Poverty' the reasons for rising gap between rich and poor of the world'

 

Poverty' the reasons for rising gap between rich and poor of the world'

Abstract
  Whereas poverty elicits strong emotions, it remains a negative entity that cannot be determined empirically therefore, it is meaningless. There are many kinds of poverty like financial, material, moral, spiritual, psychological and, physical poverty. Poverty is seen as an interlocking experience. Poor people are in the informal, insecure part of the society. Most development assistance focuses on the formal system. People not currently considered poor can become poor, while those at some milder level of poverty can move to extreme poverty due to a number of reasons. This includes political unrest, loss of income and insecurity
This paper explores the contribution of globalization towards poverty eradication and exhaustively discuses poverty and the reasons for the constant widening of the gap between the rich and the poor. 








Contents
1.0 Introduction	4
1.1 Problem Statement	5
2.0 Literature Review	6
2.1 Welfare state, origins, Seebohm Rowntree	6
2.2 Impact of Globalization on poverty	7
3.0 Methodology	9
4.0 Conclusion	10
5.0 Recommendations	11
References	13















1.0 Introduction
Poverty is a complex word that is interpreted differently by different people from different geographical domiciles and in different social and economic circumstances. Many definitions of poverty major with food insecurity, uncertainties about a secure source of livelihood. Other factors like dependency and lack of freedom of expression also contribute to the definition. It is the depravation of a certain physical need. Poverty is a wide spread problem that is affecting many people globally. There are many causes of poverty which include political instability, unemployment, underemployment, and rural urban migration, unpredictable weather changes causing famine and drought, poor, farming methods, inadequate infrastructure, alcoholism and unequal distribution of resources.
 	When a person is reduced to poverty he or she cannot afford the basics of life. As a result poor people are denied literacy, good nourishment and good health. Poor people are held down by multiple disadvantages; Material and social deprivation, physical insecurity and powerlessness (Shah 2008, p.1).  Job opportunities are limited and this contributes to the winding up the poverty gap between the poor and the rich in the society.




1.1 Problem Statement
The reasons for rising gap between rich and poor of the world despite the global opportunities worldwide













2.0 Literature Review
To some people poverty means the lack of food, shelter and clothing. To others it may mean lack of money to buy basic needs. Also others would mean to lack luxuries that make life more comfortable. However, the level depends on the general standards of the people in a country. ‘The developing world is poorer than we thought, but no less successful in the fight against poverty’ (Chen 2008, P.4). Whereas poverty elicits strong emotions, it remains a negative entity that cannot be determined empirically therefore, it is meaningless. There are many kinds of poverty like financial, material, moral, spiritual, psychological and, physical poverty.
2.1 Welfare state, origins, Seebohm Rowntree 
Welfare state means that the state has the responsibility of caring for its citizens. This reduces poverty since most of their needs are catered for. Absence of welfare state impacts the poor people in a negative way leading to great human suffering. The poor cannot help themselves nor does the state help them. Social reforms should lay the foundations of welfare state. This ensures that the government bears the responsibility of caring for its citizens. The national poverty line as defined by Rowntree comprises of food, clothing, rent, light and fuel, personal and household sundries.
Poverty can result from natural difficulties and conditions established by mankind, secondary poverty as a result of industrialization, the existence of great law where “For unto every one that hath shall be given, and he shall have abundance: but from him that hath not, even that which he hath shall be taken away”, and sheer carelessness of the working class (Walker 1897, p. 12). According to Walker, moral and mental disease contributes to poverty and people should be taught on how to become sensible, morally and mentally upright beings. 
In his bid to define poverty, Rowntree 1951, p. 1, proposed two poverty definitions: primary and secondary. Primary poverty is where people live in absolute poverty and cannot afford to meet minimal daily needs. Secondary poverty means that the total earnings of a person can only meet the minimum basic requirements sufficiently. Rowntree 1951, p.15, measures poverty line using minimum expenditure on basic needs such as a balanced diet, clothes and the ability to maintain physical health.
2.2 Impact of Globalization on poverty
Globalization has opened up a wide range of opportunities in various fields. It has increased accessibility to technological and industrial services which were previously inaccessible in the underdeveloped and marginalized areas thus making them more vulnerable to poverty. The context of globalization impacts on poverty is specific hence countries wishing to benefit from globalization should adopt pro-active measures in the formulation of national and regional strategies. These strategies provide potential solutions towards poverty eradication and minimize the negative impacts of poverty. Globalization offers huge potential towards poverty eradication. According to Nissanke and Thorbecke(2010 No. 3), the rate impact of poverty reduction remains uneven despite the potential of globalization on the world economy. Asia has shown positive response towards poverty reduction due to the benefits of globalization (Nissanke &Thorbecke 2010, No. 3). 
In spite of the globalization opportunities, some countries in the sub-Saharan Africa have refused to transform and diversify in order to benefit from global opportunities. This has led to retarded economic growth and debilitating poverty. In the context of poverty, globalization means technological change, trade openness, international labor flows, financial integration and liberty. Globalization impacts economic dimensions such as technology, job opportunities, labor migration, and trade and capital flow and has significantly reduced the level of poverty globally. Although globalization can lead to economic development and eradicate poverty, some people believe that it can easily lead to unemployment, increase poverty and lower the standards of living of the poor people (Anwar 1996, p. 911)













3.0 Methodology
Primary and secondary methods of data collection will be used for this research. The methods applied attempts to establish and analyze the status of the problem, appraising the effectiveness to curb this problem and try to find solutions.














