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TERM PAPER
SOC 101 (INTRODUCTION TO SOCIOLOGY)
SEC:1; SUMMER 2013
The Social cause of Poverty
Submitted to
Ms. Lutfun Nahar Lata
Lecturer, Department of Economics and Social Sciences (ESS)
BRAC University
Prepared by
• Tareq Mahmud
• Tanvir Ahmed Sakif
• Mashrur Ridwan
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Chapter Page no.
1. Introduction 4
2. Methodology
2.1 Focus Group
2.2 Group size
2.3 Data collection
2.4 Data Analysis
2.5 Limitation
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3. Descriptive Results
3.1Overpopulation
3.2 Population Density
3.3 Birth Rates
3.4 Distribution of resources
3.5 lack of education
3.6 Environmental degradation:
3.7 Economic trends:
3.8 Demographic shifts:
3.9 Others:
3.10 Economic
- High rate of unemployment
- Unfair trade
3.11 Corruption (Economically-
wise)
3.12 Tackling corruption
3.13 Poor Governance
3.14 Political
-Prejudice and inequality
-Corruption (Politically-wise)
-Centralization of Power
-Civil War
3.15 3.15Natural Disasters
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4. Collective
Positives
Negatives
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Conclusion 24
Reference 24
TITLE: The Social cause of Poverty
1. Introduction:
Poverty is a term of low income it refers to the deprivation of basic needs which is mostly foods,
sufficient cloth, shelter, health care, pure drinking water, proper sanitation facilities, and
education. Poverty is a global phenomenon. There are many reasons behind this poverty.
According to world health organization if any persons daily income is less than US$2 is consider
as poor. In our country many people live in poverty without it there are also so many people
living under poverty line. In this paper our group member interviewed some poor people to
investigate and find out the reasons behind there poverty.
2. Methodology:
Poverty As Defined By...
What is Poverty? We all know that very word relates to the very poor, but what else?
"Poverty is the deprivation of common necessities such as food, clothing, shelter and safe
drinking water, all of which determine our quality of life."
- Wikipedia
Generally, the term poverty refers to :
1) the lack of daily necessities
-- water(potable water, of course)
-- food
-- clothing
-- shelter
2) financial incapability for education and other
With the lack of daily necessities comes many problems. Without potable water, the risks of
contracting cholera, a disease contracted upon contact with dirty water, are higher. Without food,
malnutrition, and other diet-related problems begin to emerge. With no proper clothing, these
people have nothing to protect their skin from the roughness of the environment. Death rates
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among the populace will increase, creating environmental problems. With that, more problems
shall rise as each reaction leads to another.
Without education, children of poor families cannot take on higher-paying jobs since they
lack the academic qualifications required, and are thus forced to take on low-paying jobs i.e.
contract worker, construction worker, cleaner, etc. With a low paying job, these children will
eventually be unable to support their families, let alone support him or herself. With that, the
vicious cycle goes on.
“The World Bank reports that global food prices rose 83% over the last three years and the FAO
cites a 45% increase in their world food price index just the past nine months. The Economist’s
comparable index stands at its highest point since it was originally formulated in 1845. As of
March 2008, average world wheat prices were 130% above their level a year earlier, soy prices
were 87% higher, rice had climbed 74%, and maize was up 31%.”
— Eric Holt-Giménez and Loren Peabody, From Food Rebellions to Food Sovereignty: Urgent
call to fix a broken food system, Institute for Food and Development Policy, May 16, 2008
Poverty is an exceptionally complicated social phenomenon, and trying to discover its causes is
equally complicated. The stereotypic (and simplistic) explanation persists—that the poor cause
their own poverty—based on the notion that anything is possible in America. Some theorists
have accused the poor of having little concern for the future and preferring to “live for the
moment”; others have accused them of engaging in self‐defeating behaviour. Still other theorists
have characterized the poor as fatalists, resigning themselves to a culture of poverty in which
nothing can be done to change their economic outcomes. In this culture of poverty—which
passes from generation to generation—the poor feel negative, inferior, passive, hopeless, and
powerless.
The “blame the poor” perspective is stereotypic and not applicable to all of the underclass. Not
only are most poor people able and willing to work hard, they do so when given the chance. The
real trouble has to do with such problems as minimum wages and lack of access to the education
necessary for obtaining a better‐paying job.
More recently, sociologists have focused on other theories of poverty. One theory of poverty has
to do with the flight of the middle class, including employers, from the cities and into the
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suburbs. This has limited the opportunities for the inner‐city poor to find adequate jobs.
According to another theory, the poor would rather receive welfare payments than work in
demeaning positions as maids or in fast‐food restaurants. As a result of this view, the welfare
system has come under increasing attack in recent years.
Again, no simple explanations for or solutions to the problem of poverty exist. Although varying
theories abound, sociologists will continue to pay attention to this issue in the years to come.
2.1 Focus Group
Bangladesh is generally a poor developing country. The majority of her people are poor. Most of
them fall under poverty. So our focus is mostly on these people.
Causes and Effects of Poverty
Any discussion of social class and mobility would be incomplete without a discussion
of poverty, which is defined as the lack of the minimum food and shelter necessary for
maintaining life. More specifically, this condition is known as absolute poverty. Today it is
estimated that more than 35 million Americans—approximately 14 percent of the population—
live in poverty. Of course, like all other social science statistics, these are not without
controversy. Other estimates of poverty in the United States range from 10 percent to 21 percent,
depending on one's political leanings. This is why many sociologists prefer a relative, rather than
an absolute, definition of poverty. According to the definition of relative poverty, the poor are
those who lack what is needed by most Americans to live decently because they earn less than
half of the nation's median income. By this standard, around 20 percent of Americans live in
poverty, and this has been the case for at least the past 40 years. Of these 20 percent, 60 percent
are from the working class poor.
2.2 Group Size:
Each group was consisted of two members. We have taken 3X2 interviews from 3 class of
people and they are the Upper Class, Middle Class and the Lower Class people.
2.3 Data Collection:
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We have divided the society into three classes. We have also taken their in interviews and their
interviews are listed below:
UPPER CLASS PEOPLE
Question 1: What do you think about poverty and which type of people do you think as poor?
MR. Fakhar Uddin: Poverty is generally given term to people who earns everyday and spends
that daily income they are generally the poor people. They don’t have any resurvey money or
cash in the bank.
Mr. Wahidul Islam Biddut: Those people who can’t full fill their all wishes dew to economical
conditions on basis of their income they lie under poverty. They are usually the poor people of
our country.
Question 2: What is the social cause of poverty?
