StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Poorest Billion People - Case Study Example

Comments (0) Cite this document
Summary
The aim of the study is to answer the question of what three poverty traps help explain the plight of nations comprising the poorest billion people? The writer of this paper states that the first trap given by economist Paul Collier is the civil war or ethnic conflict trap…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.1% of users find it useful
The Poorest Billion People
Read TextPreview

Extract of sample "The Poorest Billion People"

Now, thanks to impressive growth in places like China, the world is more like one-sixth rich, two-thirds not rich but improving, and one-sixth poor and going nowhere. Most developing economies are experiencing a rising standard of living. But that still leaves about a billion people trapped in economies that are not only extremely poor but stagnant or getting worse. All told, 58 countries fit into this poorest-billion category, including 70 percent of sub-Saharan Africa plus the likes of Bolivia, Cambodia, Haiti, Laos, Myanmar, North Korea, and Yemen.

Economist Paul Collier, of Oxford Univesity in England, has examined what went wrong with these “trapped countries.” Based on decades of research, he identifies some poverty traps. About 750 million people of the bottom billion have recently lived through, or are still in the midst of, a civil war. Such wars can drag on for years with economically disastrous consequences. For example, the ethnic conflict in Burundi between the Hutus and the Tutsis has lasted three decades, which helps explain that country’s poorest-in-the-world ranking. Unfortunately, the poorer a country becomes, the more likely it is to succumb to civil war. And once a country goes through one civil war, more are likely. Ethnic conflict, or civil war, is Collier’s first poverty trap.

But why, aside from poverty itself, are so many sub-Saharan countries mired in the civil war? He finds that three factors heighten the risk of such conflicts: (1) a relatively high proportion of young, uneducated men with few job prospects (who, thus, have a low opportunity cost); (2) an imbalance between ethnic groups, with one tending to outnumber the rest; and (3) a supply of natural resources like diamonds or oil, which both creates an incentive to rebel and helps finance that rebellion. The presence of mineral wealth in an otherwise poor country can also undermine democracy itself. Government revenue from mineral sales reduces taxes, which dampens public debate about how taxes should be spent. For example, because of oil revenue, the Nigerian government relies less on taxes, so there is less pressure for government accountability, and hence fewer checks and balances on a corrupt government. Thus, the misuse of resource wealth is Collier’s second poverty trap. About 300 million of the poorest billion live in countries that have fallen into this trap.

This leads us to the third poverty trap: a dysfunctional or corrupt government. Government officials who pursue self-glorification and self-enrichment do serious harm to the economy. Much of the public budget disappears through wasteful programs rife with graft and payoffs. For example, a recent survey that tracked government funds for rural health clinics in Chad found that less than 1 percent of the money reached the clinics. About 750 million of the poorest billion live in countries that pursue disastrous economic policies or where government corruption harms the economy.

Can these poorest billion be helped? It will take more than band concerts. Collier doubts that unconditional foreign aid makes much of a difference. He points to the ill effects of oil as an unconditional source of government revenue. International trade may help, but because these countries have difficulty competing with the likes of China or Vietnam, they may need special trade advantages. Another way the rest of the world could help is by requiring Western banks to report deposits by corrupt officials. The rest of the world could also assist these poor countries in developing laws and regulations to ensure the transparent management of natural resources, to help detect fiscal fraud, and to promote a free press. But even with all that, what these countries need most, Collier argues, is about 10 years of domestic peace—backed p by an outside force if necessary, such as the the U.N. All that is a tall order, but the stakes are high for the billion people trapped and going nowhere in these poor nations. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Poorest Billion People Case Study Example | Topics and Well Written Essays - 953 words, n.d.)
The Poorest Billion People Case Study Example | Topics and Well Written Essays - 953 words. Retrieved from https://studentshare.org/macro-microeconomics/1563591-macroeconomicscase5
(The Poorest Billion People Case Study Example | Topics and Well Written Essays - 953 Words)
The Poorest Billion People Case Study Example | Topics and Well Written Essays - 953 Words. https://studentshare.org/macro-microeconomics/1563591-macroeconomicscase5.
“The Poorest Billion People Case Study Example | Topics and Well Written Essays - 953 Words”, n.d. https://studentshare.org/macro-microeconomics/1563591-macroeconomicscase5.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Poorest Billion People

