Contrary to popular belief, economists are not just concerned about money. In fact, much of the study of economics is concerned with how people behave and make choices. Since the days of Adam Smith, who is widely regarded as the father of this discipline, economists have adopted various views of poverty. Exploring the link between economics and poverty is crucial if the world is to make positive progress.
What Causes Poverty?
Economics and poverty have a long history with thought camps that diverge in many directions. Nevertheless, many economists agree that some reasons for poverty are beyond the control of individuals.
According to the more classical view of economics, an individual’s social and private characteristics could lead to lower income and a lower probability of financial growth.
For example, a single parent without adequate support would find it harder to secure a full time job than someone who has no children. Meanwhile, someone born into an environment without easy access to education would find it harder to compete in the job market later on.
Poor health, discrimination and market failures are other examples of unavoidable inequalities that may contribute to poverty.
Other theories claim that since poor people are often excluded from the social circles of the rich, they are also excluded from certain opportunities.
Networking, or forming strategic relationships to gain entry to certain markets, is critical to financial success in a majority of career fields. Since the poor are unable to network with the rich, they are effectively barred from certain lucrative jobs, thus perpetuating poverty.
More modern strands of economics believe that poverty can be linked to failings of the government. If a country’s government fails to react to a significant decline in economic growth through financial or monetary policies, or if it does not adequately fund areas such as education, then the country’s population will suffer unemployment and a lack of financial mobility.
What Should We Do?
The natures of economics and poverty makes it difficult to address inefficiencies directly and successfully. For example, evidence has shown that raising minimum wages and enforcing caps on prices may actually hurt the poor. However, there are some things that governments can do to reduce poverty rates in their countries by using the relationship between economics and poverty.
One of the best things a government can do is focus on economic growth. A country’s GDP is linked to unemployment in a relationship defined by Okun’s Law, which states that an increase in a country’s output will inevitably cause unemployment to decrease. By pursuing policy that strives for growth, a government can create jobs for its citizens.
Shocks to GDP tend to have a disproportionately negative effect on the poor. For example, children from poor families in Latin America and Africa often drop out of school to help at home during economic crises. To counter this, governments can enact policies to curb inflation and promote stability.
Governments can also focus on creating opportunities for poor citizens to build their human capital through education, work training, loans and grants. These chances at building mastery in employable skills and traits allows poorer people to compete in the job market and ultimately equalize income across the population.
The availability of information, which economists largely consider a public good, is also incredibly important. Many people are unable to access programs of job opportunities simply because they are unaware.
If citizens are poorly informed, then policies targeting poverty become ineffective. Remedies to this problem include job agencies, well advertised websites and community centers in low income areas.
Unfortunately, not all governments have the means to accomplish these things and may require aid from foreign powers.
Will There Always Be Poverty?
There are two types of poverty in the world: relative and absolute.
People who are relatively poor make a certain percentage of the average per capita income and in many countries have adequate funds.
Those who are in absolute or extreme poverty live on less than $1.90 a day. These people do not have enough income to live comfortably and therefore suffer from poor health and living conditions.
In the year 2000, the members of the United Nations set a goal to halve the absolute poverty rate by 2015. By 2010, the ratio of people living in extreme poverty was reduced from 43 percent to 21 percent.
This astounding success has caused many economists to believe that it is indeed possible to erase extreme poverty completely through continued growth and creative social and economic programs.
– Emiliano Perez
Photo: Flickr
1 in 6 Children Live in Poverty in Australia
The CRC25 Australian Child Rights Progress Report claims one in six children currently live in poverty in Australia.
The report defines poverty as “households earning less than 50 percent of median household income.”
Adrian Graham, UNICEF Australia chief executive officer, said, “Australia is not the lucky country for many children.”
Almost 30 years ago, Australia ratified the United Nations Convention on the Rights of the Child. This convention included the right for children to have “a standard of living adequate for the child’s physical, mental, spiritual, moral and social development.”
Australia agreed that every child deserves equal rights. In addition, the government would give more attention to the most disadvantaged and marginalized children.