Mr. Fakhar Uddin: Society pushes the poverty in many ways, like instead of sending a child to
school we are enforcing them to work at houses, shops and different offices. The society don’t
respect the poors and the people of the society also don’t allow them to stay around our
neighborhood.
Mr. Wahidul Islam Biddut: Society is actually not responsible for poverty. It is the poor people
then selves who are responsible. May be many of them did not get the opportunity but the society
is helping them.
Question 3: How Society is increasing poverty?
Mr. Fakhar Uddin: It is almost the same as I said before but including that Corruption and
natural disaster is another main reason behind it. We don’t give them any chance to improve
their self.and come out of poverty.
Mr Wahidul Islam Biddut: I don’t think society is increasing poverty. Instead they are tiring to
decrease this problem. In various society the people are helping them and giving them
education ,but what is they fault if there tries are going to vain. They are also financelly helping
them through many ways but if the poverty think that is not enough then what is there mistake in
this.
Question : what can be the role of society to dcrease poverty ?
Mr. Fakhar Uddin : The upper class society is the one who can help them the most. If one able
person takes the responsibilities of other disable person than the poor people will get the chance
to gather education and I think the educated people will not remain under poverty they will be
able to do some thing or the other with there education.
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Mr Wahidul Islam Biddut: The society is already doing manything if it do not improve by this
way than it is the fault of those povrty class people who don’t know to utilize the resources
provided to them.the think that could be included that is the higher society must not through
them far away.
MIDDLE CLASS PEOPLE:
Q1)What do you think about poverty? give me your opinion.
Firstly Poverty is basically a low standard of living which is widespread in an undeveloped
countries. It occurs mainly when people have very Little amenities like food, health, education
Etc.
Q2.What are the social causes of poverty? Could you explain from your point of view?
The main cause would be the unequal distribution of wealth between rich and the poor and
Secondly lacking of education among the people...of course the poor ones And it is often seen
that The richer owner are always dominant over the poor ones and backward classes in a
society....That is also Another cause.
Q3.Which class of people is responsible for this unequal distribution of wealth?
The dominant ones or the richer class more precisely. Since they were wants are much more
higher and also they consume more and the ones in a poor class.
Q4.Do you think our society can provide proper facilities to poor people? Which facilities should
society provide to them?
Of course as it is said that nothing is impossible so in fact I do not think that is impossible to
provide proper facilities or helping them by contributing some of our wealth to them but i say
that its totally 100% possible to provide proper and required facilities to the poor people. The
facilities that are most required and helpful to them should they provided. Like helping them
assume there basic education...provides them the equal opportunities just as the rich ones and the
availability of providing jobs to them according 2 there capabilities.
Second Interview
What do you think about poverty? Give me your opinion.
A:want of insufficient food, cloth and living place which is very necessary to lead a normal life.
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2.What are the social cause of poverty? Could you explain from your point of view?
A: From the theory “Ragnar Nsrgs” The devil Circle of poverty and mostly lacking of
education.
3. any other cause do you think which is responsible for this poverty?
A. Insufficient resources and do not know the utilizing those resources properly is one of the
main cause. For want of education people could not know the way how to utilize those
insufficient resource. Want of revenue is also a cause .Some time people takes loan from
different banks and could not pay the lone in time because most of the banks give loan in high
interest . Many people become poor to pay the lone with high rate interest.
4.do you think our society can provide proper facilities to poor people? Which facilities should
society provide them?
A: Absolutely not. Those people who are poor they become poorer and those who are rich they
become more rich. In Bangladesh prospective there are no opportunities to poor. If society
could provide proper opportunities they can improve them self rapidly rather than rich people
with their positive thinking. Government and conscious people should take necessary steps for
improvement those poor people.
How does society treat poor people?
A: In our poverty treat as a crusts .Every one think that poor people have no values in our
society. People do not understand that those poor people are also an important part of our
society. People do not think that if the poor people will become self sufficient it will be good for
their society. Most of the people thinks other people as competitor . Every people should be more
ethical. If the help each other to improving themselves it will be more helpful to improve socio
economic development in Bangladesh. I believe that if our society educated all peoples and
every people become more ethical and helpful to each other than our country will become
developed. I hope if society treat properly for our owns development than our country will
become a model of others.
LOWER CLASS PEOPLE
Q.1-why do you think you are facing poverty?
Rabeya(maid servant)- I am illiterate. So, I have no knowledge about how to write and read. So,
Illiterate people are facing poverty.
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Karim (Ricksha-puller)- I was born I poor family. My father was farmer. He was not able to send
me school. So, I passed class 5. There is no job without degree. I have no degree. So, I have no
job and money.
Q.2-How does society treat you?
Rabeya- Society! We are not a member of society. We are not human being. We are bitch. They
treat us like an animal. I don’t think that they think us as human being .
Karim- Sometimes boys whose age is like my boy, try to hurt me. They bring sticks, hit me and
also slap me. Their parents smile when they punish us. Society treat us like this way. But some
people are really good. Sometimes they give us more money than our desired money.
Q.3- Which class of people will you blame for your economic condition?
Rabeya- I am poor but I don’t want to see my daughter and son will face poverty. So, I want to
send them school and want them literate. But rich people don’t help us. Sometimes they even
don’t give us our salary properly.
Karim- I have some cousins who are rich. They don’t help us. I have not enough money to send
them school. Not only rich people but also government doesn’t help us. We want scholarships
that we can send our children to school. If we are not able to send our children to school, our
poverty will never end.
Q.4- Which facilities do you think society can provide you?
Rabeya- We want proper salary. We want proper respect from society. If we don’t help them,
how society will earn money? Government can give us loan so that we can start business.
Karim- if society treats us properly, our poverty will decrease gradually. I want to start a grocery
shop’s, I need money. Government should give us loan.
Q.5- How will you utilize facilities?
Rabeya- I want to buy cows and goats so that I can make profit by selling milk. That will help us
to decrease poverty and my economic condition will be good.
Karim- I want to start a grocery shop. By making profit, I want to send my sons schools.
2.4 Limitation
As we have a very less time to do our thesis and we have faced different political issues during
our study time. Political situations like Hortal pushed us backward in going and doing many
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things. We also had the month of Holy Ramadan during our thesis work. We have visited slums
and some of them are not vary safe so we could not visit many places.
3. Descriptive Results:
Why we always remain under poverty?
In our short analysis of the many causes of poverty, we shall explore three sections- economic,
political, and external.
