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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!