The Socio-Economic Roots of Poverty (gilpp_2013)

The Socio-Economic Roots of Poverty

Professor Prabhu [email protected]

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PLEASE NOTE• Limitations of time inevitably mean

exaggerations and distortions!

Please note

• The intention is to provoke you to think!!!

Please note

• I am a Hindu follower of Jesus the Lord• He was anti-religious, so I am anti-religious too;

He was constantly in touch with God; I try to be in a position where God can be at least sometimes in touch with me

• I regard Christianity as a systematic attempt to distort and subvert Jesus’ teachings and person

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Structure of my presentation

A. General Principles B. Why nations do not achieve the Minimum Level of ProsperityC. The social or worldview aspects that cause

povertyD. Comparison between Pakistan and IndiaE. Comparison between China and IndiaF. Tackling Poverty

4 General Principles

1. Every nation should arise at least to the Minimum Level of Prosperity – that is:

the value of its physical resources divided by its population


1. Every nation should arise at least to the Minimum Level of Prosperity

2. Most nations have never done so throughout history


1. Every nation should arise at least to the Minimum Level of Prosperity suggested by its physical resources divided by its population


3. A few nations have succeeded in far surpassing the Minimum Level of Prosperity


1. Every nation should arise at least to the Minimum Level of Prosperity suggested by its physical resources divided by its population


3. A few nations have succeeded in far surpassing the Minimum Level of Prosperity

4. When achieved, the question is : How sustainable is that achievement? Or, How can it be sustained?

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A. Four General Principles B. *Why* nations do not achieve the Minimum Level of ProsperityC. The social or worldview aspects that cause

povertyD. Comparison between Pakistan and IndiaE. Comparison between China and India

Why nations do not achieve the Minimum Level of Prosperity

• Looting/ Stealing/ Corruption... vs the Rule of Law


• Looting/ Stealing/ Corruption• Structures of oppression that create

hopelessness, apathy, cynicism and paralysis


• Looting/ Stealing/ Corruption/ Murder• Structures of oppression that create

hopelessness, apathy and paralysis• A belief-system that torpedoes the possibility

of progress


• Looting/ Stealing/ Corruption/ Murder• Structures of oppression that create

hopelessness, apathy and paralysis• A belief-system that torpedoes the possibility

of progress• Ignorance or unwillingness to put best policies

and best practices into place

In order to achieve/ surpass the Minimum Level of Prosperity:

• Eliminate corruption/ looting/ stealing/ murder• Instill a culture that will lead to prosperity• Identify and remove (or weaken) the structures of

oppression• Struggle systematically against pride/ arrogance/

complacency/ apathy/ fatalism.

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Understanding what has caused poverty

• At the most basic level: there are only five worldviews– Black– White– Yellow– Green and– Red

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BLACK• Dominant in all tribal societies• But also influences many «modern» societies

even today – e.g.:– Arab culture– «green» movements ...

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BLACK• Dominant in all tribal societies• But also influences many others even today – e.g.

Arab culture, «environmental» movements

•Fear of nature/ the gods/ «fate»

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BLACK• Dominant in all tribal societies• (But also influences many others even today – e.g.

Arab culture)• Fear of or harmony with nature/ the gods/ «fate»

•No progress!GREAT sustainability :)!

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BLACK• Dominant in all

tribal societies• (But also

influences many others even today – e.g. Arab culture)

• Fear of nature/ the gods/ «fate»

• No progress!

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Exercise:

• In twos, please discuss: does the Black view of the world exist in your country in any:

age groups, region, heirarchy, income level, educational level....

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WHITEHistorically dominant in most non-tribal parts of the world; and influences many others today – e.g. Roman Catholic, Buddhist , Hindu...)

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WHITEHistorically dominant in many parts of the world and influences many others even today – e.g. Buddhist and Hindu cultures

«the next world is what matters;

this world is not important»

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WHITE• Dominant in many parts of the world historically• (But also influences many others even today –

e.g. Buddhist and Hindu cultures)• «the next world is what matters; this world is

not important»

•No progress!

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Exercise:

• In twos, please discuss: does the WHITE view of the world exist in your country in any:


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YELLOW• Dominant in most empires and dictatorships• From ancient times to the present• May or may not take a disproportionate share

of the benefits of the system• Has to maintain and display sufficient power

to avoid or counter any real or perceived threat to the top individual or group

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YELLOW• Dominant in most empires and dictatorships,

from ancient times to the present• «Don’t ask challenging questions; this

arrangement is the only one that will work, and it is for everyone’s best»

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YELLOW• Dominant in most empires and dictatorships,

from ancient times to the present• «Don’t ask challenging questions; this

arrangement is the only one that will work, and it is for everyone’s best»

• Progress ranges from huge to very little, depending on the nature and skill of the dictatorship or empire

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Exercise:

• In twos, please discuss: does the YELLOW view of the world exist in your country in any:


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GREEN• Dominant in Europe following the Protestant

Reformation from the 16th century AD• But today influences most other parts of the

world• Though the reformers may be Marxist, Hindu,

Muslim or whatever, the inspiration, the objectives, and the standards by which reform has to be evaluated continue to be clearly from Jesus Christ

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GREEN• After the Protestant Reformation, from the

16th century

• Everyone should be free to read, think, debate, organise themselves and improve their lives as they like, provided everyone works actively to support the poor/ disadvantaged, and takes care of the environment.