3.1 Overpopulation
Overpopulation is defined as the situation of having large numbers of people with too few
resources and too little space. Overpopulation can result from either a high population density
(the ratio of people to land area) or from low amounts of resources, or from both.
A high population density pressures the available resources in the country, as the resources can
only support a certain number of people.
Poverty can also depend on the country's mix of population density and agriculture productivity.
For example, Bangladesh has one of the world's highest population density with 1,147 persons
per sq km (2,970 persons per sq mi). A large majority of the people of Bangladesh engage in
low-productivity manual farming, which contributes to the country is extremely high level of
poverty. However, this only applies to third-world countries who do not have advanced
technologies.
High birth rates contribute to overpopulation in many developing countries. Children, especially
boys, are assets to many poor families because they provide labor, usually for farming. Cultural
norms in traditionally rural societies commonly sanction the value of large families. Also, the
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governments of developing countries often provide little or no support, financial or political, for
family planning (see Birth Control) Families may also not know about family planning due to the
lack of education. Hence, most developing countries have high rates of population growth.
3.2 Population Density
A country’s level of poverty can depend greatly on its mix of population density and agricultural
productivity. Bangladesh, for example, has one of the world’s highest population densities, with
1,078 persons per sq km (2,791 persons per sq mi). A large majority of the people
of Bangladesh engage in low-productivity manual farming, which contributes to the country’s
extremely high level of poverty.
Some of the smaller countries in western Europe, such as The Netherlands and Belgium, have
high population densities as well. These countries practice mechanized farming and are involved
in high-tech industries.
On the other hand, many countries in sub-Saharan Africa have population densities of less than
30 persons per sq km (80 persons per sq mi). Many people in these countries practice manual
subsistence farming. These countries have infertile land and lack the economic resources and
technology to boost productivity. As a consequence, these nations are very poor.
3.3Birth Rates
High birth rates contribute to overpopulation in many developing countries. Children are assets
to many poor families because they provide labor, usually for farming.
Cultural norms in traditionally rural societies commonly sanction the value of large families.
Also, the governments of developing countries often provide little or no support, financial or
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political, for family planning and birth control.
3.4 Distribution of resources:
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.
Because people in developed nations may have more wealth and resources than those in
developing countries, their standard of living is also generally higher. Thus, people who have
what would be considered adequate wealth and resources in developing countries may be
considered poor in developed countries.
In contrast, people in developing countries may consider themselves to be doing well if they
have productive gardens, some livestock, and a house of thatch or mud-brick. In rural areas,
people may be accustomed to not having plumbing, electricity, or formal health care. By the
standards of developed countries, such living conditions are considered hallmarks of poverty.
According to reports, people’s incomes are not enough to cover the cost of their basic necessities
and provide them basic services such as water, electricity, transportation and communication. It
pointed out that recent surveys confirm that 80 percent of citizen’s expenses go for to food, most
notably among vulnerable groups that are deprived of basic services and luxury means.
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3.5Lack of education:
Illiteracy and lack of education are common in poor countries. Governments of developing
countries often cannot afford to provide for good public schools, especially in rural
areas. Whereas virtually all children in industrialized countries have access to an education, only
about 60 percent of children in sub-Saharan Africa even attend elementary school. Poor people
also often forego schooling in order to concentrate on making a minimal living. In addition,
developing countries tend to have few employment opportunities, especially for women. As a
result, people may see little reason to go to school.
Reports have also argued that 41 percent of Yemen’s rural population lives on less than two
dollars per day, and 85 percent of Yemen’s poor population live in rural areas. It clarified that 47
percent of Yemen’s population are illiterate, which is another reason for poverty and
unemployment.
In countries with high populations, unemployment levels of only a few percentage points mean
that millions of working-age people cannot find work and earn an adequate income. Because
unemployment figures indicate only the number of people eligible to work who have no job but
are seeking employment, such figures are not necessarily an accurate indicator of the number of
people living in poverty. Other people may not be able to find enough work or may earn wages
too low to support themselves.
3.6Environmental degradation:
Environmental degradation is the deterioration of the natural environment, including the
atmosphere, bodies of water, soil, and forests — is an important cause of poverty. Environmental
problems have led to shortages of food, clean water, materials for shelter, and other essential
resources. As forests, land, air, and water are degraded, people who live directly off these natural
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resources suffer most from the effects. People in developed countries, on the other hand, have
technologies and conveniences such as air and water filters, refined fuels, and industrially
produced and stored foods to buffer themselves from the effects of environmental degradation.
In developing countries, deforestation has had particularly devastating environmental
effects. Many rural people, particularly in tropical regions, depend on forests as a source of food
and other resources, and deforestation damages or eliminates these supplies. Forests also absorb
many pollutants and water from extended rains; without forests, pollution increases and massive
flooding further decreases the usability of the deforested areas.
3.7 Economic trends:
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.
In many developed nations the number of people living in poverty has increased due to rising
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disparities in the distribution of resources within these countries.
Since the 1970s, for instance, the poorest 20 percent of all U.S. households have earned an
increasingly smaller percentage of the total national income (generally less than 5 percent) while
the wealthiest 5 percent of households have earned an increasingly greater percentage (about 45
percent of the total).
3.8Demographic shifts:
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.
There are differing beliefs about individual responsibility for poverty. Some people believe that
poverty is a symptom of societal structure and that some proportion of any society inevitably will
be poor. Others feel that poverty results from a failure of social institutions, such as the labor
market and schools.
In addition, many people in developed countries blame cycles of poverty, or the tendency for the
poor to remain poor, on overly generous welfare programs. Supporters of this position, including
some politicians, argue against government spending and initiatives to help the poor.
In the United States, the belief that cash welfare assistance actually encouraged personal
decisions leading to poverty dominated policy discussions of the 1990s. In response, in 1996 the
U.S. Congress created a new welfare program called Temporary Assistance to Needy Families
(TANF). This program ended the guarantee of cash benefits for poor families with children,
shifted more control to the states, and established stricter work requirements for recipients. The
numbers of poor families with children receiving cash welfare fell dramatically, from 4.6 million
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in 1996 to 2.1 million at the end of 2001.
3.9 Others:
Reports have noted that poverty is also symptomatic a symptom of poor basic services, scarce
financial resources and low returns from natural wealth such as oil, gas, minerals and fisheries
while revenues from public investments and taxes are exposed to corruption and embezzlement.
3.10 Economic
- High rate of unemployment
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.
- Unfair trade
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 countries do.
3.11 Corruption (Economically-wise)
Corruption often accompanies centralization of power, when leaders are not accountable to those
they serve. More directly, corruption inhibits development when leaders help themselves to
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money that would otherwise be used for development projects.
