Religion and Wealth and Poverty - Describe the causes of poverty in the developing world.

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GCSE Coursework: Religion and Wealth and Poverty

  1. Describe the causes of poverty in the developing world.

        There are two types of poverty currently within the world. People having too little money to provide standard living conditions for themselves define absolute poverty and characteristics of substandard lives are malnutrition, disease and low-life expectancy. Relative poverty exists where a person is considered poor in relation to the average wealth held in their society.

   The developing world includes LDC (less developed countries) and developing countries. LDCs are countries considered still to be poor and they often contain many inhabitants who are in absolute poverty. Developing countries are countries like Malaysia, which are gaining in wealth.

    The developing world tends to hold more people in absolute or relative poverty. Poverty is a major problem within the developing world. The developing world holds seventy five percent of the world’s population yet only twenty percent of the world’s wealth. This presents a problem and the shortage of money leads them into the vicious cycle of poverty, where one factor leads to another and eventually the situation spirals to devastating extents.

    Natural disasters plunge developing world countries and LEDCs (less economically developed countries). For example, the Gujarat earthquake disaster of early 2001 and the heavy flooding that wreaked havoc on the inhabitants of Mozambique. The disasters cause poverty because often these countries are often weak financially and cannot afford to restore their country after extensive damage. Therefore, due to lack of resources the situation often worsens. It affects their inhabitants’ livelihoods causing a lack of production leading to being unable to provide for citizens. This in turn leads to poverty, as they cannot even provide substances to trade and lose money.

  Internationally there are constantly wars being fought.  There are many types of war and war can be defined as armed conflict between two opposing forces. War is financially taxing on all countries that engage in it. It requires money and soldiers. War also means that the countries involved are in danger from their opposing force. Therefore, the cost of war is high. It causes damage and is expensive to maintain. For example, the set costs of WW1 were £6600 million. Unless a country has plentiful amounts of money to finance a successful war effort, they begin to suffer negative drawbacks such as loss of population, damage within their country and massive loss of money. The country then struggles to raise funds to maintain a population affected by war, perhaps injured or emotionally distressed.

 This is a situation familiar to many developing world countries that engaged in war with insufficient funds or lose the war and are left with a reduced population affected negatively by the war and surrounded by damage. War also leads to poverty factors if the country does not manage its war campaign well. When the country reaches the stage of devastation, it becomes hard to maintain. Inhabitants are often unable to earn a decent living; the country falls into poverty and often asks for financial aid from fellow nations leading to even further poverty.

Frequently, when a country in the developing world is struggling economically they appeal for aid from organisations like the IMF (international monetary fund) or the World Bank. They are issued loans from developed countries like the USA at a high rate of interest. They are required to pay over time, however the interest rates are so high that the country often finds itself in further debt than before the loan. This problem is defined as world debt. Suggestions made recently have been that all debt to be paid by the developing world should be written off and a fresh start made. However, the problem of world debt increases every day as inters rates on loans increase.

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  The above factors pose problems for the developing world, as being already financially weak, they find it hard to overcome these problems and fall further into debt and poverty. All the factors are linked. For example, world debt will mean many poor people who cannot provide an acceptable living standard for themselves as their countries are struggling to repay the borrowed money and the extra interest. They become ill and illiterate and again the country cannot recover as it has a weak workforce. 

  Trade occurs internationally, between nations whatever their financial status is. Between the developed world and ...

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