Global Poverty

Global Poverty: Definitions and Statistics…

Defining Poverty The latest data on global poverty from 2013 estimates that 767 million people are living below the international poverty line, which is $1.90 per person per day. While this represented a 1.7 percent decrease compared to 2012, nearly 800 million people is still an unacceptable number. In 2016, 4.8 million Canadians (13.9%) were living in poverty as defined by the Low-Income Measure (LIM), which defines the poverty rate as a 50 per cent of the median Canadian household income.

Gross Domestic Product GDP (Gross Domestic Product): the total value of everything produced by all the people and companies in the country. It is the most accurate measure of a country’s economy The GDP of the poorest 48 nations (i.e. a quarter of the world’s countries) is less than the wealth of the world’s three richest people combined.

Literacy rates Literacy: both the ability to read and write one's own name and as the ability to read and understand newspapers, magazines and encyclopedia articles written at a level of sophistication often well above that of the average graduate of grade 10 (in Canada) 15% of Canadians have significant literacy gaps; 27% only have basic reading skills Nearly a billion people entered the 21st century unable to read a book or sign their names. Less than one per cent of what the world spends every year on weapons, is needed to put every child into school.

BASIC NEEDS 1 billion children live in poverty (1/2 of the children in the world). 640 million live without adequate shelter 400 million have no access to safe water 270 million have no access to health services According to UNICEF, 30,000 children die each day due to poverty. That is about 210,000 children each week, or just under 11 million children under five years of age, each year.

Poverty gap The richest 20% of the world’s population consume 86% of the world’s resources

How Is this fair? VS.

A looming issue

Potential Global Poverty Solutions Aid: assistance given to developing nations by more developed nations Trade: Commerce with developing countries can stimulate their economies and help poorer people gain wealth Structural Adjustment Plans (S.A.P.’s): Requirements for economic restructuring forced on developing countries who receive loans or money Debt Relief: Cancelling the debt of poor countries who owe rich countries billions of dollars.

AID Organizations which give aid: International bodies (e.g. U.N.) National governments (e.g. CIDA) Non-governmental organizations (also known as NGO’s) (e.g. World Vision) Types of Aid Multilateral aid: money given by several countries and is usually used for big projects like dams. Tied aid: money given with strings attached. (e.g. Canadian government giving money which must be spent on Canadian products) Infrastructure development: large projects like dams and highways Food aid: giving food handouts to people who are at risk of starvation Health aid: buying and administering medicine to people who are sick or at risk of getting sick (e.g. immunizations) Training/Education: providing people with education or job-skills so they can earn a living Micro-credit: small loans which provide the capital needed for people to start a small business

Why Debt Relief? Poor countries cannot afford to repay the rich countries, and the interest payments alone make up a large percentage of poor countries’ annual spending. Many people say that the rich countries should cancel the debt of the poor countries so that they can start fresh. These people argue that much of the money that was lent to the poor countries was pocketed by corrupt leaders, and therefore didn’t benefit most of the people in that country.