Corruption, both in government and business, places heavy cost on society. Businesses should
enact, publicize and follow codes of conduct banning corruption on the part of their staff and
directors.
Citizens must demand greater transparency on the part of both government and the corporate
sector and create reform movements where needed.
Corruption is both a major cause and a result of poverty around the world. It occurs at all levels
of society, from local and national governments, civil society, judiciary functions, large and
small businesses, military and other services and so on. Corruption affects the poorest the most,
whether in rich or poor nations.
The issue of corruption is very much inter-related with other issues. At a global level, the
economic system that has shaped the current form of globalization in the past decades requires
further scrutiny for it has also created conditions whereby corruption can flourish and exacerbate
the conditions of people around the world who already have little say about their own destiny.
A difficult thing to measure or compare, however, is the impact of corruption on poverty against
the effects of inequalities that are structured into law, such as unequal trade agreements,
structural adjustment policies,” free” trade agreements and so on.
It is easier to see corruption. It is harder to see these other more formal, even legal forms of
“corruption.” It is easy to assume that these are not even issues because they are part of the laws
and institutions that govern national and international communities and many of us will be
accustomed to it—it is how it works, so to speak.
This is not to belittle the issue of corruption, however, for its impacts are enormous evidently.
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3.12 Tackling corruption
A broader way to try and tackle corruption can be made by attempting to provide a more just,
democratic and transparent process in terms of relations between donor nations and their
creditors:
An independent process would have five goals:
To restore some justice to a system in which international creditors play the role of plaintiff,
judge and jury, in their own court of international finance.
To introduce discipline into sovereign lending and borrowing arrangements—and thereby
prevent future crises.
To counter corruption in borrowing and lending, by introducing accountability through a free
press and greater transparency to civil society in both the creditor and debtor nations.
To strengthen local democratic institutions, by empowering them to challenge and influence
elites.
To encourage greater understanding and economic literacy among citizens, and thereby empower
them to question, challenge and hold their elites to account.
3.13 Poor Governance
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.
Corruption and political instability resulted in weakening of business confidence, deteriorating
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economic growth, declining public expenditure on basic entitlements, low efficiency in delivery
of public services as discussed in the earlier section on human development, and a serious
undermining of state institutions and the rule of law.
3.14 Political
Prejudice and inequality
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
certain countries in the world, governments tend to favour a specific creed or race or people. This
is evident in South Africa. In South African history, apartheid laws defined a binary caste system
that assigned different rights and social spaces to different races, using skin colour to
automatically determine the opportunities available to individuals in each group. These people
enjoy educational, social and welfare benefits. For example, the children of these people are able
to enjoy education with subsidised school fees; adults are able to obtain high-paying jobs easily
etc. Instead of channelling resources to help those at need, the governments of these countries
choose to treat different races and creeds with prejudice and will treat others with
less favouritism. Hence, this leads to poverty.
Corruption (Politically-wise)
Corruption is a rampant problem in the world today, especially in third-world countries. It
undermines democracy and good governance by flouting formal processes. Corruption often
occurs when leaders are not accountable to those they serve. Corruption usually inhibits
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development when leaders help themselves to money that would otherwise be used for
development projects. Corruption increases the cost of business through the price of illicit
payments themselves, the management cost of negotiating with officials, and the risk of breached
agreements or detection. Also, it generates economic distortions in the public sector by diverting
public investment into capital projects where bribes and kickbacks are more
plentiful. In Nigeria for example, more than 400 Billion dollars was stolen from the National
Treasury by Nigeria's leaders from 1960 to 1999. Forms of such corruption include
embezzlement, bribery, cronyism, nepotism, graft etc. Hence, this leads to poverty as leaders
should have used the money they usurped to help the poor, which results in a lack of funds.
Centralization of Power
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, causing development problems. For example,
politicians make decisions about places that they are unfamiliar with, lacking sufficient
knowledge about the context to design effective and appropriate policies and programs.
Civil Wars
Wars like our liberation war in 1971 made us lame in all side. We just started out new nation
during that time. Our economy has restarted then. Then we had to face time like 1974, 1990, and
2008. These social wars make our situation poor and poorer.
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Natural Disasters
Natural disasters such as hurricanes and earthquakes have caused millions of dollars worth of
infrastructure and the loss of lives. Developing countries often suffer much more extensive and
acute crises at the hands of natural disasters, because limited resources become obstacles for the
construction of adequate housing, infrastructure, and mechanisms for responding to crises.
Natural disasters, being uncontrollable by man, affect annual agricultural output, such as floods
destroying the fertility of soils by washing away mineral-rich topsoil, and take away natural
decomposing agents, rendering the soil infertile. Droughts cause the land to become barren and
unsuitable for cultivation. The states of the U.S.A situated in Tornado Alley face constant fears
of poor harvests in the face of frequent tornado occurrences. In the case of the Sichuan
Earthquake in 2008 and The 2004 Tsunami catastrophe not only resulted in the loss of
agriculture, but the destruction of millions of dollars worth of infrastructure as well.
4. Collective
As we have taken the interview of three class of people we have found out various ideas from
different prospective of people. In some cases their thought was positive and where as in other
cases their thought was negative. They are described below
Positives
The lower class people get some facility as said by the upper class people. The Middle class
people are satisfied and they want to move towards the higher class. The Middle class can easily
23
cope up with the Higher class they have a very less boundary in between them. The Higer class
wants to help the poor’s.
Negatives
The Lower class people have no bound of their need. Even after getting lot of facility they don’t
use it. In some cases the higher class people cant tolerate the poor class and they only think of
them. Both the middle class and the Higher class negates the pours but the middle class has a bit
more sympathy for the poor’s. The lower class has a want but no effort.
Conclusion
There are things that some people until now can't apprehend. Aside from the everyday
expenditure, many people have vices such as cigarettes and alcohols which we weren't able to
include in our daily expenses. When people begin to get wages or salaries, they immediately
spend the money for worthless and nonsense things instead of saving it. Some of them, if it is not
for their vices, they spend their money in stakes, testing their luck and expecting to be rich
immediately.
As we all know, poverty is a curse. It was written in the Bible that God has curse man, "In toil
you will eat of it all the days of your life." This only means that man can't eat without working
hard. God will only provide for those who are persistent. There's no place in this world for lazy
people.
