The Poor Mans Burden

Presented by

Matt Minese, Chika Okoro, Anthony Monteiro

Article 8

Worlds Advancements as of 2008

Worlds population living in poverty (>$1 a day) in 2008 was 1/5 of that of 1960. Income of the average citizen of the world was nearly 3x higher than 1960. Financial Crisis of 2008 has placed in jeopardy the future of many poor countries from Asia to Latin America.

Consequences of the Crisis

Political and Economic Freedoms of many experimenting countries such as Bolivia. Revolutions from within: poor people taking initiative without government or experts telling them what to do. Kenyan grocer becoming a super market giant Nigerian women rich from tie-dyed garments Chinese teacher becoming millionaire from exporting socks.

Effects of Financial Crisis 2008

Losing individual freedom is far more dangerous than the direct damage to poor from recession, falling commodity prices, or shrinking capital. The capitalist models in place are not a good solution for humanity because they are based on injustice and inequality.- Bolivian President Evo Morales Positive: recession and financial crisis is a chance to gain support for the goals of reducing poverty, achieving gender equality, and improving state of planet

A Depressing History
There are striking similarities between the crashes of 1929 and 2008 Shift from individual economic independence towards protectionism and government intervention Development Economics a field of economics based on bizarre misconceptions and dangerous assumptions

Consequences of Developmental Economics

Crediting the poor with zero production and granting extensive powers to the government Loss of faith in bottom-up economic development More emphasis on the volume of investment instead of the efficiency of using resources Loss of faith in international trade as an engine of growth

Realizations
Top-Down Development was NOT working
Failure of state led plans fueled by developmental economics Debt Crisis East Asias rise to power in the global market Counterrevolution in development thinking

A 5(0)-Year Plan
Principles to avoid returning to Depression We must not fall into protectionism trap Cause further and deeper spread of recession Dont strangle the financial system altogether Prevents a Revolution from Below Bailouts could be bitter medicine

A 5(0)-Year Plan
Keep slashing away at the enormous red tape leftover from state direction of the economy Dismal track record Private entrepreneurs more successful picking winning industries in global economy Dont rely on economists to create development strategies Harmful or a waste of time Experts couldnt figure it out 50 years after the Great Depression

Driving the Right Way

The Chungs of the world will end poverty Chung Ju-Yung Left school at 14 to support family Jobs: railway construction, dock worker, bookkeeper, rice shop delivery man Began manufacturing cars under company named Hyundai

Questions
What impact might the 2008-2009 global financial crisis have on developing countries? Do you think advancements in decreasing poverty rates have been lost or compromised after 2008?
Is it realistic to rely heavily on people like Chung to end poverty?