Poverty in the Midst of Abundance: Governance Matters for Overcoming the Resource Curse

Poverty is a worldwide problem that touches every aspect of social life. Every day this problem increases in scale. According to Kaufmann (2012), since 1991, the number of poor people has increased from 600 to 700 million people, whereas the minimum subsistence level in resource-rich countries has decreased from $5 o $2 a day. In addition, 85% of people who live under $2 a day are in countries, which have high corruption and poor governance indicators. The success ratings of a country depend on six dimensions, according to the WGI (Worldwide Governance Indicator). Voice and accountability describe the degree, to which people can express their will through various media. Political stability and the absence of violence or terrorism are determined, based on the existing or possible misbalances among various government branches and the risks of political destabilization. The effectiveness of the government is the index of the quality of public, civil, and political services provided by the government. The promotion of private sector development is judged by the quality of regulations governing the development of the private sector. The rule of law indicator evaluates the quality of rights protection and legal compliance, including the quality of law enforcement by courts and police, as well as the risks of violent behaviors. The control of corruption indicator measures the degree to which public power is used for private gain (Kaufmann, 2012). According to the WGI Project, African countries suffer from poverty. The resources found in Africa improve the discussed indicators but do not save people from poverty.

NGOs and Poverty Reduction in a Globalizing World: Perspectives from Ghana

Non-governmental organizations have always had their interest in solving the most problematic issues around the globe. Nonetheless, financially, non-governmental organizations have always dependent on a third party. In the 1980s-1990s, NGOs started to provide greater help to the poorest countries than national governments. This research illuminates the reasons why NGOs contribute to the reduction of poverty. NGOs focus on their transmitting functions, which are used to educate the poorest countries. Interviews with 33 NGOs’ leaders in Ghana were conducted in this study. In this sector, the NGOs are mainly dependant on the funding from overseas donors, which keeps the country from raising the level of confidence in the local resources and fighting poverty on their own. Instead, regular investments made by various partnership programs signify the overrated need in NGOs’ supplies to help fight poverty in Africa. These investments reduce the motivation to reform the economy and industrialize the country.

Directions in Development. Poverty. Down to Earth. Agriculture and Poverty Reduction in Africa

Christiaensen, L. and Demery, L. (2007) write that agriculture plays a crucial role in defining the poverty level of a country. Since the 1950s, a debate has emerged on the possible dynamism of agriculture and its potential to foster the development in all economic sectors. The results contradicted to the common opinion regarding the economic difficulties in agriculture. Agriculture supported the economy, due to its importance for other spheres and opened the way for many poor people, who wanted to find their place in the developing world. Using the example of Sub-Saharan Africa, the authors discover considerable poverty reduction due to the rapid development and successes in agriculture. The evidence presented by Christiaensen, L. and Demery, L. (2007) was collected from a number of low-income countries, such as Ethiopia, Kenya, Madagascar, and Tanzania. As a result of the research, the correlation between productivity growth in agriculture and poverty reduction was established. Thus, these and other African countries need to excel in agriculture, in order to improve their position in the developing world. Nonetheless, the national governments of these countries should be careful, when taking measures and planning their budgets, given the huge needs of the agricultural sector and the high costs of agricultural production.

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