24
Reference
http://povertyhci.weebly.com/causes-of-poverty.html (July 22, 2013; 11:55PM)
http://povertyhci.weebly.com/how-do-you-define-poverty.html (July 23, 2013; 01:57AM)
http://www.cliffsnotes.com/sciences/sociology/social-and-global-stratification/causes-and-
effects-of-poverty (July 23, 2013; 02:12AM)
25

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The social cause of poverty

  • 1. TERM PAPER SOC 101 (INTRODUCTION TO SOCIOLOGY) SEC:1; SUMMER 2013
  • 2. The Social cause of Poverty Submitted to Ms. Lutfun Nahar Lata Lecturer, Department of Economics and Social Sciences (ESS) BRAC University Prepared by • Tareq Mahmud • Tanvir Ahmed Sakif • Mashrur Ridwan 2
  • 3. 3
  • 4. 4 Chapter Page no. 1. Introduction 4 2. Methodology 2.1 Focus Group 2.2 Group size 2.3 Data collection 2.4 Data Analysis 2.5 Limitation 4-10 6 6 6 10 10 3. Descriptive Results 3.1Overpopulation 3.2 Population Density 3.3 Birth Rates 3.4 Distribution of resources 3.5 lack of education 3.6 Environmental degradation: 3.7 Economic trends: 3.8 Demographic shifts: 3.9 Others: 3.10 Economic - High rate of unemployment - Unfair trade 3.11 Corruption (Economically- wise) 3.12 Tackling corruption 3.13 Poor Governance 3.14 Political -Prejudice and inequality -Corruption (Politically-wise) -Centralization of Power -Civil War 3.15 3.15Natural Disasters 10-22 11 12 12 12 13 14 15 16 17 18 18 18 18 19 20 20-22 20 21 22 22 4. Collective Positives Negatives 23 23 23 Conclusion 24 Reference 24
  • 5. TITLE: The Social cause of Poverty 1. Introduction: Poverty is a term of low income it refers to the deprivation of basic needs which is mostly foods, sufficient cloth, shelter, health care, pure drinking water, proper sanitation facilities, and education. Poverty is a global phenomenon. There are many reasons behind this poverty. According to world health organization if any persons daily income is less than US$2 is consider as poor. In our country many people live in poverty without it there are also so many people living under poverty line. In this paper our group member interviewed some poor people to investigate and find out the reasons behind there poverty. 2. Methodology: Poverty As Defined By... What is Poverty? We all know that very word relates to the very poor, but what else? "Poverty is the deprivation of common necessities such as food, clothing, shelter and safe drinking water, all of which determine our quality of life." - Wikipedia Generally, the term poverty refers to : 1) the lack of daily necessities -- water(potable water, of course) -- food -- clothing -- shelter 2) financial incapability for education and other With the lack of daily necessities comes many problems. Without potable water, the risks of contracting cholera, a disease contracted upon contact with dirty water, are higher. Without food, malnutrition, and other diet-related problems begin to emerge. With no proper clothing, these people have nothing to protect their skin from the roughness of the environment. Death rates 5
  • 6. among the populace will increase, creating environmental problems. With that, more problems shall rise as each reaction leads to another. Without education, children of poor families cannot take on higher-paying jobs since they lack the academic qualifications required, and are thus forced to take on low-paying jobs i.e. contract worker, construction worker, cleaner, etc. With a low paying job, these children will eventually be unable to support their families, let alone support him or herself. With that, the vicious cycle goes on. “The World Bank reports that global food prices rose 83% over the last three years and the FAO cites a 45% increase in their world food price index just the past nine months. The Economist’s comparable index stands at its highest point since it was originally formulated in 1845. As of March 2008, average world wheat prices were 130% above their level a year earlier, soy prices were 87% higher, rice had climbed 74%, and maize was up 31%.” — Eric Holt-Giménez and Loren Peabody, From Food Rebellions to Food Sovereignty: Urgent call to fix a broken food system, Institute for Food and Development Policy, May 16, 2008 Poverty is an exceptionally complicated social phenomenon, and trying to discover its causes is equally complicated. The stereotypic (and simplistic) explanation persists—that the poor cause their own poverty—based on the notion that anything is possible in America. Some theorists have accused the poor of having little concern for the future and preferring to “live for the moment”; others have accused them of engaging in self‐defeating behaviour. Still other theorists have characterized the poor as fatalists, resigning themselves to a culture of poverty in which nothing can be done to change their economic outcomes. In this culture of poverty—which passes from generation to generation—the poor feel negative, inferior, passive, hopeless, and powerless. The “blame the poor” perspective is stereotypic and not applicable to all of the underclass. Not only are most poor people able and willing to work hard, they do so when given the chance. The real trouble has to do with such problems as minimum wages and lack of access to the education necessary for obtaining a better‐paying job. More recently, sociologists have focused on other theories of poverty. One theory of poverty has to do with the flight of the middle class, including employers, from the cities and into the 6
  • 7. suburbs. This has limited the opportunities for the inner‐city poor to find adequate jobs. According to another theory, the poor would rather receive welfare payments than work in demeaning positions as maids or in fast‐food restaurants. As a result of this view, the welfare system has come under increasing attack in recent years. Again, no simple explanations for or solutions to the problem of poverty exist. Although varying theories abound, sociologists will continue to pay attention to this issue in the years to come. 2.1 Focus Group Bangladesh is generally a poor developing country. The majority of her people are poor. Most of them fall under poverty. So our focus is mostly on these people. Causes and Effects of Poverty Any discussion of social class and mobility would be incomplete without a discussion of poverty, which is defined as the lack of the minimum food and shelter necessary for maintaining life. More specifically, this condition is known as absolute poverty. Today it is estimated that more than 35 million Americans—approximately 14 percent of the population— live in poverty. Of course, like all other social science statistics, these are not without controversy. Other estimates of poverty in the United States range from 10 percent to 21 percent, depending on one's political leanings. This is why many sociologists prefer a relative, rather than an absolute, definition of poverty. According to the definition of relative poverty, the poor are those who lack what is needed by most Americans to live decently because they earn less than half of the nation's median income. By this standard, around 20 percent of Americans live in poverty, and this has been the case for at least the past 40 years. Of these 20 percent, 60 percent are from the working class poor. 2.2 Group Size: Each group was consisted of two members. We have taken 3X2 interviews from 3 class of people and they are the Upper Class, Middle Class and the Lower Class people. 2.3 Data Collection: 7
  • 8. We have divided the society into three classes. We have also taken their in interviews and their interviews are listed below: UPPER CLASS PEOPLE Question 1: What do you think about poverty and which type of people do you think as poor? MR. Fakhar Uddin: Poverty is generally given term to people who earns everyday and spends that daily income they are generally the poor people. They don’t have any resurvey money or cash in the bank. Mr. Wahidul Islam Biddut: Those people who can’t full fill their all wishes dew to economical conditions on basis of their income they lie under poverty. They are usually the poor people of our country. Question 2: What is the social cause of poverty? Mr. Fakhar Uddin: Society pushes the poverty in many ways, like instead of sending a child to school we are enforcing them to work at houses, shops and different offices. The society don’t respect the poors and the people of the society also don’t allow them to stay around our neighborhood. Mr. Wahidul Islam Biddut: Society is actually not responsible for poverty. It is the poor people then selves who are responsible. May be many of them did not get the opportunity but the society is helping them. Question 3: How Society is increasing poverty? Mr. Fakhar Uddin: It is almost the same as I said before but including that Corruption and natural disaster is another main reason behind it. We don’t give them any chance to improve their self.and come out of poverty. Mr Wahidul Islam Biddut: I don’t think society is increasing poverty. Instead they are tiring to decrease this problem. In various society the people are helping them and giving them education ,but what is they fault if there tries are going to vain. They are also financelly helping them through many ways but if the poverty think that is not enough then what is there mistake in this. Question : what can be the role of society to dcrease poverty ? Mr. Fakhar Uddin : The upper class society is the one who can help them the most. If one able person takes the responsibilities of other disable person than the poor people will get the chance to gather education and I think the educated people will not remain under poverty they will be able to do some thing or the other with there education. 8
