POLITICAL PROBLEMS OF ECONOMIC DEVELOPMENT
UMER BIN BASHIR ARAIN
Jeffrey Sachs is one of the world's most prominent economic scholar and policy maker. He wants to end world's poverty by the year 2025 saving almost a billion people .He is a proponent of a comprehensive package of economic reforms that attempts to fix all problems simultaneously and quickly, this way of fixing things is known as "Shock Therapy".
At first we will look at some of the reasons of poverty in the poverty struck countries. Sachs is of the idea that because economic development has worked in the past in many countries, it can work again. Of the roughly 6.3 billion people in the world almost five billion people have at least reached the first rung of economic development. If economic development is a ladder with higher rungs representing steps up the path to Economic well-being, there are roughly 1 billion people around the world, 1/6th of Humanity, who are not even able to make it onto the first rung in order to even start climbing,.
They are caught in the poverty trap - too poor, too ill, too hungry, they are fighting just to survive. These are the extreme poor struggling with absolute poverty, unable to even secure life's necessities. Earnings for people occupying this rung may be a $1/day, sometimes even less. A few rungs up the ladder, is the upper-end of the low-income world, where 1.5 billion may be surviving, but struggle to make ends meet. They have chronic financial hardship and lack basic amenities, such as safe drinking water, and sanitation. They also face many diseases. The next few rungs are occupied by about 2.5 billion people who are in the middle income world. Their income may be a few thousand dollars/year.