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Poverty In Latin America And The Caribbean

1696 words - 7 pages

Poverty in Latin America and the Caribbean
It is well known fact that poverty is an ongoing battle in Latin America and The Caribbean. According to the Economic Commission for Latin America and the Caribbean 167 million people live in poverty in the region (ECLAC). But another 66 million people will be living under extreme poverty (ECLAC). Although reports a gearing towards a decline in poverty in Latin America and the Caribbean these numbers are still grand. Many factors play into this situation. The blame put on the lack of education, lack of environmental resources, or economical declines, the list can go on. Are the governments in these regions doing enough to combat poverty with these issues on hand? Poverty will continue to be highly debated topic in these regions with little progress being seen. Even though there have been measures proposed and implemented to combat poverty. It seen as the old story being rewritten, the dynamics surrounding this issue by might be different. It can be said that poverty is not caused by one sole issue, when looking at the as a whole. But in everyday life economic problems of Latin America and the Caribbean can be seen as issues that can be solved separately. Although these issues can be examined separately and do affect individuals differently, these issues can be traced back to one another.
Globalization is another cause for the gap between the upper and lower class. By design, it is and will always be a guise for influencing developing countries into selling their resources. Unfortunately, this causes developing countries to experience economic growth stunts that affect anyone that does not benefit from the exchange of resources. The dilemma becomes and are focusing strategizes to reduce income disparity between the upper and lower classes. The discussion is never brought up, but globalization is one of the root causes for these disparities as they do not protect the interests of the majority and has done little economic growth in these countries. What ends up happening is resources are depleted from the developing country to supply cheap excess for developed countries. Poverty in these countries can be attributed to the poor management of the factors of production which include: physical capital, human capital, and technological knowledge. Consequently poverty becomes afflicted with a growing disparity income between the rich and poor and can spiral out of control if left unchecked. As we see with the North American Free Trade Agreement, it was based on the idea to open trading within Mexico, United States, and Canada. This agreement between countries was seen as a great benefit for in the business side. Although, it was pushed as a way to push wealth among these countries. Industrial and manufacturing companies had much to gain from this. The idea of bringing jobs to Mexico was one of the major points. But who was the winner in that aspect. Those companies being able to open up a maquiladora...

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