  • 9. Mr Wahidul Islam Biddut: The society is already doing manything if it do not improve by this way than it is the fault of those povrty class people who don’t know to utilize the resources provided to them.the think that could be included that is the higher society must not through them far away. MIDDLE CLASS PEOPLE: Q1)What do you think about poverty? give me your opinion. Firstly Poverty is basically a low standard of living which is widespread in an undeveloped countries. It occurs mainly when people have very Little amenities like food, health, education Etc. Q2.What are the social causes of poverty? Could you explain from your point of view? The main cause would be the unequal distribution of wealth between rich and the poor and Secondly lacking of education among the people...of course the poor ones And it is often seen that The richer owner are always dominant over the poor ones and backward classes in a society....That is also Another cause. Q3.Which class of people is responsible for this unequal distribution of wealth? The dominant ones or the richer class more precisely. Since they were wants are much more higher and also they consume more and the ones in a poor class. Q4.Do you think our society can provide proper facilities to poor people? Which facilities should society provide to them? Of course as it is said that nothing is impossible so in fact I do not think that is impossible to provide proper facilities or helping them by contributing some of our wealth to them but i say that its totally 100% possible to provide proper and required facilities to the poor people. The facilities that are most required and helpful to them should they provided. Like helping them assume there basic education...provides them the equal opportunities just as the rich ones and the availability of providing jobs to them according 2 there capabilities. Second Interview What do you think about poverty? Give me your opinion. A:want of insufficient food, cloth and living place which is very necessary to lead a normal life. 9
  • 10. 2.What are the social cause of poverty? Could you explain from your point of view? A: From the theory “Ragnar Nsrgs” The devil Circle of poverty and mostly lacking of education. 3. any other cause do you think which is responsible for this poverty? A. Insufficient resources and do not know the utilizing those resources properly is one of the main cause. For want of education people could not know the way how to utilize those insufficient resource. Want of revenue is also a cause .Some time people takes loan from different banks and could not pay the lone in time because most of the banks give loan in high interest . Many people become poor to pay the lone with high rate interest. 4.do you think our society can provide proper facilities to poor people? Which facilities should society provide them? A: Absolutely not. Those people who are poor they become poorer and those who are rich they become more rich. In Bangladesh prospective there are no opportunities to poor. If society could provide proper opportunities they can improve them self rapidly rather than rich people with their positive thinking. Government and conscious people should take necessary steps for improvement those poor people. How does society treat poor people? A: In our poverty treat as a crusts .Every one think that poor people have no values in our society. People do not understand that those poor people are also an important part of our society. People do not think that if the poor people will become self sufficient it will be good for their society. Most of the people thinks other people as competitor . Every people should be more ethical. If the help each other to improving themselves it will be more helpful to improve socio economic development in Bangladesh. I believe that if our society educated all peoples and every people become more ethical and helpful to each other than our country will become developed. I hope if society treat properly for our owns development than our country will become a model of others. LOWER CLASS PEOPLE Q.1-why do you think you are facing poverty? Rabeya(maid servant)- I am illiterate. So, I have no knowledge about how to write and read. So, Illiterate people are facing poverty. 10
  • 11. Karim (Ricksha-puller)- I was born I poor family. My father was farmer. He was not able to send me school. So, I passed class 5. There is no job without degree. I have no degree. So, I have no job and money. Q.2-How does society treat you? Rabeya- Society! We are not a member of society. We are not human being. We are bitch. They treat us like an animal. I don’t think that they think us as human being . Karim- Sometimes boys whose age is like my boy, try to hurt me. They bring sticks, hit me and also slap me. Their parents smile when they punish us. Society treat us like this way. But some people are really good. Sometimes they give us more money than our desired money. Q.3- Which class of people will you blame for your economic condition? Rabeya- I am poor but I don’t want to see my daughter and son will face poverty. So, I want to send them school and want them literate. But rich people don’t help us. Sometimes they even don’t give us our salary properly. Karim- I have some cousins who are rich. They don’t help us. I have not enough money to send them school. Not only rich people but also government doesn’t help us. We want scholarships that we can send our children to school. If we are not able to send our children to school, our poverty will never end. Q.4- Which facilities do you think society can provide you? Rabeya- We want proper salary. We want proper respect from society. If we don’t help them, how society will earn money? Government can give us loan so that we can start business. Karim- if society treats us properly, our poverty will decrease gradually. I want to start a grocery shop’s, I need money. Government should give us loan. Q.5- How will you utilize facilities? Rabeya- I want to buy cows and goats so that I can make profit by selling milk. That will help us to decrease poverty and my economic condition will be good. Karim- I want to start a grocery shop. By making profit, I want to send my sons schools. 2.4 Limitation As we have a very less time to do our thesis and we have faced different political issues during our study time. Political situations like Hortal pushed us backward in going and doing many 11
  • 12. things. We also had the month of Holy Ramadan during our thesis work. We have visited slums and some of them are not vary safe so we could not visit many places. 3. Descriptive Results: Why we always remain under poverty? In our short analysis of the many causes of poverty, we shall explore three sections- economic, political, and external. 3.1 Overpopulation Overpopulation is defined as the situation of having large numbers of people with too few resources and too little space. Overpopulation can result from either a high population density (the ratio of people to land area) or from low amounts of resources, or from both. A high population density pressures the available resources in the country, as the resources can only support a certain number of people. Poverty can also depend on the country's mix of population density and agriculture productivity. For example, Bangladesh has one of the world's highest population density with 1,147 persons per sq km (2,970 persons per sq mi). A large majority of the people of Bangladesh engage in low-productivity manual farming, which contributes to the country is extremely high level of poverty. However, this only applies to third-world countries who do not have advanced technologies. High birth rates contribute to overpopulation in many developing countries. Children, especially boys, are assets to many poor families because they provide labor, usually for farming. Cultural norms in traditionally rural societies commonly sanction the value of large families. Also, the 12
