173-471: Poverty reduction , poverty relief , or poverty alleviation is a set of measures, both economic and humanitarian , that are intended to permanently lift people out of poverty . Measures, like those promoted by Henry George in his economics classic Progress and Poverty , are those that raise, or are intended to raise, ways of enabling the poor to create wealth for themselves as a conduit of ending poverty forever. In modern times, various economists within
346-611: A collective ; and state farms, which are owned and directly run by a centralized government. The process by which farmland is aggregated is called collectivization . In some countries (including the Soviet Union , the Eastern Bloc countries, China and Vietnam ), there have been both state-run and cooperative-run variants. For example, the Soviet Union had both kolkhozy (cooperative-run farms) and sovkhozy (state-run farms). Under
519-490: A medium of exchange with a credit or debit value accepted within the network, such as a unit of currency. A planned economy is one where political agents directly control what is produced and how it is sold and distributed. A green economy is low-carbon and resource efficient. In a green economy, growth in income and employment is driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency , and prevent
692-507: A metric such as silver, bronze, copper, etc. A barley/shekel was originally both a unit of currency and a unit of weight, just as the British Pound was originally a unit denominating a one-pound mass of silver. Most exchange of goods had occurred through social relationships. There were also traders who bartered in the marketplaces. In Ancient Greece , where the present English word 'economy' originated, many people were bond slaves of
865-582: A 2015 report, the International Monetary Fund pointed to widening income inequality as the defining challenge of our time. "In advanced economies, the gap between the rich and poor is at its highest level in decades. Inequality trends have been more mixed in emerging markets and developing countries (EMDCs), with some countries experiencing declining inequality, but pervasive inequities in access to education, health care, and finance remain." New enterprises and foreign investment can be driven away by
1038-511: A Thai company in a joint venture. Additionally, the United Nations Sustainable Development Goal 17 advocates respect for countries leadership to implement policies for poverty eradication and sustainable development. Critics have argued that neoliberal policies have increased economic inequality and exacerbated global poverty . The Center for Economic and Policy Research's (CEPR) Dean Baker argued in 2006 that
1211-773: A country or an area", seems not to have developed until the 1650s. As long as someone has been making, supplying and distributing goods or services, there has been some sort of economy; economies grew larger as societies grew and became more complex. Sumer developed a large-scale economy based on commodity money , while the Babylonians and their neighboring city states later developed the earliest system of economics as we think of, in terms of rules/laws on debt , legal contracts and law codes relating to business practices, and private property. The Babylonians and their city state neighbors developed forms of economics comparable to currently used civil society (law) concepts. They developed
1384-565: A degree of participation, also lured those whose primary interests were not the common good to the Ujamaa villages. This, in addition to the Order of 1973 dictating that all people had to live in villages ( Operation Vijiji ) eroded the sustainability of communal projects. In order for the communal farms to be successful, each member of the village would have to contribute to the best of their ability. Due to lack of sufficient foreign exchange, mechanization of
1557-513: A global information society as understanding of a new type of "all-connected" society is created. In the late 2000s, the new type of economies and economic expansions of countries like China , Brazil , and India bring attention and interest to economies different from the usually dominating Western-type economies and economic models. A market economy is one where goods and services are produced and exchanged according to demand and supply between participants (economic agents) by barter or
1730-454: A gradual and integrated process of moving from one form of society to another, Romanian society in the Soviet orbit was being completely rearticulated, a process in which violence was inevitable." On the other hand, as Kligman and Verdery explain, "Collectivization brought undeniable benefits to some rural inhabitants, especially those who had owned little or no land. It freed them from laboring on
1903-462: A host of other strategies will not work." Despite the promise of such research several questions remain, such as where good governance comes from and how it can be achieved. The comparative analysis of one sociologist suggests that broad historical forces have shaped the likelihood of good governance. Ancient civilizations with more developed government organization before colonialism , as well as elite responsibility, have helped create strong states with
SECTION 10
#17331252212082076-428: A lack of fertile land, and government mismanagement, often causing the nation to rely on foreign aid as its primary source of food. The Democratic Republic of Vietnam implemented collective farming although de jure private ownership existed. Starting in 1958 collective farming was pushed such that by 1960, 85% of farmers and 70% of farmlands were collectivized including those seized by force. Collectivization however
2249-411: A large part of microfinance loans are spent on products that would usually be paid by a checking or savings account . Mobile banking addresses the problem of the heavy regulation and costly maintenance of saving accounts . Mobile financial services in the developing world , ahead of the developed world in this respect, could be worth $ 5 billion by 2012. Safaricom 's M-Pesa launched one of
2422-407: A more nuanced understanding of economic growth and quality of life and poverty alleviation. Due to COVID-19 , poverty rates have risen higher between 75 million and 95 million individuals suffering from extreme poverty between pre-pandemic to 2022. This higher increase in poverty rates can be reflected by the rise in unemployment and work productivity caused by the pandemic. It is said that
2595-404: A move to establish the absence of poverty as a human right . Economic An economy is an area of the production , distribution and trade , as well as consumption of goods and services . In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the production, use, and management of resources. A given economy
2768-514: A near universal manner are still the exclusive domain of the developed nations . commonly constituting at least 20% of GDP, with the largest Scandinavian welfare states constituting over 40% of GDP. These modern welfare states, which largely arose in the late 19th and early 20th centuries, seeing their greatest expansion in the mid 20th century, and have proven themselves highly effective in reducing relative as well as absolute poverty in all analyzed high-income OECD countries. Philosopher Thomas Pogge
2941-606: A period of 20 years while also sharing in the fruits of the CPA. Joining a CPA allowed individuals who were previously dispersed throughout the countryside to move to a centralized location with increased access to electricity, medical care, housing, and schools. Democratic practice tends to be limited to business decisions and is constrained by the centralized economic planning of the Cuban system. Another type of agricultural production cooperative in Cuba
3114-610: A profound effect on the socioeconomic and cultural conditions starting in the United Kingdom , then subsequently spreading throughout Europe , North America , and eventually the world. The onset of the Industrial Revolution marked a major turning point in human history; almost every aspect of daily life was eventually influenced in some way. In Europe wild capitalism started to replace the system of mercantilism (today: protectionism ) and led to economic growth . The period
3287-665: A result of graft. If Western banks rejected stolen money, says a report by Global Witness , ordinary people would benefit "in a way that aid flows will never achieve". The report asked for more regulation of banks as they have proved capable of stanching the flow of funds linked to terrorism, money-laundering or tax evasion . Some, like Thomas Pogge , call for a global organization that can manage some form of Global Resources Dividend , which could evolve in complexity with time. Examples of good governance leading to economic development and poverty reduction include Thailand , Taiwan, Malaysia , South Korea, and Vietnam , which tend to have
3460-427: A significant area of discussion with respect to development and economics; however it is often regarded as a topic that only addresses and primarily deals with gender inequality . Because women and men experience poverty differently, they hold dissimilar poverty reduction priorities and are affected differently by development interventions and poverty reduction strategies. In response to the socialized phenomenon known as
3633-627: A social goal in mind, such as micro finance banks, may be able to make a difference. Aid in its simplest form is a basic income grant , a form of social security periodically providing citizens with money. In pilot projects in Namibia , where such a program pays just $ 13 a month, people were able to pay tuition fees, raising the proportion of children going to school by 92%, child malnutrition rates fell from 42% to 10% and economic activity grew 10%. Aid could also be rewarded based on doing certain requirements. Unconditional cash transfer , widely credited as
SECTION 20
