Have we been fooled into poverty?
In this issue:
» Is this Africa's Singapore in the making?
» Brazil declares a 'currency war' against cheap money
» Unemployment in the Eurozone hits the roof
» Salaries of Indian CEOs drawing closer to global peers
» ...and more!
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A rational approach suggests that if a solution doesn't work, it is best to reconsider it. Wrong solutions are often a result of an incorrect understanding of the problem. This seems to have happened in the case of poverty. Most economists think of poverty as an original sin. Poor people are seen as those who have not been touched by the magic wand of economic growth.
But is this the right way to look at it? Noted Indian environmentalist Vandana Shiva shares an interesting perspective on this. According to her, most Western economists have a false view of the history of wealth and poverty. The countries of Asia, Africa and Latin America that are poor today are not so because of the lack of industrial progress. They are poor because they were robbed of their resources by Europe and North America. It was this forceful exploitation of the Third World resources and markets that created enormous wealth in the North and poverty in the South. So it was the industrial economy that actually elevated the problem of poverty instead of solving it. And yet today, the world continues to look for solutions in mechanisms which very much resemble the economic colonists. Our obsession with GDP (Gross Domestic Product) growth figures has grown even more. But there is a serious problem with such indicators. For instance, if you consume what you produce, it does not contribute to GDP growth. For Westerners, such sustenance living means poverty. Economists and policymakers have misguided the world away from self-reliance. And into a system that more often than not leads to monopolisation of resources and power, concentration of wealth, unproductive debt burdens and environmental destruction. The colonists of yesteryears are very much present even today in the garb of transnational corporations. As long as the disease is offered as the cure, poverty will continue to live on.
Though Shiva has some very valid reasons for the causes of poverty, she does not present the picture in its totality. Several factors such as attitude towards work and savings, investments, political institutions, intellectual curiosity, etc. also go a long way in determining the wealth of a nation. Moreover, the industrial economy cannot be blamed for all the evils in society. In fact, some of the best innovations and developments have happened because of it.
What, according to you, is the real reason for poverty in the world? Share your comments with us or post your views on our Facebook page / Google+ page.
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Data source: Rediff.com *As of December 2011 |
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The genocide was so brutal that the entire middle class of Rwanda is believed to have been wiped off. But the land locked African nation seems to have come a long way since those days. Thanks mostly to its controversial yet charismatic president, Mr Kagame. He has been credited with making the country free of red tape and has also given it one huge advantage over other African nations. The advantage of the rule of law. Consequently, business is flourishing and foreign investments are pouring in. However, immense challenges still remain and the way Mr Kagame will go about overcoming them will determine whether the title of Africa's Singapore will adorn Rwanda for a long time to come
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8 Responses to "Have we been fooled into poverty?"
D.V. Deshmukh
Mar 3, 2012The cause of poverty is neither industrialization nor lack of it. The cause of poverty is exploitation of more people by few people and it can happen in stage of economic condition. The solution to this problem can be good social order, awareness, good leaders, removal of illiteracy and good education, balanced economic growth and above all peaceful co-existence.
RAJEENDRAN
Mar 3, 2012The past is past. We can't correct it. It is true that the British looted India to the core and made us very very poor. But what is the condition of the so-called rich nations? In the US outsiders like Rock Feller hold key role in policy making just because he is immensely rich and can influence politicians via his money. It is a case of 1% Vs 99%.
Various policies of the Governments all over the world have created the haves and have-nots. The difference is mind-blowing. One Brazil may be an abberation. The needs/greed of human beings have gone up. So their income does not suffice their needs. Hence they go for additional
sources like loans. This aggravates the issue, many times.
