisis (World Bank, 2009).
ABOUT 8000,000 PEOPLE DIE AROUND THE WORLD
BECAUSE THEY ARE TOO POOR TO STAY ALIVE (Sachs,
2005)
The financial collapse, with the food and fuel price crises,
would increase the number of the extreme poor people in
developing countries by about 55-90 million in 2009 than
expected before the financial crisis (World Bank, 2oo9)
The current financial and food crises will exacerbate poverty
and inequality, unemployment and undermine progress
towards the MDGs
(ODI, 2009).
The ‘Triple F’ crises is likely to threaten rural
economies due to unemployment and high
dependency ratio
Learning Objectives
 Unveils the nature and dimensions of
the ‘lost decade for Africa’
 Highlights key policy prescriptions to
address the crises
 Examines the socio-economic impact
of policies on children and other
vulnerable groups
Nature and Dimensions of 1980’s African Crisis
indicator
effect
Year
Food production index
100-89
1990
Food aid (cereals in metric tons)
796,0002,087,000
1974/75
Mining Output
1982
General Industrial performance
62% (of 1979
level)
20-40% capacity
Infant mortality rate
107/1000
1990
Prices of grain
Five fold increase
Prices of oil
Seven fold
increase
US$172 billion
Unserviceable debt estimate
1980’s
1980’s
1980’s
1993
DIMENSIONS OF THE 1980’S AFRICAN CRISIS (LOST
DECADE FOR AFRICA)
 Economic: high unemployment, sluggish
price performance, balance of payment
deficits
 Social: mounting infant and maternal
mortality, decreasing expenditure on social
services (education and health), worsening
nutrition and decreasing life expectancy
 Political instability and military dictatorship
‘LOST DECADE’: GHANA’S EXPERIENCE
Key indicators
1970
1975
1980
Real Minimum Wage (1977 = 100)
183.00
225.00
44.00
42.00
Rate of Inflation (% p.a)
9.00
30.00
50.00
122.00
Cocoa Production (‘000 ton)
413.00
396.00
258.00
159.00
Real Cocoa Production Price
106.00
90.00
45.00
34.00
Expenditure on social services (% of
GDP)
--
27.00
18.00
8.00
Debt servicing (% of export)
-5.40
-
5.00
7.70
20.90
Industrial performance(%)
1983
20-25
Key policy reform from Adjustment Programme

Export diversification

Liberalization of goods and services

Exchange rate and trade policy reform

Financial sector reform

Interest rate and credit policy reform

Fiscal policy reform

State enterprise reform programme

Social and economic infrastructural reform

Education sector reform and Health sector reform

Agricultural sector reform
Economic impact of SAP
Indicator
Effect
Year
Gov’t revenue
(% of GDP)
Inflation (%)
Rise (5.3-14.4)
1983-1991
Decrease but unstable
1983-1990
Real income
(farmers,
artisans etc)
(123-10-70.8- 64.4)
Sharp decline
(25-50%)
1983-1990
Retrenchment
60,000
(92,000-32,000)
1985-1989
GDP(per annum)
Stable at 5%
1983-1990
Cedi value (¢)
Depreciation (from
¢2.75-US$1 to
¢ 1500-US$1
1983-1996
Social cost/impact of adjustment on
children and rural households
Indicator
Effect
Year
Primary school
enrolment ratio
Sharp decline
(80%-66.8%)
1980-1990
Enrolment of girls
Decline (46.23%42.90%)
1983-1987
Organized healthcare Urban (80%)
facility utilization
Rural (5%)
1983-1986
Rural poverty
Increase (43-54%)
1970-1986
Urban poverty
Increase (35-50%)
1970-1980’s
Social cost of adjustment policies

Decrease in real income of farmers, artisans and other informal
sector workers

Loss of jobs due to massive retrenchment exercise

Reduction in hospital attendance particularly in rural areas

Reduction in enrolment ratio ( actual number of pupils in
school against total number of children of school going age

Increase in infant and maternal mortality due to the
introduction of “cash and carry system”

Increase in rural and urban poverty incidence and severity
PAMSCAD:-Components
 Community initiated projects
 Employment generation projects
 Re-deployment projects
 Basic needs projects
 Educational infrastructural projects
 Women in development projects
PAMSCAD:-Policy lapses

Re-direction of funds into projects and programmes unplanned
for

Over-emphasis on institutional building rather than
employment creation and poverty reduction, hence, not income
generating

Inadequate targeting of the poor, biased towards institutional
building

Less emphasis on sustainable livelihood development

Non-integration into mainstream adjustment policies, hence,
lacked sustainable effects
Lessons from past crises
 Children usually bare much adverse impact in times of
crises of the current nature
 Infant mortality almost always increases
 Almost always increase in school drop-out rates,
streetism, child labour and abuse because of reduced
incomes of care-givers
 Malnutrition due to income poverty and unemployment
of care-givers

loss of contact hours with parents
 Hence, lack of safety nets for children aggravates effects
of crises on children and care-givers in most vulnerable
households
Safety-nets for children: Ghana's efforts
 School feeding programme
 Livelihood empowerment against poverty
 National health insurance scheme
 Free mosquito nets for pregnant women and
nursing mothers
 Capitation grant/free school uniforms for
school pupils
 National youth employment programme
Centre for Rural Research and Poverty ReductionRural Research and Advocacy Group
 Promotion of rural development through research,
capacity building and advocacy
 Training of young rural researchers for rural sensitization
and advocacy programmes
 Promotion of activities and programmes to achieve the
MDG’s in deprived societies
 Dissemination of research results to NGO’s, CBO’s, Donor
and government agencies for policy directions and
poverty reduction
 Undertake collaborative research and capacity building
projects for rural poverty reduction
conclusions
 Poverty in kills children, let’s kill child poverty
 Achieve universal primary education
 Empower women and vulnerable groups
 Reduce infant and maternal mortality
 Halt and reverse HIV/AIDS and malaria incidence among
children
 Achieve the MDG’s
 Make the world a safer and better place for our children
THANK YOU
FOR YOUR
ATTENTION AND
PARTICIPATION