However, the report confirms that discrimination is persistent for most children growing up in poverty in Australia.
The report also identifies that Aboriginal and Torres Strait Islander children, lesbian, gay, bisexual, transgender and intersex (LGBTI) children, children from rural areas, children with disabilities and children from migrant backgrounds are more likely to experience poverty and discrimination.
Despite two decades of economic growth, Australia still has over 600,000 children living in poverty. This totals at 18 percent. The statistics show Aboriginal and Torres Strait Islander people make up 2.5 percent of Australia’s population. However, they also make up 25 percent of the homeless population.
Additionally, school retention rates among Aboriginal and Torres Strait Islander students are considerably lower than non-indigenous students. Nearly 80 percent of homeless children have a mental disability, and 61 percent have a physical disability.
Children with disabilities are three to four times more likely to experience sexual abuse than children without disabilities. Many of these children do not have the language or ability to communicate their abuse.
In addition, 80 percent of lesbian, gay, bisexual, transgender and intersex children report abuse at school. Victims of sexual abuse experience reduced concentration, more absences from school, drops in school grades or dropping out of school entirely.
Graham said, “Children living in poverty have less access to both primary and specialist health services than the general population, higher levels of contact with the criminal justice system and greater exposure to domestic violence. Children living in poverty are also more likely to be removed from their families and placed into care arrangements.”
The Taskforce calls on the Australian government to set a national policy agenda for children to ensure that all children growing up in Australia have a decent quality of life.
Judge Alastair Nicholson, the Chair of Children’s Rights International, is hopeful that the report will encourage actions to reduce the number of Australian children trapped in poverty.
– Jacqueline Venuti
Photo: Flickr
The Principles of Economics and Poverty
What Causes Poverty?
Economics and poverty have a long history with thought camps that diverge in many directions. Nevertheless, many economists agree that some reasons for poverty are beyond the control of individuals.
According to the more classical view of economics, an individual’s social and private characteristics could lead to lower income and a lower probability of financial growth.
For example, a single parent without adequate support would find it harder to secure a full time job than someone who has no children. Meanwhile, someone born into an environment without easy access to education would find it harder to compete in the job market later on.
Poor health, discrimination and market failures are other examples of unavoidable inequalities that may contribute to poverty.
Other theories claim that since poor people are often excluded from the social circles of the rich, they are also excluded from certain opportunities.
Networking, or forming strategic relationships to gain entry to certain markets, is critical to financial success in a majority of career fields. Since the poor are unable to network with the rich, they are effectively barred from certain lucrative jobs, thus perpetuating poverty.
More modern strands of economics believe that poverty can be linked to failings of the government. If a country’s government fails to react to a significant decline in economic growth through financial or monetary policies, or if it does not adequately fund areas such as education, then the country’s population will suffer unemployment and a lack of financial mobility.
What Should We Do?
The natures of economics and poverty makes it difficult to address inefficiencies directly and successfully. For example, evidence has shown that raising minimum wages and enforcing caps on prices may actually hurt the poor. However, there are some things that governments can do to reduce poverty rates in their countries by using the relationship between economics and poverty.
One of the best things a government can do is focus on economic growth. A country’s GDP is linked to unemployment in a relationship defined by Okun’s Law, which states that an increase in a country’s output will inevitably cause unemployment to decrease. By pursuing policy that strives for growth, a government can create jobs for its citizens.
Shocks to GDP tend to have a disproportionately negative effect on the poor. For example, children from poor families in Latin America and Africa often drop out of school to help at home during economic crises. To counter this, governments can enact policies to curb inflation and promote stability.
Governments can also focus on creating opportunities for poor citizens to build their human capital through education, work training, loans and grants. These chances at building mastery in employable skills and traits allows poorer people to compete in the job market and ultimately equalize income across the population.
The availability of information, which economists largely consider a public good, is also incredibly important. Many people are unable to access programs of job opportunities simply because they are unaware.
If citizens are poorly informed, then policies targeting poverty become ineffective. Remedies to this problem include job agencies, well advertised websites and community centers in low income areas.