#17331252212083806-504: A state. The first economist in the true modern meaning of the word was the Scotsman Adam Smith (1723–1790) who was inspired partly by the ideas of physiocracy , a reaction to mercantilism and also later Economics student, Adam Mari. He defined the elements of a national economy: products are offered at a natural price generated by the use of competition - supply and demand - and the division of labor . He maintained that
3979-417: A strong government, called a hard state or development state . These "hard states" have the will and authority to create and maintain policies that lead to long-term development that helps all their citizens, not just the wealthy. Multinational corporations are regulated so that they follow reasonable standards for pay and labor conditions, pay reasonable taxes to help develop the country, and keep some of
4152-450: A successful anti-poverty program, is based on actions such as enrolling children in school or receiving vaccinations . In Mexico, for example, the country with the largest such program, dropout rates of 16- to 19-year-olds in rural area dropped by 20% and children gained half an inch in height. Initial fears that the program would encourage families to stay at home rather than work to collect benefits have proven to be unfounded. Instead, there
4325-444: A village government and a cooperative. Arable land was divided into sections based on soil quality and distance from the village. Each household had the right to claim one or more strips from each section depending on the number of adults in the household. The purpose of this allocation was not so much social (to each according to his needs) as it was practical (that each person pay his taxes). Strips were periodically re-allocated on
4498-447: A way that raise funds which are then given as grants to local charities, primarily ones oriented towards reducing poverty. Toronto Dollars also provide a means to create an incentive for welfare recipients to work: Toronto dollars can be given as gifts to welfare recipients who perform volunteer work for charitable and non-profit organizations, and these gifts do not affect welfare benefits. Some have argued for radical economic change in
4671-487: Is UBPC – Unidad Básica de Producción Cooperativa (Basic Unit of Cooperative Production). The law authorizing the creation of UBPCs was passed on 20 September 1993. It has been used to transform many state farms into UBPCs, similar to the transformation of Russian sovkhozes (state farms) into kolkhozes (collective farms) since 1992. The law granted indefinite usufruct to the workers of the UBPC in line with its goal of linking
4844-422: Is a key element in economically empowering women and fostering economic growth overall for both genders. With legitimate claims to land, women gain bargaining power, which can be applied to their lives outside of and within the household. The ability and opportunity for women to lawfully own land also decreases the asset gap that exists between women and men, which promotes gender equality . Political participation
5017-421: Is a qualitatively significant poverty reduction strategy. Gender equality and women's empowerment are further highlighted by interventions empowering women in the food system (Berretta et al., 2023). According to the study conducted by Bertetta et al. (2023), interventions involving more than one component, including agricultural training and income-generating activities, can improve food security and resilience in
5190-597: Is a set of processes that involves its culture , values , education, technological evolution, history, social organization , political structure , legal systems , and natural resources as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. In other words, the economic domain is a social domain of interrelated human practices and transactions that does not stand alone. Economic agents can be individuals, businesses , organizations , or governments . Economic transactions occur when two groups or parties agree to
5363-402: Is a supporter of gathering funds for the poor by using a sort of Global Resources Dividend . A major proportion of aid from donor nations is 'tied', mandating that a receiving nation buy products originating only from the donor country. This can be harmful economically. For example, Eritrea is forced to spend aid money on foreign goods and services to build a network of railways even though it
Poverty reduction - Misplaced Pages Continue
5536-455: Is also applied in philosophy to designate the fading of postmodernism in the late 90s and especially in the beginning of the 21st century. With the spread of Internet as a mass media and communication medium especially after 2000–2001, the idea for the Internet and information economy is given place because of the growing importance of e-commerce and electronic businesses, also the term for
5709-461: Is called Keynesianism in his honor. In the late 1950s, the economic growth in America and Europe—often called Wirtschaftswunder (German for economic miracle ) —brought up a new form of economy: mass consumption economy . In 1958, John Kenneth Galbraith (1908–2006) was the first to speak of an affluent society in his book The Affluent Society . In most of the countries the economic system
5882-692: Is called a social market economy . With the fall of the Iron Curtain and the transition of the countries of the Eastern Bloc towards democratic government and market economies, the idea of the post-industrial society is brought into importance as its role is to mark together the significance that the service sector receives instead of industrialization. Some attribute the first use of this term to Daniel Bell's 1973 book, The Coming of Post-Industrial Society , while others attribute it to social philosopher Ivan Illich's book, Tools for Conviviality . The term
6055-548: Is called the Industrial Revolution because the system of production and division of labor enabled the mass production of goods . The contemporary concept of "the economy" wasn't popularly known until the American Great Depression in the 1930s. After the chaos of two World Wars and the devastating Great Depression, policymakers searched for new ways of controlling the course of the economy. This
6228-472: Is cheaper to use local expertise and resources. Money from the United States to fight AIDS requires it be spent on U.S brand name drugs that can cost up to $ 15,000 a year compared to $ 350 a year for generics from other countries. Only Norway, Denmark, Netherlands and Britain have stopped tying their aid. Some people disagree with aid when looking at where the development aid money from NGOs and other funding
6401-722: Is exchanged. Due to the growing importance of the financial sector in modern times, the term real economy is used by analysts as well as politicians to denote the part of the economy that is concerned with the actual production of goods and services, as ostensibly contrasted with the paper economy , or the financial side of the economy, which is concerned with buying and selling on the financial markets. Alternate and long-standing terminology distinguishes measures of an economy expressed in real values (adjusted for inflation ), such as real GDP , or in nominal values (unadjusted for inflation). The study of economics are roughly divided into macroeconomics and microeconomics . Today,
6574-411: Is going. Funding tends to be used in a selective manner where the highest ranked health problem is the only thing treated, rather than funding basic health care development. This can occur due to a foundation's underlying political aspects to their development plan, where the politics outweigh the science of disease. The diseases then treated are ranked by their prevalence, morbidity, risk of mortality, and
6747-506: Is less excuse for neglectful behavior as, for example, children are prevented from begging on the streets instead of going to school because it could result in suspension from the program. Unconditional cash transfer appear to be an effective intervention for reducing poverty, while at the same time improving health and education outcomes. Welfare states have an effect on poverty reduction. Currently modern, expansive welfare states that ensure economic opportunity, independence and security in
6920-514: Is needed for economic growth. Nations do not necessarily need wealth to gain health. For example, Sri Lanka had a maternal mortality rate of 2% in the 1930s, higher than any nation today. It reduced it to 0.5–0.6% in the 1950s and to 0.06% today. However, it was spending less each year on maternal health because it learned what worked and what did not. Knowledge on the cost effectiveness of healthcare interventions can be elusive but educational measures to disseminate what works are available, such as
7093-458: Is only a twenty-fifth as expensive to increase school attendance as by constructing schools. UN economists argue that good infrastructure, such as roads and information networks, helps market reforms to work. China invests in railways, roads, ports and rural telephones in African countries as part of its formula for economic development. It was the technology of the steam engine that originally began
Poverty reduction - Misplaced Pages Continue
7266-492: Is studied at the regional and national levels, and common analyses include income and production, money, prices, employment, international trade, and other issues. Collective farming Collective farming and communal farming are various types of "agricultural production in which multiple farmers run their holdings as a joint enterprise". There are two broad types of communal farms: agricultural cooperatives , in which member-owners jointly engage in farming activities as
7439-410: Is supported by organizations such as IFAD as one pillar of gender equality and women's empowerment. Sustainable economic growth requires poor people to have influence on the decisions that affect their lives; specifically strengthening women's voices in the political process builds social independence and greater consideration of gender issues in policy. In order to promote women's political empowerment,
