The root of poverty is caused by lack of access to land, a vulnerable environment, and low agricultural production (“Rural Poverty in Honduras”). About sixty percent of the land in Honduras is still forested, but only twenty-five percent of that is obtainable for agriculture (“Honduras: Economy”). In the twentieth century the Honduran economy was based on one commodity, bananas. Like other third world countries, whose livelihood depends solely on one export, the Honduran economy was at the mercy of the world market and its current prices. Efforts to diversify agriculture and expand manufacturing have shown some slight improvement.
One outcome of this effort was the General Agreement on Tariffs and Trades (GATT). GATT was a precursor to the World Trade Organization (WTO), an international consortium comprised of member nations whose goal is to further reduce or eliminate barriers to international trade. Several other organizations whose goals are to promote international trade are the International Monetary Fund (IMF), and the World Bank. The International Monetary Fund was established in 1944, and its purpose is to “maintain order in the international monetary system” (Hill, 2009, p. 10). The World Bank, also created in 1944, is chartered with making low-interest loans to poorer nations wishing to invest in improving their infrastructure.
We should be helping other countries like Peru or Haiti who can’t afford to educate their people. Haiti lacks the cultivated land due the all the mountains they have (Haggerty, 1989). They need to find a way to make what little land they have very productive. The land they can use is not good. They don’t use inputs such as fertilizers, pesticides, machinery, or irrigation (Haggerty, 1989).
The nation was quite poor from the Revolution and had loans from the French that it was unable to pay back. This was because the Confederation did not have the power to tax, the states were supposed to donate money to the government and as a result, when other states realized that some were not donating money, they refused to as well. Despite the lack of taxing for the nation, the states placed taxes on goods being traded in or through their territory from other states. However, trade was complicated by the fact that there was no national currency. A Virginia dollar could be worth more than a South Carolina dollar, or worth less than a New England gold coin.
Since the government could not set up a national currency, and states were allowed to make their own, this caused trade between states to be very difficult. In Joseph Jones letter to George Washington (DOC C), he wrote how war veterans felt mistreated when they were not paid and the pay that was earned did not have much value. Jones wrote “One ground of discontent in the army is the delay in complying with their requests.” By never giving congress the power to establish a set currency for the nation, money traded between each state had
In The Price of Aid, directed by Jihan el Tahri, an examination of the international food relief distribution’s politics and the effects it has on African nations is portrayed as profound, yet startling. In this film, it is argued that giving federal aid is “good and charitable” for the United States, but creates “less visible and more destructive” problems for other countries such as Zambia. This film demonstrates how destructive giving aid is not always beneficial, especially when the assistance is not needed. In the film, Zambia is conceived as a poor country in need but the officials of Zambia do not want the help from the United States. In fact, unnecessary aid can make multiple countries collapse because the aid is being “forced” upon the countries by the United States (Tahri,
Most political decisions are made on a national or global scale and can prevent the access of some technology to particular places. 90% of people in the UK believe GM crops are ethically incorrect therefore they are banned from use in this area. North Korea is a rogue government and is prevented from gaining access to nuclear technology due the threat countries believe NK has. Also North Korea as a government restricts its nation’s access from the outer world isolating its country from the globe. However some political decisions are positive as some governments decide to provide access to technology across the country e.g.
The hope for home ownership is even less for people in Tanzania and Uganda. One option that African’s can consider is through the Housing Finance Corporation. Customers pay only 5 to 10% deposit and use their pension savings to secure the loan. However, to secure a loan an income of $1,250 is required. Therefore, this is still a difficult and unaffordable option for most
Chapter 39: The Stalemated Seventies A. Describe the economic situation going into the 1970s- The baby boom generation would be making less money than their parents but as the economic growth crested, the American spirit gave an unaccustomed sense of limits. I. Sources of Stagnation A. List a few reasons economists speculate could be the cause of the slump in productivity increasing presence in the work force of women and teens (had lower skills, less likely to take full time jobs),declining investment in new machinery, general shift of American economy from manufacturing to services B.
Because these areas mainly fall under governmental provision and regulation they are simply not provided to society as a whole by the private market. Privatizing prisons has once again become acceptable, “the private prison industry, which has grown by 350 percent in the last 15 years (Johnson, 2012)”. There is still much to be debated about the privatization of prisons once again, as the profit margin isn’t in the care or service they provide but rather in the number of inmates they house. Emergency services such as Fire and Police protection are areas that the market fails to give the desired quality of output and desirable price. Both of these services are pretty much wholly government run and controlled.