Running head: POVERTY AND MDG1

Poverty and Millennium Development goal 1

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Poverty and MDG1

Table of Contents
1.

2.

Introduction........................................................................................................................3
1.1

Background of the study..............................................................................................4

1.2

Aims and Objectives....................................................................................................5

1.3

Research questions......................................................................................................5

Literature Review...............................................................................................................5
2.1

Introduction.................................................................................................................5

2.2

Eradication of poverty.................................................................................................6

2.3

How MDG1 helps in reducing poverty.......................................................................7

2.4

Relationship between recipient countries and donors.................................................7

2.5

MDGs goal 1 in Yemen...............................................................................................9

2.5.1

Poverty issues.......................................................................................................9

2.5.2

Commitment of achieving the goal......................................................................9

2.6

MDGs goal 1 in Africa..............................................................................................10

2.6.1

Poverty issues.....................................................................................................10

2.6.2

Commitment of achieving the goal....................................................................10

2.7

MDGs goal 1 in Timor-Leste.....................................................................................11

2.7.1

A brief introduction on Timor-Leste..................................................................11

2.7.2

Poverty issues.....................................................................................................11

2.7.3

Steps taken by government................................................................................12

2.7.4

Commitment of achieving the goal....................................................................13

2.8

Reasons for Success of MDG1..................................................................................13

2.9

Problems in achieving the MDG1.............................................................................14

2.10

Outcomes...............................................................................................................15

References................................................................................................................................17
Appendix..................................................................................................................................19

Poverty and MDG1

1.

Introduction
This paper starts with the brief introduction on MDGs eight goals, but we will be
focusing on goal 1 to clearly look at the effectiveness of the goals and how it changes the
poverty structure in different countries. After taking a deep view, we will discuss the role of
government and politics in relation to goal1 at this point we will be taking a more extensive
perspective. However some of the issues are still not resolved which will cause a detail
discussion on developing of the plans in relation to poverty (Moser, 2005). To develop my
contentions, I will talk about different countries that how MDG take initiatives in reducing
the poverty. In the end this thesis concludes with different perceptions on the suggestions for
improvement arranging in the light of the MDG experience.
In the year of 2000, eight goals of developments were established which are known as
the Millennium Development Goals. All these goals were the supporters/followers of UNs
Millennium Summit programs (Modi et al., 2005). All members of UN i.e. 193 members and
around 23 international organizations have shown commitment in order to achieve these
MDGs by this year i.e. 2015. The primary target of MDGs is to motivate and encourage the
advancement in the poorest nations of the world by enhancing their social and economical
conditions (Satterthwaite, 2003). Millennium declaration of UN has derived these eight goals
and this millennium declaration incorporates that everybody must have the freedom, equality
and dignity rights. Also this incorporates that each individual must have a basic way of life
which will make a person free of violence and hunger.
These MDGs are made to work on these ideas to reduce the poverty in a timeline of
fifteen years. Eight goals are listed below;

To eradicate hunger and poverty,

Poverty and MDG1

To achieve primary education,

To empower women and promote gender equality,

To decrease the rates of child mortality,

To enhance maternal health,

To fight diseases like malaria, HIV/AIDS etc

To guarantee environment sustainability,

To create a partnership globally for the development (particularly about the project of UN

Millennium)

1.1

Background of the study

By the year of 1990s, after about 50 long years of post history of second world war,

improvement had been done in the standard as a determinable linear projectory of gorwoth
for economy (Moser, 2005). In the period of post Cold War there was a plenty of conferences
regarding reduction of poverty summits which grappled with the uncertain issue of
worldwide poverty as well as the arrangement of adapting better ways to promote an
international development. The Everest of all such hard work was Millennium Declaration
which was signed on 8th September, 2000 by leaders of 189 countries (Satterthwaite, 2003).
However to assume that the implementation of Declaration was the conclusion of an
uneventful political procedure would create adverse effect on the intense way of what
happened.

Poverty and MDG1

Through MDG, The United Nations has repeated its dedication to decreasing poverty
worldwide by 2015. So with certain steps, one of the steps taken was since 2000 Ghana
government has set out the campaigns on the poverty which is known as the Poverty
Alleviation Campaign along with the numerous programmes of anti-poverty reduction and
their part is to micro-finance (Stuckler, Basu and McKee, 2010).
Even though micro finance isnt just the only solution for poverty and its related
development issues, it has and keeps on assuming an essential part in reducing poverty by
formation of openings for jobs for the poor people which causes prompts increment in wages,
permitting the poor to manufacture resources, decrease their weakness, and enhance
education levels by expanding school enrolment and bringing down drop-out rates among the
individuals who take an interest in microfinance programs. In this research we will also study
the benefits poor people availed from the goals (Moser, 2005).

