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The Mystery of Capital - Assignment Example

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In the paper “The Mystery of Capital” the author found that, over a five year, ever since the gradual adoption of globalization economic policies to the year 2000, “the income gap between the fifth of the worlds' people living in the richest countries and the fifth in the poorest doubled from 1960 to 1990…
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The Mystery of Capital
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Download file to see previous pages Even as he mentions this, however, De Soto (2000) disputes it, insisting that effective poverty eradication and alleviation strategies exist but their implementation, let alone success, is dependant upon the support of both donor and debtor governments, upon the cooperation of both developed/industrialized and underdeveloped/developing nations. Sachs agrees, arguing that not only is poverty possible to eliminate but that it can be eradicated within the span of two decades. Even though the arguments presented are economically sound, they are politically idealistic as evidenced in the fact that poverty is largely defined as an economic problem and not as a political-economic one.
Although numerous economists, primarily Malthusians, contend that poverty is irresolvable consequent to the fact that demand is growing at a far faster rate than is supply (Ikubolajeh, 2002), Sachs (2005) differs. Sachs does not simply believe in the possibility of eliminating poverty but believes in the achievability of the said goal within the span of a couple of decades. Exhibiting an almost complete faith in the capacity of human beings to achieve that which they set their minds to, Sachs maintains that if there is a will to eliminate poverty it will be. His formula for doing so is straightforward. The world is marked by extreme poverty, on the one hand, an inordinate wealth on the other. The poor, or at least those who suffer extreme poverty, do not have the means to resolve their economic problems on their own but need the aid of the wealthy, on the one hand, and a determined international effort to include. ...Download file to see next pagesRead More
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