19th Commentary - Poverty and Economics
This commentary is on the question, "Give reasons why the poor remain poor. Can you suggest solutions to this?"
Poverty has always been a problem in many parts of the world, especially in many of the African nations. These poor are trapped in a cycle of poverty, often with little or no chance to lead better lives. Reasons for such situations include civil war, corrupt governments, natural disasters, or poor infrastructure. All theses problems would deter investors from investing in these countries, and without foreign investment, it would be hard to improve a country's economy.
The richer countries and international organizations like the IMF or World Bank have given aid of different sorts, but usually, it consists of monetary aid. These goodwill gestures may have been targeted at reducing poverty, but they fail to work. Some of the reasons are the same ones that caused poverty in the first place. With a corrupt government, any monetary aid given would be wasted, as it would just go into the pockets of the high-ranking officials, funding their opulent lifestyles while the majority of the population suffer. Similarly, monetary aid has little effective use in a country torn by civil war. Money would either go to military spending, or not be distributed effectively due to the lack of proper governance. The poor people in these senarios have no chance to break out of the cycle of poverty.
Furthermore, other problems also cause the poverty-stricken nations to remain just that, and they come from the richer nations. When firms from the richer nations go to some of the poorer countries to make use of cheap labour, they do a good thing by providing jobs for the people, and giving them wages. However, some of these firms take advantage of the situation, and force workers to work extremely long hours for very low pay in terrible working conditions. Such exploitation only brings harm to the poor people.
To truly help these people break free from poverty, the richer nations should send more appropriate aid to the countries. For example, a country could send experts on certain industries into the poor nations to help increase the efficiency of firms there. Exploitation needs to be stopped.
Some of the poor countries in Africa actually have large amounts of natural resources, which could have made them rich. However, most of the natural resources are used up by foreign companies, and little can be done with the remaining. If such exploitation did not occur, then the people could have used the resources to save their own citizens, and aid would then no longer be required.
Thus, poverty can be solved, but owing to the large scale of poverty in the world, any attempt would need to have much international support, and not just be token moves. The main step would be to eliminate the main causes of poverty, and free the people from the cycle of poverty.
Poverty has always been a problem in many parts of the world, especially in many of the African nations. These poor are trapped in a cycle of poverty, often with little or no chance to lead better lives. Reasons for such situations include civil war, corrupt governments, natural disasters, or poor infrastructure. All theses problems would deter investors from investing in these countries, and without foreign investment, it would be hard to improve a country's economy.
The richer countries and international organizations like the IMF or World Bank have given aid of different sorts, but usually, it consists of monetary aid. These goodwill gestures may have been targeted at reducing poverty, but they fail to work. Some of the reasons are the same ones that caused poverty in the first place. With a corrupt government, any monetary aid given would be wasted, as it would just go into the pockets of the high-ranking officials, funding their opulent lifestyles while the majority of the population suffer. Similarly, monetary aid has little effective use in a country torn by civil war. Money would either go to military spending, or not be distributed effectively due to the lack of proper governance. The poor people in these senarios have no chance to break out of the cycle of poverty.
Furthermore, other problems also cause the poverty-stricken nations to remain just that, and they come from the richer nations. When firms from the richer nations go to some of the poorer countries to make use of cheap labour, they do a good thing by providing jobs for the people, and giving them wages. However, some of these firms take advantage of the situation, and force workers to work extremely long hours for very low pay in terrible working conditions. Such exploitation only brings harm to the poor people.
To truly help these people break free from poverty, the richer nations should send more appropriate aid to the countries. For example, a country could send experts on certain industries into the poor nations to help increase the efficiency of firms there. Exploitation needs to be stopped.
Some of the poor countries in Africa actually have large amounts of natural resources, which could have made them rich. However, most of the natural resources are used up by foreign companies, and little can be done with the remaining. If such exploitation did not occur, then the people could have used the resources to save their own citizens, and aid would then no longer be required.
Thus, poverty can be solved, but owing to the large scale of poverty in the world, any attempt would need to have much international support, and not just be token moves. The main step would be to eliminate the main causes of poverty, and free the people from the cycle of poverty.