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PROJECT REPORT

“POVERTY”

SUBMITTED TO:
Mr. Shoaib Malik

SUBMITTED BY:
Aqsa Khalid

Moonam Arshad

Sadaf Noor

Sheikh Waqas

TABLE OF CONTENTS
Introduction
…………………………………………………………………….. 4
Background ………………………………….
………………………………….. 4

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Causes of poverty
……………………………………………………………. 4
 Health and education
……………………………………………… 5
 Political instability
…………………………………………………… 5
Economic
concerns…………………………………………............6
WEALTH DISTRIBUTION IN PAKISTAN

 Storage of basic needs


……………………………………………… 6

Effects of Poverty
……………………………………………………………… 6
 Health
………………………………………………………………………
6
 Education
…………………………………………………………………… 6
 Violence
……………………………………………………………………
7

Measures to reduce poverty


……………………………………………… 7
 Aid
………………………………………………………………………
……… 7
 Good institution
……………………………………………………….. 8

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INTRODUCTION

Poverty is the condition in which a person or community is


deprived of or lacks the essentials for a minimum standard of
well-being and life.
Around the world, in rich or poor nations, poverty has always
been present. Today most nations are facing “Inequality”—the
gap between the rich and the poor—.
Poverty in Pakistan is a growing concern. Although the middle-class has grown in
Pakistan to 35 million, nearly one-quarter of the population is classified as “Poor”.

BACKGROUND
Economically, Pakistan was a very poor and predominantly agricultural country at
the time of its independence in 1947 from British South Asia. During its first four
decades, Pakistan's economic growth rate was better than the global average.
Historically, Pakistan's overall economic output (GDP) has grown every year
since a 1951 recession. Despite this record of sustained growth, Pakistan's
economy had, until a few years ago, been characterized as unstable and highly
vulnerable to external and internal shocks.

CAUSES OF POVERTY IN PAKISTAN

Causes of poverty mainly concern reasons behind the low wealth


and productivity of the poor or, conversely, the shortage and
inflation of the goods they consume.

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 The unwillingness of Pakistani government to give full-
fledged property rights of land to their tenants is cited as the
chief obstacle to development. This lack of economic
freedom inhibits entrepreneurship among the poor.
 New enterprises and foreign investment can be driven away
by the results of inefficient institutions, notably
CORRUPTION, weak rule of law and excessive bureaucratic
burdens.
 Costly barriers favor big firms at the expense of small
enterprises, where most jobs are created.
 Lack of opportunities can further be caused by the failure of
government to provide essential infrastructure..
Opportunities in richer countries drive talent away, leading
to brain drains

 HEALTH AND EDUCATION

 Pakistanis suffer a lot due to Poor health and education as it


severely affects productivity. Inadequate nutrition in
childhood undermines the ability of individuals to develop
their full capabilities. Lack of essential minerals such as
iodine and iron can impair brain development. Billion people
(one-third of the total global population) are affected by
iodine deficiency.

 Similarly substance abuse, including for example alcoholism


and drug abuse can consign people to vicious poverty
cycles. Infectious diseases such as Malaria and tuberculosis
can perpetuate poverty by diverting health and economic
resources from investment and productivity; however
illiterates are the ones who suffer the most.

 POLITICAL INSTABILITY IN THE COUNTRY


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 War, political instability and crime, including violent gangs
and drug cartels, also discourage investment.

 Terrorism, suicide bomb blasts all destabilize the economic


system.

 Law and order situation in the country, fight over rule among
the political leaders, rich becoming richer and poor
becoming poorer

 Foreign investors are reluctant to invest in Pakistan, keeping


in mind its political situation and downfall in the economy.

