Economic inequality
Reasons for economic inequality
~ Trade
Wealthy countries buy raw materials from developing countries at low price process these materials into finished good and sell them at a high price, eg coffee trade
Multinational corporations take advantage of developing countries for recourses.
Dependency on cash crops in developing countries.
MNCs set up businesses in developing countries to take advantage of the low wages they can give to the workers.
Farmers in developed countries get payed subsides( get payed to keep prices low) this creates unfair competition.
~ Colonialism
European countries conquered lands in south America and Africa.
Colonizers exploited their natural resources of these countries for their own gain, leading to poverty.
Many of these countries still dependent on their former colonizers.
For purchasing there exports (this is known as neo- colonialism)
~ Debt
Many developing countries owe foreign banks lots of money due to them borrowing money to help develop there countries.
Due to this money that should be spent on healthcare and education is spent repaying loans.
~ Corruption
Some developing countries have corrupt leaders.
They often take money for important services eg education and healthcare and use it for themselves or buying weapons.
Solutions to economic inequality
~ Faire Trade
~ Debt
~ Aid
Types of aids
~ Emergency aid/ humanitarian aid
This aid is in the form of food ,water ,medicines and basic supplies given due to a natural disaster, famine and war.
~ Development aid
This type provides help over a long period of time.
It focuses on the development of healthcare, education and infrastructure.
It can be in the form of money or teachers and nurses.
~ Tied aid
This aid comes with conditions.
meaning the poorer country might have to purchase something from the richer one eg weapons and ammunition.
~ bilateral aid
Aid from one country directly to another country eg Irish aid to Ethiopia.
~ Multilateral aid
Is provided by organizations eg united nations.
positives of aid
In times of natural disasters emergency aid is vital for saving lives.
Development aid improves healthcare and education drastically and the money is insured to be spent the right way.
Countries can gain a friendly relationship with each other creating better links and improvements within the poorer country.
NGOs can help develop the skills of local people.
negatives of aid
Countries can become dependent on aid resulting of them not developing themselves.
Corruption can cause the aid to be stolen not reaching its target.
Tied aid can result in the developed country benefitting more.
Aid can lead to spend lots of money on arms and weapons causing war.
Case study
~ Irelands overseas aid: Irish aid in Ethiopia
Ethiopia is one of the poorest countries in the world and Irish aid has been working there since 1994.
Food and agriculture
Ethiopia depends heavily on agriculture for survival but due to climate change, droughts have become more common. If this leads to crop failure there will be a need for humanitarian aid.
Irish aid helps farmers to use better farming methods eg improved technology, drought resistant seeds, conserving water and irrigation.
They also brought in a work for food program.
Equality issues
Irish aid supports gender equality in all its partner countries and is 2015 they started to support the Ethiopian center for disability.
HIV/Aids
Irish aids spent a lot of money to tackle this problem and started to test people for this to make it aware.
Governance
some of the Irish aids budget is spent on governance issues. This involves human rights. Meaning that they make sure money reaches its proper target and corruption is tackled.
Life changes in the developed/ developing worlds
~ Education
Most children in developing countries cant afford education.
Developed countries like Ireland there is free access to education for all.
most children in Africa will drop out out of school before finishing there education due to not being able to afford it, having to drop out due to there family needing them to work and the high HIV/AIDS rates causing most families to lose their parents making the children to work.
Many girls in developing countries having to drop out due to marriage or teen pregnancy.
~ gender equality
Gender equality means equal opportunities for all genders.
In developed countries women have legal protections and equal rights, like education and jobs.
In developing countries traditional views often lead to unequal treatment.
Most girls also marry before the age of 18 especially in poorer households.
women face higher risks and may view it as acceptable when it comes to domestic violence.
~ Employment
There are three sectors, primary, secondary and tertiary.
In developed countries like Ireland, most jobs are in the tertiary sector.
Education increases job opportunities.
in developing countries most children work limiting their education and future job prospects.
unemployment is a significant issue, and having a job doesn’t always lift people out of poverty. Economic growth is needed to create good jobs.
sustainable development Goal 8 aims to promote growth and decent work for all.
~ healthcare
Life expectancy is much higher