Many of these trends of poverty actually make things exponentially worse by repelling foreign entities who might want to help. So as a result the poorest nations tend to get even poorer. Many of the poorest nations remain unable to attract foreign investors. This seems strange since the whole reason why these investors go to poor countries and build factories is because the workers in super poor nations are willing to work for little to no money. But when you think about it you realize that it’s just too much of a hassle for them to try and ma... ... middle of paper ... ...l improvements in major industries like the transportation industry have also benefited wealthy countries more than poor countries.
On the other hand, the another researcher said that it rarely affects developed countries, but they suppose to help poor countries without taking any advantages as humanitarian aid (2014). Besides, foreign aid can affect developing countries in a long term changing poor countries to be rich, so if the government spend money direct to people who really need it, international aid will work effectively also reduce other problems that might affect worldwide.Therefore, many poor countries still need help from wealthy countries due to catastrophe, that means they may not survive without international aid. International aid can provide in various factors such as food aid, military aid, and loans to prevent government corruption. It will be easier to give specific objects straightforward to poor people than offer money through the governments.
Due to the rapid growth rate and better economic policies existing today, even some of the world’s poorest countries seek to borrow from... ... middle of paper ... ...egarded as the principle way to contribute to poverty reduction and debt sustainability. Even though debt relief alone cannot help poverty eradication in the lesser developed countries, it should be synchronized with additional development assistance such as loans or grants (Lumina, 2008). Another major factor for development and poverty reduction is migration and the movement of people wanting to improve their standard of living. As poverty is seen from a great magnitude in developing countries many citizens feels that high levels of inequality will undeniably influence social unity. Nevertheless, it was also established that national debt have indeed contributed to the poverty crisis, but recently there have been policies for debt reduction and forgiveness hoping that this would therefore be a major feature for reducing poverty globally (The Borgen Project, 2013).
While productivity has increased in recent years, the gains from the nation’s economic growth has not increased the real wages and benefits for U.S. workers (Freeman 20). The U.S. labor market fails to distribute gains to low wage workers, resulting in their poverty, which in turn, puts their children at a higher risk for being in poverty themselves. There are some who claim that the real reason why poverty exists in the U.S. is not because there is a problem with the labor market that makes it difficult to earn adequate wages, but, instead, that the poor are simply unwilling to work. One such proponent of such a view is Lawrence Mead. Mead claims that “the hallmark of today’s poor adults is that “they seldom work consistently,” and “are notably less self-reliant” (211).
Foreign aid Bad or Good Foreign aid or assistance is often considered as being too much, or it is wasted on corrupt recipient governments despite any good intentions from donor countries. In reality, aid have been poor in quantity and quality and donor nations have not been held to account. We can’t say it’s an aid it’s only a trade. It’s an important part of development . But aid have been criticized in the issue of international obligations, as an excuse for rich countries to stop the aid that has been agreed and promised at the United Nations.
As a result, Inequality of wealth distribution may be gigantic when the government does not know how to properly balance the economy. Eventually, it can even lead this inequality to other social and economical problems, such as unemployment or raise of violence rates because of the constant increase of poverty. Multinational companies are also targets of polemic articles and news headlines regarding exploitation of workers. For instance, since companies like Apple do not produce all the parts of their devices and gadgets, outsourced companies like “Foxconn” and “Wintek” are summoned. The problem is that most of these outsourced industries are located in developing countries like China, and because of the low income they often do not provide their workers with properly regulation, culminating on plenty of medical problems and even suicide (PBS Newshour, par.
Since developing countries have low income, therefore they have low level of savings. The savings are insufficient to repay debt. Thus the government resolves the issue by imposing higher tax. But this will lead to inflationary tax, which is a burden to the further generation. Therefore, the government resorts to foreign borrowings.
We exist in a world where the United States is one of the most prosperous nations; however, we are struggling with poverty amongst our people. Poverty is a state after people lack the acceptable means of money or material possessions. There are some who may argue that there is no reason why people should be below the poverty line if the government is providing welfare assistance. What some may not be aware of or understand is that these government programs are not always effective and they can also be inconsistent, leaving people who need the support helpless and frustrated. Poverty can be viewed as an ongoing consequence of how the welfare systems are structured.
Introduction In 20th century inequality has often been explored through the social exclusion (Byrne, 1999). Social exclusion was often ignored from the mainstream of economy (Hills, et al., 2002). The financial exclusion causes social exclusion and poverty. Achieving 100 per cent financial inclusion is difficult task and it not only just opening bank account and solve financial problem of marginalized sections and disadvantaged people, its important objective is abolishing the state of social exclusion in the economy (Rangarajan, 2008). Countries large number of people excluded from formal financial systems it indicate the higher poverty ratio and higher inequality (World Bank, 2006, 2008).
Resources are very important factor into the economy because if resources such as food and water become scarce the prices will go up. Then if they become so little it could lead to war because some of these resources are vital for everyday living. Financial market collapse would also have a major effect because without the market it takes away the income of many people in the society, majorly decreasing their economic character of society. International law pertains to the rules established for everyone, where as when discussing domestic legal institutions you are talking about the rules established specifically for one country. International law is harder to enforce because people get accustomed to their own laws, but when they go to a foreign places the laws used may be very different.