Eradicate Extreme Poverty and Hunger (MDG 1)

Overview

Although extreme poverty has been significantly reduced since 1990, major gains in the attainment of eradicating extreme poverty are likely to have stalled due to the economic downturn. Nevertheless, according to the World Bank Global Monitoring Report 2010, the overall poverty rate is still expected to fall to 15 percent by 2015, indicating that the Millennium Development Goal (MDG) target can be met.

Trends vary among the regions, with sub-Saharan Africa lagging far behind the others. For instance, it is estimated that the poverty rate there will reach 38 percent by 2015. Poverty affects women and girls differently than men and boys: although both women and men may be poor, women and girls often are less able to pull themselves out of poverty than men and boys due to discrimination, lower status, and conditions and opportunities that are more limited.

Hunger, low agricultural output, expanding populations, low private sector development, and a lack of access to credit also accounts for many of the obstacles facing the world's poor.

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Canada's Contribution

Much of Canada's effort to reduce poverty through increased economic growth is concentrated in CIDA's Sustainable Economic Growth Strategy and its focus on:

• Building economic foundations
• Growing businesses
• Investing in people

A key element in economic growth in developing countries is agricultural development to increase food security. CIDA is helping agricultural development through its Food Security Strategy and its focus on:

• Food security programming in agricultural development
• Research and innovation
• Food and nutrition assistance

To address the immediate needs of vulnerable and hungry populations, Canada has shown leadership by:

• Increasing its disbursements for food security from $418 million in 2007-2008 to $587 million in 2008-2009
• Increasing agricultural development to $229 million in 2008-2009
• Increasing food assistance programming to over $320 million in 2008-2009.
• Opening up 100 percent of its food aid budget to international procurement in April 2008. In other words, all of Canada's food aid budget can be spent on obtaining supplies from international markets.

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Contributions from CIDA and its partners

Greater food security: Through contributions to the World Food Programme and the Canadian Foodgrains Bank, CIDA helps deliver food aid to approximately 5 million individuals worldwide.

Greater access to credit: In 2007-2008, CIDA provided support to 89 microfinance initiatives in more than 26 countries, allowing women and men to establish small enterprises and earn income to support their families. For example, in a village in Tra Vinh, one of Vietnam's poorer provinces, some women formed a microcredit association to help start small businesses through the Tra Vinh Improved Rural Livelihoods project funded by CIDA.

Driving local development: CIDA has been supporting the development of five very successful textile manufacturers in Ukraine. As a result of this support, more than 700 businesses have been launched and over 12,000 jobs have been created, and the community has seen increases in investment levels and tax revenues for local governments.

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