The World's Poorest Countries

Countries with GDP per capita of $765 or lesser than that are declared to be the poor countries (The 10 poorest countries of the world, n. d) According to International monetary fund and the CIA world factbook, Zimbabwe was declared as the poorest country in the world in the year 2010. The study of the list of poorest country in the world also brings into notice that among the top 10 poorest country in the world, 9 of them are from the region of Africa which reflects the vulnerability of the African region. The table below shows the list of the top 10 poorest countries along with their respective GDP during the year 2010 as declared by the International monitory fund. Countries Annual GDP per- capita (in $) Zimbabwe 0.1 Democratic...
10 Pages(2500 words)Assignment

The Bottom Billion

...f which Africa has become disreputable. Countries that are not landlocked and are on the coast can be lucky with the large workforce and for them governance wouldn’t matter much. If the state doesn’t come in the way, growth from exports can take off. However, for countries that are landlocked, the economy is dependent on air-flows or on the revenues from natural resources hence governance is critical. In such countries if bad governance is present, the country can continue to fail. Collier has given the example of Chad where the cash that has to be spent on government healthcare sector, is disappeared even before it reaches the hospitals. This book overall addresses the poorest billion people in the world, most of who are in Africa....
8 Pages(2000 words)Essay

The 700 Billion Bailout

...Bail out: Introduction: The 700 billion bail out is an effort by the US government to stabilize the financial market especially by purchasing mortgage backed securities which will increase capital in banks, However this was the only appropriate decision to make given the prevailing situation in the economy. Why the bail out: Henry Paulson spelt out the importance of the bail out and stated that the bailout would stabilize the economy, improve liquidity and also improve investor confidence, in my own view these reasons are justifiable given that investors had lost confidence with the market whereby stock prices kept dropping, on the other hand this was the only way to improve on the liquidity position of banks whereby banks lacked financial...
1 Pages(250 words)Assignment

$787 Billion Economic Stimulus Plan

... $787 Billion Economic Stimulus Plan America is going through one of the worst economic recess for the time being and the administration is trying hard to save the economy using drastic measures which raised supports and criticisms from all the corners. The crazy lending habits of the banks without assessing the financial capabilities of the loan seekers and the changing life styles of the American public (spending all the money which they earn rather than saving) have contributed heavily to the current financial crisis. This paper critically analyses the current economic problem on the basis of two articles written by Kirchhoff Sue and Wolf Rich on USA TODAY regarding the $787 billion stimulus bill passed by Congress. The $787 billion...
2 Pages(500 words)Essay

Genomics Now: Feeding 9 billion people in 2050

...Genomics Now 20 Mar. Introduction This article highlights the challenges of feeding nine billion people in 2050 and the solution that has been proposed by Rod Wing. The Problem to be Solved Feeding nine billion people is not a small task. There are concerns that the current agriculture practices may not sustain this population and that the environment may be destroyed due to the large volume of water, fertilizers and pesticides that would be required. Time is running out and there is a need to create the green super crops. The green super crops must use less water, fertilizers and pesticides but produce double or even triple yields. The Solution to the Problem It is hoped that advanced studies on plant genomes will play a significant...
2 Pages(500 words)Admission/Application Essay

Feeding 9 Billion

Various sources through which greenhouse gases are emitted include trains, airplanes, cars, trucks and carbon dioxide (CO2) emission from factories among others. Currently, agriculture is determined to be the prime factor responsible for global warming due to augmented emission of methane and carbon dioxide. Additionally, agriculture is one of the major factors accountable for global warming for growing demand of food (Nationalgeographic, 2014).
Global warming has been adversely affecting the environmental conditions of the earth owing to increased temperature along with changing climatic scenario. Presently, agriculture is considered to be the leading factor accountable for global warming due to increased food requirement for...
6 Pages(1500 words)Essay

Inter-Professional Practice for People Using Health

If one carer practices anti-oppressive practice his/her approach would be a client-centered approach. This means all the efforts would be directed to utilize the available resources and expertise to help and support the client to live better. Doing so the social worker needs to work with many other professionals. These kinds of practice are called interprofessional practice. The collaboration and effective team working is involved here. The paper initially discusses the Inter-professional Practice wherein several conditions are discussed where inter-professional practices are involved. It discusses strategy and policy initiatives in this direction. There are various barriers to effective team working that would be discussed next.&...
9 Pages(2250 words)Assignment

Are Social Timing Deficits More Pronounced In People With Atypical Diagnosis Of Autism

It is a severe developmental disorder that affects the way a child sees and interacts with the rest of the world. It limits their ability to interact with others socially and most of the times try to avoid human contact. It is also a part of a large group of disorders called pervasive developmental disorders (PDD) (Autism-PDD.net, 2005).

