The article is discussing the issue of poverty with a keen interest on the economic theory on growth and stagnation. It is a theory that has been finding practice ever since the nineteenth and eighteenth centuries. Contained therein are discussing with regards to how the developing world could foster development while on the other hand giving the predictors of a failing economy. This theory heavily borrows ideas from famous economists like Robert Malthus, Adam Smith, and David Ricardo.
According to the theory, for any economy to foster considerable growth there are a number of factors that need consideration. The article is basing most of its arguments on the theory with all indications supporting the theory. Some of the issues of consideration are better labor forces and sustainable growth rate. Such aspects lack in governments like those in Zambia and Zimbabwe. Accordingly, citizens of such countries are succumbing to poverty. These aspects are easy to predict using the growth and sustainability theory.
The alignment of this article to the growth and sustainability economic theory is apparent. It is only that the article is reporting on the cases that happened as a result of failure of rightful application of procedures. It takes a number of specimen countries to evaluate the issue in a bid to give tangible evidence to this problem. Bad government regimes are examples of the reasons that have been causing high rates of poverty in the low income countries. Even though developed countries such the United States have a number of poverty cases, developing countries have the lion’s share of the problem.
Economy is largely intertwined to the social wellbeing of a given country. Countries having high cases of poverty and discrimination suffer economically. It is only logical that for any given nation to have a sound economy there has to be good political systems and a thriving society. In cases of poverty, citizens lack important skills like education that will enable them to contribute to the economy of the country. Once the literacy levels of a republic are low their quality of labor is low and their contribution towards a better economy is minimal. Accordingly, lack of a socially sound labor force will lead to a poorer country. On the other hand, major issues like bad government policies are possible contributors to a country’s economic downpour. A good example of bad government policies is Zimbabwe, which was the food basket of Southern Africa some years back but currently its population is suffering from food deficiency.
When the president of Zimbabwe came into power, the country was green and full of hope. However, the president became a dictator making all the wrong decisions for the country. He is an example of how wrong economic decisions from powerful individuals affect an economy. It is a known fact that African countries such as Zimbabwe, Kenya, and Egypt have been under dictatorial rule for quite some time. Accordingly, their presidents have been making single-handed decisions that eventually led to the economic downpour. On the other hand, institutions like banks might engage in transactions that lead to failure of financial systems of that country. Accordingly, the monetary value of the local currency decreases hurting the economy in that process. Hence, not only are there individuals and institutions that can facilitate the economic failure of the country but there are actually practicing on the same.