Poverty Footprint Study on how the Coca Cola - Oxfam America

Six percent of the population lives on less than
USD1.25 a day, 32 and more than 25 percent
reportedly felt they must migrate abroad in search of
work. 33 According to the UNDP, only 19.9 percent of
economically active workers in El Salvador meet the
decent employment threshold, which is defined as
an income that is equal to or greater than the cost of
basic food and services, along with some allowance
for social protection.
Dollarization has raised the cost of living, provided
easier access to capital markets and lowered interest
rates, but it has not contributed to an overall decline
in poverty levels. Migration has led to a boost in
household incomes among those who receive
remittances from family members who have left to
live and work abroad.
Table 1: Key poverty indicators for Zambia and El Salvador
El Salvador has one of the highest rates of migration
to the United States from Central America, which
has contributed to a significant labor shortage in the
country. 34 The incidence of poverty among women
and farm workers is disproportionately high compared
to the overall population—these groups comprise
one third of all poor and one half of the extreme
poor. 35 Problems of crime and violence have also
plagued El Salvador since the end of its civil war.
Pervasive poverty and inequality, unemployment
and underemployment, corruption and illicit firearms
have all contributed to the current situation, seriously
hindering development efforts.
<strong>Poverty</strong> Indicator Year Zambia El Salvador
Population 1 (USD millions) 36 2009 12.9 6.2
Life expectancy at birth (years) 2 2010 47.3 72
Adult literacy rate (%) 3 2008 71 84
Probability of not surviving
to age 40 (%) 4
People not using an improved
water source (%) 5
Children underweight for age
(under 5 years) 37 (%) 6
Population below income poverty
line (PPP USD1.25) 7 (%)
Population below income poverty
line (National poverty line) 8 (%)
2010 43 11
2008 40 13
2006 10 10
2000-2008 64.3 6.4
2000-2008 68.0 30.7
9 and 38
Table 2: Key economic indicators for Zambia and El Salvador for 2009
Economic Indicator Zambia El Salvador
GDP per capita (USD) PPP 1,400 7,100
Annual GDP growth rate (%) 6.3 -3.5
GDP (billions USD) 12.8 21.1
Annual inflation rate (%) 13.4 0.6
GDP = Gross Domestic Product PPP = Purchasing Power Parity USD = US Dollars
1 World Bank, World Development Indicators, http://data.worldbank.
org/data-catalog/world-development-indicators?cid=GPD_WDI
2 UNDP Human Development Report (2010)
3 UNDP Human Development Report (2010)
4 UNDP Human Development Report (2009)
5 UNDP Human Development Report (2010)
6 UNDP Human Development Report (2009).
7 UNDP Human Development Report (2010).
8 UNDP Human Development Report (2010).
9 Statistics from CIA World Factbook.
Exploring the links between international business and poverty reduction 29