1 00:00:00,000 --> 00:00:02,200 Hi. I'm Rick Steves in Africa. 2 00:00:02,200 --> 00:00:04,966 In the next hour, we'll travel through 3 00:00:04,966 --> 00:00:08,066 two developing countries -- Ethiopia and Guatemala -- 4 00:00:08,066 --> 00:00:10,700 using each country not as a tourist destination, 5 00:00:10,700 --> 00:00:12,366 but as a classroom. 6 00:00:12,366 --> 00:00:14,066 We'll learn about what's working 7 00:00:14,066 --> 00:00:17,066 as people around the world are climbing out of poverty 8 00:00:17,066 --> 00:00:19,400 and how ending hunger in our lifetime 9 00:00:19,400 --> 00:00:20,966 is within our grasp. 10 00:00:20,966 --> 00:00:22,666 ♪♪ 11 00:00:28,400 --> 00:00:31,666 ♪♪ 12 00:00:37,300 --> 00:00:40,533 ♪♪ 13 00:00:49,400 --> 00:00:50,300 This is my home. 14 00:00:50,300 --> 00:00:53,300 It's an unusual place for me to start a show, 15 00:00:53,300 --> 00:00:55,633 but this is an unusual show. 16 00:00:55,633 --> 00:00:58,300 For decades, I've been preaching the benefits 17 00:00:58,300 --> 00:00:59,633 of travel to Europe. 18 00:00:59,633 --> 00:01:01,966 I love my home, and I love Europe. 19 00:01:01,966 --> 00:01:05,533 But I especially love how travel connects me 20 00:01:05,533 --> 00:01:06,966 with the rest of our world. 21 00:01:08,233 --> 00:01:10,533 I'm privileged in so many ways. 22 00:01:10,533 --> 00:01:13,533 I live in a rich and highly developed country. 23 00:01:13,533 --> 00:01:18,300 If I'm hungry, I simply go to the supermarket. 24 00:01:18,300 --> 00:01:20,900 If I need water, I turn on the faucet. 25 00:01:20,900 --> 00:01:24,300 When I'm sick, I can just go to the doctor. 26 00:01:24,300 --> 00:01:27,166 And my children enjoyed a fine education. 27 00:01:27,166 --> 00:01:30,800 But I've long been aware that almost a billion people 28 00:01:30,800 --> 00:01:33,066 are so poor they get none of that. 29 00:01:34,366 --> 00:01:37,066 It's like we live on two different planets, 30 00:01:37,066 --> 00:01:39,700 and it's so easy for privileged people -- 31 00:01:39,700 --> 00:01:42,400 people like me -- to ignore this reality. 32 00:01:44,966 --> 00:01:47,966 Today, of the over 7 billion people on our planet, 33 00:01:47,966 --> 00:01:50,733 about half are struggling to live on under $5 a day, 34 00:01:50,733 --> 00:01:53,966 and roughly 700 million live in what experts call 35 00:01:53,966 --> 00:01:55,466 extreme poverty -- 36 00:01:55,466 --> 00:01:57,733 trying to make it on under $2 a day. 37 00:01:57,733 --> 00:02:01,466 Imagine: this cup of coffee cost me a day's wages 38 00:02:01,466 --> 00:02:03,400 in the countries where the beans were grown. 39 00:02:03,400 --> 00:02:06,133 But there are big changes going on in the developing world 40 00:02:06,133 --> 00:02:08,733 where, in my travels, I found hunger, 41 00:02:08,733 --> 00:02:11,033 and I found hope. 42 00:02:11,033 --> 00:02:14,666 Join me now on a journey to Ethiopia and Guatemala. 43 00:02:14,666 --> 00:02:16,966 We'll learn about new and inspiring ways 44 00:02:16,966 --> 00:02:18,966 today's smart development work, 45 00:02:18,966 --> 00:02:21,133 often made possible by foreign aid, 46 00:02:21,133 --> 00:02:23,466 is a practical investment. 47 00:02:23,466 --> 00:02:26,966 Mixing new thinking, new technology, 48 00:02:26,966 --> 00:02:29,966 and the hard work of locals, 49 00:02:29,966 --> 00:02:33,966 it makes our world both less hungry and more stable. 50 00:02:33,966 --> 00:02:35,633 [ Women speaking native language ] 51 00:02:35,633 --> 00:02:37,533 In the last generation, 52 00:02:37,533 --> 00:02:40,500 the world has made dramatic progress against hunger. 53 00:02:40,500 --> 00:02:43,533 Since 1990, the number of people living in extreme poverty 54 00:02:43,533 --> 00:02:45,066 has dropped by more than half: 55 00:02:45,066 --> 00:02:47,966 from 2 billion to less than 1 billion. 56 00:02:47,966 --> 00:02:52,300 We're on a trajectory to end extreme poverty in our lifetime. 57 00:02:52,300 --> 00:02:55,533 ♪♪ 58 00:02:57,966 --> 00:03:01,133 ♪♪ 59 00:03:03,133 --> 00:03:04,900 We'll visit Guatemala, 60 00:03:04,900 --> 00:03:06,900 an economic leader in Central America, 61 00:03:06,900 --> 00:03:08,300 with dramatic volcanos, 62 00:03:08,300 --> 00:03:10,966 evocative pre-Columbian temples, 63 00:03:10,966 --> 00:03:14,466 bustling towns, 64 00:03:14,466 --> 00:03:17,733 and colorful markets. 65 00:03:17,733 --> 00:03:20,966 It's the most indigenous country in the region, 66 00:03:20,966 --> 00:03:23,966 with an enduring Mayan culture. 67 00:03:26,366 --> 00:03:30,566 The capital, Guatemala City, is thriving and intense, 68 00:03:30,566 --> 00:03:32,733 with a grand cathedral 69 00:03:32,733 --> 00:03:35,833 and a vibrant commercial energy. 70 00:03:35,833 --> 00:03:38,966 It's a fertile country with plenty of wealth 71 00:03:38,966 --> 00:03:41,966 but a poor distribution of that wealth. 72 00:03:44,900 --> 00:03:47,966 In Africa, Ethiopia is proud to be a country 73 00:03:47,966 --> 00:03:50,666 that was never a European colony. 74 00:03:50,666 --> 00:03:52,666 Along with busy cities, 75 00:03:52,666 --> 00:03:55,966 it also has a rich and ancient heritage. 76 00:03:55,966 --> 00:04:00,966 It's a country of many ethnic groups 77 00:04:00,966 --> 00:04:05,800 and vivid contrasts... 78 00:04:05,800 --> 00:04:08,500 ...some of the oldest Christian churches anywhere, 79 00:04:08,500 --> 00:04:11,900 a world-renowned coffee tradition, 80 00:04:11,900 --> 00:04:15,500 and dramatic natural beauty. 81 00:04:15,500 --> 00:04:16,966 While Ethiopia has long struggled 82 00:04:16,966 --> 00:04:18,700 with poverty and famine, 83 00:04:18,700 --> 00:04:20,966 it's making great strides. 84 00:04:20,966 --> 00:04:25,700 And today, countries like Ethiopia are inspiring hope 85 00:04:25,700 --> 00:04:28,966 in the developing world with steady gains. 86 00:04:30,066 --> 00:04:32,633 Ethiopia's capital, Addis Ababa, 87 00:04:32,633 --> 00:04:35,233 is a city of over 3 million people. 88 00:04:35,966 --> 00:04:39,066 It has a lot of energy -- high rises... 89 00:04:39,066 --> 00:04:41,133 [ Train whistle blows ] 90 00:04:41,133 --> 00:04:42,466 ...efficient mass transit, 91 00:04:42,466 --> 00:04:45,466 and the headquarters of the African Union. 92 00:04:45,466 --> 00:04:49,466 And Addis Ababa also has its chaotic market scenes 93 00:04:49,466 --> 00:04:52,333 and teeming slums. 94 00:04:52,333 --> 00:04:55,000 Big cities like Addis are a seductive draw 95 00:04:55,000 --> 00:04:57,333 to young people from the countryside. 96 00:04:57,333 --> 00:05:01,333 For a poor rural person, such a high-energy city -- 97 00:05:01,333 --> 00:05:04,833 with an enticing consumer society and office towers 98 00:05:04,833 --> 00:05:07,833 that seem to promise job opportunities -- 99 00:05:07,833 --> 00:05:09,533 has a strong appeal. 100 00:05:09,533 --> 00:05:12,533 It's a global trend: The allure of the big city 101 00:05:12,533 --> 00:05:15,700 depopulates the countryside and fills the barrios. 102 00:05:17,133 --> 00:05:19,366 Neighborhoods like this are crowded with people 103 00:05:19,366 --> 00:05:22,366 who came to the big city dreaming of solid employment, 104 00:05:22,366 --> 00:05:26,366 only to find themselves mired in urban poverty. 105 00:05:28,033 --> 00:05:30,800 Ravines, considered uninhabitable 106 00:05:30,800 --> 00:05:31,800 by the local government, 107 00:05:31,800 --> 00:05:35,966 become shanty towns crowded with these new arrivals. 108 00:05:39,800 --> 00:05:43,166 Extreme poverty is difficult to witness. 109 00:05:43,166 --> 00:05:46,566 Living on less than $2 a day 110 00:05:46,566 --> 00:05:49,166 looks about the same around the world: 111 00:05:49,166 --> 00:05:52,800 People live on a dirt floor -- 112 00:05:52,800 --> 00:05:54,166 no electricity, 113 00:05:54,166 --> 00:05:57,166 no running water. 114 00:05:58,166 --> 00:06:00,966 If they're fortunate enough to own animals, 115 00:06:00,966 --> 00:06:02,966 they live together. 116 00:06:02,966 --> 00:06:06,166 With an open fire on the floor and no chimney, 117 00:06:06,166 --> 00:06:09,500 their homes are dark and filled with smoke. 118 00:06:09,500 --> 00:06:12,533 ♪♪ 119 00:06:15,800 --> 00:06:17,866 Work is done by hand. 120 00:06:17,866 --> 00:06:19,966 [ Rooster crows ] 121 00:06:19,966 --> 00:06:23,700 They eat one or two plates of a starchy staple a day, 122 00:06:23,700 --> 00:06:27,066 not enough for their children to grow healthy. 123 00:06:28,966 --> 00:06:32,366 There's likely little education, job skills, 124 00:06:32,366 --> 00:06:35,066 or understanding of good hygiene. 125 00:06:35,966 --> 00:06:38,700 The people in this family will probably never 126 00:06:38,700 --> 00:06:40,800 be seen by a doctor. 127 00:06:40,800 --> 00:06:42,966 One unanticipated crisis -- 128 00:06:42,966 --> 00:06:45,166 a storm, an accident, a sick parent -- 129 00:06:45,166 --> 00:06:48,500 and these children go hungry. 130 00:06:48,500 --> 00:06:53,166 Hundreds of millions of people like these struggle daily, 131 00:06:53,166 --> 00:06:55,500 out of sight and out of mind 132 00:06:55,500 --> 00:06:58,166 of those of us who are more privileged. 133 00:07:01,966 --> 00:07:05,466 The gap between rich and poor in our world is huge. 134 00:07:05,466 --> 00:07:08,133 It's huge between rich countries and poor countries. 135 00:07:08,133 --> 00:07:11,466 It's huge within rich countries, including the United States, 136 00:07:11,466 --> 00:07:14,466 and it's huge within poor countries. 137 00:07:14,466 --> 00:07:18,733 Like any big city, Guatemala City has its poor districts 138 00:07:18,733 --> 00:07:20,466 and its wealthy districts, 139 00:07:20,466 --> 00:07:22,966 and the gap between rich and poor in Guatemala 140 00:07:22,966 --> 00:07:25,133 is particularly wide. 141 00:07:25,133 --> 00:07:28,466 The planned community of Ciudad Cayalá 142 00:07:28,466 --> 00:07:29,966 is a protective haven 143 00:07:29,966 --> 00:07:33,466 for people with wealth, with stylish boutiques, 144 00:07:33,466 --> 00:07:37,133 name brands, movie theaters, 145 00:07:37,133 --> 00:07:40,133 and the kind of relaxed ease that comes with a sense 146 00:07:40,133 --> 00:07:42,133 of physical and financial security. 