ECONOMIC CONCERNS

WEALTH DISTRIBUTION IN PAKISTAN


Wealth Distribution in Pakistan is highly uneven, with 10% of the population
earning 27.6% of income.]According to the United Nations Human Development
Report, Pakistan's human development indicators, especially those for women,
fall significantly below those of countries with comparable levels of per-capita
income. Pakistan also has a higher infant mortality rate (88 per 1000) than the
South Asian average (83 per 1000)
Factors affecting poverty
Demand & Supply conditions
 Demand and Supply conditions of goods and services are
definitely affected due to shortage of goods and resources.
The situation is very evident presently in our country, as
there is shortage of sugar and other resources. As demand
of sugar is greater and supply high. When there is shortage,
prices of goods rise further, making consumption more
expensive for the ones already who can’t afford. . Rises in
the costs of living make poor people poorer. Poor
people spend a greater portion of their budgets on
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food than richer people. As a result poor households and
those near the poverty threshold can be particularly
vulnerable to increases in food prices.

INFLATION
 Similarly due to price instability, prices of goods and services
rise that causes INFLATION in the economy and which is
currently the situation in our country. Prices of petrol, cng
and other commodities are raising everyday unconditionally.
Due to increased price levels the poor can hardly afford what
they previously could afford.

BUSINESS CYCLES
 Shocks in the business cycle affect poverty rates, increasing
in recessions and declining in booms.(ADD A DIAGRAM)

HIGH INETEREST RATES


These generally reduce the purchasing power of the
consumers resulting in the decrease in consumption of goods
and services. Pakistanis already facing poverty and in such a
scenario high interest rates to them will further make a
desirable standard of living un achievable .

UNEMPLOYMENT
High levels of unemployment are a key factor affecting poverty.
As people don’t find jobs, it is harder to run their families, thus
they are deprived of the basic necessities and luxuries of life.
Younger generation who are willing but unable to find jobs get
frustrated which results in negativity and they indulge in crime
activities

CULTURAL FACTORS

 Cultural factors, such as discrimination of various kinds, can


negatively affect productivity such as age discrimination,
 stereotyping,
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 gender discrimination
 racial discrimination,
 caste discrimination
.

SOCIAL CONCERNS
GENDER RIGHTS AND OVER POPULATION IN PAKISTAN

Women in Pakistan suffer from poverty of opportunities throughout their lives.


Female literacy in Pakistan is 43.6% compared to Male literacy at 68.2%, as of
2008. In legislative bodies, women constituted less than 3% of the legislature
elected on general seats. Overpopulation and lack of access to birth control
methods. Population slows or even become negative as poverty is reduced due to
the demographic transition.

Environmental Issues

Environmental problems in Pakistan, such as erosion, use of agro-chemicals,


deforestation etc. contributes to rising poverty in Pakistan. Increasing
pollution contributes to increasing risk of toxicity, and poor industrial
standards in the country contribute to rising pollution.

Feudalism

Pakistan is home to a large feudal landholding system where landholding families


hold thousands of acres and does little work on the agriculture them. They
enlist the services of their serfs to perform the labor of the land. The
landlords' position of power allows them to exploit the only resource the poor
can possibly provide their own labor.

Poverty and the rise of Islamic fundamentalism

The rise of poverty in the country has been correlated with the rise of Islamic
Fundamentalism in many parts of the country.Madrassa education is offered on
the pretext that they provide better education than the other schools. They study in
a religious environment that has been radicalized by the world-sponsored
exposure of the "Holy Jihad" in Afghanistan.
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EFFECTS OF POVERTY

HEALTH

One third of deaths - some 18 million people a year due to


poverty-related causes, most of them women and
children, have died as a result of poverty since 1990.
Those living in poverty suffer disproportionately from hunger or
even starvation and disease further suffer lower
expectancy. Every year nearly 11 million children living in
poverty die before their fifth birthday.
EDUCATION

Research has found that there is a high risk of educational


underachievement for children who are from low-income
housing circumstances. This often is a process that begins
in primary school for some less fortunate children. For
children with low resources, the risk factors are similar to
excuses such higher levels of teenage pregnancy, and the
economic dependency upon their low income parent or
parents.

