Principle of Economics (Poverty)

Topics: Poverty, World Bank, Socioeconomics Pages: 9 (2728 words) Published: November 8, 2012
Poverty can defined as lack of resources when required or something which is not there but it is required the most. Economics is the science of how a particular society solves its economic problems. (Milton Friedman, 1912-2006) In many countries, poverty is quite a big problem and it also gives an idea about the economy of the country. Poverty seems to be a never-ending cycle. Many people in our society nowadays live in a very comfortable and wealthy condition, but more than a quarter of population in this world still live in this poverty condition. Poverty in general is when unable to conclude the standard of living that appears in their local situations. Although nowadays the standard of living between countries may differ tremendously, the issue of poverty remains the same. Resources such as shelters, food, education, clothing and water which is know as the human’s basic needs is still lacking. The high caste people always exploited the poor low caste people. As a result generation after generation the poor remains poor and the rich always enjoys high standards of living. The example for the countries that is on poverty is Zambia and South Africa. Gross Domestic Product

Rank| Country| GDP - real growth rate (%)|
1| Angola| 16.3|
2| Sudan| 12.8|
3| Ethiopia| 9.8|
4| Liberia| 8.5|
5| Mozambique| 7.5|
6| Egypt| 7.2|
7| Congo, Democratic Republic of the| 7|
8| Gambia, The| 7|
9| Tanzania| 6.9|
10| Sierra Leone| 6.8|
11| Sao Tome and Principe| 6.5|
12| Kenya| 6.3|
13| Madagascar| 6.3|
14| Tunisia| 6.3|
15| Nigeria| 6.3|
16| Ghana| 6.2|
17| Zambia| 6|
18| Uganda| 6|
19| Rwanda| 6|
20| Malawi| 5.7|
21| Burundi| 5.5|
22| Libya| 5.4|
23| South Africa| 5|
24| Lesotho| 4.8|
25| Senegal| 4.8|
26| Botswana| 4.7|
27| Algeria| 4.6|
28| Benin| 4.5|
29| Gabon| 4.5|
30| Namibia| 4.5|
31| Niger| 4.5|
32| Mali| 4.3|
33| Burkina Faso| 4.2|
34| Central African Republic| 4|
35| Guinea-Bissau| 3.7|
36| Djibouti| 3.5|
37| Cameroon| 3.2|
38| Congo, Republic of the| 2.8|
39| Somalia| 2.6|
40| Togo| 2.5|
41| Morocco| 2.1|
42| Eritrea| 2|
43| Cote d'Ivoire| 1.7|
44| Swaziland| 1.6|
45| Guinea| 1.5|
46| Mauritania| 1.5|
47| Chad| -1.3|
48| Zimbabwe| -6|

Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is the total money value of all final goods and services produced within a country in a given time period. According to the data above, Zambia is having a world rank of 17 with the GDP rate of 6%. The reason of Zambia having a high GDP rate is because of Copper mining income of $ 5 billion dollars during the past decade, according to the Declaration of Director-General of the Chamber of Mines of Zambia, Frederick Bantoppons. This is reflected growth of more than 6% of GDP to Zambia , Concrete investments has recorded since 2000, thanks to the constant flow new investment in the mineral sector and direct investments to create new centers to handle copper. (

Guinea is the number 45 in the world ranking in terms of the rate of decline in GDP by 1.5 thus leading Guinea to be one of the least wealthy country in the world. It has the great possibilities of economic unused, particularly for developing agricultural and mining such as bauxite, gold and diamonds. The government has implemented free market reforms since the abandoning of Marxism during the mid-1980s. Despite the country has build up trade ties with France, Guinea is still outside regional block of other previous French colonies. (

There are many causes of poverty basically. For example, too much people, less...
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