This past week, the Nobel prize in Economics was given to Abhijit Banerejee, Esther Duflo, and Michael Kremer. This honored was bestowed onto them due to their work attempting to explain poverty in other countries. They did this by stepping away from the big picture, and instead asked littles ones. They split the reasons for poverty into smaller sections and really tried to understand the root cause of this so they could make a bigger change. Their experiments reveal that the gap in productivity between the most and least efficient producers is much wider in developing economies than in advanced ones. While they have made significant progress, global poverty still remains.
Now I ask, what do you think are some of the main causes of poverty and why are countries still struggling in 2019? And more importantly, can we ever erase poverty completely or are some always doomed to be "poor"?
https://www.economist.com/finance-and-economics/2019/10/17/a-nobel-economics-prize-goes-to-pioneers-in-understanding-poverty
Global poverty is one of the biggest problems our society is facing right now. One reason it still remains in many countries is because of the conflict trap.
ReplyDeleteOne cause of poverty is that one of the main types of jobs in many developing countries is still agriculture, but agriculture doesn't bring in a lot of GDP. For example, in India about 50% of the employed work in agriculture but it only brings in about 14% of GDP.
ReplyDeleteCountries can increase their GDP by producing more valuable products and increasing the % of allocated workers to that particular industry. And poor countries will always be around because not everyone can be rich, however the standards can be improved.
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