Although the facts of history are always subject to interpretation, there are some obvious reasons for the superior-inferior economic relationship between industrialized and developing regions.

First, the world’s raw resources, from which most wealth is derived, have never been uniformly distributed. Raw materials and goods made from them are redistributed through trade (or are taken by force). These historic economic arrangements create dependencies between peoples and nations, and they are not always equitable themselves.

Globalization of the world economy reinforces these patterns of dependency. Poor countries are more vulnerable to market forces and investment practices that increase their dependency on industrialized nations. Large transnational companies in the free market competition of the 21st century have tremendous economic power, especially over agricultural economies in Africa, Asia, and Latin America. This power is often directed at returning maximum profits to the shareholders of these companies, even if that impoverishes their host nations.

Poor countries often lack the internal capacity for healthy economic development. Many citizens don’t have access to credit or clear title to their land, or are excluded by virtue of gender or caste from full participation in the economy, educational system, or government. Government itself is often ineffective or even corrupt, and cannot or will not invest in the social and economic reforms necessary to develop sustainable and stable development practices.

Developing nations often lack the infrastructure and resources necessary to deliver the specific services necessary to alleviate poverty, including education, health care, and old age pensions. Additionally, many developing nations are experiencing rapid population growth, which strains existing services and requires more of already scarce resources to meet increasing demands.

What Can We Do? - Breaking the Cycle

Throughout recent history, industrialized nations have waged wars on poverty, but have often looked for simple answers to a complex problem. In fact, the problems of the world are so intertwined that we can’t separate out one without looking at how it is interconnected with all the others. Poverty is a symptom of a much larger problem that can be effectively treated only by looking at it holistically. The cycle must be broken in a variety of places in order for the solution to be durable.

Access to community and reproductive health care is an essential element in combating poverty on a national and international scale. Recent evidence from countries where family planning efforts have been successfully implemented shows that smaller families play a major role in raising the standard of living of the entire population. When the population is stable, it’s easier to provide services to all. Studies also show that raising income decreases the fertility rate. Clearly the vicious cycle of poverty and population can be broken at both ends. Additionally, when poor people have access to healthcare in their own communities they are more able to fully participate in economic systems. If a family can be better assured that their children will survive they are more likely to have a smaller family and increase their economic standing.

Good governance is another critical component to ensuring equal opportunity for all members of society. When a responsive government is in place, more members of society can be assured of economic stability and opportunity. For the downward spiral of poverty to be reversed, international assistance and national policies could give top priority to building representative governments and the conditions supportive of democracy. This would be a focus on legal and human rights, as well as healthcare, nutrition, sanitation, and education.

The creation and support of non-governmental and other economic organizations also strengthens civil society and offers creative, local solutions to local problems. Micro-credit organizations, which provide small loans to those otherwise disqualified from bank assistance, are a powerful example of institutions that can have a transformative effect on societies.

We can also work on mitigating the damage from wealthier nations by their over consumption and pollution. This would entail an economy that recycles, consumes renewable resources, and produces wastes that can be safely absorbed or neutralized. Shifting the global economy to such models – and transferring those technologies to developing regions so they can develop in a sustainable way – can be a critical development in poverty alleviation.

We could experiment with development models that are sustainable. This would mean empowering communities, marginalized groups – especially women – and non-governmental organizations. It would mean improving health services – including reproductive health services – and improving access to those services. It would mean investment in education, conflict resolution, and the essential institutions of democracy – a fair and efficient legal system, strong personal and property rights, a well-run civil service, and a functional, accountable financial system. It would mean protecting and restoring ecosystems, restructuring our energy system, and equitably distributing the energy it produces. It means pursing an economy in which public goods and public interests are protected and fostered, and “externalities” – such as pollution, poverty, or resource depletion – are accounted for and addressed.

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