147 00:07:44,466 --> 00:07:47,966 The Realtor here knows how to sell a condo. 148 00:07:47,966 --> 00:07:49,133 You have everything you need? 149 00:07:49,133 --> 00:07:50,966 Yeah, you have everything you need. 150 00:07:50,966 --> 00:07:53,366 You have the movie theater. You have the supermarket. 151 00:07:53,366 --> 00:07:55,966 You have a church. You have restaurants. 152 00:07:55,966 --> 00:07:57,966 You have cafés. You have academies. 153 00:07:57,966 --> 00:07:59,333 You have well, you name it. 154 00:07:59,333 --> 00:08:00,866 So you never need to leave this place if you don't want to. 155 00:08:00,866 --> 00:08:02,033 Actually, that's the concept. 156 00:08:02,033 --> 00:08:04,666 That you have everything in walking distance. 157 00:08:08,033 --> 00:08:09,866 While the wealthy in such a development 158 00:08:09,866 --> 00:08:12,533 have carefully scrubbed cans for garbage, 159 00:08:12,533 --> 00:08:14,233 at the other end of the economy, 160 00:08:14,233 --> 00:08:17,866 people earn their living digging through garbage. 161 00:08:17,866 --> 00:08:21,866 In the same city, thousands eke out an existence 162 00:08:21,866 --> 00:08:23,966 scavenging from the city dump. 163 00:08:23,966 --> 00:08:26,966 Like in many big cities in the developing world, 164 00:08:26,966 --> 00:08:30,866 an entire class of people are professional recyclers. 165 00:08:30,866 --> 00:08:34,700 Trucks, with scavengers hitching a ride, 166 00:08:34,700 --> 00:08:36,900 rumble in and out of the dump all day. 167 00:08:36,900 --> 00:08:40,966 Guatemalans actually compete for the opportunity to work here. 168 00:08:40,966 --> 00:08:43,900 Fito Sandoval, a former gang member in the city 169 00:08:43,900 --> 00:08:45,966 who spent many years scavenging in this dump, 170 00:08:45,966 --> 00:08:47,966 describes the experience. 171 00:08:47,966 --> 00:08:49,633 [ Speaking Spanish ] 172 00:08:49,633 --> 00:08:51,566 Everyone is working on recycling 173 00:08:51,566 --> 00:08:53,500 different kinds of materials. 174 00:08:53,500 --> 00:08:55,800 People who are stronger and faster 175 00:08:55,800 --> 00:08:58,200 get a little bit of everything. 176 00:08:58,200 --> 00:09:01,966 Some have to focus on just one thing. 177 00:09:01,966 --> 00:09:05,966 Maybe they are not strong enough, 178 00:09:05,966 --> 00:09:08,966 or they get there after the others, 179 00:09:08,966 --> 00:09:12,400 so they just get what is left. 180 00:09:12,400 --> 00:09:14,866 [ Man whooping ] 181 00:09:14,866 --> 00:09:16,966 Every day you're in a struggle, 182 00:09:16,966 --> 00:09:20,133 risking your life for basically nothing. 183 00:09:23,966 --> 00:09:27,300 It's difficult because you arrive with hope 184 00:09:27,300 --> 00:09:29,900 to be able to earn something. 185 00:09:32,900 --> 00:09:36,300 And you're in a constant struggle to survive. 186 00:09:37,633 --> 00:09:39,800 There is no security. 187 00:09:40,633 --> 00:09:42,900 You might earn $6 today, 188 00:09:42,900 --> 00:09:45,300 or you might cut your foot 189 00:09:45,300 --> 00:09:47,466 and you have to go to the hospital. 190 00:09:48,966 --> 00:09:52,033 What is the stigma of a person who works in the dump? 191 00:09:52,033 --> 00:09:56,133 Maybe it's a big stigma. 192 00:09:57,400 --> 00:10:00,300 But it's actually scary to learn a new job, 193 00:10:00,666 --> 00:10:02,966 to learn something else, 194 00:10:02,966 --> 00:10:06,333 because they aren't used to other jobs 195 00:10:06,333 --> 00:10:10,666 because you think you can't do it. 196 00:10:14,833 --> 00:10:17,366 The adjacent community, one of the poorest in the city, 197 00:10:17,366 --> 00:10:20,366 is built literally on the dump. 198 00:10:21,233 --> 00:10:24,466 Buildings are made of salvaged tin. 199 00:10:24,466 --> 00:10:28,966 Electricity is tapped illegally from passing wires. 200 00:10:30,133 --> 00:10:33,966 In this community, while there's a frail, informal economy, 201 00:10:33,966 --> 00:10:36,966 many family incomes are based on bags of trash 202 00:10:36,966 --> 00:10:39,966 scavenged to be recycled. 203 00:10:40,866 --> 00:10:43,966 Homes are built with a mish-mash of material 204 00:10:43,966 --> 00:10:47,966 as parents work hard to provide the most basic of necessities. 205 00:10:47,966 --> 00:10:53,233 Discouraging as this may look, there is reason for hope. 206 00:10:53,233 --> 00:10:54,966 [ Children crying ] 207 00:10:54,966 --> 00:10:58,866 This program is about how those in extreme poverty -- 208 00:10:58,866 --> 00:11:00,233 the poorest of the poor -- 209 00:11:00,233 --> 00:11:04,533 are improving their lives by addressing very basic needs. 210 00:11:04,533 --> 00:11:06,966 Progress is incremental, 211 00:11:06,966 --> 00:11:09,966 and it happens with a combined and coordinated effort -- 212 00:11:09,966 --> 00:11:14,233 smart non-governmental organizations, or NGOs, 213 00:11:14,233 --> 00:11:16,866 the support of local governments, 214 00:11:16,866 --> 00:11:20,866 development aid and fair-trade policies from wealthy countries, 215 00:11:20,866 --> 00:11:25,366 and, most of all, hard-working local people. 216 00:11:25,366 --> 00:11:28,666 In Ethiopia, Abadi and his family are a good example. 217 00:11:28,666 --> 00:11:32,666 While still poor, they have a more modern home 218 00:11:32,666 --> 00:11:34,966 and are actually making progress. 219 00:11:34,966 --> 00:11:38,366 Abadi explained how he's running a productive small farm, 220 00:11:38,366 --> 00:11:40,666 growing enough for his family needs 221 00:11:40,666 --> 00:11:42,033 with a surplus to sell. 222 00:11:42,033 --> 00:11:46,366 He showed me how a tank he fills with manure produces fertilizer. 223 00:11:46,366 --> 00:11:50,666 At the same time, it generates methane (or "biogas"). 224 00:11:50,666 --> 00:11:54,666 Abadi can now fire up his stove and boil water 225 00:11:54,666 --> 00:11:56,733 without using firewood. 226 00:11:56,733 --> 00:11:59,966 He has light even after the sun goes down. 227 00:11:59,966 --> 00:12:03,633 His home is spacious with windows for ventilation 228 00:12:03,633 --> 00:12:06,966 and a sturdy tin roof. 229 00:12:06,966 --> 00:12:09,666 The old kerosene lamp grows dusty, 230 00:12:09,666 --> 00:12:11,966 as this light is now powered by a solar panel. 231 00:12:11,966 --> 00:12:15,166 And the same panel provides enough juice 232 00:12:15,166 --> 00:12:17,233 to charge their cellphones. 233 00:12:17,233 --> 00:12:19,966 The family has worked hard and has enough food stored 234 00:12:19,966 --> 00:12:22,366 to get them, hopefully, through the hunger season. 235 00:12:22,366 --> 00:12:26,166 And a few sheep share the courtyard 236 00:12:26,166 --> 00:12:29,666 until they're sold at the market to boost the family income. 237 00:12:33,200 --> 00:12:35,666 Here in the highlands of Guatemala, 238 00:12:35,666 --> 00:12:38,966 an indigenous Mayan couple, Diego and Catarina, 239 00:12:38,966 --> 00:12:39,966 while still poor, 240 00:12:39,966 --> 00:12:43,033 are also gaining modest and dignified lives. 241 00:12:43,033 --> 00:12:46,033 They told me how, unlike their parents, 242 00:12:46,033 --> 00:12:48,033 they were able to buy their land 243 00:12:48,033 --> 00:12:50,666 and have diversified their sources of income, 244 00:12:50,666 --> 00:12:53,033 growing more crops than just corn 245 00:12:53,033 --> 00:12:54,966 and raising goats. 246 00:12:54,966 --> 00:12:59,333 An NGO from the United States helped them become landowners, 247 00:12:59,333 --> 00:13:02,666 providing a loan and a lawyer to get firm title. 248 00:13:02,666 --> 00:13:05,666 When asked how this house was better than their last, 249 00:13:05,666 --> 00:13:08,333 Diego showed us their concrete floor, 250 00:13:08,333 --> 00:13:09,833 electricity, 251 00:13:09,833 --> 00:13:12,500 a bedroom for the children, 252 00:13:12,500 --> 00:13:15,833 and running water. 253 00:13:18,700 --> 00:13:21,400 And their kitchen has an elevated stove 254 00:13:21,400 --> 00:13:23,900 equipped with a chimney. 255 00:13:24,500 --> 00:13:27,466 Around the world, great strides in fighting poverty 256 00:13:27,466 --> 00:13:30,466 are being made with simple technical upgrades, 257 00:13:30,466 --> 00:13:32,966 for example, smarter stoves. 258 00:13:33,966 --> 00:13:38,900 Less-fortunate neighbors still have an open fire on the floor, 259 00:13:38,900 --> 00:13:42,333 wasting firewood and filling their family's lungs with smoke. 260 00:13:42,966 --> 00:13:45,966 Elevated stoves with chimneys 261 00:13:45,966 --> 00:13:48,900 allow women to stand rather than squat, 262 00:13:48,900 --> 00:13:51,966 are more fuel-efficient, saving lots of trees, 263 00:13:51,966 --> 00:13:54,633 and make living quarters less smoky, 264 00:13:54,633 --> 00:13:56,900 avoiding lots of respiratory disease. 265 00:14:00,966 --> 00:14:04,900 Families like those we visited have worked hard. 266 00:14:04,900 --> 00:14:07,300 They've been provided not with charity 267 00:14:07,300 --> 00:14:09,300 but with a path to development, 268 00:14:09,300 --> 00:14:11,300 and they seem to be flourishing. 269 00:14:11,300 --> 00:14:14,633 Charity is important for emergencies, 270 00:14:14,633 --> 00:14:16,966 but development aid is for the future. 271 00:14:16,966 --> 00:14:19,633 Today's development aid is smart. 272 00:14:19,633 --> 00:14:23,033 Rather than dependence, it creates independence. 273 00:14:23,033 --> 00:14:25,300 It breaks the cycle of poverty, 274 00:14:25,300 --> 00:14:27,633 connects people to markets, 275 00:14:27,633 --> 00:14:32,300 and opens the door to the benefits of capitalism. 276 00:14:34,300 --> 00:14:36,966 Rising out of extreme poverty through development 277 00:14:36,966 --> 00:14:38,633 requires certain basics. 278 00:14:38,633 --> 00:14:42,333 Water is fundamental to health, hygiene, and nutrition. 