In 1908, Eugen Bleuler a Swiss psychiatrist coined the word "autism" in schizophrenic patients who screened themselves off and were self-absorbed. Leo Kanner while at Johns Hopkins first identified autism in 1943 when he described 11 self-absorbed children who had following common traits: impairments in social interaction anguish for changes, good memory, belated echolalia, over se...
11 Pages(2750 words)Case Study

Are Disabled People Going To Be Winners Or Losers

This dissertation will, therefore, establish whether the White Paper will bring real benefits to the disabled or whether the concerns of organizations working for the disabled are actually well-founded.

People who are in work have better opportunities to improve their lives and consequently visit their GPs less often. Even their children and partners benefit. It gives many people self-esteem, companionship, and status.

The initial aim, therefore, is to investigate whether the provisions in the White Paper can theoretically deliver these benefits. This will provide an opportunity to identify any loopholes or gaps in the government’s plan.

The second aim is to then consider the objections to th...
6 Pages(1500 words)Dissertation

Health Needs Assessment among Internally Displaced People in Southern Darfur State

In the recent past, Sudan has gone through a very serious humanitarian crisis, rated by as among the worst in the world. This crisis has led to thousands of Sudanese being displaced from their homes. The crisis was a series of civil wars that have characterized the Southern Sudan regions, and quite recently the Darfur region. The conflict in the Darfur region is among the most recent crises in Sudan and has as a result drawn global attention. According to the UN, the Darfur conflict emerged as the worst crisis in the year 2003 as far as humanitarian aspects are concerned (UNEP/OCHA, 2004 pp 6).

So far, the Darfur crisis has led to the internal displacement of more than two million citizens. In the year 2008, the UN esti...
11 Pages(2750 words)Term Paper

People as Cultural Beings and the Christian Posture

In recent times questions regarding the impact of Christianity over culture have become so prevalent that several of the modern intellectual disciplines consider it an archetype of orthodoxy that is aimed at restraining the newer cultural trends (Niebuhr 1956 p. 1-2).
However, the existing historical shreds of evidence clearly convey that despite Christianity has always been one of the most important factors in the context of determining people’s reciprocation towards a particular cultural trend, but different civilizations at different points of time have denied the impact of the Christian culture as those perceived that it can be a threat against individuality of their respective cultural tends, “Not only Jews b...
11 Pages(2750 words)Assignment

People, Organisations and Management

Organizations and their management styles have evolved to a great extent in the service and manufacturing industry over the last century, and so have been the concepts of management and its functions. These evolutions can be traced to significant developments brought about by the industrial revolution, scientific management principles such as Taylorism and Fordism, transition of feudalistic to capitalistic approach and others in different sectors of manufacturing industries. However, the beginning of the industrial revolution was characterized by a rigid hierarchical bureaucratic way of organizing business enterprises, a style prevalent even today but only in military service organizations. Nevertheless, the manufacturing and busi...
8 Pages(2000 words)Assignment

Billion National Stimulus Plan

...Table of Contents 1.Stimulated Economy 1 2.Regulated Rates 3 1.Equilibrium Quantity 4 2.Excess Supply 6 3.Elasticity 7 1.Affordable Housing Packages 8 2.Deferred Duty 8 3.Lower Duties 8 4.Land Rent 9 5.The First Home Owner Grant (FHOG) 9 References 10 1. Stimulated Economy Beginning early 2009, the government of Australia initiated a $42 Billion National Stimulus plan in order to alleviate the industries from the impact of the global financial crisis. In light of the crisis, Australia, like the rest of the world is injecting a change in its economic picture by releasing such funds. First and foremost beneficiary of the stimulus package would be the communities. About $800 Million were allocated for various community...
7 Pages(1750 words)Assignment

