The Roots of Poverty and Globalization - 2272 Words

The Question: Globalization and poverty Once the Era of apartheid had come to an end in 1994 the internationally development community entered South Africa promoting the microcredit model with high hopes to empower the poorest black communities to break loose from the poverty spiral, however the Microcredit model was seen to be having the complete opposite effect, ultimately causing incredible damage to the area. The microcredit model was supposed to be the means of bringing sustainable development to the extreme poor areas. The model has been named the â€Å"anti-development† intervention (1), because in practice it has only shown that it supports consumption spending. The poor are worse off than ever before; to keep up with the obligations of repaying their microloans, they are forced to sell the few assets they own or borrow money from friends or relatives or even worse take up new microloans in order to pay for the old ones. This is not the only downfall of this type of so called sustainable development; another problem that emerges from this is that the actual businesses emerging form microloans are anything but businesses elevating poverty. The type of business that has been arising from the microloans have only created hyper-competition amongst all the new businesses as well as the old ones, leaving about 40% of the South African population repaying debt. The poorest and most vulnerable are left behind to take care of themselves drowning in debt, while the private banksShow MoreRelatedTerrorism: Root Causes. There Is Not One Commonly Used1326 Words   |  6 PagesTerrorism: Root Causes There is not one commonly used definition for terrorism. Within the US government, each agency has its own definition, and around the world there are countless others. 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It is an interesting topic to study, as you will know the reason behind by the following quotes: ‘Over the past 20 years, the number of people living on less than $1 a day has fallen by 200 million, after rising steadily for 200 years’ (James Wolfenson, president of World BankRead MoreGlobalization: We Must Find the Balance Between Benefits and Costs1100 Words   |  5 Pages Globalization as generally understood involves the increasing interaction of the worlds peoples through their national economic systems. Of necessity, these economic systems are reasonably compatible and, in at least some important respects, market oriented. During the past half-century, barriers to trade and to financial flows have generally come down, resulting in a significant broadening of world markets. Expanding markets, in turn, have enhanced competition and nurtured whatRead MoreThe Negative Effects of Globalization on South Africa Essay1699 Words   |  7 Pages Robin Kibuka, an adviser in the Africa Department of the International Monetary Fund, said, Globalization is a force for development, but clearly it is a force for development that will have to be managed because it does create instability. For example, investors can move money more quickly than ever from one country to another, potentially leavingRead MoreWhat Would Our World Look Like Today If Globalization Did Not Exist?1482 Words   |  6 PagesWhat would our world look like today if globalization did not exist? The answer is that it would look quite different from what we are used to today. Many of the products used every day by Americans have been made available and sold to us due to globalization. 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