POVERTY What is poverty? Poverty is the economic condition in which people lack sufficient income to obtain certain minimal levels of health services, food, housing, clothing, and education generally recognized as necessary to ensure an adequate standard of living.What is considered adequate, however, depends on the average standard of living in a particular society.Relative poverty is that experienced by those whose income falls considerably below the average for their particular society.
Absolute poverty is that experienced by those who do not have enough food to remain healthy.
However, estimating poverty on an income basis may not measure essential elements that also contribute to a healthy life. People without access to education or health services should be considered poor even if they have adequate food. CAUSES OF POVERTY One of the greatest challenges facing many least developed countries especially in the African continent is the worsening scourge of poverty with its attendant effects of unemployment, malnutrition, illiteracy, HIV/AIDS and destitution. There are many causes of poverty complex and multi-dimensional in nature.
They involve among many others gender inequality, economical, political and social exclusion. Therefore any intervention measures designed to respond to the challenges above should be judged by their ability to positively make a significant dent on poverty at a micro level (lower levels of society such as the households or individual levels). There should be a clear linkage between macro level policies and micro level impacts in terms of reducing poverty or at least providing an environment for poverty reduction.
Such a policy should be able to facilitate the delivery of basic needs to ordinary citizens and these include access to affordable food, health, education, shelter, water and sanitation, public information among many others. No one should be alienated from these basic and fundamental human rights on account of one’s poor economic status. IMPACT OF POVERTY ON BUSINESS OPERATIONS When a person doesn’t have disposable income he/she make purchases of commodities, goods and services. Therefore many cannot increase their sales. Production output drops.
Some companies put their staff on short time. This further reduces disposable income. Financial sectors do not grant credit to low- income earners therefore the financial market suffers. Inflation rises. The GDP of the country drops. The price of goods and services increase. The people with low income and those that receive social grants do not have enough many to but commodities. Companies that do not make high turnovers cannot plough moneys back into communities for social upliftment. ALLEVIATION OF POVERTY BY THE GOVERNMENT
Aid refers to the net flow of official development assistance provide by governments, international agencies, and public institutions of the industrialized countries. The term is also used to encompass help (both material and technical) provided by non- governmental organizations (NGOs) and voluntary agencies to countries and people in need, particularly for disaster or emergency relief. The overall portfolio of assistance of a donor, or the range of aid I provides to a particular country, is often referred to as its aid programme. The various recognized categories of aid such as: Bilateral aid * Project aid * Grant aid * Technical assistance * Emergency aid/Disaster relief * Food aid * Voluntary aid GLOBAL POVERTY! IS BUSINESS THE ANSWER? When activists discuss the way less developed countries have missed out on the benefits of globalization, Multinational Corporations are often portrayed as the villains. But to some, they are the solution and the only one. CONCLUTION In conclusion I would just like to say that we, as South Africans, need to show the world that we are strong and we are better prepared for global turmoil than we previously were. WE ARE HERE TO STAY!!