Thursday, May 29, 2008

What Causes Poverty?

Asked by a fifth year medical student after a presentation about the work of HOPE a few days ago. How would you have responded?

2 comments:

Anonymous said...

Hi Lowell,

On a macro-level...failed governments would top my list/war and conflict are another. There is the argument that 'globalization' and capitalist/free market systems certainly aggravate it. Certainly WB and IMF policies can have causal or aggravating effects as well.

On a micro-level..."shocks" can send a family into poverty - illness or death of the bread-winner/natural disasters/economic downturn can certainly plunge people below the poverty line.

Poverty is also often "inherited"

This is a question (as much as "what is poverty") that we exam in various classes. Next time, maybe consider what causes "chronic" poverty...another concept in itself, eh?

Unknown said...

Lowell,

Great idea, but a hard topic to handle from an email/blog perspective to give really good thoughts from me, but will try. (Always join for a coffee in Osaka and discuss).

One of my beliefs is that poverty (on the macro level) is not caused, since you have had to had some form of wealth and lose it for it be caused. The question may be better as why does poverty persist despite efforts to eradicate it?

Also, I think Erin noted it well, "What is Poverty" as being relevant. Without a standard definition going to causes can be difficult since we are not 100% sure we are all talking about the same thing.

Anyway, countries, cultures, populations, or whatever term you want to use for them that have had some measure of success and then have fallen back to poverty generally are a result of poor government, weak legal structures (corruption become more prevalent), and war/conflict as already noted by Erin.

I think government tops the list for me as you can see in in the recent Myanmar/Burma aid as well as how China handled the earthquake. One government delayed and delayed exacerbating a bad situation when help could have been there. The other shows why it is on the fast track with its economy as the government acted quite well (not perfect but big difference from Myanmar).

As for the micro level Erin puts it best as well as for the inherited line. We inherit wealth and we also inherit poverty which is perhaps the biggest issue to me on the micro level issue.