279 00:14:42,333 --> 00:14:44,000 But for much of the world, 280 00:14:44,000 --> 00:14:46,000 access to water is a daily struggle. 281 00:14:47,000 --> 00:14:50,200 Hundreds of millions of people live in villages 282 00:14:50,200 --> 00:14:52,366 with no running water or well. 283 00:14:54,500 --> 00:14:56,533 They have to walk for their water. 284 00:14:56,533 --> 00:14:59,866 It's typically a job for women and children. 285 00:14:59,866 --> 00:15:03,000 ♪♪ 286 00:15:05,533 --> 00:15:08,833 Here in Guatemala, laundry day without running water 287 00:15:08,833 --> 00:15:11,366 means these women have to leave their family, 288 00:15:11,366 --> 00:15:12,733 interrupt their farm work, 289 00:15:12,733 --> 00:15:15,966 and trek three hours to this dirty pond. 290 00:15:15,966 --> 00:15:19,300 Water is so heavy that the women wait for their clothes 291 00:15:19,300 --> 00:15:22,966 to partially dry before making the long slog home. 292 00:15:22,966 --> 00:15:26,233 ♪♪ 293 00:15:29,666 --> 00:15:31,966 Development is incremental. 294 00:15:31,966 --> 00:15:34,666 These villagers have the relative convenience 295 00:15:34,666 --> 00:15:36,966 of public spigots in each neighborhood. 296 00:15:36,966 --> 00:15:39,966 They gather on certain days at certain times 297 00:15:39,966 --> 00:15:41,900 when water is released. 298 00:15:41,900 --> 00:15:43,966 For many, having a tap down the street 299 00:15:43,966 --> 00:15:46,966 running just a few hours a week is a blessing. 300 00:15:46,966 --> 00:15:53,300 A vital step in development is building water infrastructure. 301 00:15:53,300 --> 00:15:55,966 This Ethiopian village got a well last year 302 00:15:55,966 --> 00:15:57,833 thanks to an American NGO 303 00:15:57,833 --> 00:15:59,833 whose mission is to do exactly that. 304 00:15:59,833 --> 00:16:03,533 Wells like these cost about $4,000. 305 00:16:03,533 --> 00:16:05,833 Today, with a neighborhood well, 306 00:16:05,833 --> 00:16:08,633 these people no longer need to walk hours a day 307 00:16:08,633 --> 00:16:09,966 to get their water. 308 00:16:09,966 --> 00:16:13,966 Modern aid projects are not simply given to a community. 309 00:16:13,966 --> 00:16:16,333 Experience has taught development workers 310 00:16:16,333 --> 00:16:18,333 that locals who own these projects 311 00:16:18,333 --> 00:16:19,966 take better care of them. 312 00:16:19,966 --> 00:16:22,966 They work with the NGOs to build the projects. 313 00:16:22,966 --> 00:16:25,333 This pump is community-owned. 314 00:16:25,333 --> 00:16:28,000 A locally elected committee manages it, 315 00:16:28,000 --> 00:16:31,633 and each family pays about a dollar a month to maintain it. 316 00:16:31,633 --> 00:16:34,333 With ownership comes responsibility 317 00:16:34,333 --> 00:16:36,333 and good stewardship. 318 00:16:37,900 --> 00:16:40,400 Water infrastructure divides the poor 319 00:16:40,400 --> 00:16:42,966 from the extremely poor. 320 00:16:42,966 --> 00:16:44,966 Having to depend on river water 321 00:16:44,966 --> 00:16:48,166 means farmers and families are dependent on rain. 322 00:16:48,166 --> 00:16:51,733 River water may carry water-borne diseases. 323 00:16:51,733 --> 00:16:56,166 With safe water reliably available right in the village, 324 00:16:56,166 --> 00:16:57,966 there's better hygiene, 325 00:16:57,966 --> 00:17:00,466 families are sick less often, 326 00:17:00,466 --> 00:17:03,733 children have more time and energy for school and work, 327 00:17:03,733 --> 00:17:05,800 and moms have more time and energy 328 00:17:05,800 --> 00:17:07,800 to nurture their children. 329 00:17:07,800 --> 00:17:09,400 ♪♪ 330 00:17:12,466 --> 00:17:16,066 Ironically, most of the hungry people in the world are farmers. 331 00:17:16,066 --> 00:17:19,066 Helping farmers grow more food more profitably 332 00:17:19,066 --> 00:17:22,366 is essential in overcoming extreme poverty. 333 00:17:22,366 --> 00:17:26,566 More food means more money, which fuels development. 334 00:17:26,566 --> 00:17:29,300 Exciting advances in agriculture have resulted 335 00:17:29,300 --> 00:17:31,966 in a green revolution throughout the developing world. 336 00:17:31,966 --> 00:17:35,900 Ethiopia is becoming a model of development 337 00:17:35,900 --> 00:17:37,900 thanks to governmental leadership. 338 00:17:37,900 --> 00:17:41,966 The country is divided into 18,000 districts, 339 00:17:41,966 --> 00:17:44,300 each with a farmers' training center. 340 00:17:44,300 --> 00:17:47,966 The government employs 60,000 teachers and coaches 341 00:17:47,966 --> 00:17:50,133 to make sure smart agricultural policies 342 00:17:50,133 --> 00:17:51,733 are implemented throughout the country. 343 00:17:51,733 --> 00:17:56,966 Here we train farmers on different disciplines -- 344 00:17:56,966 --> 00:18:01,133 on livestock production, feed management, 345 00:18:01,133 --> 00:18:03,733 irrigation, and water management. 346 00:18:03,733 --> 00:18:07,400 Here at Abadi's training center, 347 00:18:07,400 --> 00:18:10,133 local farmers learn why it's important to plant seeds 348 00:18:10,133 --> 00:18:12,133 in a line rather than scattering. 349 00:18:12,133 --> 00:18:16,133 They learn to rotate crops with plants like alfalfa, 350 00:18:15,500 --> 00:18:18,733 which reinvigorates the depleted soil. 351 00:18:18,733 --> 00:18:22,400 And the government has studied the soil across Ethiopia 352 00:18:22,400 --> 00:18:24,966 and recommends just the right mix of fertilizer 353 00:18:24,966 --> 00:18:26,400 for each district. 354 00:18:27,133 --> 00:18:29,733 Smart farming includes selective breeding 355 00:18:29,733 --> 00:18:32,133 so animals can survive local conditions 356 00:18:32,133 --> 00:18:33,966 as well as increase their production. 357 00:18:33,966 --> 00:18:37,966 This cow is a Holstein crossed with an African breed, 358 00:18:37,966 --> 00:18:41,400 hardy in the heat and giving more than double the milk. 359 00:18:41,400 --> 00:18:44,733 These hybrid chickens lay triple the eggs 360 00:18:44,733 --> 00:18:45,966 compared to the local ones. 361 00:18:45,966 --> 00:18:48,200 The value of these new farming techniques 362 00:18:48,200 --> 00:18:49,966 is evident back on Abadi's farm. 363 00:18:49,966 --> 00:18:53,133 While his parents subsisted on corn only, 364 00:18:53,133 --> 00:18:55,733 he's diversified his crops. 365 00:18:55,733 --> 00:18:58,733 Better seeds allow three harvests a year 366 00:18:58,733 --> 00:19:00,400 rather than two. 367 00:19:03,733 --> 00:19:05,966 In the far reaches of Guatemala, 368 00:19:05,966 --> 00:19:09,966 this family is also working hard with coaching from an NGO. 369 00:19:09,966 --> 00:19:12,966 And their yield is also better than ever. 370 00:19:12,966 --> 00:19:16,733 A simple change, like just the right spacing of seeds 371 00:19:16,733 --> 00:19:20,133 and smart use of fertilizer, can make a big difference. 372 00:19:22,833 --> 00:19:25,866 Nearby, another nongovernmental organization, 373 00:19:25,866 --> 00:19:28,833 mindful that dairy is a great source of protein 374 00:19:28,833 --> 00:19:31,300 and Mayan children are better able to digest 375 00:19:31,300 --> 00:19:32,900 goat's milk than cow's milk, 376 00:19:32,900 --> 00:19:35,900 has helped a community build a goat-breeding center. 377 00:19:36,966 --> 00:19:38,900 This gives local families a chance 378 00:19:38,900 --> 00:19:41,300 to produce a carefully selected breed of goat 379 00:19:41,300 --> 00:19:44,900 and raise them at home to produce more milk. 380 00:19:46,900 --> 00:19:49,966 Villagers bring their female goat to the love shack. 381 00:19:53,800 --> 00:19:55,400 After a few minutes in the adjacent pen, 382 00:19:55,400 --> 00:19:57,066 she goes home pregnant. 383 00:19:57,066 --> 00:19:59,966 Soon the family will have plenty of extra milk, 384 00:19:59,966 --> 00:20:01,700 better-nourished children, 385 00:20:01,700 --> 00:20:05,400 and surplus dairy products to sell in the market. 386 00:20:06,966 --> 00:20:08,733 An effective way to fight hunger 387 00:20:08,733 --> 00:20:10,966 is to focus on health and nutrition. 388 00:20:10,966 --> 00:20:14,133 After all, if you're sick, you're more likely to be poor, 389 00:20:14,133 --> 00:20:16,133 and if you're healthy, you're better able 390 00:20:16,133 --> 00:20:17,966 to climb out of poverty. 391 00:20:17,966 --> 00:20:20,733 In many developing countries, the government 392 00:20:20,733 --> 00:20:22,733 (often with the help of the United Nations' 393 00:20:22,733 --> 00:20:23,966 World Food Programme) 394 00:20:23,966 --> 00:20:28,733 maintains health posts like this one in Ethiopia. 395 00:20:28,733 --> 00:20:32,133 Extremely poor people have no money for health care, 396 00:20:32,133 --> 00:20:34,133 but this health post provides the basics 397 00:20:34,133 --> 00:20:35,966 in the village for free. 398 00:20:35,966 --> 00:20:38,966 Pauline Akabwai, a local U.N. worker, 399 00:20:38,966 --> 00:20:41,133 explained how they educate young mothers 400 00:20:41,133 --> 00:20:42,733 who gather here twice a month 401 00:20:42,733 --> 00:20:44,733 to help them raise healthier babies. 402 00:20:44,733 --> 00:20:48,133 A health post is the smallest unit of health in Ethiopia, 403 00:20:48,133 --> 00:20:50,966 and this is one of the health posts. 404 00:20:50,966 --> 00:20:52,466 The reason why we have a health post 405 00:20:52,466 --> 00:20:55,733 is because of the close proximity to the community. 406 00:20:55,733 --> 00:20:58,966 And the mothers and the beneficiaries do not need 407 00:20:58,966 --> 00:21:00,966 to pay any money to receive services. 408 00:21:00,966 --> 00:21:03,466 The main objective is to prevent malnutrition. 409 00:21:03,466 --> 00:21:05,733 We have a program called 410 00:21:05,733 --> 00:21:07,466 targeted supplemental feeding programme, 411 00:21:07,466 --> 00:21:11,966 and the program targets children under five years 412 00:21:11,966 --> 00:21:13,466 with moderate acute malnutrition 413 00:21:13,466 --> 00:21:15,733 and also pregnant and lactating women 414 00:21:15,733 --> 00:21:17,133 with moderate acute malnutrition. 