7612-441: Is tied to the importing of products from the donor country over cheaper alternatives. Sometimes foreign aid is seen to be serving the interests of the donor more than the recipient, and critics also argue that some of the foreign aid is stolen by corrupt governments and officials, and that higher aid levels erode the quality of governance. Policy becomes much more oriented toward what will get more aid money than it does towards meeting
7785-490: Is why some experts are now promoting the creation of "quality" and not "quantity" in labour market policies. This approach does highlight how higher productivity has helped reduce poverty in East Asia, but the negative impact is beginning to show. In Vietnam , for example, employment growth has slowed while productivity growth has continued. Furthermore, productivity increases do not always lead to increased wages, as can be seen in
7958-652: The African Growth and Opportunity Act was directly responsible for a "surprisingly large" increase in imports from Africa. Deals can sometimes be negotiated to favor the developing country such as in China, where laws compel foreign multinationals to train their future Chinese competitors in strategic industries and render themselves redundant in the long term. In Thailand, the 51 per cent rule compels multinational corporations starting operations in Thailand give 51 per cent control to
8131-465: The Aztec Empire , central Mexico was divided into small territories called calpulli , which were units of local administration concerned with farming as well as education and religion. A calpulli consisted of a number of large extended families with a presumed common ancestor , themselves each composed of a number of nuclear families. Each calpulli owned the land and granted the individual families
8304-611: The Georgism movement propose measures like the land value tax to enhance access to the natural world for all. Poverty occurs in both developing countries and developed countries . While poverty is much more widespread in developing countries, both types of countries undertake poverty reduction measures. Poverty has been historically accepted in some parts of the world as inevitable as non-industrialized economies produced very little, while populations grew almost as fast, making wealth scarce. Geoffrey Parker wrote: "In Antwerp and Lyon, two of
8477-1060: The Grameen Bank in Bangladesh. The idea is to loan small amounts of money to farmers or villages so these people can obtain the things they need to increase their economic rewards. A small pump costing only $ 50 could make a very big difference in a village without the means of irrigation . A specific example is the Thai government's People's Bank which is making loans of $ 100 to $ 300 to help farmers buy equipment or seeds, help street vendors acquire an inventory to sell, or help others set up small shops. The International Fund for Agricultural Development (IFAD) Vietnam country programme supports operations in 11 poor provinces. Between 2002 and 2010 around 1,000 saving and credit groups (SCGs) were formed, with over 17,000 members; these SCGs increased their access to microcredit for taking up small-scale farm activities. The empowerment of women has relatively recently become
8650-450: The Industrial Revolution led to high economic growth, eliminating mass poverty in what is now considered the developed world. World GDP per person quintupled during the 20th century. In 1820, 75% of humanity lived on less than a dollar a day, while in 2001 only about 20% did. In the 21st century, continued economic development is constrained by the lack of economic freedoms . Economic liberalization requires extending property rights to
8823-483: The UNRISD , increasing labour productivity appears to have a negative impact on job creation: in the 1960s, a 1% increase in output per worker was associated with a reduction in employment growth of 0.07%, by the first decade of this century the same productivity increase implies reduced employment growth by 0.54%. Increases in employment without increases in productivity leads to a rise in the number of " working poor ", which
SECTION 50
#17331252212088996-498: The United Nations Development Programme advocated for several efforts: increase women in public office; strengthen advocacy of women's organizations; ensure fair legal protection; and provide equivalent health and education. Fair political representation and participation enable women to lobby for more female-specific poverty reduction policies and programs. Efficient institutions that are not corrupt and obey
9169-702: The World Bank , which gave voluntary debt relief to creditors and on foreign debt for Multilateral and Bilateral debt, which was pushed later in a second phase known as the Multilateral Debt Relief Initiative in order to provide debt relief, that helped the IDA , IMF , and to lower-income countries that went through the Heavily Indebted Poor Countries initiative. The process by the IMF to carry out
9342-512: The World Health Organization job losses for low-skilled workers were 11%, a much higher rate compared to medium and high-skilled workers, and 71% of the lower-income household at least one person in the household was unemployed or had to shut down their business due to the pandemic (61%). Raising farm incomes is described as the core of the antipoverty effort as three-quarters of the poor today are farmers. Estimates show that growth in
9515-606: The chickpea and other legume research in Ethiopia were therefore justified as a means of poverty alleviation. Improving water management is an effective way to help reduce poverty among farmers. With better water management, they can improve productivity and potentially move beyond subsistence-level farming. During the Green Revolution of the 1960s and 1970s, for example, irrigation was a key factor in unlocking Asia's agricultural potential and reducing poverty. Between 1961 and 2002,
9688-412: The feminization of poverty , policies aimed to reduce poverty have begun to address poor women separately from poor men. In addition to engendering poverty and poverty interventions, a correlation between greater gender equality and greater poverty reduction and economic growth has been illustrated by research through the World Bank , suggesting that promoting gender equality through empowerment of women
9861-500: The freeholders . The economic discussion was driven by scarcity . In Chinese economic law, the huge cycle of institutional innovation contains an idea. Serving a non-market economy promotes a firm's tenure that is legally guaranteed and protected from bureaucratic opportunities. In the Middle Ages, what is now known as an economy was not far from the subsistence level. Most exchange occurred within social groups . On top of this,
10034-490: The loss of biodiversity and ecosystem services . A gig economy is one in which short-term jobs are assigned or chosen on-demand. The global economy refers to humanity's economic system or systems overall. An informal economy is neither taxed nor monitored by any form of government. The economy may be considered as having developed through the following phases or degrees of precedence: In modern economies, these phase precedences are somewhat differently expressed by
10207-728: The new socialist government . The first phase involved a confiscation of properties of Germans , Hungarians , and collaborators with the Nazi regime in accordance with the so-called Beneš decrees . The second phase, promulgated by so-called Ďuriš's laws (after the Communist Minister of Agriculture), in fact meant a complete revision of the pre-war land reform and tried to reduce maximal private property to 150 hectares (370 acres) of agricultural land and 250 hectares (620 acres) of any land. The third and final phase forbade possession of land above 50 hectares (120 acres) for one family. This phase
10380-522: The rule of law make and enforce good laws that provide security to property and businesses. Efficient and fair governments would work to invest in the long-term interests of the nation rather than plunder resources through corruption. Researchers at UC Berkeley developed what they called a "Weberianness scale" which measures aspects of bureaucracies and governments which Max Weber described as most important for rational-legal and efficient government over 100 years ago. Comparative research has found that
10553-521: The three-sector model : Other sectors of the developed community include: The gross domestic product (GDP) of a country is a measure of the size of its economy, or more specifically, monetary measure of the market value of all the final goods and services produced. The most conventional economic analysis of a country relies heavily on economic indicators like the GDP and GDP per capita . While often useful, GDP only includes economic activity for which money
SECTION 60
#173312522120810726-461: The $ 2 a day poverty line. For instance, in India most of the chronically poor are wage earners in informal employment as their jobs are insecure and low paid and offer no chance to accumulate wealth to avoid risks. This appears to be the result of a negative relationship between employment creation and increased productivity, when a simultaneous positive increase is required to reduced poverty. According to
10899-445: The 1920s, where people were treated for hookworm and then contracted the disease again once back in the conditions from which they came. To prevent this, money could be spent on teaching citizens of the developing countries health education, basic sanitation, and providing adequate access to prevention methods and medical infrastructure. Not only would NGO money be better spent, but it would be more sustainable. These arguments suggest that
11072-500: The LPG were introduced in 1953. After 1959 all farmers were required to surrender independently owned land and join the LPGs. Similarly to the Soviet Union, ultimately most of the land was transferred into de jure or de facto state controlled entities with the former farmers becoming employees – now of the state instead of the erstwhile Junker class. The Polish name of a collective farm
