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Rachel Kaplan

on 8 May 2010

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Transcript of Poverty

Underdeveloped Nation Developed Nation Developing Nation Developed Nation Underdeveloped Nation Developing Nation Welfare system

Welfare states have lower poverty than non-welfare states

o 2 forms:

High bureaucratic involvement: resources directed at the people in most need, strict criteria

Low bureaucratic involvement: resources easily received due to less strict criteria

o Downside:
Higher taxes
Citizens may become dependents and choose not to work

Income Disparity

Among industrialized countries, those that are more equitable do better in terms of health, well-being, and social cohesion

o Some findings:

Health and social problems are worse in unequal countries

Child well-being is better in more equal rich countries, unrelated to average incomes in rich countries

Levels of trust are higher in more equal

The prevalence of mental illness is higher in more equal

Drug use is more common in unequal

Children experience more conflict in unequal

Rates of imprisonment in unequal

Social mobility is higher in equal
Access to Education

o The World Bank believes that “education is universally recognized as one of the most fundamental building blocks for human development and poverty reduction”

Related issues
Private higher education institutions have higher tuitions which limits access

Level of education stratifies later access to labor market

Higher education is necessary to gain occupation of power, authority, and prestige

Access to Healthcare

Unequal access to health care can cause shorter life expectancy

In America, less than half of parents in families earning less than $40,000 a year are offered health insurance through their employer

2/3 of low-income Americans are uninsured/underinsured as opposed to 1/3 of all Americans
External Issues

“Destructive” for industrialized countries - contributes to internal unemployment, destroys industries

Illegal Immigration
Compete with citizens for jobs – will do labor for less

Other facts
Benefit from government spending without having to pay taxes

Import products are priced lower or better than own produced goods – leads to decline of industries

Industrialized countries have certain images to uphold – rather focus on international problems than address internal problems thereby contributing to poverty









Poverty is most commonly measured in terms of income poverty
The World Bank measures the poverty line at 1.25 a day

Our Ideal for the Eradication of Poverty: Universal access to food, water, healthcare, education, and shelter

As of 2008, 1.4 billion people (approximately 1/3 of the population) were living on less than 1 a day

Our distinctions: Developed, Developing, Underdeveloped
Poverty vs. Inequality
· Poverty exists in nations worldwide
· Underdeveloped nations are viewed as being poor, while inequality is more visible between nations or in more developed or developing nations (Pieterse, Third World Quarterly, 2002) The rich are getting richer and the poor are getting poorer
· “Between 1960 and 1991 the share of the richest 20% rose from 70% of the global income to 85%--while that of the poorest declined from 2.3% to 1.4%. So, the ration of the shares of the richest and poorest increased from 30:1 to 61:1.” (UNDP, 1996)
· The highest poverty levels are in underdeveloped nations, while the largest inequality is in developed nations (Pieterse)
· According to the World Bank, between 1981 and 2005 the percent of the world’s population living in poverty decreased from to 51.8 to 25.2 Developing Nations

Developing nations constitute the semi-periphery under the World Systems Theory
Growing economies
Wealth exists within the nation
There is a reduction in poverty, but a growth in inequality in developing nations
Opening of the market has caused the poor to get poorer
IMF and World Bank loans promote inequality through conditionality
Less social welfare programs
Capitalism has winners AND losers
Land reform, education, and social welfare programs help to fight poverty

Middle-income country rich in natural resources
35% of the country lives on less than $2 a day
51% or people in rural areas are in poverty
Inequality of access to land causes poverty (ruralpovertyportal.org)
Projects meant to help the poor often don’t reach them (Case Study):
Brazil’s National Housing Bank aims to give loans to the urban poor for housing
Curitiba is a well-developed city with a sizeable middle class
Salvador is an impoverished city with a larger poor population
Salvador received more money than Curitiba, but the money going to Salvador mainly reached the middle class, instead of the lower class (Klak, Spatially and Socially Progressive State Policy and Programs, 1990)
This demonstrates the problem of state programs that are meant to reduce poverty really only help the middle class, increasing the inequality while being ineffective in fighting poverty

China is the only country that has halved its poor population ahead of schedule to the U.N. Millennium Development Goals
State Preferential Policies have covered poverty-striken counties to reduce poverty by pulling 80 million people out of extreme poverty
Focused on three main programs: subsidized loans, food-for-work, and government budgetary grants
Opening of the market and providing resources have helped China to achieve these goals (info.worldbank.org)
Underdeveloped – The Issues Surrounding Extreme Poverty

Definitions of the Periphery:
Bottom – Extremely Poor – Ex. Malawi, Swaziland: 1 Billion

The Poor- Upper End of Extreme Poverty- Ex. Bangladesh, Nepal: 1.5 Billion

Worldwide Goals: http://www.un.org/millenniumgoals/


- Social systems/Cultures and Stigma - what is productivity and advancement?

Geography and Poverty in Sub-Saharan Africa – Violence over resources
Access to technology limits development
Disease as a Positive Feedback Loop
Example- AIDS causes DALYS. The days lost from work cause economic loss and TB infection spreads more easily through human immune deficiency.
At least 22.5 million Africans have dies of AIDS since the virus was first identified in 1981

- Forces of globalization

World Systems Theory - Periphery held back by Core structure
W.T.O. – General Agreement on Trade in Services
TRIPS/TRIMS affects Medicine and Access to Health- the North/ South division over patent rights is at the forefront
Representation of underdeveloped limited by undemocratic processes within W.T.O.
Example of Sovereignty Erosion at expense of Indigenous:

Foreign Ownership of national land – Texaco and the environmental catastrophe of dumping oil has sickened and killed hundreds of indigenous in an attempt at development of oil


Ways to Approach the Problem
Democratization of governments
Mugabe and abuses of power in Zimbabwe http://www.telegraph.co.uk/news/u knews/1559698/Mugabe-flees-poverty-in-luxury-resort.html

Empowering women
In Swaziland, 26% of adults were infected in 2007 with HIV
(World Bank 2008 Statistic)

Confronting Global Health
Healthcare Spending as percentage of GNP
Education- In Botswana, participants who held discriminatory beliefs had 2.7 times the odds of having unprotected sex
Source: Physicians for Human Rights. Epidemic of Inequality: Women's Rights and HIV/AIDS in Botswana and Swaziland. Cambridge: Physicians for Human Rights; 2007.
Development of a cash economy
Purchasing power and maintenance of products
Example of product- http://www.practicafoundation.nl/products/drilling-wells/
Integration of modern society and breaking down racism-
White South Africa would be ranked 24th in world in 1994
Black South Africa would be ranked 123
(UNDP 1994 statistic)

Sachs vs. Easterly

Sachs, Jeffrey. The End of Poverty: Economic Possibilities for Our Time. New York: Penguin Press, 2005. Print.

Rural To Urban
Creation of Domestic Food Market
Tackling health issues caused by geography
Shock Aid, not structural adjustment

Easterly, William. The White Man's Burden. Penguin Books, 2006. Print.

Fees for products rather than giveaways
Aid is misdirected toward despots
Goals on poverty not beneficial

Beyond this rest systemic issues confounded by law and accountability issues.

Renegotiation of TRIPS/TRIMS and Patent rights to develop domestic service industries and provide basic medical necessities
Funding to the world food program
NGOs- Bill and Melinda Gates Foundation- Can capitalism produce equity?
Change in global priorities
World’s Richest 20% consume 76.6% and World’s Poorest 20% consume 1.5%
Globalissues.org (http://www.globalissues.org/article/26/poverty-facts-and-stats)
Full transcript