Causes of poverty in world A Lecture by Mr Allah Dad Khan Former DG Agri Extension KPK/Visiting Professor the University of Agriculture Peshawar Pakistan
The document discusses several factors that contribute to poverty in developing countries like Pakistan. These include subsistence farming cycles that cause periodic scarcity, natural disasters that destroy crops and infrastructure, poor governance, lack of education, unemployment, population growth, corruption, inequality, and environmental degradation. Developing countries often have limited resources to build resilience against these issues or support their populations when crises occur.
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Causes of poverty in world A Lecture by Mr Allah Dad Khan Former DG Agri Extension KPK/Visiting Professor the University of Agriculture Peshawar Pakistan
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5. People who rely on fruits and vegetables that they
produce for household food consumption
(subsistence farmers) often go through cycles of
relative abundance and scarcity. For many families
that rely on subsistence production for survival, the
period immediately prior to harvest is a 'hungry
period.' During these periods of scarcity, many
families lack sufficient resources to meet their
minimal nutritional needs. Being familiar with these
cycles has enabled development practitioners to
anticipate and prepare for periods of acute need
for assistance.
6. Besides the immediate destruction caused
by natural events such as hurricanes,
environmental forces often cause acute
periods of crisis by destroying crops and
animals
7. Natural disasters such as hurricanes and
earthquakes have devastated communities
throughout the world. Developing countries
often suffer much more extensive and
acute crises at the hands of natural
disasters, because limited resources inhibit
the construction of adequate housing,
infrastructure, and mechanisms for
responding to crises.
8. Good governance is an essential pre-condition for
pro-poor growth as it establishes the enabling
regulatory and legal framework essential for the
sound functioning of land, labor, capital and other
factors of market. Whereas, good governance is
considered to be non-existent in Pakistan and poor
governance is taken one of the key underlying
causes of poverty in Pakistan. Poor governance
has not only enhanced vulnerability, but is the
prime cause of low business confidence, which in
turn translates into lower investment levels and
growth.
9. Political stability is fundamental to the
creation of an enabling environment for
growth and development. Economic
agents, particularly investors, must be
reassured with regard to the continuation
of policies, should have confidence in the
government’s credibility in order to operate
effectively, and in the case of investors, be
induced to take risks.
10. Economic factors have also contributed in
making life difficult for all sections of
society except the very rich. Decline in the
Gross Domestic Product (GDP) growth
rate is the immediate cause of the increase
in poverty. According to the latest data
released by the State Bank, GDP is
unlikely to grow by more than 2 per cent
this year.
11.
Poverty in many developed countries can be linked to economic
trends.
Changes in labor markets in developed countries have also
contributed to increased poverty levels. For instance, the number of
relatively high-paying manufacturing jobs has declined, while the
demand for workers in service- and technology-related industries
has increased. Historically, people have learned the skills required
for jobs that involve manual labor, such as those in manufacturing,
either on the job or through easily accessible school vocational
programs. As these jobs are replaced by service- and technology-
related jobs—jobs that usually require skills taught at the college
level—people who cannot afford a college education find it
increasingly difficult to obtain well-paying work
12. The country’s education indicators portray a dismal
picture when compared with other countries at the
similar level of GDP per capita. More specifically,
the public expenditure on education as percent of
GNP have been around 2% in Pakistan compared
to other (low income) countries of the region.
Since, foundation of any development in socio-
economic sector is corollary to the level of
education / skills of its human capital therefore,
general perception that one of the main causes of
the poverty in Pakistan is pitiable state of
education across the country
13.
In many developing countries, the problems of poverty
are massive and pervasive. In recent decades most of
these countries have tried to develop their economies
with industry and technology with varying levels of
success. Many developing countries, however, lack
essential raw materials and the knowledge and skills
gained through formal education and training. Because
these things are necessary for the development of
industry, developing countries generally must rely on
trade with developed countries for manufactured
goods, but they cannot afford much
14.
Some researchers also cite demographic
shifts as contributing to increases in overall
poverty. In particular, demographic shifts have
led to increases in poverty among children.
In the United States, for instance, typical
family structures have changed significantly,
leading to an increase in single-parent
families, which tend to be poorer.
15.
- Unemployment is rampant now that the
global financial crisis has ravaged the world's
economy. With a higher number of
unemployed people, crime rates in these
cities will increase as people grow desperate
to survive. It is also believed, however, that
some governments of the world intentionally
keep a "sufficient" number of people out of
work as a replacement batch when the need
arrives.
High rate of unemployment
16.
17. Typically if rural workers’ wages go up, so will
that of urban workers. People in cities need
higher wages when farmers make more
money because they need to be able to afford
the higher food prices. And that way
businesses can also lure more rural workers
into working in better-paying factories. What
does it mean? That only higher productivity
will increase salary of rural workers. So
farmers that offer a low productivity are partly
to blame for the poverty in rural and urban
areas.
