Trang Tran

Econ 2010
12/03/2015
e-Portfolio Assignment

Global Poverty
Throughout the world, people are suffering from poverty. This isnt just an issue that is
contained in one country; this is a challenge for the entire world to take on. It is interesting to see
that 37 million people in the United States are considered poor when put to our standards,
however, certain other countries and their people are living off of a lot less. Compared to some of
the other poor nations out there, we are doing tremendously well financially compared to other
countries.
One thing that was interesting was the fact that even though we consider 37 million
people in the U.S. poor. Our poverty threshold is $20,000 per year for a family of four, which per
individual is $5,000 per year. Countries such as Burundi, Ethiopia, Paraguay, and Bangladesh
have such low living standards that they only can afford to live off of a very limited diet of
starchy staples such as a few beans and a few vegetables. Contrastingly, wealthy countries are
used to such higher standards of diet such as more variety, higher quality, and more produce.
With the United States poverty threshold being less than $5,000 per individual a year, that
by itself is hard to imagine living off of. With the U.S. family household income averaging above
$70,000 per year, that leaves a family of four with about $20 a day to spend on food, and $40 per
day to spend on housing, commuting, education, leisure, etc.
According to the World Banks threshold for world poverty, only half of the other
countries meet our poverty level of $5,000 per year. Exactly sixty nations have a poverty level of
$2,000 per year or lower. This means most of the world would be considered poor according to
official U.S. poverty standards. However, in 1985, the World Bank set extremely low standards

Trang Tran
Econ 2010
12/03/2015
e-Portfolio Assignment

of poverty, which was divided into two thresholds designating extreme poverty at only living off
of $1 per day and less severe poverty at $2 per day. World Bank is constantly adjusting these
thresholds and compensating for inflation.
Today, the $1 standard of 1985 is now equal to about $1.50. In a household of four, this
equals to $2,190 per year and with only $1.50 per day, per person for food and housing, there is
no way that this is a viable way to live. The World Bank was not going by the standards that
were set by the U.S. they were instead looking to establish what the most rock bottom conditions
that were considered as the bare minimum and an unacceptable living condition.
A household survey discovered that over one billion people are in extreme poverty; living
at $1 per day and nearly three billion people are simply poor, living off of $2 per day. The World
Bank states that regardless of individuals suffering from extreme poverty, billions of people do,
indeed, get by. According to the article, extreme poverty are quite high in a number of smaller
and less industrialized countries such as Mali, Nigeria, Haiti, Zambia, etc. However, in certain
large countries, such as China, and India by itself had one third of the worlds extreme poverty.
Majority of Americans cant comprehend these living situations because living on $1 to
$2 per day means they would starve, face unhealthy malnourishment, and have inadequate filthy
clothing. In countries that are in poverty, mothers who are in labor do not always have access to a
medical professional. As a result, both the mother and the child are at risk for fatal complications
should something not go as expected. Even if things go smoothly during the birth of a child, they
will likely live to suffer through ongoing malnutrition and can potentially die; in fact, at least one
out of ten children actually passes away before they reach the age of five.

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Econ 2010
12/03/2015
e-Portfolio Assignment

In the most impoverished sections of a low-income country, infant mortality rates are two
to three times higher. This causes extremely low life expectancies amongst the poorest nations of
the world. In more industrialized nations such as the United States, Europe, and Japan, life
expectancies are significantly higher at 75-80 years from birth while the impoverished nations
have a frightening life expectancy rate of only 40-50 years.
Children from the globally poor nations are less likely to stay in school past the 8th grade
and illiteracy is widespread. Having things like telephones, healthcare, and higher levels of
schooling is limited.
United Nations set goals in the year 2000 to eliminate poverty throughout the world. The
goal was to help at least half of the population who were living less than a $1 per day income to
get out of the extreme poverty, however very little progress has been made due to the economic
advancement in China. In order to reach the main goal, more progress has to be achieved in the
economically struggling nations.
In my opinion, we must identify each individual country that is impoverished and facing
economic struggles. We should focus on evaluating each nation underlying problems and put into
practice real solutions that will work. Some solutions would be to help countries gain quality
education by building new schools, training teachers and possibly sending teachers from more
developed countries. By providing adequate education, children will realize their full potential
and help build their countries economic strength.
An essential thing would to bring the country up to better standards of living would be to
provide the population with access clean water and access to healthcare facilities. Having these

Trang Tran
Econ 2010
12/03/2015
e-Portfolio Assignment

essential things would allow the children and adults of the population to grow healthy, full of
vigor, and would lessen the mortality rate.