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Etymology
Other aspects
Causes of poverty
– 1 Economics
– 2 Governance
– 3 Demographics and Social Factors
– 4 Health Care
– 5 Environmental Factors
Effects of poverty
Poverty reduction
– 1 Economic growth
– 2 Free market
– 3 Fair trade
– 4 Direct aid
– 5 Development aid
– 6 Improving the environment and access of the poor
– 7 Millennium Development Goals
Etymology
precarious livelihoods
excluded locations
physical limitations
gender relationships
problems in social relationships
lack of security
abuse by those in power
dis-empowering institutions
limited capabilities, and
weak community organizations.
Causes of poverty
Economics
– Unemployment
• Some countries' governments are believed to
purposefully maintain a 2-10% unemployed
populace to act as a 'replacement threat' to
unskilled private sector workers, by way of
maintaining an existing thriving service economy.
Causes of poverty
Governance
– Lacking democracy in poor countries
– Weak rule of law
– Failure by governments to provide essential
infrastructure
– Poor access to affordable education
– High levels of corruption
Dalits in Jaipur, India.
Causes of poverty
Health Care
Poor access to affordable health care makes individuals less
resilient to economic hardship and more vulnerable to poverty.
Inadequate nutrition in childhood
Disease, specifically diseases of poverty: AIDS, malaria and
tuberculosis and others overwhelmingly afflict developing
nations, which perpetuate poverty by diverting individual,
community, and national health and economic resources from
investment and productivity.
Clinical depression undermines the resilience of individuals and
when not properly treated makes them vulnerable to poverty.
Similarly substance abuse, including for example alcoholism
and drug abuse when not properly treated undermines
resilience and can consign people to vicious poverty cycles.
Causes of poverty
Environmental factors
– Erosion. Intensive farming often leads to a vicious cycle of exhaustion of
soil fertility and decline of agricultural yields and hence, increased poverty.
– Desertification and overgrazing. Approximately 40% of the world's
agricultural land is seriously degraded.
– Deforestation as exemplified by the widespread rural poverty in India that
began in the early 20th century and is attributed to non-sustainable tree
harvesting.
– Natural factors such as climate change. or environment
– Geographic factors, for example access to fertile land, fresh water,
minerals, energy, and other natural resources, presence or absence of
natural features.
– The climate also limits what crops and farm animals may be used on
similarly fertile lands.
– On the other hand, research on the resource curse has found that
countries with an abundance of natural resources.
– Drought and water crisis.
Effects of poverty
Economic growth
– World GDP per capita rapidly increased beginning with the
Industrial Revolution.
– The anti-poverty strategy of the World Bank depends heavily on
reducing poverty through the promotion of economic growth.
The World Bank argues that an overview of many studies shows that:
– Growth is fundamental for poverty reduction, and in principle growth
as such does not affect inequality.
– Growth accompanied by progressive distributional change is better
than growth alone.
– High initial income inequality is a brake on poverty reduction.
– Poverty itself is also likely to be a barrier for poverty reduction; and
wealth inequality seems to predict lower future growth rates.
Poverty reduction
Free Trade:
– What could broadly be called free market reforms
represent one strategy for reducing poverty.
– For example, noted reductions in poverty in the 20th
century have been in India and China, where hundreds
of millions of people in the two countries grew out of
poverty, mostly as a result of the abandonment of
collective farming in China and the cutting of
government red tape in India.
This was critical in fostering their dramatic economic
growth.
Poverty reduction
Fair trade
– Another approach to alleviating poverty is to
implement Fair Trade which advocates the
payment of a fair price as well as social and
environmental standards in areas related to
the production of goods.
Poverty reduction
Direct Aid
– The government can directly help those in need through
cash transfers as a short term expedient. This has been
applied with mixed results in most Western societies during
the 20th century in what became known as the welfare state
. Especially for those most at risk, such as the elderly and
people with disabilities.
– Private charity. Systems to encourage direct transfers to the
poor by citizens organized into voluntary or not-for-profit
groupings are often encouraged by the state through
charitable trusts and tax deduction arrangements.
Poverty reduction
Development Aid
– Most developed nations give development aid to
developing countries
– Aid from non-governmental organizations may be
more effective than governmental aid; this may be
because it is better at reaching the poor and
better controlled at the grassroots level
Poverty reduction
Improving Environment and Access to thePoor
– Subsidized housing development.
– Education, especially that directed at assisting the poor to produce food in
underdeveloped countries.
– Family planning to limit the numbers born into poverty and allow family
incomes to better cover the existing family.
– Subsidized health care.
– Assistance in finding employment.
– Subsidized employment (see also Workfare).
– Encouragement of political participation and community organizing.
– Implementation of fair property rights laws.
– Reduction of regulatory burden and bureaucratic oversight.
– Reduction of taxation on income and capital.
– Reduction of government spending, including a reduction in borrowing and
printing money.
Millennium Development Goals