International development studies midterm - Essay Example

Chronic poverty, on the other hand is the poverty that persists in a people’s lifetime (Hulme and Shepherd, 403). According to the world poverty index, extreme poverty is experienced when a person spends less than one dollar a day in both expenditure and consumption. Severe poverty, nevertheless, involves spending less than 0.7 dollars a day. Chronic poverty combines these two poverty lines and often transmits this style to generations that follow. Globalization involves the rapid and equal growth of the entire world through mechanisms that enhance interaction, trade and therefore enhancing global prosperity.

With the existence of chronic poverty, many developing countries find it difficult to provide quality health services to the many citizens who live in impoverished states. The globalization trend aims at encouraging foreign investments in an individual country, and this has been the trend for many developing countries. Pushed by the need to provide employment and improve the tax revenue for provision of quality social services to the populations, many developing countries have embraced foreign investments from the first class economies.

These investors are well aware of the desperate state of the poor people in these countries, hence putting in place industries that are labor intensive but offering poor remuneration for the laborers working in these industries. This represents inequality in the treatment of the markets, as in foreign countries the working conditions are adhered to buy the foreign investors (Ellis, 15). However, globalization helps in creating the much-needed social assistance that involves elevating the poorest people towards achieving better living standards.

With the rise in globalization, the poor people are able to receive income that is in turn generated towards investment programs that are initiated by the foreign investments. Besides, the investments by foreign companies in developing countries enables these countries to