Poverty in Gambia - Admission/Application Essay Example

?Locate a news article about an issue about (poverty) in order to conduct a meta-analysis of the economic perspective of the issue.  Write a7 page paper in which you:  1. Provide a brief overview / synopsis of the issue.  2. Discuss the model or economic theory that relates to the issue presented in the news article.  3. Discuss what economic theory states and predicts about the issue presented in the news article.  4. Discuss how the situation / issue presented in the news article align with economic theory. For  example, does it make sense from an economic perspective; is the outcome presented in the  article what economic theory would predict, etc.?  Your assignment must:  ? Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all  sides; citations and references must follow APA or school-specific format. Check with your  professor for any additional instructions.  ? Include a cover page containing the title of the assignment, the student’s name, the professor’s  name, the course title, and the date. The cover page and the reference page are not included in  the required assignment page length.  The specific Course Learning Outcomes associated with this assignment are:  ? Analyze the economic impact of major social problems and issues such as poverty,  discrimination, crime, income distribution, the role of government, and other major issues.  ? Explain how the economic behavior of individuals, businesses, and governments can affect  economic growth, social well-being, and the quality of life.  ? Use technology and information resources to research economic problems and issues.  ? Write clearly and concisely about economic problems and issues using proper writing mechanics Poverty in Gambia: Conducive Study One of the most pivotal points of observation is poverty that plagues society. According to the article, it is evident that poverty continues to be a lingering factor in almost all countries. Poverty is the state of condition that most nations have continued to suffer for centuries. It is clearly not an issue of countries being lethargic and government corruption but the actual views are dictated through global practices. In essence, the elite and the rich have continued to impose their will along with other elements that have caused poverty. The prolonging effects of poverty have continued to be the focal point in every country because it hinders the growth of the GDP of the country. In essence, poverty destroys the concept of productivity. For instance, African nations have continued to struggle with poverty and thus are fallible for an economic downturn. What is most unfortunate is the fact that bribery and violence continues to be prevalent in these nations. Anup Shah, author of reports that neo-classical Democratic dominant counties fail to understand the gravity of this situation as less than 1% of nations investing in nuclear weapons was enough to fulfill the stomachs of starving children. In times of crisis such as plague and starvation, the death toll continues to accumulate because of the lack of resources that poverty establishes. In countries such as Africa as depicted here, the poorest individuals which compromise of the majority of the population have less access to health, education and other services. Hunger along with mal nutrition and disease continue to have deep negative marks in society. The problem never gets addressed because the poor are oppressed with no voice in legislation, which makes poverty a lingering issue. Moreover, poverty continues to be a huge factor that prevents growth from all aspects even socially. In fact, women in Gambia struggle to gain equal rights and are spiraled under the notion of “cult of domesticity” that prevents equal education for men and women. . The cult of domesticity is a generic phrase for women to stay at home, clean the house, cook the food, and raise the children. In this model, the men are the bread winners. Since women rely on men for financial support, it is almost unorthodox for women to work outside the house. The idea of gender disparity in school, government and overall progression of women is clearly hindered in these cultures. Since no social modifications are ever made, the country continues to spiral in the chaotic movement of poverty and anguish. One of the key models that emphasizes poverty is scarcity. Scarcity is an understanding that not all the resources and goods will be allocated effectively. That is true for all nations that struggle with poverty. For instance, the limits of growing a certain surplus crop can only be grown to a certain limit. Since people have wants and needs, it is definitely hard to fulfill every one’s requirements. Hence, the concept of scarcity becomes a crucial factor in allocation resources. Another crucial element that is undermined by several economists and scholars is the fact that supply and demand continue to dictate the economic principles. The market system in any given economic condition is derived by supply and demand. The classical example can be seen through grain. If people want more grain, the demand for grain will continue to be high, which creates an inflation in the price. However, most people lack the purchasing power that deters them from them competing for these lack of resources. Thus, only the elite control all aspects of the economy, which continues to be a huge detriment. Furthermore, the government lacks the funds to inject money supply in the inner economy because it clearly has no leverage or power. Even if it chooses to take a loan from other sources such as the World Bank, it still has to pay the loan back in interest. The ever-lasting cuts in health, education, and other crucial services that have continued to be a hindrance towards improving social poverty. The IMF and the World Bank guidelines for borrowing loans and repayment have not made any dynamic difference. Attracting investors have been a life-long challenge because the national governments do not want foreign influence over the national. Although many African countries can provide the competitive advantage such as providing cheap labor, lower standards and less-priced resourced. The cheap labor poses to be a problem because it does not allow families to be self-sufficient. It is fathomable thought to realize that individuals live under ear $2 a day when they have to travel to their work place for $1.20. This is not a myth but a true reality that continues to daunt the aspects of poverty. Although the American economic system propagates for Keynesian economic system, most propose a laissez-faire response. Since most individuals lack savings, interest rates fall and income along with substitution effects of falling rates go the other way. Since no fixed investments are reserved for construction on long-term basis, the effects of future profitability have declined. Spending does not exceed a limit as interest rates continue to fall. Another source that contributes to poverty is lack of education. Education is pivotal towards creating a solid base of diminishing poverty because education is correlated to having an income. Without proper education, generations and generations of youth are stuck in a chaotic lifecycle where they are forced to induce labor jobs. Without properly penetrating the spheres of professional fields, it is evident that poverty continues to be a demising factor. Lastly the opportunity cost of individuals attending school contrasted to employment is also a distinguishing