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Understanding Poverty: Impact, Causes, and Solutions

Explore the impact of poverty on human life and learn about the UN Human Development Index indicators. Discover the causes of poverty, such as war and lack of education, and potential solutions like international organizations and debt forgiveness. Gain insight into how development occurs in different types of economies.

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Understanding Poverty: Impact, Causes, and Solutions

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  1. *** Poverty Poverty – is a shortage, deficit or lack of personal resources. Necessities - Required resources that all citizens are entitled to. (food, shelter, clothes) Want – an item or resource that an individual desires but is deemed non-essential

  2. *** Poverty is one of the most important factors influencing human life

  3. It is an indicator of a country’s relative status within the world

  4. It is a relative term as individual wants and needs vary from place to place

  5. *** UN HUMAN DEVELOPMENT INDEX HDI IS BASED ON THREE INDICATORS: (Life expectancy, Literacy Rates, Per Capital GDP. 1. Life Expectancy • A baby girl born in Canada can expect to live to 85 years of age, have sufficient food, vaccinations and a good education. On average she will have $550 spent on medication per year for her needs, with more available if necessary.If she were born in Sierra Leone she would have a life expectancy of just 36 years, not be immunized, be undernourished and if she survived childhood would marry as a teenager and give birth to six children. Childbirth would represent a high risk to her. One or more of her children would die in infancy. She could expect only $3 a year to be spent on medication.

  6. *** 2. Literacy Rates • Determined by calculating adult and youth literacy rates, primary and secondary school enrolment, % of children who reach 5th grade and the # of students who enroll in math, science and engineering programs at the end of secondary school careers • South Asian, Sub-Saharan and Arabic countries tend to have the lowest literacy rates, as low as 20-30% • Canada’s literacy rate is 99%

  7. *** 3. Per Capita GDP • Gross Domestic Product is the sum total of all goods and services produced over a period of time within a country. • The poorest countries have as low as $400GDP per capita • Canada’s is $22 000GDP per capita • The 2006 UN Human Development Report listed these countries: • Top 5 Norway / Iceland / Australia / Ireland / Sweden / Canada • Bottom 5 Niger / Sierra Leone / Mali / Burkina Faso / Guinea-Bisseau

  8. Poverty can be a trap that turns into a cycle – difficult to get out of Baby born to a Malnourished mother Baby’s development is slowed Family in debt Many young; Few job prospects Poor nutrition & medical care Physical/mental development slowed Limited diet, Poor general health Poor performance in school Reduced likelihood Of economic success Low literacy level The Poverty Cycle – page 347 of Counterpoints

  9. *** Causes? – MAKE A WEB in your notebook

  10. *** War and international conflict

  11. *** Natural catastrophes

  12. *** Low levels of education = no personal choices

  13. *** Lack of natural resources

  14. *** Mounting debt

  15. Solutions?

  16. *** International Monetary Fund Organization of 184 Countries who provide loans to poor countries. Money can only be used to help a country balance their budget. The IMF uses “Structural Adjustment Policies” as conditions to receiving loans

  17. *** The World Bank Agency of the UN – Provides Loans and Grants to poor countries. Money can be used for development projects.

  18. *** Forgiving Debt… Debt payments in developing countries takes money away from the development of services that could improve their standard of living.

  19. *** Factoids! • For every US $1 received in Aid, the world’s most impoverished countries repay $13 on old debts. • Debt payments in some countries are 3X the amount spent on healthcare. (ie: $22US on debt, $14 on Education, $8 on Healthcare.) • Every African man, woman, child owes US $357 to Northern Creditors. They live on 27 cents per day!

  20. How does Development Occur? TRADITIONAL ECONOMY – subsistence agriculture (low productivity) DEVELOPING ECONOMY – new technology and infrastructure increase productivity, such as transportation and banking DEVELOPED ECONOMY – diverse areas of wealth generation, strong secondary industries and dominant tertiary industries. Massive consumption of consumer goods and services. Market economy based on supply and demand of capitalism!

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