It is commonly said that those who do not remember the past are doomed to repeat it. In the international community, this is indeed a severe problem due to the extremely wide range of issues that confronts it just on a day to day basis. Nevertheless, in terms of the International Economy, it seems that at least one lesson has been learned. Despite the global depression that has plagued the international community since 2009, the scale of which has not been seen since the Great Depression, careful planning and effective marketing have managed not only to prevent the growth of poverty in developing countries, but also to lessen it.
Considering the state the global economy is in, it seems implausible that the poverty situation in developing is actually improving. In 2008, the World Bank predicted the recession would bring with it a rise in unemployment and poverty in developing countries that would greatly deteriorate the living conditions in those countries. Nevertheless, despite the odds and similar predictions, the number of people living in poverty in these developing nations had decreased since the global recession began.
While this trend seems rather odd, a closer look at the effects of the 2009 recession helps to explain why this oddity has occurred. Due to the hard times, major economies like that of the United States became stagnant and less productive. Resultantly, someone had to rise up and pick up the slack and developing economies and markets seemed to be the most logical place and investments started pouring in. It is important to note that while this progression is logical, it is a pattern that has rarely been seen during global recessions and that is what makes it truly remarkable because it is one of the first times that these untapped resources have been used so effectively is such a situation. In fact, the typical effect of global recessions on developing countries is an extreme decline in living conditions which in turn results in increased sickness, malnutrition, and death.
In concluding, there remains the question of what this trend means. While it may not mean much to powerful yet stagnant economies, the fact that world poverty is decreasing shows the international community is making progress in restoring faltering economies and improving basic living conditions. In a sense, this means that the foundation for stable economies is being paved in these developing countries and hopefully this trend will continue and help ease the strain on the global economy that goes towards supporting such regions.
Source: See the following New York Times article by Annie Lowrey: Dire Poverty Falls Despite Global Slump, Report Finds
This is a very interesting development. One would have thought that the global recession would have simply consumed the most vulnerable, the poverty stricken nations. That is, if the global economy is to slow down, common logic would have us assume that the developing, poverty stricken nations’ economies would also slow down. Less economic activity across the globe should mean at least a proportionate decline in the economic activity of the developing nations as much of their economy depends on international investment, right? Wrong.
If there is any consolation from the global recession, this development has to be considered among it. The fact that the global recession essentially helped the emerging markets continue “emerging” is great for all. However, the fact that the global recession may have caused a decrease in the number of people living in extreme poverty is truly remarkable.