Monday, September 1, 2008

Trade not aid the answer to poverty, economists say

In Ghana, over 100 ministers met to talk about how aid would be efficient in helping developing nations deal with poverty. Most economists believe that aid is not the answer, they believe that freeing up trade could be a solution. Economists of all persuasions agree that growth is the key to lifting people out of poverty, and the WTO (World Trade Organization) states that a key to growth is trade.
"Since Japan's rise to prosperity, many other countries have followed a similar path." (Jonathan Lynn, August 31, 2008)
With trade comes greater economic capacity and
I do believe that opening up trade will help with the growth and development of these nations thriving to get over poverty. With trade, more jobs open up, and different cultures of the world are introduced. Although trade will take out some smaller companies and farming, everyone has to think of the nation as a whole and what would be better for the whole society. I think that trades should start off gradually, so the economic growth will allow people to adjust at a reasonable pace instead of these new ideas and materials coming to them as a cultural shock. Poverty is definitely a big issue in the world and I hate that money is as important as it is because it ruins peoples lives. But at the same time, accepting that money is an important factor in daily living. By sending aid to these nations, it will not provide them that ladder to success they need. It will temporarily help with nutrition, being clothed, personal well being, and teachings. For example, someone sends volunteer teachers and doctors to these countries to help people out. A question I would ask myself is how will this help the country as a whole? It will just be helping one person individually. When this person knows they can make something of them self , why would they want to stay in their nation where they can go somewhere to better them? Usually they leave their country and go where there are more opportunities, for example coming to the U.S. The way I see it, is one person has been helped, now what about the rest of the country/ nation?

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