11245-473: The NGO development aid should be used for prevention and determining root causes rather acting upon political endeavours and treating for the sake of saying they helped. Some think tanks and NGOs have argued that Western monetary aid often only serves to increase poverty and social inequality, either because it is conditioned with the implementation of harmful economic policies in the recipient countries, or because it
11418-536: The Soviet collectivization. Like Professor Barry Naughton , she observes that China's collectivization proceeded smoothly in part because, unlike the Soviet experience, a network of state institutions already existed in the countryside. Similarly, Professor Edward Friedman describes China's collectivization process as a "miracle of miracles". During 1954–1955, farmers in many areas began pooling their land, capital resources, and labor into beginning-level agricultural producers' cooperatives ( chuji nongye hezuoshe ). In
11591-456: The US, where the gap between productivity and wages has been rising since the 1980s. The ODI study showed that other sectors were just as important in reducing unemployment, as manufacturing . The services sector is most effective at translating productivity growth into employment growth. Agriculture provides a safety net for jobs and economic buffer when other sectors are struggling. This study suggests
11764-509: The USSR is debatable. A Soviet article in March 1975 found that 27% of the total value of Soviet agricultural produce was produced by privately farmed plots despite the fact that they only consisted of less than 1% of arable land (approximately 20 million acres), making them roughly 40 times more efficient than collective farms. In 1935, the establishment of Personal Subsidiary Farms (LPH) on collective land
11937-498: The USSR's communist blueprint. These attempts often fell short. By strictly adhering to this Soviet blueprint, the implementation of communism in Romania inevitably created dilemmas and contributions that led to violence. Kligman and Verdery state "The violence collectivization, emerges then, less, as an abhoration than as a product of sociocultural shaping and of deep problems with how the soviet blueprint came to be implemented... instead of
12110-574: The United Nations Fourth World Conference on Women as a global strategy for promoting gender equality; the UN conference emphasized the necessity to ensure that gender equality is a primary goal in all areas of social and economic development, which includes the discussion of poverty and its reduction. Correspondingly, the World Bank also created objectives to address poverty with respect to the different effects on women. One important goal
12283-459: The Vietnamese communists banned other political parties, arrested suspects believed to have collaborated with the United States and embarked on a mass campaign of collectivization of farms and factories. Private land ownership was "transformed" to subsume under State and collective ownership. Reconstruction of the war-ravaged country was slow and serious humanitarian and economic problems confronted
12456-556: The World Bank have predicted at least a billion people would be in extreme poverty, from the war aftermath in Ukraine. Some suggestions that were made were based on countries having the stability to stable access limits, addressing debt risks early, and aligning financial goals with sustainable development goals. One of the most popular of the new technical tools for economic development and poverty reduction are microloans made famous in 1976 by
12629-620: The adoption of collective farming was also driven by communist government policies. Leon Trotsky and the Opposition bloc had originally advocated a programme of industrialization which also proposed agricultural cooperatives and the formation of collective farms on a voluntary basis. According to Sheila Fitzpatrick , the scholarly consensus was that Stalin appropriated the position of the Left Opposition on such matters as industrialisation and collectivisation . Other scholars have argued
12802-416: The agricultural productivity of small farmers is, on average, at least twice as effective in benefiting the poorest half of a country's population as growth generated in non-agricultural sectors. For example, a 2012 study suggested that new varieties of chickpea could benefit Ethiopian farmers in future. The study assessed the potential economic and poverty impact of 11 improved chickpea varieties, released by
12975-414: The aid is used. Immunization campaigns for children, such as against polio , diphtheria and measles have saved millions of lives. Aid from non-governmental organizations may be more effective than governmental aid; this may be because it is better at reaching the poor and better controlled at the grassroots level. As a point of comparison, the annual world military spending is over $ 1 trillion. One of
13148-415: The basic motive for free trade is human self-interest. The so-called self-interest hypothesis became the anthropological basis for economics. Thomas Malthus (1766–1834) transferred the idea of supply and demand to the problem of overpopulation . The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture , manufacturing , mining , and transport had
13321-515: The basis of a census, to ensure equitable share of the land. This was enforced by the state, which had an interest in the ability of households to pay their taxes. The Soviet Union introduced collective farming in its constituent republics between 1927 and 1933. The Baltic states and most of the Eastern Bloc (except Poland ) adopted collective farming after World War II , with the accession of communist regimes to power. In Asia ( People's Republic of China , North Korea , Laos , and Vietnam )
13494-406: The bottom of the economic ladder. And they say that the gains of the world's billionaires in 2017, which amounted to $ 762 billion, were enough to end extreme global poverty seven times over. Long run economic growth per person is achieved through increases in capital (factors that increase productivity), both human and physical, and technology. Improving human capital , in the form of health,
13667-435: The collective farming method. From this time, nearly all Chinese crops began to blossom, not just grain. The reform included the removal of land from rich land owners for use of agricultural land for peasants, but not ownership. This policy increased production and helped reverse the effects of The Great Leap Forward. The two main reasons why China succeeded was because 1) the government chose to make gradual changes, which kept
13840-572: The communist regime. In an historic shift in 1986, the Communist Party of Vietnam implemented free-market reforms known as Đổi Mới ( Renovation ). With the authority of the state remaining unchallenged, private enterprise, deregulation and foreign investment were encouraged. Land ownership nonetheless is the sole prerogative of the state. The economy of Vietnam has achieved rapid growth in agricultural and industrial production, construction and housing, exports and foreign investment. However,
14013-533: The complex system of beginning-level agricultural producers' cooperatives, farmers received a share of the harvest based on a combination of how much labor and how much land they contributed to the cooperative. By June 1956, over 60% of rural households had been collectivized into higher-level agricultural producers' cooperatives ( gaoji nongye hezuoshe ), a structure that was similar to Soviet collective farmering via kolkhozy . In these cooperatives, tens of households pooled land and draft animals. Adult members of
14186-420: The cooperative were credited with work points based on how much labor they had provided at which tasks. At the end of the year, the collective deducted taxes and fixed-price sales to the state, and the cooperative retained seed for the next year as well as some investment and welfare funds. The collective then distributed to the households the remainder of the harvest and some of the money received from sales to
14359-428: The cooperatives had problems competing with technologically advanced foreign competition and were unable to obtain investment to improve their situation. Quite a large percentage of them collapsed. The others that remained were typically insufficiently funded, lacking competent management, without new machinery and living from day to day. Employment in the agricultural sector dropped significantly (from approximately 25% of
14532-401: The creation of Ujamaa Villages . Since the majority of the rural population was spread out, and agriculture was traditionally undertaken individually, the rural population had to be forced to move together, to farm communally. Following forced migration, incentive to participate in communal farming activities was encouraged by government recognition. These incentives, in addition to encouraging
14705-412: The creation of decent employment opportunities and movement of women from the informal work sector to the formal labor market are key to poverty reduction. Other ways to encourage female participation in the workforce to promote decline of poverty include providing childcare services, increasing educational quality and opportunities, and furthering entrepreneurship for women. Protection of property rights
14878-544: The development of ejidos : communal farms formed on land purchased from the large estates by the Mexican government . The Huron had an essentially communal system of land ownership. The French Catholic missionary Gabriel Sagard described the fundamentals. The Huron had "as much land as they need[ed]." As a result, the Huron could give families their own land and still have a large amount of excess land owned communally. Any Huron
15051-472: The disease control priorities project. [1] Promoting hand washing is one of the most cost effective health intervention and can cut deaths from the major childhood diseases of diarrhea and pneumonia by half. Human capital, in the form of education, is an even more important determinant of economic growth than physical capital. Deworming children costs about 50 cents per child per year and reduces non-attendance from anemia , illness and malnutrition and
