Causes of poverty in africa essay

Free trade and other economic agreements that reduce subsidies on local farms etc, has a worse impact on developing countries. We hear of these subsidies being barriers for foreign investment and more open trade. Yet, as Structural Adjustment Policies (SAPs) have tried to do, it results in opening up economies that may not be ready to do so. This therefore results in unequal trade, as poorer countries and their industries often cannot compete with multinationals — especially if they end up competing with subsidized industries as Joseph Stiglitz explains earlier.

Peter Townsend transformed the conception of poverty, viewing it not simply as lack of income but as the configuration of the economic conditions that prevent people from being full members of the society (Townsend, 1979; [68] Ferragina et al. 2016 [69] ). Poverty reduces the ability of people to participate in society, effectively denying them full citizenship (as suggested by . Marshall ). Given that there are no universal principles by which to determine the minimum threshold of participation equating to full membership of society, Townsend argued that the appropriate measure would necessarily be relative to any particular cultural context. He suggested that in each society there should be an empirically determinable 'breakpoint' within the income distribution below which participation of individuals collapses, providing a scientific basis for fixing a poverty line and determining the extent of poverty (Ferragina et al. 2016 [69] ).

It is because the millions of people living in absolute poverty, who organisations like the WDM and Christian Aid are rightly concerned about, do not have any money, or not enough money, that their needs are not met: they don't constitute a market, or only an insufficiently profitable market. Because their demand for decent food, clothing, shelter, healthcare and sanitation is "ineffective", trade and the international trading system ignore them. No change in the rules of international trade is going to change this since it is the "international trading system" itself (aka the world market, aka capitalism) that is the cause.

Causes of poverty in africa essay

causes of poverty in africa essay


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