VIOLENCE
Areas strongly affected by poverty tend to be more violent. In
one survey, 67% of children from disadvantaged inner
cities said they had witnessed a serious assault, and 33%
reported witnessing a homicide. MANY have been found to
be victims of violence, compared to 32% in Washington,
DC (mean income for a household: $40,127).

DEPRESSION

Poverty affects people’s lives on all levels; bumping into the issue of lack of
money is incredibly stressful and grinds people down. People with disabilities are
more likely to be poor and more likely to suffer from depression. Lastly, we live
in a culture where success is measured by how much we earn. People with low
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income are automatically assumed to be unsuccessful. This impacts their self
esteem.

INCREASE IN CRIME RATE


Due to depression and frustration individuals indulge themselves in crime
activities, thefts e.t.c or even get dependant in drugs and alcohol thinking it would
reduce their frustration. Using drugs destroys a nation socially as well as morally.

MEASURES TO REDUCE POVERTY

 Extending property rights protection to the poor is one of the


most important poverty reduction strategies PAKISTANI
nation could take

 Investments in human capital, in the form of health, are needed for economic growth.
 Human capital, in the form of education, is an even more
important determinant of economic growth than physical
capital.

 It was the technology of the steam engine that originally


began 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 bring the best price. Such
technology can also make financial services more accessible
to the poor.
AID

 Aid in its simplest form is a basic income grant, a form of


social security periodically providing citizens with money

 Aid from non-governmental organizations (NGO’s) 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.
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 One of the proposed ways to help poor countries has been
debt relief.

 Immunization campaigns for children, such as against polio,


diphtheria and measles have save millions of lives

GOOD INSTITUTE

 Pakistan is in dire need of efficient institutions that are not


corrupt and obey the rule of law make and enforce good
laws that provide security to property and businesses as well
as individuals.

 Funds from aid and natural resources are often diverted into
private hands and then sent to banks overseas as a result of
graft. If Western banks rejected stolen money, says a report
by Global Witness, ordinary people would benefit.
Supporting higher growth and greater stability of income and employment in rural
areas by focusing on
• Getting the policy and institutional framework right;
• Increasing agriculture productivity and diversification by moving to
market-based agricultural prices, and expanding the role of the private
sector in storage and agriculture support services;
• Increasing non-farm employment opportunities by developing
agribusiness for exports.
• Promoting rural-urban linkages by improving communications, particularly
rural roads;
• Expanding rural economic infrastructure, especially for irrigation,
drainage, and water resource conservation and management;
• Promoting financial intermediation, and enhancing access to credit in the
rural areas
• Investing in infrastructure in areas where incidence of poverty is high,.
• Liberalization in the international textile trade has already yielded
benefits for Pakistan's exports, and the country also expects to profit
from freer trade in agriculture.
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CONCLUSION
There is considerable poverty in many parts of the world.
Considering the fast growing cities of Pakistan, given the fact
that government is totally absorbed, politically, in their power
struggle, and is financially impotent, due to vast outlays for debt
servicing, defense and "law and order" and a tendency to ad-
holism, it is evident that people presiding inside the country are
suffering and will continue to suffer as it seems so. Pakistan has
the benefit of substantial financial funds in the hands of their
citizens inside and outside the country, plus the technical skills,
organizational know-how, international experience and
connections, non-governmental aid and several others measures
which could help in improving the nation’s condition and saving
the future of thousands of individuals by bringing peace and
harmony.

REFERENCES
1. 1: http://www.thenews.com.pk/print1.asp?id=100155
2. 2: http://changepk.com/2009/10/06/causes-of-poverty-in-
pakistan/
3. 3: Www.google.com
4. 4: http://www.iucn.org/places/pakistan/poverty/poverty.htm
5. http://www.experiencefestival.com/a/Economy_of_Pakistan_-
_Economic_History/id/5009125
6. http://www.medicalnewstoday.com/youropinions.php?
opinionid=7555

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