415 00:21:17,133 --> 00:21:21,133 One of the activities that we do is to screen for malnutrition, 416 00:21:21,133 --> 00:21:22,466 moderate acute malnutrition -- 417 00:21:22,466 --> 00:21:24,466 they measure the arms of the children, 418 00:21:24,466 --> 00:21:27,966 and if the pointer shows yellow, 419 00:21:27,966 --> 00:21:31,133 it means the child is moderately acute malnourished. 420 00:21:31,133 --> 00:21:33,133 We also weigh children. 421 00:21:33,133 --> 00:21:35,133 When you're screening for malnutrition, 422 00:21:35,133 --> 00:21:35,966 you weigh children. 423 00:21:35,966 --> 00:21:39,466 Along with being malnourished, children in the developing world 424 00:21:39,466 --> 00:21:43,466 are more likely to contract a host of dangerous diseases. 425 00:21:43,466 --> 00:21:46,966 Inoculations are an example of a global success 426 00:21:46,966 --> 00:21:49,133 of a United Nations-led initiative. 427 00:21:49,133 --> 00:21:51,966 Measles, typhoid, and pneumonia -- 428 00:21:51,966 --> 00:21:54,466 until recently commonplace in the poor world -- 429 00:21:54,466 --> 00:21:57,466 are easily avoided with cheap and simple vaccinations. 430 00:21:57,466 --> 00:22:01,466 Thanks to a U.N. program, nearly all the world's children 431 00:22:01,466 --> 00:22:04,733 are now inoculated against these most deadly diseases, 432 00:22:04,733 --> 00:22:08,733 and child mortality has dropped dramatically. 433 00:22:08,733 --> 00:22:11,833 Laura Melo, who runs the U.N.'s World Food Programme 434 00:22:11,833 --> 00:22:13,833 in Guatemala, dedicates her work 435 00:22:13,833 --> 00:22:16,833 to nutrition education in vulnerable communities. 436 00:22:16,833 --> 00:22:19,833 Guatemala has a very serious problem 437 00:22:19,833 --> 00:22:23,966 when it comes to poverty and chronic malnutrition, 438 00:22:23,966 --> 00:22:25,833 what we normally call "stunting." 439 00:22:25,833 --> 00:22:27,533 Stunting is a global problem. 440 00:22:27,533 --> 00:22:30,966 It's a problem that affects many countries. 441 00:22:30,966 --> 00:22:35,166 Unfortunately, Guatemala is one of the top four countries 442 00:22:35,166 --> 00:22:37,500 in terms of prevalence of stunting. 443 00:22:37,500 --> 00:22:41,166 It's a very serious but invisible problem. 444 00:22:41,166 --> 00:22:44,500 It basically consists of children 445 00:22:44,500 --> 00:22:48,800 who do not have the quality of food that they should 446 00:22:48,800 --> 00:22:53,500 during the first thousand days of their existence. 447 00:22:53,500 --> 00:22:56,500 And that compromises their development 448 00:22:56,500 --> 00:22:58,800 throughout their entire life, 449 00:22:58,800 --> 00:23:02,166 both physically as well as cognitively. 450 00:23:02,166 --> 00:23:06,166 So it's not as if children don't get enough to eat -- 451 00:23:06,166 --> 00:23:10,166 they do, but that's not good enough food -- 452 00:23:10,166 --> 00:23:11,800 it's not smart calories. 453 00:23:13,166 --> 00:23:17,800 A lot of people think that people in Guatemala are short 454 00:23:17,800 --> 00:23:19,500 and that it's genetics. 455 00:23:19,500 --> 00:23:20,966 That's not true. 456 00:23:20,966 --> 00:23:23,800 They are short because they are stunted. 457 00:23:23,800 --> 00:23:27,166 They are short because they didn't have the quality, 458 00:23:27,166 --> 00:23:31,800 the smart nutrients, that allow them to develop. 459 00:23:31,800 --> 00:23:34,166 If we have a country like Guatemala 460 00:23:34,166 --> 00:23:37,166 where almost half of the children are stunted, 461 00:23:37,166 --> 00:23:40,966 that means that about half of the children of this country 462 00:23:40,966 --> 00:23:42,466 cannot fulfill their potential. 463 00:23:42,466 --> 00:23:46,366 So I think it's a more than necessary investment 464 00:23:46,366 --> 00:23:49,133 to make sure that this problem disappears, 465 00:23:49,133 --> 00:23:52,200 that these children fulfill their potential. 466 00:23:52,200 --> 00:23:56,500 In both countries, thanks in part to U.S. funding, 467 00:23:56,500 --> 00:23:58,966 I saw mothers learning important skills, 468 00:23:58,966 --> 00:24:02,833 such as to breast feed for at least six months, 469 00:24:02,833 --> 00:24:05,033 how to cook with nutritional supplements 470 00:24:05,033 --> 00:24:07,033 to be sure children receive not just calories 471 00:24:07,033 --> 00:24:08,966 but healthy calories, 472 00:24:08,966 --> 00:24:12,366 and to teach children to wash their hands with soap 473 00:24:12,366 --> 00:24:14,366 so they stay healthier. 474 00:24:14,366 --> 00:24:18,366 If we don't wash our hands, if we don't have basic hygiene, 475 00:24:18,366 --> 00:24:21,966 then even if a child is eating good food, 476 00:24:21,966 --> 00:24:23,366 then they get very easily sick. 477 00:24:23,366 --> 00:24:26,666 And by getting sick, then they have diarrhea, 478 00:24:26,666 --> 00:24:30,666 then they lose the good nutrients that they're getting. 479 00:24:31,966 --> 00:24:35,066 A healthy child is more likely to become a productive adult. 480 00:24:35,066 --> 00:24:37,700 Rather than a life sentence of poverty, 481 00:24:37,700 --> 00:24:40,700 well-nourished young people will be capable of learning, 482 00:24:40,700 --> 00:24:41,966 and therefore helping to lift 483 00:24:41,966 --> 00:24:45,233 their families and community out of poverty. 484 00:24:46,966 --> 00:24:50,366 Throughout the world, it's the women and girls 485 00:24:50,366 --> 00:24:54,033 who have fewer opportunities and endure the brunt of poverty. 486 00:24:54,033 --> 00:24:55,966 They eat last. 487 00:24:55,966 --> 00:24:58,366 They have babies early. 488 00:24:58,366 --> 00:25:01,366 And boys get priority for education. 489 00:25:01,366 --> 00:25:04,666 Ultimately, it's the women who take care of the children 490 00:25:04,666 --> 00:25:07,366 and are most responsible with the family income. 491 00:25:07,366 --> 00:25:09,966 When women have an education, legal rights, 492 00:25:09,966 --> 00:25:12,566 and employment, they are empowered. 493 00:25:12,566 --> 00:25:15,300 Experience has shown the importance 494 00:25:15,300 --> 00:25:18,566 of relying on women to spearhead development projects. 495 00:25:18,566 --> 00:25:20,900 One of the reasons we know 496 00:25:20,900 --> 00:25:22,900 that it's worth investing on women 497 00:25:22,900 --> 00:25:25,300 is that women always put the care of their families 498 00:25:25,300 --> 00:25:27,900 and their children ahead of themselves. 499 00:25:27,900 --> 00:25:31,633 So, for us, it's very important to ensure that we educate women, 500 00:25:31,633 --> 00:25:33,633 that we give women a voice, 501 00:25:33,633 --> 00:25:38,900 and that that translates in empowerment of women, money, 502 00:25:38,900 --> 00:25:41,900 and therefore development of their family and their children. 503 00:25:41,900 --> 00:25:46,900 If we want to be successful in terms of addressing poverty, 504 00:25:46,900 --> 00:25:51,300 hunger, malnutrition, we know we have to work with women 505 00:25:51,300 --> 00:25:53,900 because that will translate in development 506 00:25:53,900 --> 00:25:55,966 of the full community. 507 00:25:55,966 --> 00:26:01,633 In Addis Ababa, a local NGO called Women in Self-Employment 508 00:26:01,633 --> 00:26:04,633 is helping Ethiopian women develop small businesses. 509 00:26:04,633 --> 00:26:07,333 These women are taught basic work-force skills, 510 00:26:07,333 --> 00:26:09,966 and are given vocational training. 511 00:26:09,966 --> 00:26:13,333 In a place where any solid job is a good job, 512 00:26:13,333 --> 00:26:14,966 these women learn to sew, 513 00:26:14,966 --> 00:26:19,633 they gain skills to join the hospitality industry, 514 00:26:19,633 --> 00:26:22,966 and they learn to be computer literate. 515 00:26:22,966 --> 00:26:26,633 Organizations like this are in the business 516 00:26:26,633 --> 00:26:28,633 of producing success stories. 517 00:26:28,633 --> 00:26:30,300 And, judging by the smiles here 518 00:26:30,300 --> 00:26:32,966 and the quickness with which these students embrace 519 00:26:32,966 --> 00:26:34,966 an impromptu opportunity to dance, 520 00:26:34,966 --> 00:26:37,300 this one's doing just that. 521 00:26:37,300 --> 00:26:40,966 [ Singing in native language ] 522 00:26:40,966 --> 00:26:43,700 ♪♪ 523 00:26:46,133 --> 00:26:49,400 ♪♪ 524 00:26:52,633 --> 00:26:54,966 Education is critical. 525 00:26:54,966 --> 00:26:57,233 Governments, private enterprise, and parents 526 00:26:57,233 --> 00:27:00,000 are realizing that an educated workforce 527 00:27:00,000 --> 00:27:02,000 is a prerequisite for development 528 00:27:02,000 --> 00:27:03,966 in today's global economy. 529 00:27:03,966 --> 00:27:06,633 In terms of pure economy, 530 00:27:06,633 --> 00:27:08,966 workers are considered human capital, 531 00:27:08,966 --> 00:27:12,300 and they produce more when healthy and educated. 532 00:27:12,300 --> 00:27:15,300 Like many developing nations, 533 00:27:15,300 --> 00:27:16,966 Ethiopia aspires for all children 534 00:27:16,966 --> 00:27:19,300 to have about eight years of schooling. 535 00:27:19,300 --> 00:27:22,633 In both countries, we saw committed teachers 536 00:27:22,633 --> 00:27:24,300 and eager students. 537 00:27:24,300 --> 00:27:26,133 Development workers have learned 538 00:27:26,133 --> 00:27:28,133 the value of education for girls. 539 00:27:28,133 --> 00:27:31,966 Girls with an education gain more control of their lives. 540 00:27:31,966 --> 00:27:34,133 Educated women have fewer children, 541 00:27:34,133 --> 00:27:36,133 and when they do start a family, 542 00:27:36,133 --> 00:27:38,466 their children are generally healthier. 543 00:27:39,733 --> 00:27:41,733 Even with meager resources, 544 00:27:41,733 --> 00:27:44,133 it seems that as long as students are healthy 545 00:27:44,133 --> 00:27:47,466 and adequately nourished, they're eager to learn. 546 00:27:47,466 --> 00:27:49,133 They know that a better future 547 00:27:49,133 --> 00:27:51,966 depends on being able to read and write. 