KOLEHIYO NG SUBIC

SUBIC, ZAMBALES

Name :Mark Anthony Conde

Causes of Poverty

The main causes of poverty in the country are as follow: Explain and give your insights about the
following causes of poverty then give opinions/suggestion on how to resolve the problem:

low to moderate economic growth for the past 40 years:

I think reason behind this there is less job opportunities. We can solve this problem when there is many
farms or factories where people can work and produce local brand products. It would be a good impact
to resolve poverty.

low growth elasticity of poverty reduction;

The emphasis is that the relationship between growth and poverty change is non‐constant. For a given
poverty measure, it depends on initial inequality and on the location of the poverty line relative to mean
income. In most cases, growth is more important for poverty reduction than changes in inequality, but
this does not tender inequality unimportant. Reduction in inequality may be triple effective: (1) it will
reduce poverty for a given level of income, (2) it will accelerate the poverty reducing impact of economic
growth, and (3) according to cross‐country growth regressions, it may contribute to a larger rate of
growth.

weakness in employment generation and the quality of jobs generated;

The labor market is segmented into “good” and “bad” jobs, with the poor working in the latter. They
hold jobs that are informal, temporary or casual, and low-paid. Widespread informality means that the
poor neither benefit from the minimum wage policy nor from employment protection legislation. They
do not benefit from wage growth either, because their bargaining power is weak. “Good” jobs are so
few, especially in rural areas, that even better educated workers are often forced to take unskilled jobs
and work as low-paid laborers. The reduction of in-work poverty hinges on removing constraints to
gainful employment in both supply side (better education and skills) and demand side (better jobs). It is
critical that the young poor have improved access to quality education, and be equipped with skills
required in the modern sector of the economy. But in parallel, better jobs need to be created, which can
be attained from the growth of the formal and higher value added sector of the economy. The process of
structural transformation should be supported by effective labor policy. Labor regulations need to be
made simpler and more flexible to facilitate the reallocation of labor from less to more productive
activities, and from informal to formal sector. Targeted training programs have the potential to address
the problem of low skills among the poor workers, especially the young ones. Such programs should be
developed on a pilot basis and expanded if proven to be cost-effective. Failure to fully develop the
agriculture sector;
 KOLEHIYO NG SUBIC
SUBIC, ZAMBALES

high inflation during crisis periods;

When prices for energy, food, commodities, and other goods and services rise, the entire economy is
affected. Rising prices, known as  inflation, impact the cost of living, the cost of doing business,
borrowing money, mortgages, corporate, and government  bond yields, and every other facet of the
economy.

Inflation can be both beneficial to  economic recovery  and, in some cases, negative. If inflation becomes
too high, the economy can suffer; conversely, if inflation is controlled and at reasonable levels, the
economy may prosper. With controlled, lower inflation, employment increases. Consumers have more
money to buy goods and services, and the economy benefits and grows. However, the impact of inflation
on economic recovery cannot be assessed with complete accuracy.

high levels of population growth;

Over population cause so much impact to poverty, because of increase job less people and hunger. We
can overcome this situation by applying family planning or using of various ways to prevent pregnancy.
One of the reason behind this is teenage pregnancy because teens cannot give the needs of the baby
since they are minors and it could cause in hunger and malnutrition.

High and persistent levels of inequality Overpopulation sets), which dampen the positive impacts of
economic expansion; and recurrent shocks and exposure to risks such as economic crisis, conflicts,
natural disasters, and "environmental poverty."

Political Prejudice and inequality In certain countries in the world, governments tend to favor a specific
creed or race or people. These people enjoy educational, social and welfare benefits. For example, the
children of these people are able to enjoy education with subsidized school fees; adults are able to obtain
high-paying jobs easily etc. Instead of channeling resources to help those at need, the governments of
these countries choose to treat different races and creeds with prejudice and will treat others with less
favoritism. Hence, this leads to poverty. Corruption (Politically-wise) Corruption is a rampant problem in
the world today, especially in third-world countries. It undermines democracy and good governance by
flouting formal processes. Corruption often occurs when leaders are not accountable to those they serve.
Corruption usually inhibits development when leaders help themselves to money that would otherwise
be used for development projects. Corruption increases the cost of business through the price of illicit
payments themselves, the management cost of negotiating with officials, and the risk of breached
agreements or detection. Also, it generates economic distortions in the public sector by diverting public
investment into capital projects where bribes and kickbacks are more plentiful. Hence, this leads to
poverty as leaders should have used the money they usurped to help the poor, which results in a lack of
funds. Uneven distribution of resources/lack of adequate resources in the world economy As a result of
this, the countries must rely on trade with developed countries for manufactured goods, instead of
themselves, which burdens them even more. The lack of materials also leads to lesser jobs for the
population, in which will increase the rate of poverty, since most people in that countries will be
unemployed, and are unable to earn themselves a living. As this goes on and on, the rate poverty will
increase drastically. Conclusion There are things that some people until now can't apprehend. Aside from
the everyday expenditure, many people have vices such as cigarettes and alcohols which we weren't able
to include in our daily expenses. When people begin to get wages or salaries, they immediately spend
the money for worthless and nonsense things instead of saving it. Some of them, if it is not for their
vices, they spend their money in stakes, testing their luck and expecting to be rich immediately. As we all
know, poverty is a curse. It was written in the Bible that God has curse man, "In toil you will eat of it all
the days of your life." This only means that man can't eat without working hard. God will only provide for
those who are persistent. There's no place in this world for lazy people.