People in Peril

What is Poverty?

Source: FILE PHOTO BY LEANNE JAZUL/RAPPLER

What are the key trends in global poverty and inequality?

Poverty is the inability of a person to afford basic living necessities and services like food, shelter, water, clothes, healthcare, and education. The trend now is that due to the pandemic there are more and more businesses forced to shut down and there are more and more people who are losing income. The most affected from this even before the pandemic are children.

Child poverty is the world’s biggest challenge, Source: World Data Lab projections, 2019
More than half of the world’s poor are children, Source: World Data Lab projections, 2019

Does capitalism eliminate or reinforce inequality?

An economic system run by private individuals and businesses is Capitalism. The production of goods and services is based on supply and demand in the general market known as a market economy rather than through central planning known as a planned economy or command economy. For me, to answer the question does capitalism eliminate or reinforce inequality? Yes, capitalism reinforces inequality because it makes the rich richer and poor poorer.

Has globalization increased, or decreased, global poverty?

Economic growth is the main channel through which globalization can affect poverty. What researchers have found is that, in general, when countries open up to trade, they tend to grow faster and living standards tend to increase (Pavcnik, 2009). Foreign trade can help in selling goods as well as consuming goods. This can help develop further the country’s economy and there is not own country that has all the raw materials needed to day to create great technology. A lot is being exported and imported now even labor. Globalization creates an avenue for people to have jobs due to the trade and other goods or services that can be used for trading.

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