548 00:27:53,133 --> 00:27:56,733 For these students, a few months of vocational training 549 00:27:56,733 --> 00:27:57,966 prepares them to get a job: 550 00:27:57,966 --> 00:28:00,366 Computer labs, 551 00:28:00,366 --> 00:28:02,466 welding skills, 552 00:28:02,466 --> 00:28:05,000 plumbing, 553 00:28:05,000 --> 00:28:07,466 and a field with lots of future employment, 554 00:28:07,466 --> 00:28:11,066 being a solar panel technician. 555 00:28:14,966 --> 00:28:18,400 Technology has become a boon to developing countries, 556 00:28:18,400 --> 00:28:20,700 bringing new approaches -- like solar panels -- 557 00:28:20,700 --> 00:28:22,400 to overcoming extreme poverty. 558 00:28:22,400 --> 00:28:25,966 Low-cost, high-tech innovations are offering solutions 559 00:28:25,966 --> 00:28:27,700 to age-old challenges. 560 00:28:27,700 --> 00:28:29,966 Remote, off-the-grid communities 561 00:28:29,966 --> 00:28:31,400 are employing wireless technology, 562 00:28:31,400 --> 00:28:33,733 leapfrogging past older energy 563 00:28:33,733 --> 00:28:35,400 and communication infrastructure. 564 00:28:36,966 --> 00:28:40,066 For example, solar panels are powering villages 565 00:28:40,066 --> 00:28:42,733 that were literally in the dark without electricity. 566 00:28:42,733 --> 00:28:45,400 This solar panel powers a water pump 567 00:28:45,400 --> 00:28:46,966 that fills this reservoir 568 00:28:46,966 --> 00:28:49,066 so the village can make it through dry periods. 569 00:28:49,066 --> 00:28:52,066 And cheap cellphones are revolutionizing 570 00:28:52,066 --> 00:28:54,133 the world of small-business people. 571 00:28:54,133 --> 00:28:58,700 Farmers can find the best price for their produce. 572 00:28:58,700 --> 00:29:03,400 Herders learn when and where to bring their stock to market. 573 00:29:03,400 --> 00:29:05,733 This entrepreneur can make a direct sale 574 00:29:05,733 --> 00:29:07,400 and avoid a needless middleman. 575 00:29:07,400 --> 00:29:10,966 And entrepreneurs can make and receive mobile payments 576 00:29:10,966 --> 00:29:13,966 and do their banking without making a trip into town. 577 00:29:13,966 --> 00:29:17,066 The very poor want the opportunity to work 578 00:29:17,066 --> 00:29:18,700 in order to break out of poverty. 579 00:29:18,700 --> 00:29:20,133 But without access to banking, 580 00:29:20,133 --> 00:29:22,066 they're excluded from the economy. 581 00:29:22,066 --> 00:29:24,400 Capitalism requires capital. 582 00:29:24,400 --> 00:29:26,700 And without capital, there's no development. 583 00:29:26,700 --> 00:29:28,966 New opportunities in banking 584 00:29:28,966 --> 00:29:30,700 are bringing capital to people, 585 00:29:30,700 --> 00:29:32,400 and it's making a difference. 586 00:29:32,400 --> 00:29:35,400 Here in a crowded neighborhood of Addis Ababa, 587 00:29:35,400 --> 00:29:37,400 Lisa has organized her neighbors 588 00:29:37,400 --> 00:29:39,133 to create their own community bank -- 589 00:29:39,133 --> 00:29:41,966 a cash box with two keys. 590 00:29:43,966 --> 00:29:48,066 Each woman banks a deposit each week and earns interest. 591 00:29:48,066 --> 00:29:50,700 They take turns borrowing from their common fund 592 00:29:50,700 --> 00:29:52,066 for business purposes. 593 00:29:54,366 --> 00:29:56,700 Thanks to this rudimentary banking service, 594 00:29:56,700 --> 00:29:59,700 this woman runs the neighborhood coffee shop. 595 00:30:01,966 --> 00:30:03,700 NGOs are employing a clever system 596 00:30:03,700 --> 00:30:05,066 for microlending. 597 00:30:05,066 --> 00:30:08,733 This phenomenon of making tiny loans 598 00:30:08,733 --> 00:30:09,966 and then recycling the capital 599 00:30:09,966 --> 00:30:12,133 is kick-starting small businesses 600 00:30:12,133 --> 00:30:15,466 and speeding up development throughout the poor world. 601 00:30:16,966 --> 00:30:19,466 Back in Guatemala, I meet Señora Ana, 602 00:30:19,466 --> 00:30:21,733 who was able to start a beading business, 603 00:30:21,733 --> 00:30:23,966 and now employs dozens of workers. 604 00:30:25,466 --> 00:30:28,466 Marta, who works with an organization 605 00:30:28,466 --> 00:30:29,733 that makes microloans to women, 606 00:30:29,733 --> 00:30:31,966 explains how microfinance is working here. 607 00:30:33,133 --> 00:30:36,133 Microlending, it's a type of financing, 608 00:30:36,133 --> 00:30:38,466 but also with a social focus. 609 00:30:38,466 --> 00:30:39,733 That's what we do. 610 00:30:39,733 --> 00:30:43,133 We provide small loans to impoverished people 611 00:30:43,133 --> 00:30:45,733 'cause people have no access to normal banks, 612 00:30:45,733 --> 00:30:47,466 and they need some funds 613 00:30:47,466 --> 00:30:49,466 to sustain their small businesses -- 614 00:30:49,466 --> 00:30:51,733 small like somebody who sells fruit in the street, 615 00:30:51,733 --> 00:30:53,133 or, say, shoes in the corner, 616 00:30:53,133 --> 00:30:55,733 so that's the financing we give them. 617 00:30:55,733 --> 00:30:59,733 For us, it's important to have not only financing part, 618 00:30:59,733 --> 00:31:01,466 but also the education part -- 619 00:31:01,466 --> 00:31:03,466 so train them about business skills, 620 00:31:03,466 --> 00:31:05,733 budget, marketing, life skills. 621 00:31:05,733 --> 00:31:07,733 We grow with them. 622 00:31:07,733 --> 00:31:09,466 We start from the beginning point. 623 00:31:09,466 --> 00:31:11,133 We want them to be successful. 624 00:31:11,133 --> 00:31:15,466 We have 98 percent payback -- so it's working. 625 00:31:15,466 --> 00:31:17,466 People are very responsible -- 626 00:31:17,466 --> 00:31:20,133 It's a hand up to these people, 627 00:31:20,133 --> 00:31:22,733 to make them empowered, and to be independent. 628 00:31:22,733 --> 00:31:23,733 First, we start with the women, 629 00:31:23,733 --> 00:31:25,966 provide the small seed to the women. 630 00:31:25,966 --> 00:31:28,133 This family work together. 631 00:31:28,133 --> 00:31:29,733 The mother started first. 632 00:31:29,733 --> 00:31:32,466 She learned this beaded technique, 633 00:31:32,466 --> 00:31:35,733 and she taught her girls to do the same, 634 00:31:35,733 --> 00:31:37,466 and they after hired other people, 635 00:31:37,466 --> 00:31:38,733 as you can see, around -- 636 00:31:38,733 --> 00:31:39,966 they work together. 637 00:31:39,966 --> 00:31:41,133 And the kids are around; 638 00:31:41,133 --> 00:31:42,466 they can take care of the kids here, 639 00:31:42,466 --> 00:31:44,966 and, also, they employ several people -- 640 00:31:44,966 --> 00:31:45,966 like this family -- 641 00:31:45,966 --> 00:31:48,966 they employ 50 more people in the community, 642 00:31:48,966 --> 00:31:51,466 so they provide jobs and food on the table 643 00:31:51,466 --> 00:31:52,466 to other families here. 644 00:31:52,466 --> 00:31:54,800 So you're empowering one person, 645 00:31:54,800 --> 00:31:58,966 but this person makes a huge impact in her community 646 00:31:58,966 --> 00:31:59,966 by providing jobs. 647 00:31:59,966 --> 00:32:00,966 They can stay here -- 648 00:32:00,966 --> 00:32:02,133 they can have jobs here, 649 00:32:02,133 --> 00:32:04,966 have dignity, and raise a family. 650 00:32:04,966 --> 00:32:09,133 With microlending, the same capital is used again and again. 651 00:32:09,133 --> 00:32:12,466 This Ethiopian woman got a loan to start a little store. 652 00:32:12,466 --> 00:32:15,733 When that cash was paid back, it was loaned again 653 00:32:15,733 --> 00:32:17,966 to help this man start his metal-working shop. 654 00:32:17,966 --> 00:32:21,466 This Guatemalan family got a loan for cows, 655 00:32:21,466 --> 00:32:23,133 which, when paid back, was loaned again 656 00:32:23,133 --> 00:32:25,466 so this family could start their rabbit business. 657 00:32:25,466 --> 00:32:28,733 Experience has shown that these microloans 658 00:32:28,733 --> 00:32:30,966 are nearly always paid back, 659 00:32:30,966 --> 00:32:33,033 and they've helped millions of poor people 660 00:32:33,033 --> 00:32:34,966 work their way out of poverty. 661 00:32:34,966 --> 00:32:39,966 In case after case, I saw the potential of empowering people 662 00:32:39,966 --> 00:32:42,333 whose desire is to work and produce. 663 00:32:42,333 --> 00:32:44,366 These are the success stories 664 00:32:44,366 --> 00:32:47,033 of smart and modern development aid. 665 00:32:49,966 --> 00:32:52,133 While there's been tremendous progress globally 666 00:32:52,133 --> 00:32:53,166 in the fight against hunger, 667 00:32:53,166 --> 00:32:54,900 unfortunately, over the last few years, 668 00:32:54,900 --> 00:32:58,466 hunger has ticked up rather than declined. 669 00:32:58,466 --> 00:33:01,733 To a great extent, it's because of a combination 670 00:33:01,733 --> 00:33:02,966 of three things -- 671 00:33:02,966 --> 00:33:05,733 conflict, bad governance and corruption, 672 00:33:05,733 --> 00:33:07,733 and climate change. 673 00:33:07,733 --> 00:33:09,966 Conflict is a major hurdle. 674 00:33:09,966 --> 00:33:12,700 Wars, drug trade, 675 00:33:12,700 --> 00:33:16,466 gangs, sectarian violence -- 676 00:33:16,466 --> 00:33:19,133 with so much weaponry ending up in the poor world, 677 00:33:19,133 --> 00:33:22,133 it all pushes people deeper into poverty. 678 00:33:22,133 --> 00:33:25,333 Statistics show that when there's violent conflict, 679 00:33:25,333 --> 00:33:27,966 it's the poorest who suffer the most. 680 00:33:27,966 --> 00:33:29,966 More civilians than combatants die, 681 00:33:29,966 --> 00:33:33,966 institutions that hold societies together fall apart, 682 00:33:33,966 --> 00:33:36,966 and economies grind to a halt. 683 00:33:36,966 --> 00:33:39,500 A global surge in armed conflict, 684 00:33:39,500 --> 00:33:40,966 especially in Africa, 685 00:33:40,966 --> 00:33:43,133 is a major reason for the recent setback 686 00:33:43,133 --> 00:33:45,133 in progress against world hunger. 687 00:33:45,133 --> 00:33:47,733 Experts believe that, in the future, 688 00:33:47,733 --> 00:33:51,533 most hunger will be in countries wracked by conflict. 