How to Lose a Billion

...How to Lose a Billion Introduction The recent failure of large financial institutions and banks has been largely associated to the failure of the banks to properly take care of their risk appetite. The increasing liberalization of financial markets as well as rapid financial innovation has made it possible for the firms to expand their business and invest into such areas which were traditionally considered as more risky. Above all, the creations of innovative financial products such as derivatives further increase the scope and choice of financial institutions to expand their business activities. The result was unprecedented increase in the profitability of the banks and improved and sustainable growth in short term profitability...
11 Pages(2750 words)Article

Bank's Steps towards Poorest Bangladeshis

... activities must be created, disadvantaged people must be organized into formats they can understand and operate and where they can find some strength, support and power, and the financial systems of the poor must be expanded so that with their low income, they can gain more credit and investments, and thus more income. This research project became a formal banking institution in 1983, and is known today as Grameen Bank. From 75 Bangladeshi branches in 1983, the bank was able to reach 28,879 Bangladeshi villages and establish 974 branches within just nine years. The bank was able to garner 1,271,461 members, majority of which are women accounting more than 75% of its customers (Khandker, et al., 1997; Satgar, 2003; Wahid, 1994; Yunus, 2007...
13 Pages(3250 words)Literature review

The Impact of Protection Policies on the Australia Aboriginal People of Today

Missionaries, clergymen, and humanitarians took up the Aboriginal cause at a time when so many colonialists looked on with indifference at the Aboriginal people of Australia. The missionaries did this because they believed that all human beings, Aboriginals and Europeans alike, were created in the image of God2. The missionaries and humanitarians denounced the theft of the Aboriginal land3. The policy of protection marked the establishment of schools for the Aboriginal people.

The first culture clash between the Aboriginals and the Europeans was over clothing4. The Europeans were used to covering themselves up completely5. As a result, the Europeans were shocked to see naked Aboriginals roaming around freely6. The Abori...
6 Pages(1500 words)Article

People in Society and Their Problems

Coming to question 4, the average answer from participants is 2.7, which means that they are leaning more towards agreeing that marriage is important for a strong and enduring relationship. 53.4% of males agree with the fact that marriage is important for a strong and enduring relationship while 66.1% of females agree with this question.
Beginning with question 5, 5% of males agree on this question. On the other hand, 50% of women agree. This, therefore, means that more women (45% more) agree on this question compared to men. It may also be a pointer to the sensitive and caring nature of women since more of them believe that they are responsible for their spouses even up to the point of making decisions for them. Question 6 a...
6 Pages(1500 words)Assignment

Various Treatment of Young People in the Criminal Justice System

The ways in which the treatment of young offenders is differentiated from that of adult offenders are also presented using appropriate literature; particular reference is made to the role of Young Offender Institutions (YOI). It is proved that the current criminal justice for young offenders in the UK is not effective, despite the measures taken by the government for securing the rehabilitation of these individuals. On the other hand, the full alignment of the treatment of young offenders with that of the adult offenders, as this practice is in progress in the UK, will not resolve the problems related to the rehabilitation of young offenders. The alteration of the rules of the existing criminal justice system without eliminating t...
7 Pages(1750 words)Coursework

Feeding 9 Billion

The greenhouse gases allow sun rays to penetrate the earth's surface easily, which seems to increase the earth's temperature and is subsequently accountable for changes in climatic conditions  (Cook, 2010);  (Hansen, 2006). Various sources through which greenhouse gases are emitted include trains, airplanes, cars, trucks and carbon dioxide (CO2) emission from factories among others. Currently, agriculture is determined to be the prime factor responsible for global warming due to the augmented emission of methane and carbon dioxide. Additionally, agriculture is one of the major factors accountable for global warming for the growing demand for food (Nationalgeographic, 2014).

Global warming has been adversely a...
7 Pages(1750 words)Term Paper

Managing Activities and People

 A characteristic of this approach is that it employs a systematic, objective, and analytical approach. Additionally, it is based on the economy. Taylor believed that to implement the economy in an organization, it is necessary to eliminate unnecessary elements of production and sufficient effort be made to ensure the achievement of maximum production at the lowest cost (Taylor 2007).
The approach is also characterized by a definite plan that is core before any work is undertaken. When undertaking a project, workers should adhere to the plan. There must also be rules that match the plan for objectives to be achieved. This theory also lays emphasis on all the factors of production, including technology, workers, and mater...
6 Pages(1500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic The Poorest Billion People for FREE!

Contact Us