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The Causes Of Poverty In The Developing World

688 words - 3 pages

The Causes of Poverty in the Developing World

Many LDC¡¦s have been badly affected by wars. There have been many civil wars in Africa, caused by European empire-building in the nineteenth century. Several African races were joined into one country, but half a race was left in another country. These countries were still artificial countries after they achieved independence. One race was often badly treated by the ruling race, which resulted in civil war. This also happened in Europe since the various parts of Yugoslavia were given independence. LDC¡¦s also suffer from wars between different countries, such as: Ethiopia and Somalia, Afghanistan and Russia. There are wars caused by corruption and political differences too, for example: Mozambique, Angola, Guatemala.

Wars destroy crops, homes, schools and hospitals causing even more poverty. Many people are also forced to leave their homes and seek refuge in safer countries. These neighbouring countries, some of which were developing, will be made poor again by the sudden influx of refugees with out money or food.

Natural disasters
Many LDC¡¦s are located in areas of the World where natural disasters occur frequently and very severely. These natural disasters are earthquakes, floods, droughts and volcanic eruptions. Thousands of homes and acres of precious farmland can be destroyed by an earthquake or a flood. If there is no rain, the crops will not grow unless the farmers have the wealth to sink wells, install pumps and organise an irrigation system.

Debt
Most LDC¡¦s are forced to borrow money from the banks of developed countries to survive and begin to develop. These banks charge interest, so that a less developed country has to pay more in interest than it earns in foreign currency. In the early 70¡¦s, Chile borrowed 3.9 billion dollars. By 1982, Chile had paid 12.8 billion dollars in interest and still owed money.

The extra 9 billion dollars should have been used to speed up Chile¡¦s development, but instead it went to countries that are already rich.

Cash crops
The only way for many...

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