689 00:33:51,533 --> 00:33:54,800 ♪♪ 690 00:33:57,566 --> 00:34:01,566 Conflict and exploitation have a long history. 691 00:34:01,566 --> 00:34:04,966 In Guatemala, the ruins of magnificent temples 692 00:34:04,966 --> 00:34:07,200 are reminders of a grand civilization 693 00:34:07,200 --> 00:34:10,500 that thrived here centuries before Columbus. 694 00:34:10,500 --> 00:34:13,866 But Spanish conquistadores subjugated 695 00:34:13,866 --> 00:34:15,233 Guatemala's indigenous people. 696 00:34:15,233 --> 00:34:19,533 Today, the descendants of the people who built those temples 697 00:34:19,533 --> 00:34:22,533 are the poorest people in the country. 698 00:34:23,866 --> 00:34:26,233 The city of Antigua was founded 699 00:34:26,233 --> 00:34:28,966 by those European conquerors in 1543 700 00:34:28,966 --> 00:34:32,866 as their capital of Central America. 701 00:34:32,866 --> 00:34:34,400 It was the hub of a colonial system 702 00:34:34,400 --> 00:34:37,733 designed by Europeans for exploitation. 703 00:34:37,733 --> 00:34:41,966 The main square reflects the structure of that repression -- 704 00:34:41,966 --> 00:34:45,566 the palace and military headquarters, 705 00:34:45,566 --> 00:34:47,566 Catholic church, 706 00:34:47,566 --> 00:34:49,866 local government, 707 00:34:49,866 --> 00:34:51,966 and the trade center. 708 00:34:51,966 --> 00:34:54,966 It was all designed to control the people who lived there 709 00:34:54,966 --> 00:34:58,233 and export their natural resources. 710 00:34:59,966 --> 00:35:02,966 And, while pleasant today, this square was notorious 711 00:35:02,966 --> 00:35:05,866 as a place where indigenous people 712 00:35:05,866 --> 00:35:08,733 who caused trouble were executed. 713 00:35:12,233 --> 00:35:15,233 Central America's eventual independence from Spain 714 00:35:15,233 --> 00:35:18,866 led to an unholy alliance of international corporations 715 00:35:18,866 --> 00:35:20,566 and corrupt local governments -- 716 00:35:20,566 --> 00:35:24,233 the era of the so-called "banana republics." 717 00:35:24,233 --> 00:35:28,133 Entire nations became essentially company farms 718 00:35:28,133 --> 00:35:33,133 designed to export their basic crop, raw, to developed nations. 719 00:35:33,133 --> 00:35:36,400 When landless peasants organized for land rights, 720 00:35:36,400 --> 00:35:39,400 there were inevitable civil wars. 721 00:35:39,400 --> 00:35:43,400 The people buried in this remote Guatemalan cemetery 722 00:35:43,400 --> 00:35:45,366 all died in one such war, 723 00:35:45,366 --> 00:35:48,966 which raged for 36 years until 1996. 724 00:35:48,966 --> 00:35:51,633 It was portrayed in the United States 725 00:35:51,633 --> 00:35:53,966 as a war against communism. 726 00:35:53,966 --> 00:35:57,333 But people here saw it as about economic justice 727 00:35:57,333 --> 00:35:59,633 and land rights for the country's poor. 728 00:36:00,633 --> 00:36:03,633 Though over-grown, the memories are still raw. 729 00:36:03,633 --> 00:36:06,333 This man, at the tomb of his father, 730 00:36:06,333 --> 00:36:09,000 described how he was one of 200,000 731 00:36:09,000 --> 00:36:12,633 who died in a war about rights to own land. 732 00:36:16,633 --> 00:36:20,133 This economic dynamic played out in so many countries, 733 00:36:20,133 --> 00:36:21,966 and its legacy continues. 734 00:36:21,966 --> 00:36:24,800 Colonial systems evolved into systems 735 00:36:24,800 --> 00:36:27,133 of economic dominance by local elites. 736 00:36:27,133 --> 00:36:30,733 To this day here in Guatemala, a handful of wealthy families 737 00:36:30,733 --> 00:36:33,733 own most of the good land and dominate the economy. 738 00:36:33,733 --> 00:36:37,133 Along with a heritage of economic injustice, 739 00:36:37,133 --> 00:36:38,966 Central America is now struggling 740 00:36:38,966 --> 00:36:41,400 with a huge problem of gang violence. 741 00:36:41,400 --> 00:36:45,133 To learn more, we rejoin Fito. 742 00:36:45,133 --> 00:36:48,733 Drawing on his experience as a former gang member, 743 00:36:48,733 --> 00:36:51,533 he now counsels boys to give them better lives. 744 00:36:52,400 --> 00:36:55,066 Fito's own experience illustrates 745 00:36:55,066 --> 00:36:57,400 why boys are attracted to gangs. 746 00:36:57,400 --> 00:37:00,400 [ Speaking Spanish ] 747 00:37:00,400 --> 00:37:02,466 Because I come from a broken family 748 00:37:02,466 --> 00:37:04,966 and my father was an alcoholic. 749 00:37:04,966 --> 00:37:08,166 My mother worked hard in the garbage dump. 750 00:37:10,166 --> 00:37:11,966 I could bring money home, 751 00:37:11,966 --> 00:37:15,966 even though it was a result of violence 752 00:37:15,966 --> 00:37:19,966 or the result of theft. 753 00:37:19,966 --> 00:37:22,900 So I could help my mom. 754 00:37:22,900 --> 00:37:26,966 And apart from that, I had my friends -- good friends. 755 00:37:26,966 --> 00:37:30,900 That's probably the strongest motive 756 00:37:30,900 --> 00:37:33,900 that drew me to the gang -- a deep friendship. 757 00:37:33,900 --> 00:37:35,900 Another family! Yeah. 758 00:37:35,900 --> 00:37:37,900 People looked at us with respect. 759 00:37:37,900 --> 00:37:42,300 Sometimes with fear, but with respect. 760 00:37:42,300 --> 00:37:49,300 I think that's really the only thing human beings have: 761 00:37:49,733 --> 00:37:51,366 Dignity. 762 00:37:51,366 --> 00:37:53,966 I work with young people, and it hurts to watch 763 00:37:53,966 --> 00:37:55,966 when they apply for jobs. 764 00:37:55,966 --> 00:37:57,633 [ Continues speaking Spanish ] 765 00:38:00,700 --> 00:38:02,966 When they are in an interview, 766 00:38:02,966 --> 00:38:04,966 they don't even treat them with dignity. 767 00:38:09,733 --> 00:38:13,133 It's easier to obtain a weapon than a job. 768 00:38:13,133 --> 00:38:16,400 If you could these people three things to help them 769 00:38:16,400 --> 00:38:18,966 not to be in a gang, what would you give them? 770 00:38:18,966 --> 00:38:22,400 One is to offer job opportunities. 771 00:38:22,400 --> 00:38:26,733 [ Continues speaking Spanish ] 772 00:38:27,966 --> 00:38:32,833 Second, to see people with dignity. 773 00:38:32,833 --> 00:38:33,833 I am an example 774 00:38:33,833 --> 00:38:39,500 because I had opportunities... 775 00:38:39,500 --> 00:38:43,500 ...because someone walked together with me for years... 776 00:38:43,500 --> 00:38:47,500 ...giving me dignity. 777 00:38:47,500 --> 00:38:49,833 Number three? Amor. 778 00:38:49,833 --> 00:38:50,966 Love. Amor. 779 00:38:50,966 --> 00:38:55,833 Because love is the only thing 780 00:38:55,833 --> 00:38:59,666 that allows you to imagine a future. 781 00:39:00,966 --> 00:39:03,966 Africa has had its own difficult history, 782 00:39:03,966 --> 00:39:07,166 from slavery to brutal colonialism... 783 00:39:09,466 --> 00:39:13,800 ...to rampant corruption under modern-day tyrants. 784 00:39:14,966 --> 00:39:18,166 Today Addis Ababa hosts the African Union, 785 00:39:18,166 --> 00:39:21,800 an organization of all 54 African nations. 786 00:39:21,800 --> 00:39:25,966 It's dedicated to helping the continent heal and develop. 787 00:39:25,966 --> 00:39:29,166 The stated mission here is to overcome the conflict, 788 00:39:29,166 --> 00:39:31,800 bad governance, and corruption 789 00:39:31,800 --> 00:39:34,466 that's long wracked this continent. 790 00:39:35,800 --> 00:39:39,800 Another major hurdle to ending hunger is a changing climate. 791 00:39:39,800 --> 00:39:42,200 In wealthy countries, we turn up the air-con -- 792 00:39:42,200 --> 00:39:43,800 generating more CO2 -- 793 00:39:43,800 --> 00:39:46,166 and debate the existence of climate change. 794 00:39:46,166 --> 00:39:48,800 But climate change is here, 795 00:39:48,800 --> 00:39:50,166 and it's hitting the poorest people 796 00:39:50,166 --> 00:39:52,466 in the poorest countries hardest. 797 00:39:52,466 --> 00:39:56,166 In the last few years, the impact of climate change 798 00:39:56,166 --> 00:39:59,800 has dealt a major setback to the fight against extreme poverty. 799 00:40:02,466 --> 00:40:05,166 Weather is more severe and less predictable. 800 00:40:06,800 --> 00:40:09,666 While arid regions may get the same amount of rain, 801 00:40:09,666 --> 00:40:14,033 it now comes in torrents, washing away the topsoil. 802 00:40:15,966 --> 00:40:19,366 And as struggling people cut down trees for fuel, 803 00:40:19,366 --> 00:40:23,966 land becomes even more vulnerable to erosion. 804 00:40:23,966 --> 00:40:26,033 In Africa, with each decade, 805 00:40:26,033 --> 00:40:28,033 more arable land becomes desert. 806 00:40:28,033 --> 00:40:34,666 The result: more hunger, more conflict, more refugees. 807 00:40:34,666 --> 00:40:37,466 When climate change destabilizes the poor world, 808 00:40:37,466 --> 00:40:39,033 it drives migration. 809 00:40:39,033 --> 00:40:41,966 That threatens the security of the wealthy countries. 810 00:40:41,966 --> 00:40:45,366 And what we're seeing today could be just the beginning. 811 00:40:45,366 --> 00:40:51,033 [ Indistinct shouting ] 812 00:40:51,033 --> 00:40:53,466 ♪♪ 813 00:40:53,466 --> 00:40:57,466 Poverty has long been widespread in the highlands of Guatemala. 814 00:40:57,466 --> 00:40:58,966 And when listening to a farmer 815 00:40:58,966 --> 00:41:02,133 whose family has worked the land here for generations, 816 00:41:02,133 --> 00:41:04,133 it's clear that climate change 817 00:41:04,133 --> 00:41:07,133 is making the fight against poverty even harder. 818 00:41:07,133 --> 00:41:09,200 Is there any question that climate change 819 00:41:09,200 --> 00:41:10,966 is real for the farmer? 820 00:41:10,966 --> 00:41:16,466 [ Speaking Spanish ] 821 00:41:16,466 --> 00:41:22,733 [ Speaking Spanish ] 822 00:41:22,733 --> 00:41:23,966 Don Simeón was telling us 823 00:41:23,966 --> 00:41:26,300 that there's always been a hunger season. 