Unfortunately, not all governments have the means to accomplish these things and may require aid from foreign powers.
Will There Always Be Poverty?
There are two types of poverty in the world: relative and absolute.
People who are relatively poor make a certain percentage of the average per capita income and in many countries have adequate funds.
Those who are in absolute or extreme poverty live on less than $1.90 a day. These people do not have enough income to live comfortably and therefore suffer from poor health and living conditions.
In the year 2000, the members of the United Nations set a goal to halve the absolute poverty rate by 2015. By 2010, the ratio of people living in extreme poverty was reduced from 43 percent to 21 percent.
This astounding success has caused many economists to believe that it is indeed possible to erase extreme poverty completely through continued growth and creative social and economic programs.
– Emiliano Perez
Photo: Flickr
The Resurrection of Education in Myanmar
Many experts projected that Myanmar would come to be one of the central powers of the region due to its superior education, however, this has not been the case.
The World Bank has attributed the country’s now weak education system to various warring ethnic groups, particularly the progressive power of military rule that took hold over a half-century ago.
Myanmar has only recently begun to give way to democratic rule–the system that was originally intended for the developing country in 1948.
From the beginning of military involvement in governance in the early 1960s, an increasing list of sanctions was placed upon the country.
With the combination of international economic restrictions and tightening limitations from the military government, education in Myanmar quickly began to decompose.
However, after decades of brutal military rule, the people began to fight against the stiff restrictions imposed upon them. Notably, in November 2015, Htin Kyaw was elected as president of Myanmar in the first openly contested parliamentary elections that the country has ever had.
Since then, many sanctions have been lifted to allow open international trade and commerce.
With these recent signs of progress, many are optimistic that the education system in Myanmar will also begin to improve. Dr. Mya Oo, the Secretary of Education Development Committee of Myanmar has said that the first step that is needed is to create a system of free and compulsory education.
The first five years of education in Myanmar are already compulsory, but they are not free. The imposed educational fees put a strain on impoverished families who are usually forced to opt out from lack of personal resources.
There is also a certain level of discrimination against girls and ethnic minorities, which further limits the proportion of students in school. Only one-third of students reach the five-year level of education and this number decreases exponentially as the students continue to progress toward higher schooling.
The current Myanmar government recognizes these as serious issues, and as such recently announced, it plans to help boost enrollment rates as well as the quality of education. These propositions address increases in funding, focusing on equal education for women and ethnic minorities, building schools in remote areas and establishing better training systems for teachers.
These goals are scheduled to be reached before the end of 2016.
The government is also placing a greater emphasis on higher education as well. Myanmar governmental and educational officials have begun to consult with a number bordering states and European entities for improvement ideas in their universities.
Many of suggestions include universal equality, the establishment of student unions and universities that are allowed to operate autonomously.
With the implementation of these targets, many are optimistic that Myanmar will be able to provide for the anticipated influx of students seeking higher education.
Government oppression and poverty made it nearly impossible to achieve more than basic literacy. However, as the country works toward social progress, it is hoped that education in Myanmar can be brought back to life in a timely and efficient manner.
– Preston Rust
Photo: Flickr
Skills Training to Increase Development in Pakistan
Pakistani President Mamnoon Hussain and Governor Iqbal Zafar Jhagra announced at the National Skills Show that the Government of Pakistan would push a new emphasis on skills training for their youth. Through this initiative, they hope to boost future development in Pakistan.
Governor Jhagra asked industrialists to start training youth in vocational and technical skills, establishing institutes that will offer these programs. He noted that reducing unemployment and poverty rates greatly helps youth to succeed.
The National Skills Show, organized by the National Vocational and Technical Training Commission (NAVTCC), takes place in the U.K. annually. It features five sectors: engineering and technology, media and creative, IT and enterprise, hospitality and lifestyle as well as construction and infrastructure. The best and the brightest students of the U.K. come together to compete and demonstrate their skills in one of these sectors.
Governor Jhagra stressed that Pakistan has an agricultural economy, highlighting the importance of focusing on skills training within the industry. In addition, technical education is extremely important for keeping the unemployment rates low.