1.2

Aims and Objectives

To look at the theory of first goal of MDG related to poverty

To look at the poverty issues in different countries and how steps has been taken in

order to reduce them through recipient countries, MDGs programmes and donors
To have a look at the outcome in the end.

1.3

Research questions

To figure out how had the world accomplished MDG 1 successfully?

How these goals has changed the poor people lives effectively
To figure out what appeared to be the issues to challenge the countries from
accomplishing the goals.

Poverty and MDG1

2.

Literature Review
2.1

Introduction
As this research will focus on the poverty issues so we will be talking about the first

goal of MDG which is to eradicate the hunger and poverty of those individuals who are living
their lives under $1 per day (Satterthwaite, 2003). This goal was supposed to be overcome
within the year of 2015 but still numerous nations are still behind the due date. But some
countries which are continuously working in the reduction of poverty which includes,
National program for Security and Food by Nigeria has doubled the wages of farmers and
increase production from the year of 2001 to 2007 (Modi et al., 2005). Similar Malawi in
2005 has gained almost 43% of fool deficits and accomplished 53% of excess food in 2000,
through the national program of input subsidy. Likewise in Ghana many people who were
starving dropped by around 74%, to almost 9% of the aggregate population in between the
year of 1991 and 2004. Somewhere around 1996 and 2006-07 kid hunger, diminished from
22.2% to around 5.9% in north east Brazil (Sachs and McArthur, 2005).
But the countries who are not working on the goals will cause numerous people to
live undernourishment, basically these circumstance is related with the absence of natural
resources, these realities are showed in numerous poorest nations such in Timor-Leste,
Yemen, Sub Sahara, Africa, Asia and other regions who are living under the situation of
absence of natural resources and not having sufficiently food, water is not cleaned which
causes diseases like malaria and AIDS and their life are generally rely upon their agricultural
sector (Jstor.org, 2015). Whereas in other case, many people are facing more problem when
the prices of food are higher which will consequently cause many people into poverty, with
evaluations recommending that the increment will be the same number of as 100 million.

Poverty and MDG1

2.2

Eradication of poverty
In term of job the aim of this goal is to accomplish full productive employment which

will particularly enable the young people and woman who in larger part face this issue in
their daily life activities (Sachs and McArthur, 2005). In order to reduce poverty, one of the
essential route is to create a job for young people and for women, the government must create
opportunities of job for poor people so in this way they can give and maintained the
fundamental need of life. One of the primary indicators for reducing the extreme poverty is
to employ the amount of working-age population.
Government is continuously striving hard to promote the economic growth and
basically turn out to be a part of eradication of poverty. Government has put efforts to
eliminate the poverty program which will provide the positive impact on society, specifically
for the population who live in the rural areas and their income depends on agriculture
production and other activities (Moser, 2005). Timor-Lestes government turned into the basis
of improvement furthermore turn into a facilitator for growth of economy because of the
development of economy.

2.3

How MDG1 helps in reducing poverty

In order to achieve MDG1 both poor and rich countries must take steps to understand

the annihilation of chronic hunger and extreme poverty. The compact between the worldwide
south and North, MDGs has given a structure to such collaboration. In 2000, all member
states of UN agreed to Millennium Declaration, promising their support for "partnership for
development all around the world (Satterthwaite, 2003). Poor nations decided to concentrate
on starting proMDG reforms, whereas rich nations decided to help reforming so as to create
nations meet the MDGs by trading policies, reforming aid and debts. Poor nations should

Poverty and MDG1

structure strategies and give assets to react to the hunger and poverty needs of people,
particularly the poor which include sick, women and indigenous population.

2.4

Relationship between recipient countries and donors

It is essential to perceive the way that the different recipients are occupied in the

poverty aid which has their own motives, interests, goals and strategies which form the way
the aid is utilized and provided. Relationships which exist between recipient countries and
donors are not only the equal collaboration but rather they are one with personal stakes.
Consequently this makes it hard to sum up on the predominant effects of aid as this effect is
perceived differently in distinct connections (Sachs and McArthur, 2005). The previous
decade has faced a huge change in priorities/goals and conditions as diverse arguments and
debates battle the issues on effectiveness of aid in recipient countries.
The argument regarding development and aid are unique and numerous. Researchers
consistently differ on foreign aid policies as well as their effect on enhancement in poor
nations particularly the poorest where the main aid is to free them from their issues
Though others researcher see increment in aid as the best approach to reduction of poverty,
they believe that this aid is obstructing the improvement of poor nations. It just keeps on
fuelling the poor's predicaments than enhancing their lives (Moser, 2005).
The aid issue is very important as it has been believed that aid will help in improving
the poverty and will cause development in marginalized and poor nations- DFID, UNDP and
others trust that the solution for achieving MDGs is that to introduce more aid to the poor
nations and to arrange the campaigns and 'make poverty the past. UNDP put stress on aid on