824 00:41:26,300 --> 00:41:27,966 What is happening now, with climate change, 825 00:41:27,966 --> 00:41:31,466 is that it's longer, and the harvest starts later, 826 00:41:31,466 --> 00:41:34,733 so, meaning that they have a longer season during the year 827 00:41:34,733 --> 00:41:37,733 when they don't have enough food to feed their family. 828 00:41:37,733 --> 00:41:39,733 For example, before, the hunger season 829 00:41:39,733 --> 00:41:41,133 could start in April. 830 00:41:41,133 --> 00:41:42,966 Now it's in February. 831 00:41:44,733 --> 00:41:48,733 In Ethiopia, so notorious for droughts, 832 00:41:48,733 --> 00:41:51,133 the government has organized local communities 833 00:41:51,133 --> 00:41:54,733 to reforest and terrace eroded hillsides. 834 00:41:54,733 --> 00:41:57,733 People here understand that planting trees 835 00:41:57,733 --> 00:41:59,133 increases rainfall. 836 00:41:59,133 --> 00:42:02,966 And terracing allows rainwater to soak into the earth. 837 00:42:04,966 --> 00:42:07,500 Abadi is able to irrigate his crops 838 00:42:07,500 --> 00:42:09,500 thanks to a replenished water table. 839 00:42:12,500 --> 00:42:16,800 And water-management infrastructure is also critical 840 00:42:16,800 --> 00:42:19,166 in dealing with the impact of climate change. 841 00:42:19,166 --> 00:42:21,966 Reservoirs enable farmers to dole out their precious water 842 00:42:21,966 --> 00:42:24,500 as needed and more efficiently. 843 00:42:25,500 --> 00:42:28,800 Thanks to this, reforestation projects 844 00:42:28,800 --> 00:42:31,166 and improvements in agriculture -- 845 00:42:31,166 --> 00:42:33,966 a new approach called climate-smart agriculture -- 846 00:42:33,966 --> 00:42:36,966 Ethiopian farmers are becoming more resilient. 847 00:42:36,966 --> 00:42:38,966 For instance, they believe that 848 00:42:38,966 --> 00:42:40,966 while there will always be droughts, 849 00:42:40,966 --> 00:42:42,966 famines are now preventable. 850 00:42:42,966 --> 00:42:45,133 In fact, in recent years, 851 00:42:45,133 --> 00:42:47,966 Ethiopia has had several serious droughts 852 00:42:47,966 --> 00:42:49,966 but no famines. 853 00:42:51,966 --> 00:42:53,966 When it comes to ending extreme poverty, 854 00:42:53,966 --> 00:42:57,866 globalization is both an opportunity and a challenge. 855 00:42:57,866 --> 00:43:00,533 Globalization is a powerful force, 856 00:43:00,533 --> 00:43:01,533 and it's here to stay. 857 00:43:01,533 --> 00:43:03,233 Locals say it's like a big train -- 858 00:43:03,233 --> 00:43:05,233 get on it or get run over. 859 00:43:05,233 --> 00:43:06,966 Everything I'm wearing right now -- 860 00:43:06,966 --> 00:43:09,233 and probably everything you're wearing as well -- 861 00:43:09,233 --> 00:43:11,966 is the result of a globalized economy. 862 00:43:11,966 --> 00:43:15,533 Globalization is all about the free market, 863 00:43:15,533 --> 00:43:18,233 and the free market is about buying and selling. 864 00:43:18,233 --> 00:43:21,533 For countries like Guatemala and Ethiopia 865 00:43:21,533 --> 00:43:22,966 to benefit from the global economy, 866 00:43:22,966 --> 00:43:24,866 they need to sell things. 867 00:43:24,866 --> 00:43:26,966 And for less-developed countries, 868 00:43:26,966 --> 00:43:29,233 because of rich world-trade policies, 869 00:43:29,233 --> 00:43:31,966 that's usually their natural resources, 870 00:43:31,966 --> 00:43:33,966 raw and unprocessed. 871 00:43:33,966 --> 00:43:37,866 Back home, I love my morning cup of coffee. 872 00:43:37,866 --> 00:43:40,800 And I enjoy it thanks to an efficient chain of links 873 00:43:40,800 --> 00:43:43,333 that connects me with the farmer who grew the beans. 874 00:43:43,333 --> 00:43:46,533 For economic development, each of these links is important -- 875 00:43:46,533 --> 00:43:51,666 good soil, educated workforce, firm title to the land, 876 00:43:51,666 --> 00:43:55,233 fair trade policies, roads, ports, container ships. 877 00:43:55,233 --> 00:43:57,533 This is called the "value chain." 878 00:43:57,533 --> 00:44:00,233 Guatemala's huge sugar industry 879 00:44:00,233 --> 00:44:03,533 is a good example of being connected to the global economy 880 00:44:03,533 --> 00:44:04,866 through this value chain. 881 00:44:04,866 --> 00:44:07,966 Sugar is its leading export product, 882 00:44:07,966 --> 00:44:11,233 and the top producers have created an association 883 00:44:11,233 --> 00:44:13,866 for a stronger voice in the global market. 884 00:44:13,866 --> 00:44:17,566 While cutting cane is low-paid and grueling, 885 00:44:17,566 --> 00:44:19,533 workers from across Guatemala 886 00:44:19,533 --> 00:44:21,233 still migrate to the sugar plantations 887 00:44:21,233 --> 00:44:22,966 to find jobs at harvest time. 888 00:44:24,866 --> 00:44:28,966 The raw cane is trucked in, ground up, 889 00:44:28,966 --> 00:44:33,866 and then moves through a complicated process. 890 00:44:35,866 --> 00:44:37,966 Along with its high-tech efficiencies, 891 00:44:37,966 --> 00:44:39,966 this plant is embracing the worker 892 00:44:39,966 --> 00:44:41,866 and environmental standards 893 00:44:41,866 --> 00:44:45,866 now expected to successfully compete in a global market. 894 00:44:45,866 --> 00:44:49,233 Huge truckloads of unprocessed brown sugar 895 00:44:49,233 --> 00:44:51,233 are unloaded three at time. 896 00:44:51,233 --> 00:44:53,533 Then, with a steady cascade, 897 00:44:53,533 --> 00:44:56,533 mountains of sugar fill vast warehouses. 898 00:44:56,533 --> 00:44:59,966 To add value to their raw product, 899 00:44:59,966 --> 00:45:02,533 as much sugar as possible is refined. 900 00:45:02,533 --> 00:45:07,866 Quality control is strict as the processed sugar is bagged. 901 00:45:09,966 --> 00:45:12,866 Much care is put into building the brand of Guatemalan sugar. 902 00:45:15,233 --> 00:45:17,233 Here in this warehouse, 903 00:45:17,233 --> 00:45:19,866 with a mix of mechanization and hard labor, 904 00:45:19,866 --> 00:45:22,966 sweet sacks are stacked like mountains, 905 00:45:22,966 --> 00:45:25,866 awaiting shipment to other countries. 906 00:45:27,233 --> 00:45:30,466 The best road in Guatemala connects the cane plantations 907 00:45:30,466 --> 00:45:32,733 with the country's one big port. 908 00:45:32,733 --> 00:45:36,733 And thanks to this complete and efficient value chain, 909 00:45:36,733 --> 00:45:40,733 Guatemala exports its sugar profitably all over the world. 910 00:45:40,733 --> 00:45:43,966 ♪♪ 911 00:45:47,133 --> 00:45:50,466 The coffee industry is another example of the value chain 912 00:45:50,466 --> 00:45:52,833 at work in Guatemala to stoke development. 913 00:45:52,833 --> 00:45:55,533 Melanie Herrera of Bella Vista Coffee 914 00:45:55,533 --> 00:45:58,533 explains how the value chain works for coffee. 915 00:45:58,533 --> 00:45:59,966 So let's picture this. 916 00:45:59,966 --> 00:46:01,966 We have this consumer in the States 917 00:46:01,966 --> 00:46:03,833 that wants to drink coffee, 918 00:46:03,833 --> 00:46:06,800 but wants to know who the producer is. 919 00:46:06,800 --> 00:46:10,166 And let's say we have this producer here on this volcano, 920 00:46:10,166 --> 00:46:12,800 up in the slopes in the middle of nowhere. 921 00:46:12,800 --> 00:46:14,866 How do you connect these two? 922 00:46:14,866 --> 00:46:16,966 So you need the producer, 923 00:46:16,966 --> 00:46:19,466 you need the facility to process the product, 924 00:46:19,466 --> 00:46:21,966 you need the knowledge and all the technical skills, 925 00:46:21,966 --> 00:46:24,833 you need to have an exporter, 926 00:46:24,833 --> 00:46:25,966 you need to have an importer, 927 00:46:25,966 --> 00:46:29,066 and all of this we know as "value chain," 928 00:46:29,066 --> 00:46:30,966 which is "cadena de valor" en español. 929 00:46:30,966 --> 00:46:34,200 What we do is, we add value in every step. 930 00:46:34,200 --> 00:46:38,200 The value chain for coffee is maybe best exemplified 931 00:46:38,200 --> 00:46:41,500 by the coffee tastings Bella Vista has on site. 932 00:46:41,500 --> 00:46:44,500 Representatives from around the developed world come here 933 00:46:44,500 --> 00:46:47,966 to taste the beans from not only the company's own plantation 934 00:46:47,966 --> 00:46:50,833 but from dozens of small farmers who work with them. 935 00:46:50,833 --> 00:46:53,200 And it's because of this value chain 936 00:46:53,200 --> 00:46:55,500 linking producers to consumers 937 00:46:55,500 --> 00:46:59,200 that globalization works for the Guatemalan coffee industry. 938 00:46:59,200 --> 00:47:00,966 Globalization is here. 939 00:47:00,966 --> 00:47:02,966 In reality, these are good opportunities 940 00:47:02,966 --> 00:47:04,200 for countries like ours. 941 00:47:04,200 --> 00:47:09,200 It opens markets, and we're able to produce many tropical things 942 00:47:09,200 --> 00:47:10,700 that you guys can't there, 943 00:47:10,700 --> 00:47:12,700 like sugar, coffee, ornamental plants. 944 00:47:12,700 --> 00:47:14,366 And we can be competitive in that. 945 00:47:14,366 --> 00:47:16,066 This is a family business. 946 00:47:16,066 --> 00:47:18,400 They have grown coffee for over a hundred years. 947 00:47:18,400 --> 00:47:22,066 They offer jobs and farms for over a hundred people; 948 00:47:22,066 --> 00:47:24,966 At the mill, we have another 30 people. 949 00:47:24,966 --> 00:47:27,066 They have a job here. They have their things here. 950 00:47:27,066 --> 00:47:30,066 They have a history, a family, everything they need here. 951 00:47:30,066 --> 00:47:30,966 They stay here. 952 00:47:30,966 --> 00:47:32,966 So if we can create opportunities here, 953 00:47:32,966 --> 00:47:35,400 if we can make people have jobs here, 954 00:47:35,400 --> 00:47:37,066 they will want to stay here. 955 00:47:39,700 --> 00:47:43,066 While big agriculture, like sugar and coffee, 956 00:47:43,066 --> 00:47:45,366 is well connected with the global economy, 957 00:47:45,366 --> 00:47:47,966 a formidable challenge in the fight against poverty 958 00:47:47,966 --> 00:47:51,366 is for landless family farmers to also get into the game. 959 00:47:54,700 --> 00:47:57,066 High in the hills of Guatemala, 960 00:47:57,066 --> 00:47:59,966 an NGO has helped Pedro and Ana buy land 961 00:47:59,966 --> 00:48:03,966 and councils them to maximize their yield and profit. 