As of 2015, Pakistan holds an unemployment rate of 5.9 percent, a slight decrease from six percent the previous year. But in 2013, the World Bank noted that 29.5 percent of the nearly 190 million people living in Pakistan resided below the poverty line.
Executive Director of NAVTTC, Zulfiqar Ahmad Cheema, noted that 50,000 youth in Pakistan will take part in skills training in multiple trades. The courses that they engage in will be free of charge, and they will receive a stipend as trainees.
Governor Jhagra is determined to fully utilize the capabilities of the talented Pakistani youth population. He stated, “Our human capital is our biggest asset.” Currently, young citizens make up 60 percent of the population.
Ambassadors from Germany, the Netherlands and the European Union joined the show and congratulated the winners. They agreed with Pakistani officials in recognizing how skills training can boost the economy and decrease poverty.
This effort will provide a large majority of the Pakistani youth with employable skills, granting them financial independence, reducing the poverty rate throughout the country and helping meet the needs of local and international job markets—ultimately, improving development in Pakistan.
– Kimber Kraus
Photo: Flickr
Three Reasons for the Economic Crisis in Venezuela
Since the beginning of 2015, inflation within the country has been on a steady increase. During the months of June and July, it began to accelerate upward. By the close of the year, Venezuela was left with an inflation rate of 180 percent, the highest in the world. This has led to deficiencies in food, medicine and hygiene products.
However, the recent explosion of economic inflation is only a symptom of deeper troubles within the economy that have been building for the past years. Many are criticizing Venezuela for failing to diversify in products and services. Gretchen Bakke of the New Yorker summarized the economic crisis in Venezuela using the adage, “putting all its eggs in one basket.”
Various occurrences have led Venezuela to the brink of economic collapse, but three in particular bear mentioning:
1. Venezuela’s Dependence on Oil as a Profitable Export
Petroleum products made up roughly 93 percent of the $63 billion in exports that Venezuela made in 2014. This is not surprising, since Venezuela is sitting on the largest proven oil reserves in the world. Historically, various Venezuelan presidents have used petroleum production and exports to increase development, yet they failed to diversify their economic productions. In the 1920s Venezuela registered a third of its GDP as agricultural products, but almost a century later, these products make up six percent of GDP and less than one percent of the country’s exports.
Its identity as an oil-producing state has served Venezuela well in the past, but the tide is turning. With lifted sanctions on Iranian petroleum and increased oil production in the United States, Canada and Iraq, petroleum prices have been driven down by a saturated global market. The New York Times reported a barrel of oil to be 70 percent cheaper now than it was two years ago.
2. Venezuela’s Dependence on Water as its Primary Electricity Source
Almost 80 percent of Venezuela’s electricity comes from hydroelectric power. The international community has recently been pushing for cleaner energy (that which does not rely on fossil fuels) and hydroelectricity is one way to achieve these goals. However, hydro-power can be problematic when water turns into a limited resource.
Venezuela has currently been suffering through a three-year drought which many are attributing to El Niño, an intermittent weather pattern that has been accentuated by the recent rise in global temperature. In addition to the normal problems that are generated by water shortages, Venezuela is now facing a shortened work week due to the rationing of electricity for the many shortages.
These newly-prescribed measures are criticized for accelerating the process of economic collapse, since workers now have a shortened period in which they can earn money to pay for the necessities of life.
3. Venezuela’s Unipolar Political System
For years, the socialist party has dominated the branches of the central government, and in the recent escalations of the economic crisis in Venezuela have caused the government to “become more authoritarian,” as the Council on Foreign Relations wrote.
In December of last year, the opposing party finally took control of one part of the government, The National Assembly. Though a referendum is being constructed to oust Maduro from his seat, very few immediate solutions are being proposed to relieve the collapsing economy.
The economic crisis in Venezuela is provoking protests throughout the country. Various citizens of the country told the Wall Street Journal that they have to stand for hours in line to receive a small portion of food for the day. These individuals have hopes to change the trajectory of their nation, and with the majority of the people on their side, they may still have time to do so.
