POLYS 103 October 27 Lecture 26Outline of Last Lecture I. IR theory of soft powerII. SyriaIII. Turkey-Syria-KurdsOutline of Current Lecture II. Global Povertya. developmentb. cycle of poverty1.dual economy2.low productivity3.insufficient capital 4.few human services Current LectureGlobal Poverty30% of world lives at the margins of povertyGreat gaps in wealth in the world exist Countries are categorized as either developed or underdeveloped 7 billion people on earth-only around a billion live in wealth20% of people consume about 80% of consumption The United States is an example of a state that a middle classmost poor states do not have a middle classAs China and India grow wealthier- they are gaining a middle class Why do people care about povertyMorality-westerners think they should help those lesser than themselvesSecurity- rich states are rich and tend not to do anything about he poor statesEconomics: trade is key in making states rich If all poor states were richer- rich states could trade and become even richer Development: economic process intended to enable increasing numbers of people to produce enough wealth to support an acceptable quality of lifeThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.the poor aren’t poor because they lack moneythis is part of it but it has also to do with other factorspoverty is a complicated thingCycle of PovertyDual Economy-Low Productivity-Insufficient Capital-Few Human ServicesDual Economy: Vast majority is poor, very small minority is richpoor/rich economies do not interactpoor buy local- rich buy internationalrich money leaves the country, poor money isn’t enough to start growth Low Productivity poor have to work just to surviveoutput is mostly consumed-no savingscountry works really hard, but doesn’t produce anything to be invested/savedInsufficient Capitalthere is no moneyno money- no way to start businessesno businesses- no jobsFew Human Services Human Services- schools, police departments, roadsall of these things take taxesno capital-no tax base-no servicesservices are what create middle classmeans country will remain poor/rich External Economic Factors that affect the Cycle of Poverty are:1. trade2. foreign aid3. private investment 4. technical assistanceall these factors usually help the poverty globalization tends to be beneficial for poor countries Mexico/ Crime articlesystemic crime that exists in mexicocycle of poverty is seen herepolice corruption rich people can pay for their security- poor can’t crime pays better than a “regular” job (low productivity)India/ Bureaucracy Revitalizing the bureaucracy These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.cycle of poverty government/democracy needs good governance- bureaucracy is critical to that few human services aspect fixing bureaocracy is an anti-poverty program government works better- middle class emerges Brazil Managed to grow GDP per capita over 1,000 per person over the last decadehigh taxeslow spending on infrastructure high borrowing costscycle of povertylots of ways to help create growth but all of them cost moneylack of productivity creates less money for businesses to borrow against These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a
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