Transcript
Poverty, Inequality and
DebtHannah Wasserman, Stacy Kim, James Wright
and Chris Yamamoto
PovertyHow, Why and What we can Do
Statistics• Almost half the world (3 billion+) live on less than
$2.50 a day• 3 of every 4 living on less than US$1/day live in
rural areas• 22,000 children die each day due to poverty• For every $1 in aid a developing country receives,
over $25 is spent on debt repayment• 1998 global spending
o US$17 billion on pet foods in Europe & the USo ~US$6 billion basic education for allo ~US$9 billion water & sanitation for allo ~US$12 billion reproductive health for all
womeno ~US$13 billion basic health and nutrition
• Visualize povertyo http://povertydata.worldbank.org/poverty/home/
Definition & Types of Poverty
• Definition: The state or condition of having little or no money, goods, or means of support
• Absolute: struggling to have basic needs (food, clothing, healthcare, shelter)
• Relative: being below a certain threshold, compared to others; similar to income inequality
Causes of Poverty• Structural adjustment
o Economic structure reshaped to ensure repayment of debt
• International aido Drives local farmers out of the market
• Food and agriculture issueso Food priceso Land conditions & natural disasters
• Corruptiono Centralization of power
• Warfare • Colonization• The poverty trap
o When poverty is high, the poor have no way of getting out of the mess
Determinants of Change
Poverty & Development
• http://www.povertyover.org/• A farm family's income/capita can
increase by:o Savingo Tradeo Technologyo Resource Boom
• Social mobility is crucial in order for individuals to maintain a standard of living above the poverty line
Global Inequality
Where, How and Who’s Fighting Against it
Types of Inequality
Gender InequalityMDG Goal 3: Promote Gender Equality
and Empower WomenEliminate gender disparity in primary
and secondary education by 2005 and all levels of education no later than 2015
Where do we stand?
The Girl Effect
Investing in GirlsThe Girl Effect
Education
The growing gap
Income Inequality:Inequality Within Countries
Economic DistributionPoverty in the midst of growthWestern Inequality [Video]
• Inequality Between Countries• Post WWII• Globalization
The Tipping Point
o Global Occupy Movemento World Economic Forum
Debt
Click icon to add picture
DebtWhy does this happen?• http://www.mtholyoke.edu/acad/intrel/globdebt.htm
Growth over time• Uncontrollable circumstances
o Natural disasterso Collapse of markets for exportso Sudden rise in interest rateso Fluctuations in exchange rateso Decreases in incomeo Currency may depreciateo Global markets are volatile
• Examples: Argentina, MoldovaIf we write off the debt, what happens? • "Debt forgiveness"• There are three options a country has when it is unable to
remedy their debt:o Debt forgivenesso Debt restructuringo Default
What have been strategies
Debt inhibits growth and interest rate fluctuates.
Vicious cycle that continues throughout time
Debt results in less money spent on educational, health and government programs for people.
How do all three relate?Debt->Poverty-
>InequalityDebt->Poverty-
>InequalityResults in inequality
and poverty because not fair amount of resources and programs
The rich can afford the poor cant.
EXAMPLE
Haiti debt
Possible Solutions
Relieve Hunger and Poverty
Universal Education For all
Reduce Child Mortality
http://www.youtube.com/watch?v=v3p2VLTowAA
Millennium Development GoalsGoals Pitfalls
Trying to take on to much to soon
Some Countries on track while others no progress
“East Asian Miracle”High growth without great Inequality because…….
Getting Fundamentals RightExport push policiesFree trade, free capital market and limited
government intervention
DownfallsSusceptible to financial crisisCould lead to great inequalityAfter hearing the finding what is your opinion do we
needlimited government intervention or increased
government atthe local level? State? Federal? In developing
countries?
Income Redistribution
Many argue that the redistribution of wealth from the rich to the poor will create equality
across the board.
Education, Government and Health ReformsWater Management Project
Agricultural Research projects
Integrated Rural Development
EducationUniversal Education until you are 18
provided by the government?
GovernmentMust pass Ethics and morality test?
Jubilee 2000Initially spread through church initiatives
G8US, UK, Canada, Japan, Germany, France, Italy,
and Russia
Congress committed 769 million to debt relief
How responsible are church organizations in recognizing and addressing issues around the world? What role should they have in addressing poverty, inequality and debt
Activity Imagine you have recently been elected
into office in an underdeveloped country. You have a choice to try to alleviate Poverty, Inequality or Debt. Which one do you choose and write out 5 steps you take to address the issue. What organizations do you get involved with? How much money do you allocate? How long will the process take? What made helped you make your decision on which are to choose?
ConclusionNeed GOOD government
Meet basic human needs for all
Use of technology
Communication between government and People
NGO, NPO, Citizen appointed Commissions
Final Thoughts……..Is it possible to end poverty, inequality
or debt? Is it possible to end either of the three?
What will it take to get leaders around the world to unite by creating a clear plan and IMPLEMENTING it into our everyday lives?
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