Economic Transformation: A Novel Model for Poverty Reduction
文章摘要
“Saving our planet, lifting people out of poverty, advancing economic growth–these are one and the same fight.”–Ban Ki Moon,The eighth General Secretary of the United NationsPoverty is a situation where a large section of the population is incapable of satisfying their basic needs. The earliest definitions of poverty centered on the inability to obtain adequate food and other necessities. But with the passage of time, many policy makers and development experts have defined the concept of poverty using different criteria. In recent times poverty has been viewed through multi-dimensional lenses – using various indicators including the social economic wellbeing of an individual. The United Nations defines poverty as a denial of choices and opportunities, and a violation of human dignity. They define extreme poverty as earning less than a $1.25 a day. Reducing poverty will require an exhaustive look at income inequality, and inclusive growth and development, and how the benefits of economic growth are distributed. It will require some deliberate actions; concerted efforts which will see countries work together, instead of individually to help one another to combat poverty. I am particularly stimulated by one aspect of the view taken by Ban Ki Moon, which emphasizes advancing economic growth to fight poverty.Poverty is a worldwide phenomenon. But it has been observed predominantly in Sub-Saharan Africa and Asia. According to a new report by the World Poverty Clock (2018), extreme poverty in Nigeria is growing by six people every minute, the highest number in the world. The report showed that Nigeria had an estimated 87 million people living in extreme poverty, compared to India’s 73 million. It also states that Africa may be home to an additional 3.2 million people living in extreme poverty by the end of 2018. Further 14 out of the 18 countries in the world—where the number of extreme poor is rising is in Africa. This picture does not tell the whole story. The Organization for Economic Co-operation and Development (OECD) reports that income inequality of OECD countries is at its highest level for the past half century. The average income of the richest 10% of the population is about nine times that of the poorest 10% across the OECD countries, up from seven times nearly three decades ago. Only in Turkey, Chile, and Mexico has inequality fallen. They also report that in emerging economies, such as China and India, a sustained period of strong economic growth has helped lift millions of people out of extreme poverty. But the benefits of growth have not been evenly distributed and high levels of income inequality have risen further. Among the dynamic emerging economies, only Brazil managed to strongly reduce inequality, but the gap between rich and poor is still about five times that in the OECD countries.Since 1990, most economies in sub-Saharan Africa have seen some level of growth, buoyed by reforms in macroeconomic management, an improved business environment, and commodity price hikes. But this growth has not translated into productive jobs—a major problem for a region with a booming youth population. According to the United Nations, sub-Saharan Africa boasts the world’s youngest population with more than three-fifths of its inhabitants under the age of 25. The region’s working age population is estimated to rise from 522 million in 2015 to 600 million, an increase of 15 percent by 2030. Employment creation for the teeming youth in Africa is a socio-economic issue and must be of prime importance. The danger behind poverty is endemic and needs to be drastically analyzed and resolved through a cohesive process and application.
Abstract
Poverty is a situation where a large section of the population is incapable of satisfying their basic needs. The earliest definitions of poverty centered on the inability to obtain adequate food and other necessities. But with the passage of time, many policy makers and development experts have defined the concept of poverty using different criteria. In recent times poverty has been viewed through multi-dimensional lenses – using various indicators including the social economic wellbeing of an individual. The United Nations defines poverty as a denial of choices and opportunities, and a violation of human dignity. They define extreme poverty as earning less than a $1.25 a day. Reducing poverty
will require an exhaustive look at income inequality, and inclusive growth and development, and how the benefits of economic growth are distributed. It will require some deliberate actions; concerted efforts which will see countries work together, instead of individually to help one another to combat poverty. The author is particularly stimulated by one aspect of the view taken by Ban Ki Moon, which emphasizes advancing economic growth to fight poverty.
作者简介
George Boateng:Analyst, African Center for Economic Transformation