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Ethiopia Achieved Positive Poverty Reduction but Inequalities Persist

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photo © UNICEF/Zerihun Sewunet

Over the last two decades, Ethiopia has registered fast economic growth which has led to significant national poverty reduction. However, there were significant differences in the pace and nature of poverty reduction across Ethiopia’s regions, according to a new World Bank Group rural poverty assessment study.

The report, entitled Ethiopia Regional Poverty Report – Promoting Equitable Growth for All Regions was prepared in partnership with the Planning and Development Commission of Ethiopia (PDC), and complements the National Poverty Assessment produced earlier this year. The study also aims to evaluate regional patterns and inequalities in non-monetary welfare, including health, education, ownership of consumer durables, and access to basic services such as electricity and water. Furthermore, it discusses trends and allocation of public expenditure across regions, and examines how allocation of public funds affects regional variance in monetary and non-monetary welfare.

“This is a very important study as it seeks to create regional poverty profiles and help to better understand why some regions registered fast poverty reduction while others did not and why living standards across regions vary,” said Ousmane Dione, World Bank Country Director for Eritrea, Ethiopia, South Sudan and Sudan. “Identifying the key factors which contribute to fast and sustainable poverty reduction can provide useful insights on how to accelerate it for lagging regions,” he added.

According to the study, across Ethiopia’s regions, poverty declined at a much faster pace in urban areas than in rural areas. Inequality, measured by the Gini coefficient, increased in almost all regions from 2011 to 2016 generally as a result of stronger growth for relatively better-off households. This inequality hampered overall progress in poverty reduction.

Predominantly urban areas such as Addis Ababa, Dire Dawa and Harari have better outcomes in general, according to the study. Among the mainly rural regions, Gambella fares better when it comes to indicators such as education and preventing child stunting, while Tigray has better health indicators, including reductions in infant and under-five mortality, increased immunization and improved health facility delivery.

Despite strong reduction in monetary poverty, the predominantly pastoral regions of Afar and Somali lag in non-monetary welfare. Circumstances such as location, gender, and household wealth play a role in determining primary school completion rates, secondary school enrollment rates, and access to electricity. Within each region, the location of households generally explains these differences.

In order to accelerate poverty reduction and reduce inequalities more investment is needed in rural areas, especially in key areas such as agriculture, human capital and jobs,” said Arden Finn, World Bank economist and co-author of the study.

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As the climate dries the American west faces power and water shortages, experts warn

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Two of the largest reservoirs in America, which provide water and electricity to millions, are in danger of reaching ‘dead pool status.’ A result of the climate crisis and overconsumption of water, experts say.

Lake Mead, in Nevada and Arizona, and Lake Powell, in Utah and Arizona, are currently at their lowest levels ever. ‘Dead pool’ status would mean the water level in the dams was so low it could no longer flow downstream and power the hydroelectric power stations.

The Lake Mead reservoir, which is the largest artificial body of water in America, was created in the 1930s by the construction of the Hoover Dam, an engineering masterpiece. Lake Powell, the second largest, was created in the 1960s, with the construction of the Glen Canyon Dam.

“The conditions in the American west, which we’re seeing around the Colorado River basin, have been so dry for more than 20 years that we’re no longer speaking of a drought,” said Lis Mullin Bernhardt, an ecosystems expert at the United Nations Environment Programme (UNEP), “We refer to it as “aridification” – a new very dry normal.”

Lake Mead and Lake Powell, which is created by the Glen Canyon Dam, not only provide water and electricity to tens of millions in Nevada, Arizona, California, Wyoming, Colorado, New Mexico and Mexico, but they also provide irrigation water for agriculture. Experts warn that as the crisis deepens, water cuts will need to be introduced, but this may not be enough.

“While regulating and managing water supply and demand are essential in both the short and long term, climate change is at the heart of this issue,” said Maria Morgado, UNEP’s Ecosystems Officer in North America. “In the long term we need to address the root causes of climate change as well as water demands.”

Over the last 20 years, 90 per cent of major disasters were caused by floods, droughts and other water-related events. With more frequent droughts, people in water-scarce areas will increasingly depend on groundwater because of its buffer capacity and resilience to climate variability.

Increases in water demand due to growing populations and irrigation for agriculture have been compounded by climate change impacts such as reductions in precipitation and temperature rises. A rise in temperature leads to increased evaporation of surface water and baking of the earth, decreasing soil moisture.

“These conditions are alarming, and particularly in the Lake Powell and Lake Mead region, it is the perfect storm.”

This is part of a wider trend affecting hundreds of millions of people across the planet. As climate change wreaks havoc on the Earth’s interconnected natural systems, drought and desertification are swiftly becoming the new normal, everywhere from the United States to Europe and Africa.

Drought in Numbers, a 2022 report from the UN Convention to Combat Desertification, found that since 1970 weather, climate and water hazards have accounted for 50 per cent of all disasters and impact 55 million people globally every year. The report also found that 2.3 billion people face water stress annually.

Drought is also one of several factors that impacts land degradation, with between 20 and 40 per cent of the world’s land being classed as degraded, affecting half the world’s population and impacting croplands, drylands, wetlands, forests and grasslands.

The UN Decade on Ecosystem Restoration, of which UNEP is one of the leading members, was set up to halt and restore ecosystems around the world. The Decade runs until 2030, the same timeline as the Sustainable Development Goals, and aims to counteract climate change and halt biodiversity collapse through restoring ecosystems.