Poverty and MDG1

for accomplishing the MDGs (Jstor.org, 2015): 'if the donor countries are not kidding about
handling poverty worldwide, decreasing inequality and securing more prosperous and secure
future particularly for their own people, they have to firmly set their sights on the objective of
conveying almost 0.5% of national wage in aid and almost 0.7% by 2010 (Modi et al., 2005).
This is somewhat, a conundrum as expansion in aid has rather cause poor nations been more
terrible or poorer as compared to before. While looking at the development and aid in Africa,
researchers put that aid which has rather stifles, retarded and hampered Africas
improvement'.

2.5

MDGs goal 1 in Yemen

2.5.1

Poverty issues
In Yemen, poverty is across the board, with population around 42% living on US$ 2

or less every day and social improvement indicators, for example, maternal mortality, child
malnutrition and education fulfilment stay poor. Also there is large number of gender
discrimination, with gaps in females entrance to political, social and economic opportunities.
The summer war in 1994 was a defining moment in the history of Yemen's economy
(Jstor.org, 2015).
As an outcome, since 1995 Yemen has depended intensely on aid from various
multilateral agencies in order to maintain its economy. Consequently, it has promised to
implement critical financial changes (Sachs and McArthur, 2005). In 1997 IMF International Monetary Fund affirmed two projects to expand Yemen's credit altogether: the
upgraded structural alteration facility (which is now known as growth and poverty reduction
facility PRGF) also the EFF- extended funding facility (How to Monitor Poverty for the
Millennium Development Goals, 2015).

Poverty and MDG1

2.5.2

10

Commitment of achieving the goal

In the following years, government of Yemen has attempted, with constrained

accomplishment, to implement changes in decreasing the payroll of civil service, reducing

diesel and other various endowments, bringing down defence spending, presenting the
general sales tax, also privatizing the state-run commercial industries (Satterthwaite, 2003).
Accordingly, Yemen at first has gotten just a small amount of the aid which was allocated by
multilateral and bilateral lenders. Yemen with signing the MDGs, committed towards the
accomplishment of MDGs by the year of 2015, however they are still falling behind in
project (Garrity, 2004).

2.6

MDGs goal 1 in Africa

2.6.1

Poverty issues
In Africa poverty has become very common. To eradicate this miser in Africa,

exceptional move must be made to support the establishment of institutional and human
capacity. Some adequate measure of commitments and sustainability is needed in the areas of
social and economic development, household, communities and macroeconomic policies. It
has been set up that effective support is required to build institutional and human capacity and
it also contributes to the development and improvement of any society (Moser, 2005). And
this will be accomplished through the planning, implementation and formulation of formative
strategies and projects (Jstor.org, 2015). African nations and the international community
must coordinate and co-operate their efforts to support building of capacity in the continent.

Poverty and MDG1

2.6.2

11

Commitment of achieving the goal

International partners and African nations must support all policies and projects

expected to accomplish development goals, as enclosed in documents of MDGs. Substantial

financing is important in development of spending (Sachs and McArthur, 2005). The policy
makers of African states must adapt obligation and observe the reduction programs of
poverty, climate change, build capacity and strengthen responses towards the disasters so as
to support the plan on developmental strategies. Continental funds must be made for such
reasons under a corrupt free and powerful monitoring team (Haines, 2004).

2.7

MDGs goal 1 in Timor-Leste

2.7.1

A brief introduction on Timor-Leste

Timor-Leste is situated in the middle of Pacific and Indonesian island which was

under ruling of Portugal imperialism in 16th century for a long time. Timor-Leste is the
nation which in 2000 adopted the goals of MDG, even at this time Timor-Leste is still under
the transitional administration of UN, yet they consequently spoke to TL to be represented as
another nation which empowers participate summit of MDGs with alternate nations (Modi et
al., 2005). TL as a new nation under the mission of UN, it's more essential that international
society will effectively give support by concentrating in advancing the national improvement
in this new nation.

