Module V Poverty and Inequality - Agostino Desanto

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Module V Inquiry Statement: -

“Mankind is the predominate factor in the degradation of world resources. It is of primordial


importance that mankind understands this and puts in place checks and balances that allow
for a sustainable development of the planet. There are no simple solutions to this problematic
which is based in the unconscious development of an unequal human society. “Pachamama is
unhappy”!
Inquiry question: Why do poverty and inequality persist, and how can they be alleviated?

Key Concept
Change: - is the conversion, transformation or the passage of a form, a state or a value to
others. The concept of change involves understanding and evaluating the causes, processes,
and consequences of change.
Why is continual change important for poverty and inequality?
https://www.un.org/development/desa/dspd/wp-content/uploads/sites/22/2020/01/
World-Social-Report-2020-FullReport.pdf

Structural change has a far-reaching impact on inequality. It exposes the population to


challenges and opportunities. Foreign trade and technological progress have been widely put
forth as a structural driver of inequality. Broader structural change, such as demographic
transition, can also impinge upon inequality. Structural change in developing Asia has been
unprecedented in its scale and speed. The heterogeneity of the population implies that the
adjustment capacity to these changes varies. The fundamental solution to mitigating the
adjustment costs arising from structural change lies in empowering individuals to become
more productive, adaptable, and versatile through access to education and employment.
Structural change exerts a significant effect on inequality in both advanced and developing
countries. The experiences of the advanced economies entail valuable lessons for developing
Asia. Extensive structural change is both a cause and consequence of the exceptionally rapid
economic growth, which enabled developing Asia to raise living standards and reduce poverty
at a historically unprecedented rate. The region has already begun the difficult and complex
task of addressing inequality arising from structural change. There is a growing recognition
that more sustainable growth supported by broad-based political and social support requires a
growth strategy, which provides equality of opportunity, especially in education and
employment. The newly developing more inclusive growth philosophy envisions expan

Related concepts
Patterns and trends: - patterns are common arrangements in a space or place, somewhat
common trends over time. They are intrinsically related to the concept of systems - giving
themselves a wide spectrum of time, place and space.
Why do systems allow poverty and inequity to continue to thrive?
https://www.oxfam.org/en/5-shocking-facts-about-extreme-global-inequality-and-how-even-it

With the preceding statements in mind, it is critical to remember that poverty is a situation
caused by the collapse of the economic system. Because poverty may continue for decades, its
effects are sometimes disguised, and individuals adapt by becoming inventive in order to live.
The economic system does not provide enough food, water, housing, clothes, and health care
for the poor, leading in trauma and a decreasing quality of life.
In summary, poverty reduction is viewed as the outcome of economic policies and individual
and family production methods, with poverty viewed as a situation into which people fall and
from which they may be rescued if their income improves. This method prioritizes finance
(economy) over people and never addresses the root causes of poverty.
Global Context
Globalization and sustainability
How are all things connected?
Students will explore the interconnectedness of human-created systems and communities; the
relationship between local and global processes; how local experiences mirror global ones; the
opportunities and tensions offered by global interconnection; the impact of decision making
on humans and the environment.
Why and how are poverty and inequality linked?
https://gsdrc.org/topic-guides/poverty-and-inequality/measuring-and-analysing-poverty-and-
inequality/defining-poverty-extreme-poverty-and-inequality/#:~:text=Poverty%20is%20related
%20to%2C%20yet,line%20(McKay%2C%202002).

The EU's overall persistently high level of poverty suggests that poverty is primarily a result of
how society is organized and resources are allocated, whether these resources are financial or
other resources such as access to housing, health and social services, education, and other
economic, social, and cultural services.
During periods of austerity, various governmental decisions have exacerbated poverty and
inequalities (cutbacks in income and services, labor market deregulation, etc.).
Indeed, the fact that poverty levels vary greatly between Member States indicates
unequivocally that various methods to distributing resources and opportunities result in
diverse outcomes.
 
The least unequal societies in Europe have the lowest rates of poverty and have been less
affected by the crisis. This is largely due to the fact that these governments prioritize
maintaining appropriate minimum income levels and good access to services through the
social security system and by guaranteeing minimum wage levels. They are often the most
successful in redistributing wealth through taxation and other means. This means that, in the
end, judgments about how to reduce poverty are political choices about the type of society we
desire.