962 00:48:03,966 --> 00:48:06,200 Pedro used to leave his family 963 00:48:06,200 --> 00:48:08,200 for work in the coffee plantations. 964 00:48:08,200 --> 00:48:11,966 He still works hard, but now he's independent. 965 00:48:11,966 --> 00:48:16,200 The loan's paid off, and he owns the land. 966 00:48:17,500 --> 00:48:20,966 Through the NGO worker, Pedro shares his story. 967 00:48:36,366 --> 00:48:39,966 The NGO helps them to find the land 968 00:48:39,966 --> 00:48:44,566 and to have the lawyers for all the local papers 969 00:48:44,566 --> 00:48:46,566 so they own the piece of land. 970 00:48:46,566 --> 00:48:49,233 So no sugar plantation can come here -- 971 00:48:49,233 --> 00:48:51,233 he's got this land for his family? 972 00:48:51,233 --> 00:48:53,966 He's...he has his land for his family, yes. 973 00:48:53,966 --> 00:48:57,233 And his son will have the land when he is finished. 974 00:48:57,233 --> 00:49:01,233 They will stay here instead of going to other places, 975 00:49:01,233 --> 00:49:05,333 so they will be with the family all year-round. 976 00:49:05,333 --> 00:49:08,966 So the landless farmer is a migrant farmer. 977 00:49:08,966 --> 00:49:11,500 He leaves his family to cut sugar cane, 978 00:49:11,500 --> 00:49:13,200 or work in the coffee plantations. 979 00:49:13,200 --> 00:49:15,500 Yeah. Ana and Pedro's main crop? 980 00:49:15,500 --> 00:49:17,966 At least right now, it's not corn or beans 981 00:49:17,966 --> 00:49:20,666 like you might guess, but snow peas. 982 00:49:20,666 --> 00:49:24,366 [ Speaking Spanish ] Pedro, ¿ustedes comen este, estás arvejas aquí, 983 00:49:24,366 --> 00:49:28,533 en el área? ¿En la casa?; ¿No? Entonces, ¿por qué la siembra? 984 00:49:28,533 --> 00:49:29,833 Solo para venderlo. 985 00:49:29,833 --> 00:49:31,966 Okay. No, they don't eat it here, 986 00:49:31,966 --> 00:49:34,533 but they grow it for selling. 987 00:49:34,533 --> 00:49:36,533 That's the main business. 988 00:49:36,533 --> 00:49:37,966 It's not what the locals eat, 989 00:49:37,966 --> 00:49:41,533 but what international demand and prices make most profitable. 990 00:49:41,533 --> 00:49:45,000 And right now, that's peas. 991 00:49:46,000 --> 00:49:49,966 Throughout the valley, farmers like Pedro 992 00:49:49,966 --> 00:49:51,533 are bringing their bags of peas 993 00:49:51,533 --> 00:49:54,533 to the weigh station to sell to a middleman or exporter. 994 00:49:54,533 --> 00:49:57,800 ♪♪ 995 00:49:58,666 --> 00:50:01,666 These peas are export-quality, carefully picked, 996 00:50:01,666 --> 00:50:04,333 and put into crates with all the children helping. 997 00:50:05,666 --> 00:50:08,966 And within a short time, they're off to the market. 998 00:50:08,966 --> 00:50:12,333 Much of this shipment will end up sold in England. 999 00:50:12,333 --> 00:50:15,466 It's a long way from Pedro's pea patch 1000 00:50:15,466 --> 00:50:17,800 to the supermarket in London. 1001 00:50:20,800 --> 00:50:23,966 While Ethiopia may not export a lot of natural resources, 1002 00:50:23,966 --> 00:50:27,800 with a 100 million people, it has lots of potential labor, 1003 00:50:27,800 --> 00:50:29,966 and that in itself can be a valuable resource. 1004 00:50:29,966 --> 00:50:33,466 With lots of young people looking for jobs, 1005 00:50:33,466 --> 00:50:37,166 Ethiopia has made training a skilled workforce a priority. 1006 00:50:37,166 --> 00:50:41,233 Learning industrial sewing is good prep for a solid job. 1007 00:50:41,966 --> 00:50:45,333 And these grads got that job just down the street 1008 00:50:45,333 --> 00:50:48,333 at the Hawassa Industrial Park. 1009 00:50:48,333 --> 00:50:51,700 This is one of many sprawling complexes of industrial sheds 1010 00:50:51,700 --> 00:50:55,000 designed to generate export income for Ethiopia. 1011 00:50:57,000 --> 00:50:58,300 Each shed is run 1012 00:50:58,300 --> 00:50:59,966 by an international manufacturing company. 1013 00:51:01,566 --> 00:51:02,900 This is made possible, in part, 1014 00:51:02,900 --> 00:51:05,300 because of supportive U.S. trade policy, 1015 00:51:05,300 --> 00:51:07,900 the low cost of Ethiopian labor, 1016 00:51:07,900 --> 00:51:11,300 and the government's aggressive initiative to attract business. 1017 00:51:11,300 --> 00:51:13,900 Thank you for having us here. What is this park? 1018 00:51:57,400 --> 00:52:00,400 Ethiopian workers are about where China's workers were 1019 00:52:00,400 --> 00:52:01,733 a generation ago. 1020 00:52:01,733 --> 00:52:02,966 As China has developed, 1021 00:52:02,966 --> 00:52:06,133 it's no longer the world's primary source of cheap labor. 1022 00:52:06,133 --> 00:52:08,966 Ethiopia aspires to spur its development 1023 00:52:08,966 --> 00:52:12,133 by helping to fill that role in the global economy. 1024 00:52:13,733 --> 00:52:16,400 The impact of big issues like these -- 1025 00:52:16,400 --> 00:52:20,966 globalization, conflict, climate change -- 1026 00:52:20,966 --> 00:52:24,733 it seems beyond any one individual's control. 1027 00:52:24,733 --> 00:52:28,133 But when we act collectively, we do make a difference. 1028 00:52:28,133 --> 00:52:30,966 Walking with people like Ana, 1029 00:52:30,966 --> 00:52:33,400 Abadi, Lisa, 1030 00:52:33,400 --> 00:52:35,966 Diego, Marta -- 1031 00:52:35,966 --> 00:52:37,733 the hard-working people 1032 00:52:37,733 --> 00:52:39,733 who make the developing world develop -- 1033 00:52:39,733 --> 00:52:42,966 shows the human value of tackling hunger. 1034 00:52:44,133 --> 00:52:47,133 And the uptick in extreme poverty in recent years 1035 00:52:47,133 --> 00:52:49,966 has made fighting it more urgent than ever. 1036 00:52:50,966 --> 00:52:53,400 Traveling through Ethiopia and Guatemala, 1037 00:52:53,400 --> 00:52:56,400 witnessing both the lives of people in extreme poverty 1038 00:52:56,400 --> 00:52:58,400 and the economic realities of our world, 1039 00:52:58,400 --> 00:53:01,133 makes me consider my relationship to it all. 1040 00:53:02,400 --> 00:53:03,733 Why should I care? 1041 00:53:03,733 --> 00:53:05,033 What should I do? 1042 00:53:05,033 --> 00:53:09,133 How can I, as an individual, make a difference? 1043 00:53:09,133 --> 00:53:11,966 Like many people, I want to do something 1044 00:53:11,966 --> 00:53:14,733 to reduce the obscene gap between rich and poor. 1045 00:53:15,966 --> 00:53:19,633 But we can also go beyond our own modest individual efforts 1046 00:53:19,633 --> 00:53:22,633 and support a much broader solution. 1047 00:53:22,966 --> 00:53:26,300 That's exciting -- and it's an opportunity. 1048 00:53:27,966 --> 00:53:31,000 American spends $700 billion a year 1049 00:53:31,000 --> 00:53:32,633 on our military to make us safer. 1050 00:53:32,633 --> 00:53:35,966 That's hard power, and hard power is necessary. 1051 00:53:35,966 --> 00:53:38,633 But it needs to be complemented by soft power. 1052 00:53:38,633 --> 00:53:41,966 Soft power is investing in development, 1053 00:53:41,966 --> 00:53:43,333 diplomacy, stability. 1054 00:53:43,333 --> 00:53:45,333 And that also makes us safer. 1055 00:53:45,333 --> 00:53:48,333 Soft power is real power. 1056 00:53:48,333 --> 00:53:50,633 It's good for our national security. 1057 00:53:50,633 --> 00:53:52,966 For example, for the annual cost 1058 00:53:52,966 --> 00:53:54,966 of one extra soldier deployed overseas, 1059 00:53:54,966 --> 00:53:59,000 we could dig a hundred wells in thirsty villages. 1060 00:53:59,000 --> 00:54:01,033 It's a societal choice we make. 1061 00:54:02,966 --> 00:54:05,333 The accepted goal among wealthy nations 1062 00:54:05,333 --> 00:54:07,633 is to invest around 1% of their GDP 1063 00:54:07,633 --> 00:54:09,633 for development aid, and lots do. 1064 00:54:09,633 --> 00:54:12,633 While many Americans think we're giving far more than that, 1065 00:54:12,633 --> 00:54:14,000 in reality, the United States 1066 00:54:14,000 --> 00:54:16,000 gives less than a quarter that amount. 1067 00:54:16,000 --> 00:54:18,333 For every $100 of our GDP, 1068 00:54:18,333 --> 00:54:21,966 we give less than 25 cents in development aid. 1069 00:54:21,966 --> 00:54:24,000 So what are the options? 1070 00:54:24,000 --> 00:54:27,633 As we've seen, generous giving to hard-working NGOs 1071 00:54:27,633 --> 00:54:28,966 is important. 1072 00:54:28,966 --> 00:54:31,033 But when it comes to fighting poverty 1073 00:54:31,033 --> 00:54:32,633 and fostering development, 1074 00:54:32,633 --> 00:54:34,633 smart U.S. government aid programs 1075 00:54:34,633 --> 00:54:37,633 and fair-trade policies have a far greater impact 1076 00:54:37,633 --> 00:54:40,666 than all philanthropic efforts combined. 1077 00:54:40,666 --> 00:54:43,333 How our government responds to these challenges 1078 00:54:43,333 --> 00:54:44,966 does make a difference. 1079 00:54:44,966 --> 00:54:48,033 And when we act together as a nation, 1080 00:54:48,033 --> 00:54:51,333 there's certainly reason to hope. 1081 00:54:54,033 --> 00:54:56,700 Considering all the wealth in our world, 1082 00:54:56,700 --> 00:54:59,066 700 million people living in extreme poverty 1083 00:54:59,066 --> 00:55:00,366 is just not right. 1084 00:55:00,366 --> 00:55:02,166 We can end hunger in our lifetime. 1085 00:55:02,166 --> 00:55:04,233 We can do it because we care, 1086 00:55:04,233 --> 00:55:07,700 or we can do it because it'll make our world more stable 1087 00:55:07,700 --> 00:55:08,966 and our country safer. 1088 00:55:08,966 --> 00:55:11,366 Or we can do it for both reasons. 1089 00:55:11,366 --> 00:55:13,066 Thanks for joining us. 1090 00:55:13,066 --> 00:55:16,366 I'm Rick Steves wishing you thoughtful travels. 1091 00:55:17,966 --> 00:55:19,333 ♪♪ 1092 00:55:26,866 --> 00:55:29,866 ♪♪ 1093 00:55:35,333 --> 00:55:38,566 ♪♪ 1094 00:55:43,966 --> 00:55:47,133 ♪♪ 1095 00:55:52,866 --> 00:55:55,866 ♪♪ 1096 00:56:01,466 --> 00:56:04,800 ♪♪