– Preston Rust
Photo: Flickr
Poverty in French Guiana Aided by French Economy
French Guiana, the small French territory located in South America, is home to a uniquely intricate story. However, poverty in French Guiana remains an issue, inflating tension between the territory and France.
Initially explored by the Spanish in the 1500s, the territory became a part of France in 1667. French Guiana’s fascinating history has collected tales of its former penal colonies and its recent prominence as a European rocket-launching site.
Unfortunately, most of French Guiana’s problems arise from the inhabitants’ standings as citizens of France. Much of the tension centers around the administration of the area by the French Constitution.
Despite French Guiana’s recent vote against increased autonomy in governance of the area, longstanding struggles with unemployment and unbalanced trade creates much frustration towards the French administration.
In 2009, the territory threatened to revolt, following the lead of other French territories Martinique and Guadeloupe. While they never carried out their threats, French Guiana still expressed its anger over poor living conditions and low wages.
Even with limited support from the territory, France helps sustain French Guiana’s developing economy by sending aid and technical assistance. The country suffers from unfavorable trading balances, as their exports are significantly less valuable than their imports.
This imbalance is compounded by high rates of unemployment and inflation, as well as insufficient infrastructure (for example, only two-fifths of the roads are paved). French Guiana must also import fossil fuels for all electricity needs.
Despite these faults, French Guiana has one of the highest gross national incomes per capita in South America. The largest contributors to the economy are the manufacturing and service industries.
One 2012 study estimates that 26.5 percent of households in French Guiana live below the poverty line. However, another source states that while poverty is a major issue, French Guiana has less acute poverty than other similar economies.
Other aggregate poverty assessments generally do not include French Guiana because of its small size and population. This knowledge gap poses a large problem for combating poverty and identifying the major issues concerning French Guiana.
While French Guiana’s living conditions are substantially worse than those on mainland France, the territory maintains a better standard of living than many other developing economies.
Universally free education and health care for the poorest segments of society prove beneficial in coping with poverty in French Guiana. Almost all children between the ages of 6 and 16 attend school. There are also several colleges and universities.
However, the territory’s lack of infrastructure affects health care in rural areas. In fact, there is only one full-service hospital in French Guiana.
Poverty and unemployment rates represent a large source of social discontentment and everyday hardship as French Guiana continues to develop.
Despite these obstacles, France will continue to provide aid to its territory. With a more holistic study of French Guiana, perhaps this examination of poverty will create substantial positive change.
–Charlotte Bellomy
Photo: BBC
The Red Cross Takes The Lead In Providing Aid In Sri Lanka
According to Sri Lanka’s Disaster Management Center, 82 people have been killed and over 500,000 have been displaced by the flooding and landslides. The death toll could rise even higher as 118 people are still missing, according to the Press Trust of India.
Displaced persons are being housed in 594 temporary camps across Sri Lanka, according to a press release by Sri Lanka’s Red Cross.
The UN’s Resident Coordinator in Sri Lanka has met with President Sirisena. Together, they discussed the emergency provisions needed to provide life-saving aid in Sri Lanka.
The UN released a statement, saying: “We met the president this morning for a briefing on emergency response and coordination. We remain committed to assist all the affected people.”
The Ministry of Health (MOH) has deployed 10 medical teams with supplies in the areas of Kolonnawan, and Kaduwels MOH divisions and the Columbo Municipal council area have been given medical supplies, according to the World Health Organization.
However, it seems the Red Cross has taken the lead in the effort to provide aid in Sri Lanka. As soon as the landslide occurred, the Sri Lankan Red Cross Society’s Kegalle Branch deployed its Disaster Response Team to Aranayake.
Shortly after their arrival, Red Cross officials coordinated with government authorities in search and rescue efforts, as well as in creating temporary camps where they have provided food, first aid and psychological support to survivors.
In Gampaha, one of the worst affected districts in Sri Lanka, Red Cross volunteers provided evacuation via boats and first aid support to people stranded in Biyagama.
