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Foreign Aid or Trap
Is Aid or Growth the answer to Poverty Alleviation? by Bhuwan Thapaliya In the 1950s and 60s, economists argued that rapid economic growth was the key to escape from underdevelopment, because growth advanced the critical indicators: income, employment, education, health, as well as political and economic modernization. However, beginning in the 1970s, policy makers put the brakes on funding for growth, while in the work of a new school of development economists, growth strategies fell completely out of favor. The World Bank now suggests that early development economists had it right by putting first priority on economic growth. The key ingredient in underdevelopment is poverty. Growth in income and the alleviation of scarcity produce improvements in the quality of life across a broad set of indicators. We may have wasted several decades by placing growth at the bottom of our priorities. There are over 1.2 billion people worldwide who live on less than one dollar a day. The UN goal to reduce world poverty by 50 percent by 2015 does not appear to be achievable. Poverty is likely to grow at frightening speed, because most of the 2 billion people to be born between now and 2025 will be born in the poorer countries. If advanced countries do nothing to reduce the economic and social distances between countries, poverty will blossom. The wealthy nations must put in the resources needed to do serious developmental work, and they must keep working the problem until the results are assured. They must lift the bottom of the human condition to improve the quality of life for everybody. If they make an honest effort to help the poor their effort won’t be wasted for sure. Millions of people go to bed hungry every night. They are empty. Can you feel their emptiness? Can you feel the air steering inside their stomachs? Often they fool their belly thinking that it’s full but there is no way to get used to abysmal hunger and before the dawn they ebb, falter and die. Leaving, only the legacy of death before their time. But poverty does not drop from the sky nor does that spring from the earth like the evil spirits. They are the products of social disorganization, and society is therefore responsible for its existence. To remove the disease we must fist discover the underlying cause. To find the remedy will then be rather easy task. It is not often wise to blame the outside world alone. It is essential that the economical and socio-cultural structure of the society should also be taken into consideration while the reasons of poverty are explained. There is no second argument. We should help the poor. But we should try to solve the problem of poverty by not only giving charity to the poor. This will not help them in the long run. The proper aim should be to try and reconstruct society on such a basis that poverty will be impossible. Over the years, social scientists have identified a wide range of factors which help determine the causes of poverty. Corruption causes poverty, by draining scarce funds away from those most in need. Internal conflicts disrupt economic growth and moreover increased global military spending diverts spending from social and economic development. And the unbalanced sharing of income in the society is one of the most important factors of poverty. The worst element is that the psychological impact of the poverty will be felt for more than a generation. It is ironic, given that one of the leading causes of poverty is internal violence and the acts of domestic terrorism are making the world’s poorest nations poorer. The effects of violence on a poverty ridden country such as Nepal are simply devastating, and no amount of free trade agreements alone can begin to offset this problem. Never has it been more important for the humanity together to agree how we can build a better kind of world sans abysmal poverty. The new world order will have to address these fundamental global challenges. About the Author(s): See under Our Contributors to find out about the Author(s) of this article. |
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