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Wednesday, June 26, 2013

Poverty Report

According to several recent reports, the global poverty rate has been cut in half during the last two decades.

“Poverty used to be a reflection of scarcity. Now it is a problem of identification, targeting, and distribution. And that is a problem that can be solved.” (The Economist—June 1, 2013 edition)

This is such an encouraging concept: We have adequate resources in this world, albeit inadequate distribution.

According to the World Bank, Sub-Saharan Africa and South Asia currently experience the highest levels of poverty. The first step, identification of needs, is relatively easy: nutrition, clean drinking water, shelter, health care, education, safety, etc.

The next step—targeting—or pinpointing the neediest members of these regions, is a bit more difficult. Most poverty statistics are based on a measure of a country’s per capita GDP (Gross Domestic Product). GDP/capita measures the average productivity of a country. It does not take unequal distribution of resources into account. There are people in every country who will go to bed hungry tonight. There is someone not far from you who can’t afford his medications. There are cities all over the world--where the homeless sleep on the streets, children lack proper education, and families don’t feel safe.

The final step, distribution, is the most complicated of the three mentioned. Transportation of food, medicine, and building materials can be expensive as well as logistically troublesome. In many impoverished regions, food aid is often confiscated and sold on the black market by the warlords. Corrupt leaders regularly funnel aid money into their own pockets. News about these incidences leads to compassion fatigue among donors.  

The global poverty rate may have been decreased significantly in the last two decades. However, we are far from solving this challenging problem.

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