Construction of Poverty Essay Example | Topics and Well Written Essays - 2000 words

Construction of Poverty - Essay ExampleIt is cocksure that countries have not been totally successful in the alleviation of pauperism. During 2001, The cosmos Bank reports that one-third of the solid ground population or less than lead billion plenty live on less than $2 a day. What is also notable is a huge income inequality in the world as the three richest people in the world are seen to have more wealth than all 600 million people thriving in the worlds poorest nations. It is also reported that 50, 000 people die each day due to meagreness related causes (Millennium Campaign n.d.). These, together with a lot of empirical evidences show how the world thrives in poverty. there are a lot of factors which are directly linked with poverty. In fact, there is a unremitting debate on the underlying causes of poverty making it a politicized issue. Some critics argue that poverty ensues from face-to-face choices or preferences while the other end associates poverty with factors beyo nd a persons choice. The last view poverty as the result of many systemic factors like the lack of opportunity which, is traced to the lack of education which, in turn, is due to the lack of government intervention and provision (Poverty 2006).This report will look at the causes of poverty, specifically how poverty is constructed or heightened by factors beyond personal choices and preferences. This paper will focus on how polar organizations, both public and private contribute to poverty. Institutions to be looked at are the International monetary Fund, homo Bank, initiation Trade Organizations, and multinational corporations. This report will conclude with its findings.World Bank and International Monetary Fund (IMF)Both the World Bank and IMF are agencies which aspire to alleviate global poverty. The mission of World Bank (2006) reads Our mission is to help developing countries and their people reach the goals by working with our partners to alleviate poverty. To do that we c oncentrate on building the climate for investment, jobs and sustainable growth, so that economies will grow, and by investing in and empowering poor people to participate in development. On the other hand, IMF (2006) claims that it provides low-income countries with policy advice, technical assistance, and financial birth and that low-income countries receive more than half of the technical assistance provided by the Fund, and financial support is extended at low interest rates and over relatively long time horizons.However, critics argue that these two institutions with their various policies cause poverty in many developing nations. These organizations have also been criticized as they move on poor countries dependency on richer nations. This section will briefly examine the policies of these agencies which are seen to heighten, instead of alleviate, poverty.The IMF and World Banks primary program in reducing poverty is the extension of financial assistance to impoverished nat ions. However, this financial aid is coupled with neoliberal2 ideology or agenda which is a prerequisite for the fund. Examples of these conditions are cutbacks or liberalization of the economy, opening markets for trade, minimization of government intervention, privatization which causes the reduced protection of domestic industries, currency devaluation, mounts in interest rates, flexibility of the labor market, elimination