15224-725: The dominant form of rural collectivization in China. During The Great Leap Forward , the Mao Zedong -led Communist Party rapidly convert the Chinese economy to a socialist society through rapid industrialization and large scale collectivization. Later, the country was hit by massive floods and droughts. This, combined with the usage of severely flawed policies of Lysenkoism and the Four Pests Campaign , caused " The Great Chinese Famine of 1959," where nearly 30 million people died of hunger. The party officially blamed floods and droughts for
15397-463: The dramatic decreases in poverty levels. Cell phone technology brings the market to poor or rural sections. With necessary information, remote farmers can produce specific crops to sell to the buyers that brings the best price. Such technology also helps bring economic freedom by making financial services accessible to the poor. Those in poverty place overwhelming importance on having a safe place to save money, much more so than receiving loans. Also,
15570-408: The driving force behind rising inequality in the United States has been a series of deliberate neoliberal policy choices, including anti- inflationary bias, anti- unionism and profiteering in the healthcare industry . The economists David Howell and Mamadou Diallo contend that neoliberal policies have contributed to a United States economy in which 30% of workers earn low wages (less than two-thirds
15743-473: The early 1950s, only one-quarter of peasants had agreed to join cooperatives. In the spring of 1955 the drive for collectivization was renewed, again using physical force to encourage membership, but this second wave also ended in dismal failure. After the events of the 1956 Hungarian Revolution , the ruling Hungarian Socialist Workers' Party opted for a more gradual collectivization drive. The main wave of collectivization occurred between 1959 and 1961, and at
15916-628: The early 1960s because of the Soviet leadership's focus on a policy of Russification of Moldavians into the Russian way of life . Much of the collectivization in Moldova had undergone in Transnistria , in Chişinău , the present-day capital city of Moldova. Most of the directors who regulated and conducted the process of collectivization were placed by officials from Moscow. The efficiency of collective farms in
16089-448: The economic expansion of fast growing Asian nations . However, trade rules are often unfair as they block access to richer nations' markets and ban poorer nations from supporting their industries. Processed products from poorer nations, in contrast to raw materials , get vastly higher tariffs at richer nations' ports. A University of Toronto study found the dropping of duty charges on thousands of products from African nations because of
16262-445: The economic programme of Trotsky differed from the forced policy of collectivisation implemented by Stalin after 1928 due to the levels of brutality associated with its enforcement. As part of the first five-year plan , forced collectivization was introduced in the Soviet Union by general secretary Joseph Stalin in the late 1920s as a way, according to the policies of socialist leaders, to boost agricultural production through
16435-451: The empowerment of women with the specific aim of reducing poverty. Encouraging more economic and political participation by women increases financial independence from and social investment in the government, both of which are critical to pulling society out of poverty. Women's economic empowerment , or ensuring that women and men have equal opportunities to generate and manage income, is an important step to enhancing their development within
16608-674: The end of this period more than 95% of agricultural land in Hungary had become the property of collective farms. In February 1961, the Central Committee declared that collectivization had been completed. In Czechoslovakia , centralized land reforms after World War I allowed for the distribution of most of the land to peasants and the poor, and created large groups of relatively well-to-do farmers (though village poor still existed). These groups showed no support for communist ideals. In 1945, immediately after World War II, new land reform started with
16781-916: The environment. One project its scientists worked on demonstrates the impact that improving water management in agriculture can have. The study, funded by the Japan Bank for International Cooperation, initially upgraded and irrigated the irrigation system on the Walawe Left Bank, Sri Lanka, in 1997. In 2005, irrigation was extended to a further area. An analysis of the whole area was carried out in 2007 and 2008. This study found that access to irrigation provided families with opportunities to diversify their livelihood activities and potentially increase their incomes. For example, people with land could reliably grow rice or vegetables instead of working as labourers or relying on rainfall to water their crops. Those without land could benefit by working within new inland fisheries. Within
16954-401: The expense involved, and the soil became heavily polluted with chemicals. Also, the intensive use of heavy machinery damaged topsoil. Furthermore, the cooperatives were infamous for over-employment. In the late 1970s, the economy of Czechoslovakia entered into stagnation , and the state-owned companies were unable to deal with advent of modern technologies. A few agricultural companies (where
17127-455: The famine; however, it was clear to the party members at the party meetings that famine was caused mostly by their own policies. Recent studies also demonstrate that it was career incentives within the politburo system as well as political radicalism that led to the great famine. Collectivization of land via the commune system facilitated China's rapid industrialization through the state's control of food production and procurement. This allowed
17300-567: The feasibility of control. Through this ranking system, the disease that cause the most mortality and are most easily treated are given the funding. The argument occurs because once these people are treated, they are sent back to the conditions that led to the disease in the first place. By doing this, money and resources from aid can be wasted when people are re-infected. This was seen in the Rockefeller Foundation's Hookworm campaign in Mexico in
17473-498: The fields of others, and it increased their control over wages, lending to their daily existence a stability previously unknown to them." Collective farms in the People's Republic of Bulgaria , introduced in 1945, were called Labour Cooperative Agricultural Farm ( Bulgarian : Трудово кооперативно земеделско стопанство , romanized : Trudovo kooperativno zemedelsko stopanstvo ). In Hungary , agricultural collectivization
17646-728: The first stock exchange was founded in Antwerp . Economy at the time meant primarily trade . The European captures became branches of the European states, the so-called colonies . The rising nation-states Spain , Portugal , France , Great Britain and the Netherlands tried to control the trade through custom duties and mercantilism (from mercator , lat.: merchant ) was a first approach to intermediate between private wealth and public interest . The secularization in Europe allowed states to use
17819-472: The first known codified legal and administrative systems, complete with courts, jails, and government records. The ancient economy was based primarily on subsistence farming . The Shekel are the first to refer to a unit of weight and currency, used by the Semitic peoples . The first usage of the term came from Mesopotamia circa 3000 BC. and referred to a specific mass of barley which related other values in
17992-504: The first systems where a network of agents of mostly shopkeepers, instead of bank branches, would take deposits in cash and translate these onto a virtual account on customers' phones. Cash transfers can be done between phones and issued back in cash with a small commission, making remittances safer. However, several academic studies have shown that mobile phones have only limited effect on poverty reduction when not accompanied by other basic infrastructure development. Economic growth has
18165-438: The global labor productivity between 200-2007 to 2011–2019 with a difference of 0.9 per cent productivity decrease has a similar rate which is seen between the years 2019 to 2021 and slowly declining since 2010. The International Labour Organization has estimated that global unemployment was increased to 33 million in the year 2020 which was four times higher than the global financial crisis that happened in 2009. According to
18338-465: The great conquerors raised what we now call venture capital (from ventura , ital.; risk ) to finance their captures. The capital should be refunded by the goods they would bring up in the New World . The discoveries of Marco Polo (1254–1324), Christopher Columbus (1451–1506) and Vasco da Gama (1469–1524) led to a first global economy. The first enterprises were trading establishments. In 1513,
18511-526: The hole". If poor countries do not have to spend so much on debt payments, they can use the money instead for priorities which help reduce poverty such as basic health-care and education. Many nations began offering services, such as free health care even while overwhelming the health care infrastructure, because of savings that resulted from the rounds of debt relief in 2005. In 1996 the Heavily Indebted Poor Countries Initiative by
18684-454: The household and in society. Additionally, women play an important economic role in addressing poverty experienced by children. By increasing female participation in the labor force , women are able to contribute more effectively to economic growth and income distribution since having a source of income elevates their financial and social status. However, women's entry into the paid labor force does not necessarily equate to reduction of poverty;