  • 13. governments of developing countries often provide little or no support, financial or political, for family planning (see Birth Control) Families may also not know about family planning due to the lack of education. Hence, most developing countries have high rates of population growth. 3.2 Population Density A country’s level of poverty can depend greatly on its mix of population density and agricultural productivity. Bangladesh, for example, has one of the world’s highest population densities, with 1,078 persons per sq km (2,791 persons per sq mi). A large majority of the people of Bangladesh engage in low-productivity manual farming, which contributes to the country’s extremely high level of poverty. Some of the smaller countries in western Europe, such as The Netherlands and Belgium, have high population densities as well. These countries practice mechanized farming and are involved in high-tech industries. On the other hand, many countries in sub-Saharan Africa have population densities of less than 30 persons per sq km (80 persons per sq mi). Many people in these countries practice manual subsistence farming. These countries have infertile land and lack the economic resources and technology to boost productivity. As a consequence, these nations are very poor. 3.3Birth Rates High birth rates contribute to overpopulation in many developing countries. Children are assets to many poor families because they provide labor, usually for farming. Cultural norms in traditionally rural societies commonly sanction the value of large families. Also, the governments of developing countries often provide little or no support, financial or 13
  • 14. political, for family planning and birth control. 3.4 Distribution of resources: 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. Because people in developed nations may have more wealth and resources than those in developing countries, their standard of living is also generally higher. Thus, people who have what would be considered adequate wealth and resources in developing countries may be considered poor in developed countries. In contrast, people in developing countries may consider themselves to be doing well if they have productive gardens, some livestock, and a house of thatch or mud-brick. In rural areas, people may be accustomed to not having plumbing, electricity, or formal health care. By the standards of developed countries, such living conditions are considered hallmarks of poverty. According to reports, people’s incomes are not enough to cover the cost of their basic necessities and provide them basic services such as water, electricity, transportation and communication. It pointed out that recent surveys confirm that 80 percent of citizen’s expenses go for to food, most notably among vulnerable groups that are deprived of basic services and luxury means. 14
  • 15. 3.5Lack of education: Illiteracy and lack of education are common in poor countries. Governments of developing countries often cannot afford to provide for good public schools, especially in rural areas. Whereas virtually all children in industrialized countries have access to an education, only about 60 percent of children in sub-Saharan Africa even attend elementary school. Poor people also often forego schooling in order to concentrate on making a minimal living. In addition, developing countries tend to have few employment opportunities, especially for women. As a result, people may see little reason to go to school. Reports have also argued that 41 percent of Yemen’s rural population lives on less than two dollars per day, and 85 percent of Yemen’s poor population live in rural areas. It clarified that 47 percent of Yemen’s population are illiterate, which is another reason for poverty and unemployment. In countries with high populations, unemployment levels of only a few percentage points mean that millions of working-age people cannot find work and earn an adequate income. Because unemployment figures indicate only the number of people eligible to work who have no job but are seeking employment, such figures are not necessarily an accurate indicator of the number of people living in poverty. Other people may not be able to find enough work or may earn wages too low to support themselves. 3.6Environmental degradation: Environmental degradation is the deterioration of the natural environment, including the atmosphere, bodies of water, soil, and forests — is an important cause of poverty. Environmental problems have led to shortages of food, clean water, materials for shelter, and other essential resources. As forests, land, air, and water are degraded, people who live directly off these natural 15
  • 16. resources suffer most from the effects. People in developed countries, on the other hand, have technologies and conveniences such as air and water filters, refined fuels, and industrially produced and stored foods to buffer themselves from the effects of environmental degradation. In developing countries, deforestation has had particularly devastating environmental effects. Many rural people, particularly in tropical regions, depend on forests as a source of food and other resources, and deforestation damages or eliminates these supplies. Forests also absorb many pollutants and water from extended rains; without forests, pollution increases and massive flooding further decreases the usability of the deforested areas. 3.7 Economic trends: 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. In many developed nations the number of people living in poverty has increased due to rising 16
  • 17. disparities in the distribution of resources within these countries. Since the 1970s, for instance, the poorest 20 percent of all U.S. households have earned an increasingly smaller percentage of the total national income (generally less than 5 percent) while the wealthiest 5 percent of households have earned an increasingly greater percentage (about 45 percent of the total). 3.8Demographic shifts: 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. There are differing beliefs about individual responsibility for poverty. Some people believe that poverty is a symptom of societal structure and that some proportion of any society inevitably will be poor. Others feel that poverty results from a failure of social institutions, such as the labor market and schools. In addition, many people in developed countries blame cycles of poverty, or the tendency for the poor to remain poor, on overly generous welfare programs. Supporters of this position, including some politicians, argue against government spending and initiatives to help the poor. In the United States, the belief that cash welfare assistance actually encouraged personal decisions leading to poverty dominated policy discussions of the 1990s. In response, in 1996 the U.S. Congress created a new welfare program called Temporary Assistance to Needy Families (TANF). This program ended the guarantee of cash benefits for poor families with children, shifted more control to the states, and established stricter work requirements for recipients. The numbers of poor families with children receiving cash welfare fell dramatically, from 4.6 million 17
  • 18. in 1996 to 2.1 million at the end of 2001. 3.9 Others: Reports have noted that poverty is also symptomatic a symptom of poor basic services, scarce financial resources and low returns from natural wealth such as oil, gas, minerals and fisheries while revenues from public investments and taxes are exposed to corruption and embezzlement. 3.10 Economic - High rate of unemployment 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. - Unfair trade 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 countries do. 3.11 Corruption (Economically-wise) Corruption often accompanies centralization of power, when leaders are not accountable to those they serve. More directly, corruption inhibits development when leaders help themselves to 18