4.0 Conclusion 
Global opportunities such as technology and industrialization come at a price. This is one of the reasons why the poor remain poor because they may not afford to purchase and keep track of the many global change demands. The rich have buying power which the poor may not possess. This leads to overdependence and reliance on aids and grants. Globalization may increase poverty as a result of global financial markets and free trade. The demand for highly skilled labor at the expense of semi skilled labor can result to loss of employment opportunities for the poor people who lack access to high quality standard training. Countries with buying power are able to access advanced technology in comparison to those from poor countries. This is applicable to the widening gap between the rich and the poor since the rich have more bargaining and buying power.
Poverty is a major drawback to the development of a country and if well addressed by the relevant authorities, can reduce greatly thus paving way for the development of a country.  In order for sustainable poverty reduction to occur, emphasis on direct income enhancement for the poor can be done by raising the value productivity of self employment and wage labor.





5.0 Recommendations
The main approach to reducing poverty consists of focusing central budget expenditure on poverty reduction and fostering decentralized participatory development through community based programs and improving the quality of teaching and learning to reduce illiteracy. There are many economic activities that people can engage in depending on their geographical locations. There is need for people to be creative and innovative as this will enable them to explore and use their different talents to earn a living. There are many opportunities in different fields like agriculture, business, tourism and many more that people can come up with. 
Bank support through micro finance that reach the poor can help in poverty reduction. The banks provide capital for small scale businesses with friendly terms that the poor can easily access to start businesses. The government has a role to play in order to eradicate poverty. It should ensure that there is equal distribution and decentralization of resources in the country so as to minimize the rural urban migration. This will ease the congestion in the city thus gradually wiping out slums in the cities.
It is important to create jobs for people. This can be done by individuals, government and private sector in order to provide people with an income. People should be equipped with skills through trainings that can help them to nature individual projects. Small scale businesses like, food kiosk, green grocers which bring income thus, uplifting their living standards. This will help in alleviating poverty. 
It is crucial for people to participate in the projects that are set up in their community. They should come up with suggestions and ideologies that will contribute to the success of the project. Community participation instills local responsibility over the future of the projects beyond the funding cycle. Sustainability is assured where there is true local participation building a strong sense of local ownership.
The churches can help poor people by becoming agents of transformation using their influence to demand better governance and public accountability. Community mobilization and the management of resources are important as it will optimize on the use of local resources, talents and local technology.
Government can expand national poverty prevention measures. The efforts require well designed institutional structures, strategies and programs that help to reduce poverty. The broad strategy for poverty reduction emphasizes rural development, expansion of employment for rural and urban poor to basic public services. 
The improvement on access and participation especially for girls and other disadvantaged groups helps to empower them. Provision of employment skills through training people with disabilities and out of school youth including street children helps in reducing poverty.






References
Anwar Talat 1996, ‘ Structural Adjustment and Poverty’, The Case of Pakistan
pp. 357-382.
Chen, S., & Ravallion, M. 2008, ‘the developing world is poorer than we thought, but no less successful in the fight against poverty’,  Policy Research Working Paper 4703.  Aug 2008. The World Bank Development Research Group. The World Bank, Washington D.C. (1), 210-16.
Globalization-Inequality-Poverty Nexus, World Development, vol.34, 1338-1360 London : Longmans, Green and Co.  
Nissanke Machiko and Thorbecke Erik 2010, ‘Linking Globalization to Poverty in Asia, Latin America and Africa’, United Nations University Press, Policy Brief No. 3. http://unu.edu/publications/policy-briefs/linking-globalization-to-poverty-in-asia-latin-america-and-africa.html
Nissanke, Machiko and Erik Thorbecke, 2006, “Channels and Policy Debate in the 
Pakistan Development Review’,  35:4 Part II (Writer 1996) pp 911-926.
Ravallion, M., and S. H. Chen, 1997, “What Can New Survey Data Tell Us About  Recent Changes in Distribution and Poverty?”, World Bank Economic Review 11(2): 
Rowntree, Benjamin S., and G. R. Lavers 1951, ‘ Poverty and the Welfare State’, p. 15. 
Shah, A. 2008,‘Poverty facts and statistics’, 
Available at http://www.globalissues.org/TradeRelated/Facts.asp (last accessed 2 July 2008)
Walker, Francis A 1897, “The Causes of Poverty”,  The Century Magazine, LV