Equitable distribution is seldom possible in case of wealth. We should concentrate on providing minimum living standards to all the citizens, like food, shelter, health facilities etc. These should be provided free of cost of at subsidised rates. The rest can improve gradually.
sarat palat
Mar 3, 2012Poverty - I cannot agree or disagree with Smt.Shiva. I do agree with her on the concept that there was a time when the Europeans and Westerners looted other countries for their own benefits. But now, the situation has changed. Take the case of India. Why it is still considered as a poor country with all the resources and skill. Politicians wants to be like that for their own bebnefits - those are their vote banks. Even now introduction of certian schemes are only an eyewash. Instead of teaching how to fish just providing a fish for the day. Every individual who consdier or thinks himself as poor are also rsponsible for this situation. Instead of going for self pity there are ample opportunites where he could come out of it.
saby chacko
Mar 3, 2012First of all the cause of poverty is the wrong planning and policies made by the government.Our country has enough raw materials but lacks the technology to produce new products!
this is because our govt has not focused on investing in Infrastructure, research& development.These are the areas providing lots of employment opportunities(infrastructure) .Once results starts flowing from the research& development field many innovative products can be made ,thereby creating lot of employment opportunities. Our defense sector still purchases majority of the weapons from foreign countries, which is a real shame to our govt and scientists.
Alas, who cares, India remains a banana republic with only promises!!!
Sivaramakrishnan
Mar 2, 2012To be honest, I simply do not believe in all these fancied commercial and economic terms of GDP, IIP, PMI, Fiscal Deficit and even the term Budget, When the Politicians and Economists will not be able to give an exact figure of even a Country's Census, Which is just physical counting of 1,2,3 and upto 7 billion which they claim now. All these terms and their mathematical calculations can be manipulated and do not have a proper basis to arrive at an exact final figure and are just used for giving directions to the financial markets cycle of ups and downs and fool the people with the theory of growth and recession.
I agree that the South particularly India, was forced to poverty by the North by looting all its prosperity and wealth by colonisation and now its resources by industrialisation which only leads to environment destruction.
My simple common sense says that if there are ten planets of Earth in the milky way and if I am the Lord of one of those, I would buy the present Earth which we live, if it is up for sale due to debt and improper management of all the Countries, which is also true and fact and the first thing I or anyone would do to reduce the debt is cutting down the overheads, salary cost, lavish and extravagant lifestyles of people and have an income gap of just 15-20 times of a labour or worker to that of a CEO and ensure that a labour gets a minimum salary to also save for his family thereby automatically bring discipline and hard work and get the same output from the people and also have enough surplus in my kitty for the emergency or natural calamities.
George Elava
Mar 2, 2012The state of being self sacrificed ones actvities for the betterment of others or state of being self contented ones returns in their activities are lacking very much in the twenty-first century humans! This is the route cause of global property, I believe!
Suresh Kumar
Mar 2, 2012World economy has grown enormously in the last century, lifting huge number of people above poverty line. But, it has made the top 1% much much more richer. Its also sad that while our scientists have done a good job, there is a decline in people pursuing science as a profession. On the other hand, politicians by and large have done below par job, and there has been decline in moral standards. Selfishness is rising, with CEOs drawing obscene amounts as salaries, with no intentions of donating to society. Politicians find cheap populist schemes like anti-outsourcing or free-TVs/Laptops as much more effective than fiscal discipline or support mediocrity through reservation rather than raising competition level. Pollution level in air, water or soil and global temperature is worsening for other species.
Overall, we are heading for two classes of people - first, who fall in top 1%, politicians, businessmen or mafias and the other 99%, who would slog it out bereft of clout or capital - irrespective of skill sets. Once, we reach nadir in terms of moral standards in next century or a half century, gradual improvement in world order would start.
Mohan Kumar
Mar 7, 2012Development, happiness, growth are all very tricky words. It can well differ from person to person. But 200 hundred years back we had clarity on all these terms and we were a really happy, most developed country. But in today's terms, owning a car, travelling by a aircraft, and having the most sophisticated defense systems is termed as "Developed" country. But when we were a super power, Development meant good governance, Justice, whole world living as one single family (as opposed to one family living in two houses in two different countries).
Let any country ape the west. We need not have done that.
We had unbeleivable knowledge in all spheres.
We should have followed Gandhi and not Nehru. Everybody quoted Gandhi, but no one followed. We have to voluntarily go back and adopt that model. For that to happen we should be educated about our past and the 5000 years of knowledge we had. Other wise we will be forced to do the same as the depletion of all natural resources will lead to that. First our history books written by vested interests both Indian and foreign has to be rewritten to represent the truth that is the true glory of India.