Poverty Of Poverty

Theodore Schultz won the 1979 Nobel Prize in Economics and in his accepting speech he said: “Most of the people in the world are poor, so if we knew the economics of being poor we would know much of the economics that really matters. Most of the world's poor people earn their living from agriculture, so if we knew the economics of agriculture we would know much of the economics of being poor” (Schultz, 1979). Thirty five years later and the phenomenon still exists that the poorer countries are mainly dependent on agricultural activities and that their share in world economics are weak, and industrialised countries develop faster and has better economic growth rate. Millennium Development Goal (MDG) was set in place in 2000, to half the poverty and increase incomes of the world by 2015. Well we are one year away from this and even though there has been some progress in limiting poverty and economic growth according to the World Bank reports, but to further this poverty demolishment focus has to be put on how to do it, and put strategies in place to achieve this goal. The question that we need to ask is what causes economic growth?

Few concerns have surfaced in economy that plays a vital role in agriculture and therefore in economic development. Developing countries and more even, LDC’s, are dependent on agriculture for income for the population. But achieving good agriculture means that many things have to change within these countries self. Good transportation is need in these countries and more often than not the infrastructure doesn’t allow this to happen and transporting agricultural goods are more expensive for these countries, thus these countries need capital and investments to further their outputs and inputs to gain bet...

... middle of paper ...

...ld make it easier for impoverished developing, agriculture orientated countries to trade with their agricultural produce. But, much more is needed for these countries to fully reap economic benefits of agriculture and to truly have economic growth they have to change their input from agriculture to industries. By reducing protection developed countries gives poor countries the opportunity to trade, but lower tariffs and investments along with reduced protection is the only thing that will truly help these countries to overcome obstacles keeping them from trading. They have more relevant problems internally such as the lack of infrastructure and good governance and distance concerns that kills their trading opportunities. Reducing developed countries agriculture protection only relieves some of these concern and gives opportunity, but not a clear way out of poverty.