  • 19. money that would otherwise be used for development projects. Corruption, both in government and business, places heavy cost on society. Businesses should enact, publicize and follow codes of conduct banning corruption on the part of their staff and directors. Citizens must demand greater transparency on the part of both government and the corporate sector and create reform movements where needed. Corruption is both a major cause and a result of poverty around the world. It occurs at all levels of society, from local and national governments, civil society, judiciary functions, large and small businesses, military and other services and so on. Corruption affects the poorest the most, whether in rich or poor nations. The issue of corruption is very much inter-related with other issues. At a global level, the economic system that has shaped the current form of globalization in the past decades requires further scrutiny for it has also created conditions whereby corruption can flourish and exacerbate the conditions of people around the world who already have little say about their own destiny. A difficult thing to measure or compare, however, is the impact of corruption on poverty against the effects of inequalities that are structured into law, such as unequal trade agreements, structural adjustment policies,” free” trade agreements and so on. It is easier to see corruption. It is harder to see these other more formal, even legal forms of “corruption.” It is easy to assume that these are not even issues because they are part of the laws and institutions that govern national and international communities and many of us will be accustomed to it—it is how it works, so to speak. This is not to belittle the issue of corruption, however, for its impacts are enormous evidently. 19
  • 20. 3.12 Tackling corruption A broader way to try and tackle corruption can be made by attempting to provide a more just, democratic and transparent process in terms of relations between donor nations and their creditors: An independent process would have five goals: To restore some justice to a system in which international creditors play the role of plaintiff, judge and jury, in their own court of international finance. To introduce discipline into sovereign lending and borrowing arrangements—and thereby prevent future crises. To counter corruption in borrowing and lending, by introducing accountability through a free press and greater transparency to civil society in both the creditor and debtor nations. To strengthen local democratic institutions, by empowering them to challenge and influence elites. To encourage greater understanding and economic literacy among citizens, and thereby empower them to question, challenge and hold their elites to account. 3.13 Poor Governance 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. Corruption and political instability resulted in weakening of business confidence, deteriorating 20
  • 21. economic growth, declining public expenditure on basic entitlements, low efficiency in delivery of public services as discussed in the earlier section on human development, and a serious undermining of state institutions and the rule of law. 3.14 Political Prejudice and inequality 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 certain countries in the world, governments tend to favour a specific creed or race or people. This is evident in South Africa. In South African history, apartheid laws defined a binary caste system that assigned different rights and social spaces to different races, using skin colour to automatically determine the opportunities available to individuals in each group. These people enjoy educational, social and welfare benefits. For example, the children of these people are able to enjoy education with subsidised school fees; adults are able to obtain high-paying jobs easily etc. Instead of channelling resources to help those at need, the governments of these countries choose to treat different races and creeds with prejudice and will treat others with less favouritism. Hence, this leads to poverty. Corruption (Politically-wise) Corruption is a rampant problem in the world today, especially in third-world countries. It undermines democracy and good governance by flouting formal processes. Corruption often occurs when leaders are not accountable to those they serve. Corruption usually inhibits 21
  • 22. development when leaders help themselves to money that would otherwise be used for development projects. Corruption increases the cost of business through the price of illicit payments themselves, the management cost of negotiating with officials, and the risk of breached agreements or detection. Also, it generates economic distortions in the public sector by diverting public investment into capital projects where bribes and kickbacks are more plentiful. In Nigeria for example, more than 400 Billion dollars was stolen from the National Treasury by Nigeria's leaders from 1960 to 1999. Forms of such corruption include embezzlement, bribery, cronyism, nepotism, graft etc. Hence, this leads to poverty as leaders should have used the money they usurped to help the poor, which results in a lack of funds. Centralization of Power 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, causing development problems. For example, politicians make decisions about places that they are unfamiliar with, lacking sufficient knowledge about the context to design effective and appropriate policies and programs. Civil Wars Wars like our liberation war in 1971 made us lame in all side. We just started out new nation during that time. Our economy has restarted then. Then we had to face time like 1974, 1990, and 2008. These social wars make our situation poor and poorer. 22
  • 23. Natural Disasters Natural disasters such as hurricanes and earthquakes have caused millions of dollars worth of infrastructure and the loss of lives. Developing countries often suffer much more extensive and acute crises at the hands of natural disasters, because limited resources become obstacles for the construction of adequate housing, infrastructure, and mechanisms for responding to crises. Natural disasters, being uncontrollable by man, affect annual agricultural output, such as floods destroying the fertility of soils by washing away mineral-rich topsoil, and take away natural decomposing agents, rendering the soil infertile. Droughts cause the land to become barren and unsuitable for cultivation. The states of the U.S.A situated in Tornado Alley face constant fears of poor harvests in the face of frequent tornado occurrences. In the case of the Sichuan Earthquake in 2008 and The 2004 Tsunami catastrophe not only resulted in the loss of agriculture, but the destruction of millions of dollars worth of infrastructure as well. 4. Collective As we have taken the interview of three class of people we have found out various ideas from different prospective of people. In some cases their thought was positive and where as in other cases their thought was negative. They are described below Positives The lower class people get some facility as said by the upper class people. The Middle class people are satisfied and they want to move towards the higher class. The Middle class can easily 23
  • 24. cope up with the Higher class they have a very less boundary in between them. The Higer class wants to help the poor’s. Negatives The Lower class people have no bound of their need. Even after getting lot of facility they don’t use it. In some cases the higher class people cant tolerate the poor class and they only think of them. Both the middle class and the Higher class negates the pours but the middle class has a bit more sympathy for the poor’s. The lower class has a want but no effort. Conclusion There are things that some people until now can't apprehend. Aside from the everyday expenditure, many people have vices such as cigarettes and alcohols which we weren't able to include in our daily expenses. When people begin to get wages or salaries, they immediately spend the money for worthless and nonsense things instead of saving it. Some of them, if it is not for their vices, they spend their money in stakes, testing their luck and expecting to be rich immediately. As we all know, poverty is a curse. It was written in the Bible that God has curse man, "In toil you will eat of it all the days of your life." This only means that man can't eat without working hard. God will only provide for those who are persistent. There's no place in this world for lazy people. 24
  • 25. Reference http://povertyhci.weebly.com/causes-of-poverty.html (July 22, 2013; 11:55PM) http://povertyhci.weebly.com/how-do-you-define-poverty.html (July 23, 2013; 01:57AM) http://www.cliffsnotes.com/sciences/sociology/social-and-global-stratification/causes-and- effects-of-poverty (July 23, 2013; 02:12AM) 25