2.7.2

Poverty issues
TL as a new country which just originated from a provincial domain, in actuality it

faces various difficulties related with the economic condition, and the most priority given was
on poverty, this is a natural challenge faced by the young nation in 21st century. In contrasting
with numerous developed nations in this world, actually they have same history of their

Poverty and MDG1

12

social, economic and political condition which turns into the main hindrance as a sovereign
nation among other nations (Moser, 2005).
Timor-Leste is facing many social issues particularly one of the fundamental issue is
poor nutrition, poverty, dirty water in a few rural zones, and absence of human capital which
turn into the basis of improvement, since 1999 to the year of 2007 most Timorese are living
in poverty and their personal average income every day is too low as compared with other
nations (How to Monitor Poverty for the Millennium Development Goals, 2015).

2.7.3

Steps taken by government

For the era of 2002-2007 the government issued the national plan in 2002; also this

plan turned into the long-term planning of East-Timor to the vision of government in 2020
(Attaran, 2005). This national planning becomes MDGs part particularly for how government
can take steps during the process of reduction of poverty as by MDG1 (to eradicate hunger
and poverty).
TL government was aware that many of the things are turning into main obstacles, so
it took a long time for reducing the hunger and poverty and they are still making efforts in
order to achieve MDG1, the reality behind is that many people are still living in such
conditions for the next year, national priority might be focusing in the program of poverty
reduction as this has already been set up in national planning for the year of 2020 (Sachs and
McArthur, 2005).
Government of TL is in the partnership with UN projects of Millennium goals, they
together with numerous international donors, organization like non-government which
already exists in TL has continuously been implementing various programs of particularly the
first target of MDGS (Moser, 2005). All these programs specifically are related to reduction
of poverty in the nation and they are keep reconstructing theses projects as after the

Poverty and MDG1

13

independence militias of pro Indonesian destroyed in rural and urban areas. Extreme poverty
in these developing nation has been observed since 1990, it has been calculated by some
standards which represents the poverty lines that has been found in the poorest nations of the
world. The poverty line standard in1985 was $1 per day and international poverty line then
accordingly modified to a $1.08 per day, as has been measured as far as 1993 PPPpurchasing power parity (Haines, 2004).
The first goal of MDG is focusing that how UN agencies and government along with
international donors are able to reduce poverty at least by half proportion of citizens in the
developing nations who are living their life $1 per day or less.

2.7.4

Commitment of achieving the goal

In the year of 2000, all the member of UN from all the nations made a commitment in

reducing the poverty by the declaration of UN Millennium which was agreed by every one of
the members in the worldwide partnership particularly to decrease the quantity of extreme
poverty as it has been faced by most of the population of the world in this century, also they
made a commitment to accomplish MDG1 by 2015 (Haines, 2004). At those times, assisted
by international organization, INGO, UN, members of UN they all made commitment to the
world, with the help of MDGs they will decrease the quantity of hunger, extreme poverty,
absence of adequate shelter, and promoting education, environmental sustainability and
gender equality in especially related with the fundamental human rights, rights of every
individual on the world to security, education and health (Sachs and McArthur, 2005).
The promises and commitment made by the leaders give another trust for the world,
there are a huge number of individuals living under poverty line, not having enough food for
eating, without clean water, without a house, no access of education and health, living their

Poverty and MDG1

14

lives in environmental pollution, most of all they are not having fundamental things for their
survival (Garrity, 2004).

2.8

Reasons for Success of MDG1

UN set the goals which are practical however to maintain and accomplish these goals

are surely a problem but not impossible at all (Modi et al., 2005). As said in this report
numerous nations are taking steps towards achieving these goals but a few nations they are
still behind as there are many explanations behind the failure of goals particularly in a few
areas; because of lack of interest, corruption and improper government from the nations'
authorities, foreign aid, unfair distribution of funds, natural calamities and financial crisis
with every one of these factors cause failure of MDGs (Haines, 2004).
A reason for accomplishment of MDGs is actually the support from international
institutions mostly the developed nations, one of the reasons behind the successful of MDGs
is due to the nations of Sub - Saharan African, when a few of the goals are suggested in these
areas, some positive sign towards success can be seen (Sachs and McArthur, 2005). However,
MDGs main success is because of the help from International institutions from developed
countries and because of the fast development in some countries of Asia. As economy always
play a key part in any nations development.

