Third world countries are often described as “developing” while the first World industrialised nations are often developed.What does it mean to describe a nation as “developing” ? A lack of material wealth does not necessarily mean that one is deprived . A strong economy in a developed nation doesn’t mean much when a significant percentage of the population is struggle to survive .
Human development is about much more than the rise or fall of national incomes. It is about creating an environment in which people can develop their full potential and lead productive , creative lives in accord with their needs and interests . People are the real wealth of nations . Development is thus about expanding the choices people have to lead lives that they value.
And it is thus about much more than economic growth , which is only a means of a very important one of enlarging people’s choices . At household community societal national and international levels various aspects of the above need to be provided as well as commitment to various democratic institutions that do not become corrupted by special interests and agendas .
Yet, for a variety of reasons , these “full rights” are not available in many segments of various societies from the richest to the poorest . Inequality is not justice bad for social justice.Iit is also bad for economic efficiency .
While poverty alleviation is important so too is taking inequality . That is even in the wealthiest countries the poor may not be in absolute poverty or their level of poverty may be a lot higher than those in developing countries but in terms of their standing in society their relative poverty can also have serious consequences such as deteriorating social cohesion , increasing crime and violence and poorer health.
A few places around the world do see increasing rates of growth in a positive sense . But globally there is also a negative change in income distribution . The reality unfortunately is that the gap between the rich and poor is quite wide in most places . e.g :
1 :About 0.13% of the world’s population controlled 25% of the world’s assets in 2004.
2 :The wealthiest 20% of the world’s population consumes 76.6% of the world’s goods while 80% of humanity gets the reminder .Interestingly the US and UK are the biggest proponents of neo liberal economic ideology, which has often played down concerns about inequality and instead focused more on raising the lot for everyone. At World Bank is a major international institution involved in poverty and development . It has the capacity to lend a lot of money and expertise to developing countries and advise on development matters
However due to the COVID-19 crises as well as the oil price drop this trend probably will reverse in 2020. The COVID-19 crises will hav disproportionate impact on the poor through job loss loss of remittance rising prices and disruptions in services such as education and health care .
The World Bank estimates that 40 million people will fall into extreme poverty in 2020. Compared to 2019 as a result of COVID-19 depending on assumptions on the magnitude of the economic shock.
Due to global shocks such as COVID-19 and because it is becoming increasingly difficult to reach those remaining in extreme poverty who often live in fragile countries and remote areas poverty reduction may not be fast enough to reach the goal of ending extreme poverty by 2030 .Now let us think seriously how should we make our country a develop country . For this purpose we need serious and practical steps .
About Author: Syeda Ariba Gardezi from Women University Of Ajk Bagh .Doing B.S with IR (in 1st semester) .