18857-549: The households every few years, and a clan could request a redistribution of tracts when the Clan Mothers ' Council gathered. Those clans that abused their allocated land or otherwise did not take care of it would be warned and eventually punished by the Clan Mothers' Council by having the land redistributed to another clan. Land property was really only the concern of the women, since it was the women's job to cultivate food and not
19030-400: The immense property of the church for the development of towns. The influence of the nobles decreased. The first Secretaries of State for economy started their work. Bankers like Amschel Mayer Rothschild (1773–1855) started to finance national projects such as wars and infrastructure . Economy from then on meant national economy as a topic for the economic activities of the citizens of
19203-568: The indirect potential to alleviate poverty, as a result of simultaneous increases in employment opportunities and labour productivity . A study by researchers at the Overseas Development Institute (ODI) of 24 countries that experienced growth found that in 18 cases, poverty was alleviated. However, employment is no guarantee of escaping poverty. The International Labour Organization (ILO) estimates that as many as 40% of workers are poor, not earning enough to keep their families above
19376-479: The initial years that followed the Cuban Revolution , government authorities experimented with agricultural and farming production cooperatives. Between 1977 and 1983, farmers began to collectivize into CPAs – Cooperativa de Producción Agropecuaria (Agricultural Production Cooperatives). Farmers were encouraged to sell their land to the state for the establishment of a cooperative farm, receiving payments for
19549-587: The initiative could be broken down into two steps, the first would be meeting four criteria including a track record and the second encompasses three criteria which include implementing and adopting key reforms, such as the Poverty Reduction Strategy Paper . The UN Deputy Secretary-General Amina J. Mohammed reflects debt relief for Developing Countries which showed that between 2019 and 2021, debt from governments has risen from 58 to 65 per cent in GDP , and
19722-452: The irrigated area almost doubled, as governments sought to achieve food security, improve public welfare and generate economic growth. In South Asia, cereal production rose by 137% from 1970 to 2007. This was achieved with only 3% more land. The International Water Management Institute in Colombo , Sri Lanka, aims to improve the management of land and water resources for food, livelihoods and
19895-479: The labour was impossible, therefore it was essential that every villager contributed to manual labour. In the European Union , collective farming is fairly common and agricultural cooperatives hold a 40% market share among the 27 member states . In the Netherlands , cooperative agriculture holds a market share of approximately 70%, second only to Finland . In France , cooperative agriculture represents 40% of
20068-428: The largest cities in western Europe, by 1600 three-quarters of the total population were too poor to pay taxes, and therefore likely to need relief in times of crisis." Poverty reduction occurs largely as a result of overall economic growth. Food shortages were common before modern agricultural technology and in places that lack them today, such as nitrogen fertilizers , pesticides and irrigation methods. The dawn of
20241-503: The late 1990s, the collective farming system collapsed under a strain of droughts . Estimates of deaths due to starvation ranged into the millions, although the government did not allow outside observers to survey the extent of the famine. Aggravating the severity of the famine, the government was accused of diverting international relief supplies to its armed forces. Agriculture in North Korea has suffered tremendously from natural disasters,
20414-565: The living conditions of people who are already poor. Aid, particularly in the medical and scientific areas, is essential in providing better lives, such as the Green Revolution and the eradication of smallpox . Problems with development aid include the high proportion of tied aid , which mandates receiving nations to buy products, often more expensive, originating only from donor countries. Nevertheless, some like Peter Singer in his book The Life You Can Save believe that small changes in
20587-602: The long run. The significance of inclusive policies that address social norms and guarantee these outcomes highlight equitable allocation of resources. Addressing gender equality and empowering women are necessary steps in overcoming poverty and furthering development as supported by the human development and capabilities approach and the Millennium Development Goals . Disparities in the areas of education, mortality rates , health and other social and economic indicators impose large costs on well-being and health of
20760-570: The low wage working class began to be known worldwide, increasing the Chinese FDI. A 2017 study found that Chinese peasants slaughtered massive numbers of draft animals as a response to collectivization, as this would allow them to keep the meat and hide, and not transfer the draft animals to the collectives. The study estimates that "the animal loss during the movement was 12 to 15 percent, or 7.4-9.5 million dead. Grain output dropped by 7 percent due to lower animal inputs and lower productivity." In
20933-467: The meanings)) or Selskoye obshestvo (Russian: сельское общество ("Rural community", official term in the 19th and 20th century) were peasant communities, as opposed to individual farmsteads, or khutors , in Imperial Russia . The term derives from the word о́бщий, obshchiy (common). The vast majority of Russian peasants held their land in communal ownership within a mir community, which acted as
21106-494: The means and efficiency to carry out development policies today. On the other hand, strong states are not always the form of political organization most conducive to economic development. Other historical factors, especially the experiences of colonialism for each country, have intervened to make a strong state and/or good governance less likely for some countries, especially in Africa. Another important factor that has been found to affect
21279-433: The median wage for full-time workers) and 35% of the labor force is underemployed while only 40% of the working-age population in the country is adequately employed. Oxfam , among others, has called for an international movement to end extreme wealth concentration arguing that the concentration of resources in the hands of the top 1% depresses economic activity and makes life harder for everyone else—particularly those at
21452-407: The men's. The Clan Mothers' Council also reserved certain areas of land to be worked by the women of all the different clans. Food from such lands, called kěndiǔ"gwǎ'ge' hodi'yěn'tho , would be used at festivals and large council gatherings. The obshchina (Russian: общи́на , IPA: [ɐpˈɕːinə] , literally: " commune ") or mir (Russian: мир , literally: "society" (one of
21625-604: The monopoly of the Chinese Communist Party and 2) because the reform process began from the bottom and later expanded to the top. Throughout the reform process, the Communist Party reacted positively to the bottom-up reform initiatives that emerged from the rural population. Deng Xiaoping described the reform process as "fording the river by feeling for the stones". This statement refers to the Chinese people who called for
21798-665: The national agricultural research organization of Ethiopia in collaboration with the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT). The researchers estimated that using the varieties would bring about a total benefit of US$ 111 million for 30 years with consumers receiving 39% of the benefit and producers 61%. They expected the generated benefit would lift more than 0.7 million people (both producers and consumers) out of poverty. The authors concluded that further investments in
21971-484: The needs of the people. Problems with the aid system and not aid itself are that the aid is excessively directed towards the salaries of consultants from donor countries, the aid is not spread properly, neglecting vital, less publicized area such as agriculture, and the aid is not properly coordinated among donors, leading to a plethora of disconnected projects rather than unified strategies. Supporters of aid argue that these problems may be solved with better auditing of how
22144-500: The needs of the populace. This system was largely abolished in the 1950s. See: Law of 23 August 1945 with amendments until 1 December 1948. At the end of the Land Reform movement , individual families in China owned the land they farmed, paid taxes as households, and sold grain at prices set by the state. Rural collectivization began soon after the CCP announced its 1953 "general line for
22317-441: The organization of land and labor into large-scale collective farms ( kolkhozy ). At the same time, Joseph Stalin argued that collectivization would free poor peasants from economic servitude under the kulaks (farmland owners). The Soviet Communist Party resorted to the execution and mass deportation of defiant kulaks to Siberia in order to implement the plan (see: Dekulakization ). The centuries-old system of farming
22490-427: The placement of corn storage vessels in the longhouses , which contained multiple families in one kinship group, suggests the occupants of a given longhouse held all production in common. The Iroquois had a similar communal system of land distribution. The tribe owned all lands but gave out tracts to the different clans for further distribution among households for cultivation. The land would be redistributed among
22663-418: The poor is one of the most important poverty reduction strategies a nation can implement. Securing property rights to land, the largest asset for most societies, is vital to their economic freedom. The World Bank concludes that increasing land rights is 'the key to reducing poverty' citing that land rights greatly increase poor people's wealth, in some cases doubling it. It is estimated that state recognition of