2.9

Problems in achieving the MDG1

Numerous researchers has argues that the configuration of MDGs is imperfect. One of

the scholar argued that MDG will increase the chance of adverse, unintended outcomes, also
this may maximise the administrative overheads as well as this may create institutions more

Poverty and MDG1

15

delicate and de-motivate the staff all through the framework and may lead disappoint
amongst the customers. By having the approach of time-specific goals may lead to very
complex issues with no basic solution at all (Moser, 2005).
With these targets, there is a trouble in attribution; every target will be liable to
numerous impacts thus hard to screen. For instance DFID was committed towards poverty
reduction in South Asia from around 40% to almost 32% by the year of 2006. However, in
this area, aid was generally insignificant and represented fewer than 3% of public expenditure
(Sachs and McArthur, 2005). Therefore this could be disagreed that this was the target which
was continually going to be achieved no matter if its with funding or without funding. MDGs
have received one more feedbacks that the validity of information and the techniques set up
for reporting and checking the progress.
MDG1 is sufficiently simple to report because of numerous businesses, governments
and economists are attempting efforts to survey the potential of purchasing power of various
nations (Sachs and McArthur, 2005). Nonetheless, for health and education related indicators,
the circumstance turns out to be more complex.

2.10

Outcomes
The MDGs messages are continuously trying to be embedded in our psyches, the

problems which are being faced all around the globe are not the only responsibility of heads
of the states of the creating countries or created countries; however it is an aggregate
responsibility that all people in this world must be considered responsible for (Garrity, 2004).
The most serious issue is that ministers and heads of the states regularly go to the meetings,
they sign something inconceivable, and afterward they take back the plane from UN to come
back to the same old thing. It takes every one of us to accomplish these goals, and this is very
essential because we need to make our ministers and head of the states responsible for the

Poverty and MDG1

16

guarantees they have made. We are continuously seeing Government after government as
well as country after country but so far no response (Modi et al., 2005).
The UN has the ability to give a platform but they dont have any instrument to drive
consistence. So it directly falls upon us, we the civil societies and we are the most vital
campaigners (Sachs and McArthur, 2005). We put our leaders and politicians in energy to
provide us a voice and in return we should utilize our voices so as to make these governments
authorize the MDGs and execute a plan for accomplishing them by the deadline of 2015.
MDGs successful implementation with the right direction can prompt some solid result.
However, progress being made is boundlessly uneven and still very slow in few areas. The
purpose behind the decline in poverty globally is generally because of fast development in
giant countries like Indonesia, India and China (Attaran, 2005).
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Saghir, J. (2005). Energy services for the Millennium Development Goals.. [online]
Cabdirect.org. Available at:
http://www.cabdirect.org/abstracts/20083156488.html;jsessionid=54CEECF6132F04
E5DE3AF5399BAB9066 [Accessed 28 Sep. 2015].
Moser, K. (2005). How does progress towards the child mortality millennium development
goal affect inequalities between the poorest and least poor? Analysis of Demographic
and Health Survey data. BMJ, 331(7526), pp.1180-1182.
Sachs, J. and McArthur, J. (2005). The Millennium Project: a plan for meeting the
Millennium Development Goals. The Lancet, 365(9456), pp.347-353.
Satterthwaite, D. (2003). The Millennium Development Goals and urban poverty reduction:
great expectations and nonsense statistics. Environment and Urbanization, 15(2),
pp.179-190.

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Haines, A. (2004). Can the millennium development goals be attained?. BMJ, 329(7462),
pp.394-397.
How to Monitor Poverty for the Millennium Development Goals. (2015). Journal of Human
Development. [online] Available at:
http://www.tandfonline.com/doi/abs/10.1080/1464988032000125746 [Accessed 28
Sep. 2015].
Jstor.org, (2015). Assessing Household Solid Fuel Use: Multiple Implications for the
Millennium Development Goals on JSTOR. [online] Available at:
http://www.jstor.org/stable/3436680?seq=1#page_scan_tab_contents [Accessed 28
Sep. 2015].
Garrity, D. (2004). Agroforestry and the achievement of the Millennium Development Goals.
Agroforestry Systems, 61-62(1-3), pp.5-17.
Attaran, A. (2005). An Immeasurable Crisis? A Criticism of the Millennium Development
Goals and Why They Cannot Be Measured. Plos Med, 2(10), p.e318.
Stuckler, D., Basu, S. and McKee, M. (2010). Drivers of Inequality in Millennium
Development Goal Progress: A Statistical Analysis. PLoS Med, 7(3), p.e1000241.

Poverty and MDG1

MDG

Appendix
Millennium Development Goals

INGO

International non Governmental organization

DFID

Department for International Development

PPP

Purchasing Power Parity

IMF

International Monetary Fund

PRGF

Poverty and Growth Reduction Facility

EFF

Extended Funding Facility

UN

United Nations

HIV/AIDS

Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome

18