the rich and the poor

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Whitebird Sings
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the rich and the poor

Post by Whitebird Sings » May 25th, 2005, 9:40 am

May 25, 2005

Growth and the Poor
(editorial)

Last year should have been a good one for Latin America's poor; the region's economies grew by 5.8 percent. Yet outside Chile, Latin America's high growth rate is not cause for rejoicing. In places with relatively egalitarian income distribution, growth helps everyone. But in unequal countries, where the poor get only a few cents out of every new dollar, growth bypasses the poorest. Latin America is the world's most unequal region. That means growth will not reduce poverty unless Latin American governments redirect it to the poor.

The first thing they must do is keep growing. Chile's achievements are in part the product of sustained growth. Unfortunately, most countries in Latin America are growing not because they have improved productivity, but because of the rise in the price of oil and other commodities, quick booms that lend themselves to quick busts.

Many countries also are carrying debt loads far above what is considered sustainable and spend a big chunk of their treasury on servicing their debts. For three very poor countries, Honduras, Nicaragua and Bolivia, the international banks and their members are reducing debt, although not enough. But there is no help in sight for heavily indebted Uruguay, Peru, Argentina, Brazil and other countries.

Latin American nations also typically take in far too little in taxes. To reduce poverty with what they do have, Latin American countries would do well to follow the model set by Chile, which has cut extreme poverty by 65 percent since 1990 by carefully targeting its spending. Chile makes direct payments to poor households. It has invested in rural primary education and helps buy housing for the poorest people. These programs have been successful because Chile is well governed enough to measure accurately which families need help and deliver it with little corruption.

Some other countries have similar programs. Since 1997, Mexico has helped more than four million of the poorest families keep their children in school, eat better and stay healthier. In many countries, these programs need closer oversight to keep local politicians from siphoning off aid. But in general, such targeted help can make a difference. In Mexico, it is a safety net for the most marginalized. With sustained growth, however, such programs could help lift millions of people out of poverty.


from THE NEW YORK TIMES

http://www.nytimes.com/2005/05/25/opini ... nted=print

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Whitebird Sings
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Post by Whitebird Sings » May 25th, 2005, 9:53 am

...this about that --

It is well known that many times the way that the international banks help out small countries is by loaning them money to pay down their debt...

follow that reasoning!

...it's like you paying off one credit card by using another... both with very high interest rates... often the second one higher than the original one you are trying to pay off under threat...

in turn, it is not the politicians making these decisions about how to manage the country's debt that pay heavy price... it is the poor!

...and we all by now have no excuse for not knowing what it is to be poor in countries like Nicaragua or Bolivia or Peru or Brazil or Uruguay or Sudan or Russia or Kyrgztan or Togo or Afghanistan... and on and on and on.

...hunger, AIDS, prison camps, child labour, slavery... and on and on and on...

What do we do?

(1) pass on the information -- spreading awareness
(2) get connected through the internet
(3) take action as directed by those who are
organizing to make a difference

and if you have the opportunity and means for more direct action -- then listen to your conscience -- and do it!

AND KNOW THAT THERE ARE OTHERS WHO ALSO CARE AND ARE WORKING AT MAKING A DIFFERENCE!...

{{{{hugs}}}}
WB

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