22836-424: The poor, especially to land . Financial services , notably savings , can be made accessible to the poor through technology, such as mobile banking . Inefficient institutions, corruption, and political instability can also discourage investment. Aid and government support in health, education, and infrastructure helps growth by increasing human and physical capital . Poverty alleviation also involves improving
23009-751: The poor, which diminishes productivity and the potential to reduce poverty. The limited opportunities of women in most societies restrict their aptitude to improve economic conditions and access services to enhance their well-being. Across the board, a number of industries are stratified across the genders. This is the result of a variety of factors. These include differences in education choices, preferred job and industry, work experience, number of hours worked, and breaks in employment (such as for bearing and raising children). Men also typically go into higher paid and higher risk jobs when compared to women. These factors result in 60% to 75% difference between men's and women's average aggregate wages or salaries , depending on
23182-524: The population to approximately 1%). Collective farms in the German Democratic Republic were typically called Landwirtschaftliche Produktionsgenossenschaft (LPG), and corresponded closely to the Soviet kolkhoz. East Germany also had a few state-owned farms which were equivalent to the Soviet sovkhoz , which were called the Volkseigenes Gut (VEG). The structure of farms in what
23355-660: The power of the Communist Party of Vietnam over all organs of government remains firm, preventing full land ownership. Conflicts between the state and private farmers over land rights have grown with the potential to spark social and political instability. Despite the reforms however, over 50% of all farms in Vietnam remain collective cooperatives (over 15,000 farming cooperatives in Vietnam), and almost all farmers being members of some kind of cooperative. The state also heavily encourages collective cooperative farming over private farming. In
23528-495: The profits in the country, reinvesting them to provide further development. The United Nations Development Program published a report in April 2000 which focused on good governance in poor countries as a key to economic development and overcoming the selfish interests of wealthy elites often behind state actions in developing nations. The report concludes that "Without good governance , reliance on trickle-down economic development and
23701-911: The project's control area, 57% of households were below the poverty line in 2002 compared with 43% in 2007. Making employment opportunities available is just as important as increasing income and access to basic needs. Poverty activist Paul Polak has based his career around doing both at once, creating companies that employ the poor while creating "radically" affordable goods. In his book Out of Poverty he argues that traditional poverty eradication strategies have been misguided and fail to address underlying problems. He lists "Three Great Poverty Eradication Myths": that we can donate people out of poverty, that national economic growth will end poverty, and that Big Business, operating as it does now, will end poverty. Economic models which lead to national growth and more big business will not necessarily lead to more opportunities for self-sufficiency. However, businesses designed with
23874-432: The property of the poor would give them assets worth 40 times all the foreign aid since 1945. Although approaches varied, the World Bank said the key issues were security of tenure and ensuring land transactions were low cost. In China and India, noted reductions in poverty in recent decades have occurred mostly as a result of the abandonment of collective farming in China and the cutting of government red tape in India. In
24047-431: The proposed ways to help poor countries that emerged during the 1980s has been debt relief . Given that many less developed nations have gotten themselves into extensive debt to banks and governments from the rich nations, and given that the interest payments on these debts are often more than a country can generate per year in profits from exports, cancelling part or all of these debts may allow poor nations "to get out of
24220-406: The quality of institutions and governance was the pattern of colonization (how it took place) and even the identity of colonizing power. International agencies may be able to promote good governance through various policies of intervention in developing nations as indicated in a few African countries, but comparative analysis suggests it may be much more difficult to achieve in most poor nations around
24393-431: The range of fields of study examining the economy revolves around the social science of economics, but may also include sociology , history , anthropology , and geography . Practical fields directly related to the human activities involving production , distribution , exchange , and consumption of goods and services as a whole are business , engineering , government , and health care . Macroeconomics
24566-400: The reforms they wanted by "placing the stones at his feet" and he would then just approve the reforms the people wanted. The peasants started their own "household responsibility system" apart from the government. After Chinese trade was privately deemed successful, all Deng had to do was approve its legalization. This increased competition between farmers domestically and internationally, meaning
24739-427: The remaining private farmers; only a handful of them remained after the 1960s. The lifestyle of villagers had eventually reached the level of cities, and village poverty was eliminated. Czechoslovakia was again able to produce enough food for its citizens. The price of this success was a huge waste of resources because the cooperatives had no incentive to improve efficiency. Every piece of land was cultivated regardless of
24912-636: The results of inefficient institutions, corruption, the weak rule of law and excessive bureaucratic burdens. It takes two days, two bureaucratic procedures, and $ 280 to open a business in Canada while an entrepreneur in Bolivia must pay $ 2,696 in fees, wait 82 business days, and go through 20 procedures to do the same. Such costly barriers favor big firms at the expense of small enterprises where most jobs are created. In India before economic reforms, businesses had to bribe government officials even for routine activities, which
25085-674: The right to farm parts of it each day. When the Spanish conquered Mexico they replaced this with a system of estates granted by the Spanish crown to Spanish colonists , as well as the encomienda , a feudal-like right of overlordship colonists were given in particular villages, and the repartimiento or system of indigenous forced labor . Following the Mexican Revolution , a new constitution in 1917 abolished any remnant of feudal-like rights hacienda owners had over common lands and offered
25258-469: The rules were less strict than in state companies) used this situation to start providing high-tech products. For example, the only way to buy a PC-compatible computer in the late 1980s was to get it (for an extremely high price) from one agricultural company acting as a reseller. After the fall of communism in Czechoslovakia in 1989 subsidies to agriculture were halted with devastating effect. Most of
25431-474: The scale is correlated with higher rates of economic development. With their related concept of good governance World Bank researchers have found much the same: Data from 150 nations have shown several measures of good governance (such as accountability , effectiveness, rule of law, low corruption ) to be related to higher rates of economic development. Funds from aid and natural resources are often diverted into private hands and then sent to banks overseas as
25604-456: The small peasant landholder stage that had followed land reform elsewhere in China. Central Tibet was under the joint administration of the People's Liberation Army and the Dalai Lama's theocracy until 1959, and consequently did not experience land reform or collectivization until 1960 in agricultural areas and 1966 in pastoral areas. After the death of Mao Zedong , Deng Xiaoping reformed
25777-470: The source. Various explanations for the remaining 25% to 40% have been suggested, including women's lower willingness and ability to negotiate salary and sexual discrimination . According to the European Commission direct discrimination only explains a small part of gender wage differences. Gender mainstreaming , the concept of placing gender issues into the mainstream of society, was established by
25950-413: The state to accelerate the process of capital accumulation , ultimately laying the successful foundation of physical and human capital for the economic growth of China's reform and opening up . During the early and middle 1950s, collectivization was an important factor in the major change in Chinese agriculture during that period, the dramatic increase in irrigated land. For example, collectivization
26123-515: The state. The distribution was based partly on work points accrued by the adult members of a household, and partly at a standard rate by age and sex. These cooperatives also lent small amounts of land back to households individually on which the households could grow crops to consume directly or sell at market. Apart from the large-scale communization during the Great Leap Forward, higher-level agricultural producers' collective were generally
26296-494: The system. There are several fundamental proposals for restructuring existing economic relations, and many of their supporters argue that their ideas would reduce or even eliminate poverty entirely if they were implemented. Such proposals have been put forward by both left-wing and right-wing groups: socialism, communism, anarchism , libertarianism , binary economics and participatory economics , among others. Inequality can be reduced by progressive tax . In law, there has been