Essay

Poverty and inequality are global issues that have been for a long time and will continue to
exist as a result of the advantages and downsides that they produce. The issues of how poverty
exists and how it may be remedied will be discussed in this essay. Furthermore, the world's
structures are designed to perpetuate poverty and injustice, and the WHY will be discovered.

Poverty is defined as a lack of material things or money to meet a person's fundamental


requirements. Poverty can be social, economic, or both.

as well as political elements Absolute poverty is calculated by comparing income to the


amount required to satisfy basic personal necessities such as food, clothes, and shelter.
Relative poverty is defined as the inability of a person to reach a basic standard of living in
comparison to others in the same period and location. As a result, the floor at which relative
poverty is defined differs from one country to the next, or from one community to the next.

Many governments and non-governmental groups work to alleviate poverty by giving basic
needs to individuals who cannot earn a living wage. These efforts may be impeded by
limitations on the government's ability to offer services, such as corruption, tax evasion, debt
and loan conditions, and brain drain of health care and educational personnel. Typically,
strategies for raising income to make basic needs more accessible include welfare, economic
freedom, and financial services. Meanwhile, the poorest residents of middle-income nations
have received a disproportionate amount of their country' growing wealth.

Structure change has a significant impact on inequality. It raises public awareness of both risks
and opportunities. Foreign trade and technological progress have long been thought to be
fundamental drivers of inequality. Broader structural change, such as demographic transition,
can aggravate inequality. Emerging Asia's structural upheaval has been unprecedented in
terms of scale and speed. Because of the diversity of the population, the population's ability to
adapt to these changes varies. Individual empowerment to become more productive,
adaptable, and flexible through access to education is the fundamental solution to lowering
the adjustment costs associated with structural change. Structure change has a significant
influence on inequality in both rich and developing countries. Lessons from developed
economies may be transferred to rising Asia. The extraordinarily rapid economic development
that has allowed developing Asia to raise living standards and reduce poverty at a previously
unprecedented rate is both a cause and a result of substantial structural restructuring. In the
region, the difficult and difficult job of addressing inequalities induced by structural change has
already begun.

According to World Bank research, when markets are flawed (in credit, insurance, land, and
human capital), disparities in power and income convert into uneven opportunities, resulting
in lost productive potential and inefficient resource allocation. Unequal power is shown to
contribute to the creation of institutions that perpetuate disparities in power, position, and
wealth, which is usually negative for long-term growth investment, innovation, and risk-taking.
According to recent research, if inequality is not addressed, it leads to additional and rising
economic inequality since capital gains outweigh income increases. Inequality has also been
shown to weaken social cohesiveness. According to research, the presence of substantial
horizontal inequalities, which include economic, social, political, and cultural status disparities
across prominent identification groups, is particularly likely to enhance the likelihood of violent
conflict. Thus, disparities can obstruct poverty alleviation and exacerbate political and social
conflicts.

Economic disparities frequently coincide with other social disadvantages faced by people who
are marginalized because of their identities, such as gender, disability, race, ethnicity, caste,
religion, or language, resulting in overlapping and mutually reinforcing inequalities. These
socially excluded groups typically experience spatial inequalities as a result of their
concentration in impoverished regions. Inequities in the social, economic, and geographical
spheres create political inequalities.

Poverty is a state caused by the breakdown of the economic system. Because poverty may
continue for decades, its effects are sometimes disguised, and individuals adapt by becoming
inventive in order to live. The economic system does not provide enough food, water, housing,
clothes, and health care for the poor, leading in trauma and a decreasing quality of life.

In summary, poverty reduction is viewed as the outcome of economic policies and individual
and family production methods, with poverty viewed as a situation into which people fall and
from which they may be rescued if their income improves. This method prioritizes finance
(economy) over people and never addresses the root causes of poverty.

Poverty and inequality are widespread globally, as this article has demonstrated. They are so
intertwined that one is completely reliant on the other. Furthermore, the themes covered
include how poverty and inequality affect society and why they exist.

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