School of Economics and Business Administration

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Department of Law

Georg Alemaa




Tallinn 2017

The purpose of this essay is to analyse worldwide poverty, examine
why it is still not
solved and describe how it affects the global society. The essay also gives a general review over
problems caused by po
verty, describes

how is poverty defined and what consequences it has.
The given essay is concluded with the measures
how global poverty can be quelled and

In today’s
world, where every problem arisen

can be eradicated simply by making a
decision in a right room, pushing a button with a right finger or
using a right tool
in a specific
occasion, it is hard to understand why
a worldwide problem like poverty is

still not solved and

yet, not even
being un

Irritatingly, more than two point seven

billion people live under
the circumstances which is defined as pove
In addition, more than 800 million

people are
trying to live their lives with less than $1.25 US dollars
per day, which is, ironically,

defined as
extreme poverty.
(Williams 2017)
In order to analyse global poverty and its

consequences, it is
important to
understand, what the given issue means and how it is defined.

To begin with, global poverty

is defined

as a state or condition in which a person or
community lacks the financial resources and essentials to enjoy a minimum standard of life and

being th
at is considered acceptable in society.
is usually measured based on
s of income and consumption; size of the household and overall living conditions.
According to those calculation, poverty can be classified in two ways

relative and extreme.
Therefore, a person or household whose income is below 60% of median income is g
considered relatively poor and a person or household whose in
come is below the minimum
subsistence leve
l is considered extremely poor. Still, global poverty cannot be defined as
coherent issue, different societies interpret it according to their ow
n economical position. Thus,
the measurements of pover
ty are commonly unclear and cannot be explained uniformly.

(Harack 2010)

Margaret Atwood has said “Better never means better for everyone… It always means
worse for some.”.
The concept of this state
ment was already clear in the 20th century and has
probably been understood for centuries. Today, this thoughtful meaning of Margaret Atwood
is packed into one simple word

capitalism. The concept of poverty was born from the idea
that one c
an possess mor
e than the other, that one can have more, simply, by exploiting others.
From that idea came different classes and living conditions

usual evolution of life. It is said

that the best learning comes from the history. Unfortunately, the same situation,
where people
are living in different classes and conditions

is still around us. 1st World Countries are using
and deriving benefits from nations which are not considered one of them, supranational
suppressing entrepreneurial culture

and worl
d’s leading power
using ignoble
ways to get more powerful has created a situation where rich are getting richer, and poor
getting poorer.

In the face of such enormous external influence, the governments of poor nations
and their people are often powerl
ess. As a result, in the global context, a few get wealthy while
the majority struggle.

(McMillan 2017)

he reasons of poverty are clear: it can be whether caused, inherited or simply,

and the difference between those reasons are
inevitable or unethical.

Unfortunately, it causes many issues in global society, such as hunger,
health conditions, and
available education. All of those matters are vital for working environment. Poverty can make
a great effect on a person, household and
even on a nation.

To begin with,
hunger is the most serious consequence of poverty.

Some would assume
that world hunger is still a grave problem because there is simply not enough food to feed
everyone. However, studies have shown that the problem of hun
ger is


Nearly all of the
world’s undernourished people live in developing countries. In fact, about two out of three of
the world’s

chronically und
ernourished people live in Asia and


Saharan Africa
, which

remains the

region with the worst hunger problems, where more than one in four people are
undernourished. Millions of people around the world are simply too poor t
o be able to buy food.
Even more, they

lack the resources to grow their own food, such


arable land and the means
harvest, process, and store it
. There are many causes of

poverty that contribute to the problem
of world hunger. For example, conflicts around the world, including wars between countries,
civil wars within countries, terror
ism, and other violence, displace millions of people, leading
to increased

poverty and hunger.

(Samberg 2017)

It’s hard to argue that poverty does not affect education. It’s hard to argue that children
who come from homes where they may be wanting

ng for food, for time, or for

don’t enter the school door with a little less than others. And it’s hard to argue that
children living in poverty and attending schools that are underfunded, under

resourced, and

understaffed are not literally up ag
ainst the system.
” (Slade 2015) Since poverty is mainly ruling
over 3

World Countries, it is easy to conclude that educational systems are mostly falling apart
in there. It is nearly impossible to imagine a classroom, where there are no tables, no board
sometimes even no teacher. Because


the lack
resources, many world societies are suffering
unavailable education. There is simply no money to construct buildings, hire teachers and
pay for needed equipment. Children of those nations are often
not educated at all or are home

schooled by their parents who have been in the same cycle. It all leads to a society where
knowledge is limited and where it is easier to find a so

called “factory work” where income is
lower than needed. It again seems, tha
t poverty is caused and hold by the rich in 1

Countries, since the factories often belong to them or other countries.