26469-451: The transition to socialism". Over the next six years, collectivization took several incrementally progressing forms: mutual aid groups, primitive cooperatives, and people's communes. As London School of Economics and Political Science Professor Lin Chun notes, researchers agree that communization proceeded on a largely voluntary basis that avoided both the violence and sabotage that occurred during
26642-560: The value or price of the transacted good or service, commonly expressed in a certain currency . However, monetary transactions only account for a small part of the economic domain. Economic activity is spurred by production which uses natural resources, labor and capital. It has changed over time due to technology , innovation (new products, services, processes, expanding markets, diversification of markets, niche markets, increases revenue functions) and changes in industrial relations (most notably child labor being replaced in some parts of
26815-431: The ways people in affluent nations live their lives could solve world poverty. Proponents of economic liberalization have argued that it reduces poverty. Other commentators have claimed that, due to economic liberalization, poverty in the world is rising rather than declining, and the data provided by the World Bank, echoing that poverty is decreasing, is flawed. They also argue that extending property rights protection to
26988-498: The workers to the land. It established material incentives for increased production by tying workers' earnings to the overall production of the UBPC, and increased managerial autonomy and workers' participation in the management of the workplace. The move to a collective farming method in Tanzania was based on the Soviet model for rural development. In 1967, President Julius Nyerere issued "Socialism and Rural Development" which proposed
27161-680: The world with universal access to education ). The word economy in English is derived from the Middle French 's yconomie , which itself derived from the Medieval Latin 's oeconomia . The Latin word has its origin at the Ancient Greek 's oikonomia or oikonomos . The word's first part oikos means "house", and the second part nemein means "to manage". The most frequently used current sense, denoting "the economic system of
27334-445: The world. Another approach that has been proposed for alleviating poverty is Fair Trade which advocates the payment of an above market price as well as social and environmental standards in areas related to the production of goods. The efficacy of this approach to poverty reduction is controversial. The Toronto Dollar is an example of a local currency oriented towards reducing poverty. Toronto Dollars are sold and redeemed in such
27507-852: Was rolnicza spółdzielnia produkcyjna , 'agricultural production cooperative'. Collectivisation in Poland was stopped in 1956; later, nationalisation was supported. Collective farming was introduced as a League of Communists of Yugoslavia government policy throughout the Socialist Federal Republic of Yugoslavia after World War II , by taking away land from wealthy pre-war owners and limiting possessions in private ownership first to 25, and later to 10 hectares. The large, state-owned farms were known as "Agricultural cooperatives" ( zemljoradničke zadruge in Serbo-Croatian ) and farmers working on them had to meet production quotas in order to satisfy
27680-477: Was a factor that contributed to the introduction of double cropping in the south, a labor-intensive process which greatly increased agricultural yields. Both land reform movement and collectivization largely left in place the social systems in the ethnic minority group areas of Chinese Central Asia and Zomia . These areas generally underwent collectivization in the form of agricultural producers' cooperatives during winter of 1957 through 1958, having skipped
27853-426: Was allowed- in the range of .25-1 hectare. Private cattle ownership existed after 1935, but was severely restricted by decree in 1956. In Romania , land collectivization began in 1948 and continued for over more than a decade until its virtual eradication in 1962. In Romania, force sometimes had to be used to enforce collective agricultural practices. Collective farming in Romania was an attempt to implement
28026-471: Was attempted a number of times between 1948 and 1956 (with disastrous results), until it was finally successful in the early 1960s under János Kádár . The first serious attempt at collectivization based on Stalinist agricultural policy was undertaken in July 1948. Both economic and direct police pressure were used to coerce peasants to join cooperatives , but large numbers opted instead to leave their villages. By
28199-577: Was called East Elbia until German partition was dominated by latifundia , and thus the land reform which was justified on denazification grounds and with the aim of destroying the Prussian Junker class – which had been hated by the left during the Weimar Republic and which was blamed for Prussian militarism and the authoritarian tendencies of the German Empire and later Nazi Germany –
28372-434: Was carried out in April 1948, two months after the Communist Party of Czechoslovakia took power by force . Farms started to be collectivized, mostly under the threat of sanctions. The most obstinate farmers were persecuted and imprisoned. The most common form of collectivization was agricultural cooperative ( Czech : Jednotné zemědělské družstvo , JZD; Slovak : Jednotné roľnícke družstvo , JRD). The collectivization
28545-537: Was common, and food became scarce. Seeing the massive outflow of people from agriculture into cities, the government started to massively subsidize the cooperatives in order to make the standard of living of farmers equal to that of city inhabitants; this was the long-term official policy of the government. Funds, machinery, and fertilizers were provided; young people from villages were forced to study agriculture; and students were regularly sent (involuntarily) to help in cooperatives. Subsidies and constant pressure destroyed
28718-487: Was destroyed in Ukraine. In 1932–1933, an estimated 11 million people, 3–7 million in Ukraine alone, died from famine after Stalin forced the peasants into collectives (see: Holodomor ). It was not until 1940 that agricultural production finally surpassed its pre-collectivization levels. Collectivization throughout the Moldavian Soviet Socialist Republic was not aggressively pursued until
28891-494: Was explored and discussed by Friedrich August von Hayek (1899–1992) and Milton Friedman (1912–2006) who pleaded for a global free trade and are supposed to be the fathers of the so-called neoliberalism . However, the prevailing view was that held by John Maynard Keynes (1883–1946), who argued for a stronger control of the markets by the state. The theory that the state can alleviate economic problems and instigate economic growth through state manipulation of aggregate demand
29064-411: Was free to clear the land and farm on the basis of usufruct . He maintained possession of the land as long as he continued to actively cultivate and tend the fields. Once he abandoned the land, it reverted to communal ownership, and anyone could take it up for themselves. While the Huron did seem to have lands designated for the individual, the significance of this possession may be of little relevance;
29237-513: Was implemented in three stages (1949–1952, 1953–1956, 1956–1969) and officially ended with the 1960 implementation of the constitution establishing the Czechoslovak Socialist Republic , which made private ownership illegal. Many early cooperatives collapsed and were recreated. Their productivity was low since they provided tiny salaries and no pensions, and they failed to create a sense of collective ownership; small-scale pilfering
29410-798: Was in effect a tax on business. However, the free market principle of ending government sponsorship of social programs has also had negative consequences. For example, the World Bank presses poor nations to eliminate subsidies for fertilizer that many farmers cannot afford at market prices. The reconfiguration of public financing in former Soviet states during their transition to a market economy called for reduced spending on health and education, sharply increasing poverty. Trade liberalization increases total surplus of trading nations. Remittances sent to poor countries, such as India, are sometimes larger than foreign direct investment and total remittances are more than double aid flows from OECD countries. Foreign investment and export industries helped fuel
29583-645: Was initially popular with many small farmers and landless peasants. East German President Wilhelm Pieck coined the slogan Junkerland in Bauernhand! ("Junker land into farmer's hand!") to promote land reform, which was initially pledged to be more moderate than full-scale collectivization. Although the ruling Socialist Unity Party and the Soviet Military Administration in Germany promised to allow large landowners to keep their land, they were expelled as
29756-603: Was seen by the communist leadership as a half-measure when compared to full state ownership. Following the Fall of Saigon on 30 April 1975, South Vietnam briefly came under the authority of a Provisional Revolutionary Government , a puppet state under military occupation by North Vietnam , before being officially reunified with the North under Communist rule as the Socialist Republic of Vietnam on 2 July 1976. Upon taking control,
29929-538: Was the revision of laws and administrative practices to ensure women's equal rights and access to economic resources. Mainstreaming strengthens women's active involvement in poverty alleviation by linking women's capabilities and contributions with macro-economic issues. The underlying purpose of both the UN and World Bank policies speaks to the use of discussion of gender issues in the promotion of gender equality and reduction of poverty. Several platforms have been adopted and reiterated across many organizations in support of
#207792