Poverty
& Economic Disparity
It is an indicator of a country’s
relative status within the world
It is a relative term as individual
wants and needs vary from place to
place
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
Reduced likelihood
Of economic success
Low literacy
level
Poor performance
in school
The Poverty Cycle – page 347 of Counterpoints
Causes?
War and international conflict
Natural catastrophes
Low levels of education = no
personal choices
Lack of natural resources
Mounting debt
Corrupt Governments
Solutions?
International Monetary Fund
The IMF uses “Structural
Adjustment Policies” as
conditions to receiving loans
The World Bank
Forgiving Debt…
Debt payments in developing
countries takes money away from
the development of services that
could improve their standard of
living.
United Nations Human
Development Index
Based on 3 measurements:
• Life Expectancy
2. Literacy Rates
3. Per Capita GDP
Heavily Indebted Poor Countries
(HIPCs)
Developing Countries
Newly Industrializing Countries
Developed Countries