Last but not least,
Poverty is a major cause of bad health conditions and a barrier to
accessing health care when needed. This r
elationship is mainly financial, poor people cannot
afford to purchase those things that are needed for good health, including sufficient quantities
of quality food and health care. But, the relationship is also related to other factors related to

such as lack of information on appropriate health

promoting practices or lack of voice
needed to make social services work for them. To become healthy, in turn, is a major cause of
poverty. This is partly due to the costs of seeking health care, which inc
lude not only out


pocket spending on care such as consultations, tests and medicine, but also transportation costs
and any informal payments to providers. It is also due to the considerable loss of income
associated with illness in developing countries,

both of the breadwinner, but also of family
members who may be obliged to stop working or attending school to take care of an ill relative.
In addition, poor families coping with illness might be forced to sell assets to cover medical
expenses, borrow at
high interest rates or become indebted to the community.

(Racine 2015)

Knowingly, poverty comes in many shapes and sizes. It can lead to very unfortunate
issues like hunger, violence and unavailable education. Is it possible to solve those problems?
To ef
fectively combat global poverty, focusing on key areas such as investing in open political
and economic systems, promoting education, and improving health systems would be a great
start. By improving these key factors in impoverished areas, the quality of
life could be
improved for a number of people.

To begin with,
open political and economic systems allow for greater freedom, less
violent outbreaks, and are known to consistently reduce poverty. Creating stability in markets
is an important step to incr
easing the local food shortage. With an increase of economic market
security, a country can stand on its own and provide for itself, therefore negating the need for
outside aid. Combining a stable economic system with a proven democratic political
nt can also benefit an impoverished area. The democratic government is not a perfect
one, but onlookers cannot dispel its success. The results do take time, however. Installing the
government is the first step and keeping the correct people in office is cr
ucial to the
development of a country laden with poverty.

Furthermore, many poverty

stricken areas suffer from low literacy rates, and this greatly
aids the setbacks that poverty causes. Without proper education, a country cannot be relied upon
to improve
their situation. A country without learning enabled people curtails itself, because it
cannot make the improvements needed on its own to advance. The lack of education means the
people of the impoverished nation must rely on nations that do incorporate pro
per schooling;
without the knowledge being taught to them in stable learning areas the country cannot provide
its own improvements.

Last but not least, improving the health systems in poverty

stricken nations is one of the
hardest goals to achieve. The
health and disease conditions are plentiful, ranging from city
cleanliness to malaria outbreaks. By containing, even, the smallest of these problems, progress
would be visible. Outside markets selling grocery that require refrigeration suffer in the
ts daily, causing the food to lose nutritional value. A true grocery store equipped with
refrigeration keeps food fresh, allowing the nutritional value to carry over for longer periods of
time. Healthy food is a corner stone to a healthy society. Health an
d disease conditions could
use improvement worldwide, but no area more so than impoverished areas. Without a proper
healthcare system, many victims of illness are forced to face their ailments with little to no
medical treatment.

Clearly, underdeveloped
countries cannot imagine doing it all alone.
Therefore, world’s
leading powers like The European Union and USA have developed policies and fund holders
like UNICEF, USAID and
CARE in order to help 3

World Countries and their societies.
Furthermore, welfa
re states and countries with high economy are constantly pumping resources

into economies of nations who suffer under poor living conditions.
Nations with non

economies and unreliable politics are able to do less than countries helping them. Still
, there
are several methods how the governments of those countries can make living conditions better
by themselves.

First of all,
the governments of developing countries can pursue the law of minimum
Minimum wage laws require all employers to pay t
heir employees a minimum amount
of wage that is determined by the government. The idea behind minimum wage laws is to help
the working poor without directly increasing government spending. Labo
r unions are some of
the most influential advocates of minimum

wages. They often try to establish a minimum wage
for their members.

another way for develop a better system is to amplify a social
security number or ID

Social security refers to a number of different government benefits,
such as incom
e support, tax credits, social welfare or unemployment benefits. A countries social
security system is another option the government has to reduce poverty by supplementing the
incomes of poor families and individuals.

(Quickonomics 2016)

In conclusion, poverty like other major global problems is something really hard to
control or suppress in today’s world. Many people, even governments and world leaders are
getting great benefit of this issue by exploiting developing countries and its peo
ple; many
organisations are growing bigger and bigger within days by obliterating small enterprises and
businesses and clearly, almost everyone in today’s world know who it benefits and who are
suffering. Yet at the same time, many countries are struggling

to end this major problem in
order to
form an equality and eligible life conditions to everyone by funding 3

Countries or just helping them with basic needs. Still, it seems that the problem is not even
close of being solved and un riddled. World
Bank has promised to end relative poverty by the
end of 2030. (The World Bank 2017) But the question was never about ending relative or
absolute poverty, it was about ending rich getting more rich and poor getting more poor.



Harack, Ben.

10). How Do We Define Poverty
. (22.12.2017)


McMillan, Tracie.
What Do We Think Poverty Looks Like? (22.12.2017)


Racine, D. Andrew. (2016). Child Poverty and the Health Care System. (23.12.2017)


Samberg, Leah. (2017). World Hunger is Increasing,
Thanks to Wars and Climate
Change. (23.12.2017)


Slade, Sean. (2015). Poverty Affects Education

And Our Systems Perpetuate It.


The World Bank. (2017). Ending Poverty: The Road to 2030. (23.12.2017)


Williams, Jeremy. (2017). How Many People St
ill Live In Poverty. (23.12.2017)   


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