factor. The older demographics do not possess jobs or any funds to attend universities. In American Democratic system, many students undergo the opportunity cost of attending school compared to employment. However, this situation continues to be a crucial factor from economic principles that has plagued Gambia. The economical behavior of the nation has undoubtedly suffered because of the factors mentioned above. The article states that individuals continue to struggle from the recession and have no money to even buy simple needs. Furthermore, the destructions of natural events such as droughts and plagues have continued to consistently have a negative impact in the economy. Gambia’s government cannot bear to take out loans because it simply does not have any reserves. With Gambia’s currency plummeting, the World Bank and IMF have no choice but to raise the interest rates. Individuals struggle to support households and have no funds to invest in their business. Hence, there is no room for growth as banks do not make any capital of the interest. Moreover, there is no investment from other outside sources due to the fact that other lucrative opportunities. The whole system is such a chaotic cycle that it hinders any growth in the economy. Moreover, poverty tends to propagate chaos in the local communities as violence is exerted through corruption, political bias, and crime. When individuals are not being fulfilled their needs, they turn in desperation mode to survive which is clear throughout all third world countries. Drug cartels thrive in low economic countries such as Afghanistan and Somalia because dealing drugs can be a gateway towards money. Another dangerous element that occurs in small rural communities is the division of power. The local government can only fight crime so much when individuals that rebel possess firearms that allow them to dictate and control the small regions of their environment. Many government officials do not possess the capabilities to fight local gang because they simple are either bribed or have no control to fight a superior authority. The situation arose for many reasons. First and foremost was the economic recession that has plagued the globe in every sphere. Due to that particular reason itself, poor countries such as Somalia and Uganda have been unable to have a high GDP and growth. Anup Shah, author of Global issues that cause poverty states, “The GDP of the 41 indebted poor countries (567 million people) is less than the wealth of the world’s 7 richest people combined. This ambiguity itself is the major cause of crisis. Another element that has distorted the whole perception of the crisis is the mortgage crisis. The mortgage crisis that has crippled prices all over the world is a huge focal point of observation. As more individuals began to abuse their credit lines, and began to make huge sums of purchases in credit. In essence, the banks failed to secure their net reserves in poor countries because the interest rates skyrocketed. Due to this lending system, the economy suffered because individuals lost all the possessions they had when they were unable to pay their mortgages off. Although an ideal dream would be for individuals to have the purchasing power, houses having low values will continue to have profound negative impacts in the economy for years to come. It also depicts the fact that sellers are doing everything in their power in order to squeeze the most value of their homes. This is conducted through exploiting other avenues of increasing the price through delivery and other service costs rather than the market value of the house itself. In order to combat this, the government has hinted that it may go a buying spree and purchase mortgage-backed securities. In the housing market, there are many players that contribute to shape the market itself. The owners are individuals that are tenants and buy property as an investment. In essence, they have the ultimate power to dictate not only the price but also the supply of housing market. Renters are individuals that are consumers who have strict parameters when purchasing a house. The owners dramatically can impact the demand side of the market along with the renters. For instance, if analysis indicated that modifications are needed in real estate markets, than the owner can increase the price. This would clearly rely on factors such as durability of the market, market penetration, high transaction costs, investments, creditors and immobility. At this point, the real estate owners cannot dictate the market because of the credit bubble. Hence, the macro and micro economic factors that dictate the market serve as an advantage for the consumers. Without a doubt, poverty in Gambia has reached new levels and will continue to haunt the economic system until it is freed of Neo-classic liberalism that has oppressed the system. Ghana continues to struggle to provide education, control interest rates, diminish crime and dictate the Keynesian policies. It has fell victim to foreign influence and cheap labor but has failed to really flourish its economy due to recession. The government continues to struggle to provide for its citizens, which is the focal point of this whole issue. The government is ran through parliament in which democracy is not enacted. The people do not have much voting rights. The President as mentioned above is indirectly selected by the government. Work is not conducted in a very efficient manner as the nation’s overall economy is lagging in all sectors. The government is corrupted as officials are constantly engaged in bribery. The whole concept of helping the poor has completely been dissolved under the idea of greed. Moreover, there are policies such as welfare, social security, FAFSA, and Medicare. Additionally, the rich refuse to pay the tax. Since the federal government does not have full power to implement anything at the state level. There is no collaboration between the federal and state government which poses a problem. My assessment of the policies is the fact that the government is undoubtedly corrupted. The 95% of the resources are privately owned which is detrimental to the population. It is clear that poverty in families also leads to social problems. Women are induced into rape or prostitution which contributes to diseases such as STD’s. Moreover, individuals that are hit by this condition resolve to absolute bad habits such as drinking and gambling. Moreover, poverty leads to child labor and abuse which is what the current sphere of Gambia dictates. Undoubtedly, poverty leads to escalation in crime rates such as armed robbery, money laundering, fraud and drugs which is detrimental to society. Malnutrition is also another consequence of poverty and can create an environment which deters tourism and growth There is no progressive tax or even a method of implementing tax. The poor suffer due to the fact that have limited resources and have no jobs. The country lacks an organized government in which tax can be collected. Moreover, a lot of violence in the country has spurred within the recent decades making it impossible for any revenue derived from the revenue. The political parties continue to battle with each along with the ethnic and religious clash. Martial law is often declared, which has tremendously crippled the local economy not only at macro but also in micro level. All these elements needs to be addressed if Ghana wants to eliminate poverty. Works Cited "Poverty in Africa." The Point. N.p., n.d. Web. 15 Jan. 2012. . Read More