18. Being from an agricultural country, most of
the people of Pakistan have farming as their
primary source of living. This source is
shrinking with the division of lands amongst
the family members and depriving honorable
way of living to the families- once well of.
Only 37% of rural households own land and
around 35 million people in rural areas are
poor- representing about 80% of Pakistan’s
poor.
19. The lack of transparency in public sector
planning, budgeting and allocation of
resources in Pakistan has been the
hallmark of our financial resource planners
and policy makers. Political or the ruling
leadership has never responded to the real
needs of the populace and accountable to
the promises they made with the public.
20. In many developing countries, political power is
disproportionately centralized. Instead of having a
network of political representatives distributed
equally throughout society, in centralized systems
of governance one major party, politician, or region
is responsible for decision-making throughout the
country. This often causes development problems.
For example, in these situations politicians make
decisions about places that they are unfamiliar
with, lacking sufficient knowledge about the
context to design effective and appropriate policies
and programs
21. Warfare contributes to more entrenched
poverty by diverting scarce resources from
fighting poverty to maintaining a military.
Take, for example, the cases of Ethiopia
and Eritrea. The most recent conflict over
borders between the two countries erupted
into war during 1999 and 2000, a period
when both countries faced severe food
shortages due to drough
22.
High subsidies and protective tariffs for
agriculture in the developed world drains the
taxed money and increases prices for
consumers in the developed world,
decreasing competition and efficiency and
preventing exports by more competitive
agricultural and other sectors in the
developed world due to retaliatory trade
barriers and undermining the very type of
industry in which developing countires do.
23. Corruption is one of the most dangerous
factor that eroded Pakistan’s economic
and governance system since its inception.
The corruption and corrupt practices are
not restricted to public servant only rather,
social dishonesty and irresponsible
behavior of people as well. Every one tries
to become rich in nighttime by using unfair
means
24.
Governance is defined as the manner in which power
is exercised in the management of a country's social
and economic resources for development.
Good governance implies a capacity to turn public
income into human development outcomes. Good
governance is an essential pre-condition for pro-poor
growth as it establishes the enabling regulatory and
legal framework essential for the sound functioning of
land, labor, capital and other factor markets.
25. One of the more entrenched sources of poverty
throughout the world is social inequality that stems
from cultural ideas about the relative worth of different
genders, races, ethnic groups, and social classes.
Ascribed inequality works by placing individuals in
different social categories at birth, often based on
religious, ethnic, or 'racial' characteristics. In South
African history, apartheid laws defined a binary caste
system that assigned different rights (or lack thereof)
and social spaces to Whites and Blacks, using skin
color to automatically determine the opportunities
available to individuals in each group.
26. Awareness and concern about environmental
degradation have grown around the world over the last
few decades, and are currently shared by people of
different nations, cultures, religions, and social classes.
However, the negative impacts of environmental
degradation are disproportionately felt by the poor.
Throughout the developing world, the poor often rely
on natural resources to meet their basic needs through
agricultural production and gathering resources
essential for household maintenance, such as water,
firewood, and wild plants for consumption and
medicine. Thus, the depletion and contamination of
water sources directly threaten the livelihoods of those
who depend on them.
27. in Karachi, Balochistan and other parts of the
country supplemented with war against terror
has retarded Pakistan production process.
The worsening situation is affecting the social
order as a whole and adding to uncertainties
in business circles, resultantly stock markets
are crumbling, investors are loosing and
uncertain increase in commodity prices is
leading to poverty for common man.
28. is yielding opposite results then the intended ones.
National assets are going in to foreign hands,
companies are monopolizing their ownership and
common consumers are being exploited and
charged heavily. Performance of KESC has gone
further down and people of Karachi are being
asked to pay more against the poor services
marred with long spells of load shedding/ power
shortage after the privatization. Similarly gas prices
in the country have shot up after privatization of
some of the gas plants.
29. Owing to number of factors Pakistan has
not been able to attract needed level of
FDI despite its pro liberalization and
investor friendly policies
30. : Inflation in prices of every item of goods and
service in Pakistan has been sky rocketing for the
last few years but the current year is setting new
records in this regard. This phenomenon has
rapidly undermined the purchasing power of low
income groups though the price hike in every
consumable and non-consumable item has direct
or indirect price shocks for the low-income families
but the food and energy price shocks have serious
impacts on the poverty environment in rural and
urban areas
31. Due to rapidly increasing population the
problem of food shortage in most developing
countries are compounded by inadequate
provision of basic services such as health and
sanitation facilities, shelter and safe drinking
water, also lack of education and increasing
unemployment. Owing to shrinking
developmental funds visa vise population
growth. Resultantly the phenomenon gives
further rise to the poverty line upward