Alleviating poverty is one of the major obstacles to achieving sustainability as, “ it is widely acknowledged that poverty is one source of environmental degradation (United Nations 2009). In its report, “Our Common Future”, The Brundtland Commission refers to poverty “as being the major cause and effect of global environmental problems. It is therefore futile to attempt to deal with environmental problems without a broader perspective that encompasses the factors underlying world poverty and international equality” ( United Nations 2009)
But, just what exactly is poverty and what is the impact it has on business.
For most, the definition of poverty centres on the economic notion of income poverty which is defined by, where there is the non- existence of food, money, housing and clothing. Simplified, poverty is often understood as having insufficient money to provide the basics of everyday life.
However poverty is much broader than that and is a concept with “many faces that mirror dimensions of human welfare” (Sudan Institutional Capacity program Food Security Information for Action 2011)
At the UN’s World Summit on Social Development, the ‘Copenhagen Declaration’ described poverty as “…a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but on access to social services. When people are unable to eat, go to school, or have any access to health care, then they can be considered to be in poverty, regardless of their income..” (United Nations 2009)
Oxfam state that “poverty is not just an economic issue. It is about powerlessness, discrimination, lack of representation and lack of freedom” (Oxfam 2009) Whilst there are varying degrees to the definition of poverty most accept that it is generally divided into two types - extreme or absolute and relative.
Extreme or absolute poverty refers to when people lack the basic necessities for survival whereas relative poverty is when some people of a country standard of living and income is much worse that than the general standard of living.

If defining poverty is difficult measuring it provides even greater problems. To statistically quantify who is poor and to what level, various measurements are used. Metrics such as Gross National Product, Gross National Product, Purchasing Power Parity, Gini Coefficients are used in conjunction with other measurements to capture how the world’s population is organised along economic lines. The World Bank’s poverty line register has been accepted as a measurement of poverty and as a useful tool to compare poverty from country to country as well as painting a general picture of the problem on a global basis.
The World Savvy Monitor describes the global economic picture as being like a pyramid. ( World Savvy Monitor 2008) Of the approximate 7 billion inhabitants in the world, around 1 billion sit at the top of the pyramid with these being from developed countries. The remaining 6 billion live in developing countries with roughly 4.6 million living in countries, such as China, Brazil, India and other emerging countries, the countries that are experiencing some economic growth , whilst approximately 1.4 billion reside at the bottom. These people live in countries that are experiencing either no growth or negative growth and are referred to as the Least Developed Countries. (LDC’s) Although there exists pockets of what can be described as “moderate” poverty (living at subsistence level) and “relative” poverty ( living below the national average) in developed countries (World Savvy Monitor 2008) and certainly amongst the developing countries there are large numbers living in varying degrees of poverty, this is not the kind of poverty as experienced on a large scale within the LDC’s. For most living in the developed world they are not able to imagine the type of deprivation that exists for those in the LDC’s. Whilst some in New Zealand may have difficulty being able to access or afford some basic needs, “the poorest people live in countries where a minimum standard of living is largely unavailable because, for a myriad of reasons, the state cannot provide it.” (World Savvy Monitor 2008)
Although access to such basics as food, housing, water and sanitation may be difficult or even rare for many in the likes of India or Brazil they are available to many and basic infrastructure actually exists to at least provide these necessary resources. Also, the countries which contain the 4.6 billion are experiencing some economic growth even if this is across a wide spectrum and there is hope that even their poorest citizens will have an improved life as their standards of living are raised - if not for this generation at least for the next.
Not so for the world’s poorest of 1.4 billion whom, according to the World Bank’s poverty line register, live on less than $2 per day with many living on even less. Most of the LDC’s are in sub- Sahara Africa with others found in South, East and Central Asia, Latin America and the Caribbean.
Why are these countries so poor? Usually it is because of many interconnected factors which makes it difficult to define with certainty what is the cause of their poverty, what is as a result of it and what are the contributing factors. However, the characteristics of LDC’s usually include some combination of factors such as; geography, demography, internal conflict and civil war, corruption, infrastructure, governance, human and capital migration, structural inequality within the country.
The United Nations Human Development Report annually ranks most of the world’s countries by using The Human Development Index (HDI) as a statistical measure of life expectancy, education, and income indices to rank countries into four tiers of human development. This HDI report seeks to capture the wider experience of poverty and go beyond looking at just income levels as it looks into the extent to which the “opportunities and choices most basic to human development” are denied ( UNDP HDI Reports 2009-2011)
In the 2011 report most of the lowest performing nations were in sub- Sahara Africa and of the bottom 20 of the 179 countries only one was from outside that region. ( Source UNDP HDI Report 2011)
Sudan is one of those low performing countries and is a country where poverty is deeply entrenched. The independence of South Sudan from the Sudan in 2011, created the world’s newest country, with an estimated population of 10 million, and in doing so has also created one of the world’s poorest and underdeveloped countries with an estimated 55% of the population living under the poverty lines. Many sources have been quoted in saying that despite South Sudan’s abundant natural resources, half a century of marginalisation and conflict has left it severely impoverished, with extremely low literacy rates, high levels of displacement, and hopelessly inadequate infrastructure and public services.
Its geography sees it as a landlocked country and with an unstable and at times hostile relationship with its neighbour Sudan, has caused even more deprivation for its citizens. South Sudan relies on food imports from neighbouring countries such as Sudan, Kenya, Uganda. The dependence on expensive imported food combined with declining agricultural production has contributed to a severe food shortage with the United Nation’s World Food Programme estimating almost a third of South Sudan’s population rely on food aid to exist. Small holder farming produces 80% of the country’s cereal production but these farmers face constraints such as high transport costs, access to fertilizer, seeds and other inputs. However, the Government has chosen to “focus on large- scale, private sector-led industrial agriculture as a way to boost food production” (Oakland Institute 2011) instead of investing resources into helping develop the small holder production. The intention of this initiative is that it will stimulate rural development and provide employment opportunities, increase food security, and help diversify the economy. However, there is concern that this will only benefit a “small transnational elite at the expense of the rural poor if the country’s arable land is used to grow food for foreign populations, whilst at the same time pushing communities onto increasingly marginal lands. This has the potential to create more food insecurity, instability, social unrest and internal conflict” ( Norwegian Peoples Aid 2011)
Corruption and an inequality of the spread of wealth have been identified as contributing factors to poverty and in South Sudan this is the case. In the 6 years after the signing of the Comprehensive Peace Agreement, which saw the end of a 22 year civil war between North and South Sudan, it has been estimated that approximately $10 billion has been received by the Government from oil sharing revenue ( with North Sudan) and international aid. Fingers have been pointed at politicians and top ranking officials in South Sudan for either diverting this money to personal bank accounts outside the country or to create businesses within South Sudan. In May 2012 the President of South Sudan wrote to 75 ministers, former ministers and other top ranking officials stating that he would give them immunity if they would return the $4 billion that had been identified as having been stolen or misused. Whilst the majority of South Sudan live in poverty with no access to basic health care, education, food the wealth of the country remains in the hands of a few.
Within the problem of alleviating poverty is there a role for business to play? Does business have a role in addressing the global challenges such as poverty or should that be left to governments? According to the World Business Council for Sustainable Development the “leading companies in the future will be those that address the world’s major challenges- including poverty, climate change , resource depletion, globalisation…” (World Business Council for Sustainable Development 2006). Oxfam states “that businesses often underestimate their impact on those living in poverty and that by developing a deeper understanding of the issues benefits businesses themselves and helps make a bigger contribution to reducing poverty” (Oxfam 2009) . Opportunities, not barriers can be created for those living in poverty as long as those businesses that operate in the developing world do so in ways that are sensitive to the complexities of the country and by considering the impact of their activities on poverty and how their activities are affected by poverty. “Business models need to be based on a deep understanding of realities in the developing world’ (Oxfam 2009)
In their Briefings for Business, Oxfam suggest that a responsible business will not only understand and measure how it affects poverty and vice versa , it will be transparent and accountable along with minimising negative impacts. Obviously what and where a business is working along will influence the decisions it makes but businesses should consider the following key questions as the basis for creating responsible business practices within developing countries; * How well do you treat your workers? * Who is involved in your supply, distribution and retail chains? * What is the impact on poor people of your environmental impacts? * Are you paying taxes and are you always responsible in all your business activities?
The result of businesses asking themselves those four questions could see the development of responsible business practices such as; * All international labour standards are effectively enforced for all its own workers and any who are employed in its supply chain. * Poor people will be actively involved in the business’s supply, distribution and any retail chains by the transfer of necessary skills, technology and expertise along with ensuring fair prices and other terms are offered to ensure the equitable sharing of value that has been created. * Use of any natural resources is not in conflict of the wider community requirements and needs. Carbon footprints and reduction of emissions are at the forefront of planning. * Any attempts by Governments of host countries to create regulatory frameworks to protect the environment, respect human rights and reduce poverty should be encouraged and supported. Loopholes or artificial means to avoid or minimise taxes and liabilities should not be exploited. (Adapted from Oxfam Briefings for Business 2009)

