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The Earth Times | Posted March 21, 2002



FINANCING FOR DEVELOPMENT
What are the real reasons for poverty?

> BY JACK FREEMAN
Copyright © 2002 by The Earth Times. All rights reserved


MONTERREY, Mexico -- There has been much talk at the International Conference on Financing for Development about the need to reduce global poverty-as if poverty and lack of development were the same thing. They are not. Development has to do with industrialization, modernization, integration into global commerce. Poverty is the inability to afford the basic needs for oneself and one's family.

As a reporter who has spent much of the past decade visiting countries both rich and poor, I can tell you that people are poor for a great many different reasons, and "underdevelopment" is not really one of them. Some of the most important reasons for poverty around the world are:

Robbery. People in many places are poor because somebody else has stolen what wealth they had. Until a generation or two ago, in many places those doing the stealing were colonialists who came to expropriate a country's natural wealth for the benefit of some great power across the sea. The colonialists were succeeded by locals who seized power in the emerging governments and stole not only the wealth of their own countries but also money provided by other countries and international agencies to help with development. They siphoned the money into secret offshore bank accounts and left their countrymen saddled with debts they can never repay.

Discrimination. Wherever one goes, the poorest people are almost invariably representatives of some minority group-a racial, ethnic, religious, linguistic or tribal minority-that is despised or disdained by the majority and disadvantaged economically and every other way. They are the victims of apartheid or "Jim Crow" laws. In many different ways they are denied access to the formal economy of their country and live in the fringe or "informal" economy, where there are no mechanisms that might lift them out of poverty.

Callous indifference. UN sources estimate that roughly one billion people go to bed hungry every night. Larger numbers lack access to safe drinking water and basic sanitation. If you do not know who these people are, you can be certain that their neighbors do. Their government representatives and other leaders do as well. But those neighbors, those leaders, are content to allow this disgraceful status quo to persist.

Fertility. Many families are impoverished simply because they have too many mouths to feed. With each succeeding generation, the little plot of land that provided the family's food must be divided and subdivided, and the poverty only gets worse. This happens even though nobody wants to watch children starve. It happens because women have no career choices other than wife and mother, because they are not empowered to limit the number of children they bring into the world and are limited in their ability to help raise the family's standard of living.

Language. Many people are poor because they are effectively barred from participating in society, from jobs and from commerce, by their lack of language skills. That is, they speak a language different from that spoken by the larger society in which they live. This is a complicated issue because their language is central to their identity, their culture, the patrimony they hope to pass on to their children. They fear losing it, losing their cultural uniqueness through assimilation in the larger society. But to preserve it they must pay a terrible price.

There are many other causes of poverty-illness, illiteracy, lack of marketable skills. And there is one other cause of poverty for which the international community bears special responsibility: international development cooperation. Over the past half century or so in which rich countries have been sending foreign aid to poor countries, that money has been used for just about everything except reducing poverty. Let us hope that that is about to change.

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