PovertyPoverty, a word we all will think about immediately when less developedcountries, or perhaps we call it : Third World Countries are said to us.These less developed countries such as Bangladesh, Ethiopia.These countries have very low gross domestic product (GDP).For example Ethiopia has a GDP per capita of $700. This means that onaverage, a working person earns $700 a year. This is much lesser thanwhat we have in Singapore. In Singapore we have a GDP per capita of$100 000.In the following slides, I will talk more about what contributes to povertyin many countries.Even though a country may be developed, parts of the country may stillbe less developed and is suffering from poverty.Many reasons can contribute to the poverty of less developed and thiscan be assessed with a tool called human development index (HDI)
Causes of poverty takes into regard•Economic well-beinga) GDP per capitab) Employment opportunitiesc) Employment structure•Health of the peoplea) Life expectancyb) Infant Mortality Ratec) Access to health facilities and clean water•Educationa) Literacy rate
GDP per capitaGDP per capita as I have mentioned, is the total amount of money acountry earns divided by how many people are working. Which indicatesthat the locals have higher purchasing power. They are able to affordmore basic necessities and luxury items, thus increasing their standardof living(SOL). High GDP means that government has high revenue tofinance local development projects such as improving on the existinginfrastructure or building new ones such as roads, schools, houses.Countries with low GDP per capita would cause their government notable to finance local development projects, which would in turn resultthem in plunging into poverty.
Employment StructureMost of the working population in developed countries work in thetertiary or quaternary sector and the goods produced are morevalue –added than goods produced by the primary sector. Thisresults in them having a higher revenue which generates a highertax revenue for the government which they can finance localdevelopment such as investing in industrial projects and thusraising the country’s level of development.If a high % of the working population in a country are employed inthe primary sector, the amount of revenue would be lower thusresulting in lower tax revenue and that the government cannotfinance local development, resulting for that country to be lessdeveloped and if nothing is done soon, the country would plungeinto poverty as well.
Employment Opportunities Employment opportunities are important as well. When there are high employment opportunities, more people will be employed. This in turns increases the GDP per capita. With higher GDP per capita, people in the country would be able to afford more goods and services. The demands for these goods and services will then increase. This improves the SOL and Quality Of Life(QOL). Businesses start to earn more money from these huge demands and they start to expand to meet the demands. More jobs are therefore created which will result in higher employment opportunities. If there are low employment opportunities, less people will be employed, decreasing their GDP per capita and decreasing the SOL and QOL of the people. Resulting in slow progress of the country’s development.
Life ExpectancyLife expectancy refers to the amount of years a person born in acountry is expected to live. The higher the life expectancy of acountry, the more the country will earn more money as when thecountry has a larger population will have more people in the workforce, resulting in a even higher GDP per capitaMore goods and services will be produced and this generateshigher tax revenue for the government to finance localdevelopment projects.
Mortality RateMortality rate refers to the rate at which the number of babies less thanone year of age dies, for every 1000 live births in a year.Which a low infant mortality rate, more babies will survive and be able togrow up healthily and will help in the long term of increasing the workforcein the future. If there were to be a high mortality rate in a country, thecountry would have a lack of manpower in the workforce in the future,which results in the country earning less revenue the government wouldnot have enough revenue to finance local development projects toincrease the country’s level of development.
Access to health facilities and clean water With access to health facilities and clean water, the locals would be able to much more healthier and would not fall sick very easily which in turn saves money. The locals have access to adequate amount of food as well. With these health facilities, a healthier workforce would lead to high work productivity as less people fall sick. More people can go out to work, earn an income and have high GDP per capita. More goods and services will be produced and this generates higher revenue for the country. The Government will have more revenue to finance local development projects to advance their countries to be more developed.
Literacy RateLiteracy rate refers to the percentage of adults above 15 years old in acountry would can read and write.Less developed countries have a lower literacy rate as most of them work asfarmers or fisherman. Most families prefer to let them children to work withthem rather than sending them to school. They are also poor and cannotafford to send their children to school. Many of them are also lowly educatedand thus do not see the importance of education.If a country has a high level of literacy, the labour force is highly skilled andeducated which increases productivity. The workers can also be trained toacquire necessary skills needed in the economic sector. When they can readand write, they will be more proficient in using advanced technology likecomputers and increase the efficiency of their work. With this they will have ahigher position in their company and receive better pay and can afford ahigher SOL. Being able to read and write also gives them a wider jobemployment range as they are able to work in the secondary, tertiary andquaternary sector which produces highly value-added products bringing inmore profit and revenue
I think that the factors above are very important for a government to think about. These factors will then help prevent poverty as these factors are all interlinked. If there is one missing factor they do not care about, their country would most likely plunge into poverty. With higher GDP, more tax revenue would be generated. These factors are factors that have to be taken into consideration carefully as they can raise the level of development in a country or bring them to poverty. For example, in Philippines, a mountain called: Smokey Mountain is just unsuitable for living. The name comes from amount of smoke that is produced and the amount of rubbish there. The life expectancy rate there like around 40 with no access to health care and clean water. Most of them are also illiterate and they all work in the primary sector producing lower GDP per capita decreasing their SOL and QOL. Therefore, I think that we Singaporeans are very lucky to be living in a very developed country and that we have a high SOL, QOL and GDP per capita. We should treasure what we have and cherish it, not whine so much if we have little problems.
Done by: Terence Ho Yan King Nicholas Lim Lim Jia KaiCopyrights: Google Wikipediahttp://www.hottnez.com/the-10-poorest-countries-of-the-world/ My background knowledge