Although the above steps for creating a responsible business could equally apply in developed markets, they are relevant to the emerging markets and particularly to the LDC’s. This will create a win- win situation as businesses that create decent jobs, markets and good or services that benefit the poor in developing economies will contribute to the building of healthier, wealthier and more skilled communities and countries. This in turn will provide more customers, more employees, and more customers that business needs for sustainability. (Oxfam 2009)
Just as the “carbon footprint’ has helped businesses to measure their impact on the environment, in order to tackle poverty alleviation a “poverty footprint” need to be developed so businesses can measure their impact on those living in poverty.

References

Norwegian Peoples Aid (2011) “The New Frontier: A Baseline Survey of Large –scale land based investment in Southern Sudan” Retrieved on 1 November 2012 from http//www.npaid.org/filestore/NPA_New_Frontier.pdf
Oxfam 2009 : Briefings for Business No 2. “A business case for fighting poverty” A policy briefing paper presented by Oxfam at an International NGO’s policy session at Oxford England 2010.
The Oakland Institute (2010) “Understanding Land Investment Deals in Africa: South Sudan. Retrieved on 1 November 2012 from http://www.oaklandinstitute.org/sites/oaklandinstitute.org/files/OI_country_report_south_sudan_1pdf.
The Sudan Institutional Capacity Programme: Food Security Information for Action. Policy Brief June 2011. Handout from Policy Briefing session with the Government of Sudan July 2011.
United Nations (2009) “ The Millennium Development Goals Report 2009” Retrieved on 23 October 2012 from http://www.un.org/millenniumgoals/pdf/MDG_Report_2009_ENG.pdf
United Nations (2009) “Our Common Future ,From One Earth to One World”. Retrieved on 24 October 2012 from http://www.un-documents.net/ocf-ov.htm#1
United Nations (n.d) “ The Copenhagen Declaration UN Documents. Gathering a body of global agreements. Retrieved on 24 October 2012 from http://www.un-documents.net/ocf-ov.htm#1
UNDP “Reports (1990-2011) Global Reports” Retrieved on 24 October 2012 from http://hdr.undp.org/en/reports/global
World Savvy Monitor (October 2008) Global Poverty and International Development. Retrieved on 24 October 2012 from http://worldsavvy.org/monitor/index.php?option=com_content&view=article&id =350