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Can Holiday Spending Impact Global Poverty?

POSTED: 8:13 am PST December 12, 2005
UPDATED: 8:24 am PST December 12, 2005

I read some startling information the other day that hit me like an arctic cold front.

Before I share what it was, I should tell you that I have been researching and speaking on the topic of money, values and habits for 17 years. In short, it takes something fairly extreme to stop me in my tracks. But after reading the 2005 UNICEF study --The State of the World’s Children -- I must admit that I was rendered speechless.

The reason: the overwhelming reality of what it is going to take to reverse the inertia of global poverty, especially as it impacts children.

Consider the following:

  • There are 2.2 billion children in the world today. 90 percent of them live in developing countries and nearly one-half (1 billion) live in extreme poverty.
  • One in three children in developing countries do not have a toilet.
  • One in five do not have safe drinking water.
  • One in seven have no healthcare.

You might be thinking, 'We deal with some of those same issues in the U.S.' True, but nothing like the children who live in sub-Saharan Africa. For example, the life expectancy of a child born in the U.S. today is nearly 80 years; in Zambia, it is an astonishingly low 33 -- much of it due to the impact of malaria. Additionally, 64 percent of the Zambian population lives on less than $1 day.

If you think we are immune to the impact of global poverty because we live in the U.S., think again. Many economists attribute global instability (e.g. political hot spots) to global poverty.

Moreover, our financial choices -- especially our insatiable consumer appetite -- play a much bigger role in world poverty than most of us are willing to admit. This holiday season, the National Retail Federation projects Americans will spend nearly $440 billion. When compared to the 2005 economic output for all of sub-Saharan Africa -- approximately $300 billion -- I can't help but believe the world's wealthiest country has room to grow in helping the poorest of the poor.

According to World Vision, every 30 seconds a child in Africa dies from malaria. In fact, the single greatest issue preventing the sub-Saharan economy from expanding is malaria. Some estimates peg the annual cost to their economy at $100 billion.

Contrast that with the cost of a mosquito bed-net -- approximately $8. It's certainly an item worth adding to your holiday gift list. For more information, visit www.worldvision.org. (click on Ways to Give, keyword: healthcare.)

What one thing can you do differently to reverse global poverty?

It can be very daunting to think how one person can make a difference. But if 50 percent of American adults purchased just one $8 mosquito bed-net, it would mean 110 million sub-Saharan people could avoid the scourge of malaria.

The Bill and Melinda Gates Foundation made a grant of $35 million to Zambia. The goal: reduce deaths from malaria by 75 percent in the next three years.

Source: TIME


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