UNEP

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WFP: First Ukrainian humanitarian grain shipment leaves for Horn of Africa

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photo © UNOCHA/Levent Kulu

The first vessel transporting Ukrainian wheat grain to support humanitarian operations run by the World Food Programme (WFP) has left the port of Yuzhny, also known as Pivdennyi, the UN agency reported on Tuesday. 

The MV Brave Commander departed with 23,000 metric tonnes of wheat grain for WFP’s response in the Horn of Africa, where the threat of famine is looming due to severe drought. 

This is the first shipment of humanitarian food assistance under the Black Sea Grain Initiative signed by Ukraine, Russia, Türkiye and the UN in July. 

Feeding the world’s hungry 

It marks another important milestone in efforts to get much-needed Ukrainian grain out of the war-torn country and back into global markets, to reach people worst affected by the global food crisis. 

“Getting the Black Sea Ports open is the single most important thing we can do right now to help the world’s hungry,” said WFP Executive Director David Beasley.  

“It will take more than grain ships out of Ukraine to stop world hunger, but with Ukrainian grain back on global markets we have a chance to stop this global food crisis from spiraling even further.” 

WFP will use the wheat grain shipment to scale-up its efforts in southern and south-eastern Ethiopia, supporting more than 1.5 million people affected by drought. 

Globally, a record 345 million people in more than 80 countries are currently facing acute food insecurity, while up to 50 million people in 45 countries are at risk of being pushed into famine without humanitarian support. 

The current hunger crisis is being driven by several factors including conflict, climate impacts, and the COVID-19 pandemic.  

The war in Ukraine is another catalyst as the country is a major grain exporter.  Ukraine was exporting up to six million tonnes of grain a month prior to the start of the conflict in February, but volumes now are at an average of one million tonnes per month. 

More action needed 

WFP said that with commercial and humanitarian maritime traffic now resuming in and out of Ukraine’s Black Sea Port, some global supply disruptions will ease, which will bring relief to countries facing the worst of the global food crisis. 

Crucially, Ukraine will also be able to empty its grain storage silos ahead of the summer season harvest, the agency added. 

However, despite these developments, the unprecedented food crisis continues. 

WFP stressed the need for immediate action that brings together the humanitarian community, governments, and the private sector to save lives and invest in long term solutions, warning that “failure will see people around the world slip into devastating famines with destabilizing impacts felt by us all.” 

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New WEF ESG initiative looks to improve socioeconomic conditions in Northern Central America

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The World Economic Forum announced a new initiative in three Central American countries that will support the private sector apply Stakeholder Capitalism Metrics and better environmental, social and governance (ESG) reporting to improve local socioeconomic conditions and environmental resilience.

The announcement was made at events convened by the Forum with CentraRSE in Guatemala, COHEP in Honduras and Fundemas in El Salvador. These were attended by leaders from the public and private sector, civil society and international organizations who discussed the benefits and opportunities of implementing structured ESG reporting metrics, practices and global corporate trends. National and regional efforts and best practices were also showcased.

The Measuring Stakeholder Capitalism initiative has identified a set of 21 core and 34 expanded universal metrics and disclosures drawn from existing standards. The metrics and disclosure seek to improve how companies measure and demonstrate their performance against environmental, social and governance indicators and consistently track their positive contributions towards achieving the UN Sustainable Development Goals (SDGs).

Strengthening sustainability credentials and building the capacity to report this information will represent a significant advantage for businesses and the economy as a whole, particularly to attract foreign investment and integrate into regional and global value chains.

“Amid an increasingly challenging context confronted with overlapping global crises, public-private collaboration and the decisive action of local leadership are even more necessary to improve economic, social, environmental and governance conditions. All sectors must work together to build a prosperous and resilient ecosystem, offering hope and real opportunities for people in the region to develop their potential at home,” said Marisol Argueta, Head of Latin America at the World Economic Forum.

The initiative is a response The initiative is a response to US Vice President Kamala Harris’s Call to Action, which calls on businesses and social enterprises to promote economic opportunities for people in the region as part of a comprehensive strategy to address the root causes of migration. Vice President Harris has announced a total of more than $3.2 billion in new commitments to the region in coordination with the Partnership for Central America since the effort was launched in May 2022.

“As we look to multi-sector approaches to solve the social challenges facing our communities globally, the World Economic Forum’s ESG framework provides a structure for businesses to drive greater economic development. Working with public and private sector partners, this can translate into quality jobs, environmental protections and better lives for families,” said Jonathan Fantini-Porter, Executive Director of the Partnership for Central America.

The areas of focus, led by the Partnership for Central America (PCA), intend to support the region’s long-term development through digital and financial inclusion, food security and climate-smart agriculture; climate adaptation and clean energy; education and workforce development; and public health access. The planned ESG metrics and corporate reporting activities also aim to motivate local leaders to take measurable action on their contributions to enhancing socioeconomic conditions and environmental resilience in the region.

Based on existing standards, this framework provides a set of metrics that can be reported by all companies, regardless of industry or region. These metrics also offer comparability, which is particularly important for creating a systemic and globally accepted set of common standards for reporting corporate sustainability performance.

As part of the activities carried out in Central America, the Guatemalan company, Grupo Mariposa announced the adoption of the global metrics framework promoted by the World Economic Forum (Stakeholder Capitalism Metrics) and declared its commitment to include them in future reporting cycles. Grupo Mariposa is the first company in Central America to incorporate the metrics in its reports.

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