The predominant presence of the Red Cross is notable since they have been previously denied access to victims of displacement in the region. In 2009, the Sri Lankan government denied the Red Cross and many other NGOs access to civilians in refugee camps following the Tamil Tiger rebels’ final battle.
– Veronica Ung-Kono
Photo: Flickr
Five Movies About Global Health
There are many inspiring and thought-provoking movies about global health that highlight the very real crises faced today. The following movies about global health explore some of the most dire issues, including women’s health, AIDS, polio, the right to safe drinking water and the realities of providing medical treatment in conflict situations.
Each of these movies about global health provides a thought-provoking look at one of the major health crises affecting our planet today.
– Katherine Hamblen
Photo: Flickr
Portable Device to Detect Zika Virus
An international team of researchers has developed a low-cost and portable product for detecting the Zika Virus. After using their device to test for the Zika virus in monkeys, the researchers are looking to product development as their next step.
The test is nucleic-acid based and has three steps: amplification, Zika detection, and CRISPR-Cas9-aided strain identification. Amplification is necessary because the viral load in samples such as saliva is significantly smaller than the viral load present in samples like urine.
Once the sample has been amplified, it goes into an RNA sensor called a toehold switch. The team’s research paper states that the switch can “be designed to bind and sense virtually any RNA sequence.” The RNA sensors are deployed via a paper disc that provides a sterile and abiotic environment for them. The paper changes color from yellow to purple if positive.
In the final step, the gene-editing mechanism, CRISPR-Cas9, searches the whole gene sequence for genetic markers. According to the Harvard Gazette, this step allows it to differentiate between strains of the Zika Virus.
This process improves upon previous tests which performed serum analyses that tested for the antibodies to certain viruses. In the past, this led to false positives, as the tests were unable to differentiate between the Zika Virus and close relatives like the dengue virus that share a geographical range.
Similarities between the targeted Zika Virus genomic sequences and those of the dengue virus range between 51 to 59 percent.
To ensure the accuracy of their test, Keith Pardee, a faculty member of the University of Toronto, told ResearchGate that the researchers exposed their test to low and high concentrations of the dengue virus, as well as “off-target regions of the Zika genome.” It differentiated between the target genome and everything else successfully.
All three components of the test can be freeze-dried for storage and distribution without damaging their effectiveness, which allows them to be sent to rural clinics for use. This means that even low-resource areas could have access to faster and more accurate tests for the Zika Virus. Previously, Pardee said, people needed to travel to urban areas for such accurate tests.
In an interview with ResearchGate, Pardee noted numerous potential benefits of the team’s test. It could potentially track the Zika Virus outbreak, and it would help physicians to more quickly identify and treat the infected. Physicians can also then take precautions to ensure the virus doesn’t spread.
– Anastazia Vanisko
Photo: National Cancer Institute
4 Movies About Refugees That You Need To See
Fiction
In This World (2002): Shot like a documentary, In This World portrays two Afghan refugees’ land journey. Unlike many other fictitious films about refugees, this film shows a fairly complete picture of a refugee’s journey, which includes the endless hours of waiting, hours of panic, and brief, beautiful moments of hope.
Welcome (2009): A beautiful, artistic and rather unsentimental picture of one Iraqi Kurd’s attempt to swim the English Channel in order to gain asylum, this French film portrays the stark situation of many homeless refugees living in France at the time and the legal dangers that awaited the French people who helped asylum-seekers.
Documentaries
The Land Between (2014): Documenting the everyday lives of Sub-Saharan migrants trapped between their homelands and the prospect of a new life in Europe, The Land Between addresses one of the most important questions of all migrant crises, whether past, present or future: why, and how, do people risk their lives and everything they own?
Neuland (2015): Neuland explores the lives of immigrants and refugees from all over the globe as they acclimate to life in Switzerland. Following the students in one class, the film shows the hardships and joys of building a new life in a foreign country.
In addition to many other full-length fictitious and real-life movies about refugees, many organizations, like Amnesty International, compile short films to spread awareness about refugees. In the end, whether short or long, real or imagined, movies about refugees provide an invaluable window into the lives of victims from all over the world.
– Sage Smiley
Photo: Flickr