& Economic DisparityPoverty

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

The Poverty Cycle – page 347 of Counterpoints

Family in debt

Baby born to a Malnourished mother

Baby’s developmentis slowed

Poor nutrition &medical care

Physical/mentaldevelopment slowed

Poor performance in schoolLow literacy

level

Reduced likelihoodOf economic success

Limited diet,Poor general health

Many young;Few job prospects

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