THE RICH AND POOR

The gap is widening between the rich and poor. A Country’s wealth is visible: Buildings Roadways Homes etc. A rich country has its wealth spread throughout most of its population.

Places like New Delhi, Mexico City, Rio de Janeiro all have impressive buildings and homes, BUT the vast majority of people do not share in this wealth. Most of the wealth is in the hands of a few individuals and in the hands of ‘Multi- nationals. The gap between rich and poor is due to three factors:1. Capital (money) 2. Political Power 3. Education - Knowledge

All of these three are of course controlled by the developed world. The developed world CONSUME! They consume more than they need. They consume food, resources (especially metals) and energy.

Some facts: 20% of the world’s population has 86% of the world’s GDP, 82% of all the export markets, 68% of all the investments and 74% of all the telephones. In 1998 the percentage share of the worldwide market for the rich was: - Telecommunications – 86% - Pesticides – 85% - Computers – 70% All in the hands of Europe, Japan and North America!

Some Definitions: Extreme Poverty: Hundreds of millions of people live on less than US$1 per day. Relative Poverty: An individual’s level of income as being low, in relation to the other people in that country.

Human Poverty: The condition in which humans have inadequate access to sanitation, clean water and basic education. This leads to high infant mortality and a low life expectancy. The UN takes this into account when calculating the Human Poverty Index (HPI). Income Poverty: This defines those people as poor who have a low level of financial income in relation to the cost of living.

Measuring levels of Poverty Maslow”s Level of Human Needs: Physiological Needs Security Love & Acceptance Esteem Self-Actualization

9 Maslow’s hierarchy of needs self-actualization: morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts Esteem: self-esteem, confidence, achievement, respect of / by others Love/Acceptance: friendship, family, sexual relationship Safety: security of body, employment, resources, morality, the family, health Physiological: breathing, food, water, sleep 9

What is “Right” with this picture?

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17 What are the causes of Economic Disparity? Impact of Colonialism Lack of investment Population growth Disease Foreign Debt War Leadership Issues Trade Inequities Lack of Local Control 10

Human Development is measured by the UNDP (United Nations Development Program). Four indexes are looked at:

HDI: Human Development Index. Measures the well being of people in three categories. 1. Longevity (life expectancy at birth), 2. Knowledge (Educational attainment) and more importantly 3.the Basic Standard of Living is measured in $US (GDP and PPP (Purchasing Power Parity) – the PPP is the local cost of living. Income compared to the cost of something like a basket of food).

An example could be “The Big Mac Index” – The relative cost of a Big Mac in various countries. Sometimes called Income poverty. How far your money will go? This is more of an economic indicator.

HPI: Human Poverty Index. Longevity is looked at as the life expectancy at birth and Mortality at a young age is also looked at. Knowledge is measured by the Literacy rate. Standard of living is measured by access to health care and safe water. Sometimes called Human Poverty. This is more of a Social indicator.

GEM: (Gender Empowerment Measure) This examines the degree in which women have political and economic decision making. GDI: (Gender-related Development Index). This measures the Literacy rate and Life Expectancy compared to gender differences. Canada in 2000 was 3 rd in the world in GDI and 6 th in GEM. HDI and HPI is used to measure the gap between rich and poor.

The Findings: Absolute Poverty has decreased from 28% to 24.5% in the world. But remember that world population has increased. Income poverty has increased. Costa Rica, Trinidad and Tobago, Chile, Cuba and Singapore have reduced Human poverty by improving Literacy and Health care. Women have also entered the work force.

Philippines, China, Kenya, Costa Rica, Peru and Zimbabwe have reduced Human Poverty as well by improving their health care system, but their income poverty has increased. In over 80 countries (there are about countries in total), 34% of the population is poor. Seven countries have 50% or more that are poor. Burkina Faso, Sierra Leone, Niger, Mali, Cambodia, Ethiopia and Mozambique.

The Sub-Sahara area is at 40% poverty and getting worse. Southern Asia accounts for 2/3 of the poor in the developing nations. You can have a country with a large income poor but less human poor. Peru has been able to lower their human poor by implementing social health programs. In Arab countries, they have money to lower their income poor, but their human poor is at 34% because they have not improved education and health care.

30 Addressing the problem Political colonialism disappeared only to be replaced with economic colonialism. Developing nations must find a way to control their economies for their own benefit to diminish disparities. The benefits of any economic growth in these countries must be spread over a population that is growing very rapidly. 19

31 When an epidemic such as HIV/AIDS kills millions, incl. the most productive members of society, an new set of economic problems is created. The amount of debt owed by the poorest countries is unsustainable. Cancelling, or at least reducing, this debt and the huge amounts of interest payable would go far in alleviating the disparity b/w rich and poor countries. Gov’ts of the developing world are demanding a greater voice in the vital decisions that effect them. 20

32 Lastly... Developing countries need leaders who are prepared to work for the national good rather than for their own interests. Do we know what Odious Debt means? 21

The End!