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What is Poverty?
• Poverty is deprivation of those
things that determine the quality
of life, including food, clothing,
shelter and safe drinking water,
but also such "intangibles" as the
opportunity to learn and to enjoy
the respect of fellow citizens.
Poverty
• Poverty may affect individuals or
groups, and is not confined to the
developing nations.
• Poverty in developed countries is
manifest in a set of social problems
including homelessness and the
persistence of "ghetto" housing
clusters.
What are the causes of Poverty?
Many different factors
(no single explanation has gained
universal acceptance)
• International level:
– global systemic causes (such
as trade, aid and debt)
• National level:
– deficiencies of public
administration and financial
management
– Some point to personal factors
• drug use, work ethic and
education level
– Inadequate social services
and policies
• biased in favour of the
wealthy and social elite
Economic Factors
1.
Unemployment
2.
Increased farming for use in
biofuels, along with world oil
prices at nearly $100 a barrel, has
pushed up the price of grain.
3.
Off-shore tax havens - The
wealthy in a society shift their
assets to deprives nations of
revenue.
4.
Unfair terms of trade, in
particular, the very high subsidies
to and protective tariffs for
agriculture in the developed world.
•
•
•
•
Drains the taxed money
Increases the prices
Decreases competition and efficiency
Prevents exports by more
competitive agricultural and other
sectors.
Environmental Factors
1.
Erosion. Intensive farming often leads to exhaustion of
soil fertility and decline of agricultural yields and thence
increased poverty.
2.
Desertification and overgrazing. Approximately 40%
of the world's agricultural land is seriously degraded.
•
3.
•
In Africa, if current trends of soil degradation continue, the
continent might be able to feed just 25% of its population
by 2025, according to Ulna's Ghana-based Institute for
Natural Resources in Africa.
Deforestation
the widespread rural poverty in China that began in the
early 20th century is attributed to non-sustainable tree
harvesting.
4.
Climate Change. Limits what crops and farm animals
may be used on similarly fertile lands.
5.
Drought and water crisis.
Health Care
1.
•
2.
•
3.
•
Poor access
makes individuals less
resilient to economic
hardship.
Inadequate nutrition in
childhood
undermines the ability of
individuals to develop their
full human capabilities.
Clinical depression
undermines the resilience
of individuals (when not
properly treated makes
them vulnerable to
poverty).
Governance
1.
Lacking democracy in poor
countries.
2.
Governance effectiveness
•
3.
Weak rule of law (The rule
of law, is the principle that no
one is above the law)
•
4.
major impact on the delivery of
socioeconomic outcomes for
poor populations.
can discourage investment.
Failure to provide essential
infrastructure
Social Factors
1.
Overpopulation and lack of
access to birth control
methods.
2.
Crime
3.
War
4.
Discrimination
Poverty Stinks!