Poverty: Causes of a Global Phenomenon

776 WordsFeb 7, 20183 Pages
Poverty: Causes of a global phenomenon Overall, world poverty rates continue to stagnate, despite much-heralded growth in China and India. "Today the annual median per capita income in developing countries is $3,000, a figure that indicates only modest progress since 1975, when the median income level was about $2,500. Over this same time period, median per capita income in developed countries increased from about $15,000 to more than $25,000" (Poverty reduction and growth: Virtuous and vicious circles, 2012, World Bank: 103). Furthermore, poverty reduction even in the developing world has not been equal: "while China experienced annual per capita growth of about 8.5 percent between 1981 and 2000, reducing poverty by 42 percentage points, Latin America's per capita GDP declined by 0.7 percent during the 1980s and increased by about 1.5 percent per year in the 1990s, with no significant changes in poverty levels" than $25,000" (Poverty reduction and growth: Virtuous and vicious circles, 2012, World Bank: Introduction). While China's exponential rise in growth is heartening, "China accounts for nearly all the world's reduction in poverty," and "excluding China, poverty fell only by around 10%" (Shah, 2012, Poverty around the world). This contradicts one common theory about poverty: that overall economic expansion and growth will be enough to liberate the world's poor. "Almost half the world over three billion people live on less than $2.50 a day" and from a macro
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