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GREEN• Dominant principally in Europe following the Protestant Reformation from the 16th century• But also influences most other parts of the world today, including formally Communist and

therefore atheistic China, majortity Muslim countries such as Saudi Arabia, majority-Buddhist countries such as Sri Lanka and Thailand, and majority-Hindu cultures such as Nepal and India

• Everyone should be helped to be free to read, think, debate, organise and improve their lives, provided we are responsible for helping the poor and disadvantaed and are environmentally responsible.

• Historically unprecedented progress: Northern Europe went from always having been one of the poorest parts of the world to one of the richest!

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How come the whole world has come to accept what were strange and even “unrealistic”understandings of:

economics, justice, human rights, heroism, optimism, compassion, family, morality?

• Why does a U.S. President put his hand on the Bible to take an office that is secular?

• What made even a King like Henry VIII submit to moral authority?

• Ever heard of Martin Luther, Tyndale or Wycliffe – or considered that they might be history's greatest progressives?

• Why and how did Europe become a historically unique civilization: technical and tolerant, scientific and free, prosperous and just ?

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Exercise:

• In twos, please discuss: does the GREEN view of the world exist in your country in any:


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RED• Now the dominant philosophy of the global

elite, represented by the USA• Though many middle class people around the

world are influenced by this too

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RED• Science & Technology will solve all problems

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RED• Society will look after itself if markets are left free

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RED• Corporations should have the same rights as

individuals, in addition to the privileges they already have as companies

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RED• Morality and law are «necessary inconveniences»

around which I should find as efficient a way as possible, while I focus on making as much money as I can, as quickly as I can, without thinking too much about the context or the consequences

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RED• Technology will solve all problems• Society will look after itself if markets are left free• Corporations should have the same rights as

individuals, in addition to the privileges they already have as companies

• Morality and law are necessary inconveniences around which I should find as efficient a way as possible, while I focus on making as much money as I can, as quickly as I can, without thinking too much about the context or consequences

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RED• Historically unprecedented global «progress»• But has created the largest number of poor people

that the world has ever seen• The largest global gap between the poor and the

rich• The greatest environmental impact• The most unstable and volatile monetary system

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Exercise:

• In twos, please discuss: does the RED view of the world exist in your country in any:


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Pakistan and India

• At Independence in 1947:– Same food, same music, same clothing, same

culture– Same Constitution and political institutions

Pakistan and India

• At Independence in 1947:– Same food, same music, same clothing, same


• Within 9 years, Pakistan had abandoned secularism and become Islamic

Pakistan and India• At Independence in 1947:– Same food, same music, same clothing, same



• Two years later, it descended into a dictatorship

Pakistan and India• At Independence in 1947:– Same food, same music, same clothing, same



• Two years later, it boasted a dictator• By 1971, it had lost the eastern part of the

country, which became Bangladesh

Pakistan and India• At Independence in 1947:– Same food, same music, same clothing, same culture– Same Constitution and political institutions


• Two years later, it boasted a dictator• By 1971, it had lost the eastern part of the country,

which became Bangladesh• Pakistan per capita income $2,960• India $3,851

Pakistan and India• At Independence in 1947:

– Same food, same music, same clothing, same culture– Same Constitution and political institutions


• Two years later, it boasted a dictator• By 1971, it had lost the eastern part of the country, which

became Bangladesh• Pakistan per capita income $2,960• India $3,851• Bangladesh $ 700

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Structure of my presentationA. General Principles B. Why nations do not achieve the Minimum Level of ProsperityC. The social or worldview aspects that cause


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Tackling Poverty1. No one does it2. Government does it3. Markets do it4. Government drives it, with help from markets5. Government creates the framework, and

markets do it

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Tackling Poverty1. No one does it2. Government does it3. Markets do it4. Government does it with help from markets5. Government creates the right framework, and

markets do itChina: from 1, to 2, to 4/5India: from 1, to 6:6. Entrepreneurs try to do it in spite of the best efforts of government to stop entrepreneurs!

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Structure of my presentationA. General Principles B. Why nations do not achieve the Minimum Level of ProsperityC. The social or worldview aspects that cause


THE END

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Fundamental reforms for world finance and economy

- Allow only stable currencies for countries that want to be part of the world trade system; OR introduce complementary currencies

- Abolish usury (the use of money to make money)- Move the Stock exchange system from Short Term

Orientation to Long Term Orientation- Tobin Tax- Green taxes into special accounts, and Required

Social Investments on the part of the richest 0.5% of the population

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Global Culture of Greed and Fear, how to transform it

• Education for nurturing citizenship and genuine personal fulfilment

• Truth-telling and the media• Direct democracy• Fundamental and applied research to be freed• Global minimum wage• Global rules for health, safety &

environmental responsibility

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“Ecological disaster, financial volatility/ vulnerability/ meltdown, dwindling oil reserves, terrorism and food shortages are converging symptoms of a single, failing global system, that is falling apart like worn out old cloth and needs to be rewoven together.... more wisely” – post on an internet chat forum

The Socio-Economic Roots of Poverty

Professor Prabhu [email protected]

Date post:	06-Aug-2015
Category:	Economy & Finance
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The Socio-Economic Roots of Poverty (gilpp_2013)

Economy & Finance