Synopsis: Is the whole notion of poverty traps exaggerated? Or is there some truth to the idea?
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Discussion:
This article evaluates the recent statement that poverty traps are exaggerated. Instead of looking at whole decades or larger periods, e.g. 1960 – 2010, the author, C.W. looks at decade blocks and points out two main things to show that poverty traps are not a myth:
1. Living standards were exacerbated for the poor countries more that for the rich countries.
2. Any growth rates for poor countries would increase living standards for the rich and decrease them for the poor; i.e. income inequality has risen sharply.
For these reasons, C.W. believes that poverty traps do exist. The author elaborates by saying that while it is not true that long-term poverty traps will never be escaped, short-term poverty are the ones to worry about.
This article evaluates the recent statement that poverty traps are exaggerated. Instead of looking at whole decades or larger periods, e.g. 1960 – 2010, the author, C.W. looks at decade blocks and points out two main things to show that poverty traps are not a myth:
1. Living standards were exacerbated for the poor countries more that for the rich countries.
2. Any growth rates for poor countries would increase living standards for the rich and decrease them for the poor; i.e. income inequality has risen sharply.
For these reasons, C.W. believes that poverty traps do exist. The author elaborates by saying that while it is not true that long-term poverty traps will never be escaped, short-term poverty are the ones to worry about.
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