Poor People or Poor Countries?

Just completed 3 enjoyable days of A2 revision at UNITEC. Today we looked at Developing Economies which is major topic in the course. It was very apt that on the Tutor2u blog and in this week’s Economist there was an article on the presumption that poor people live in poor countries. In 1990 over 90% of the world’s poor lived in the poorest countries. However, according to Andy Sumner, 75% of the 1.3 billion people that live below the $1.25 a day poverty line now live in middle-income countries and only 25% live in the poorest nations of which the majority are in Africa. The World Bank produced the following statistics showing the success of developing countries:

1998 – 61 countries out of 203 were classified as low-income*
2009 – 39 countries out of 220 were classified as low-income

*annual income per head less than $760, in money of that era

Therefore, should aid go to poor people or poor countries? As most countries charities tend to support poorer countries it seems that to neglect aid to middle-income countries is missing the point of reducing poverty. Click here to read the full article.

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