GDP – Is It Growth Domestic Product Or Growth Domestic Poverty?

What is Poverty? Why do we have poverty or more importantly why poverty is much abundant in the so-called developing countries? Are the people there different, if yes how, why and since when? If no, why then they became poor and what are the reasons? What instruments do we have to monitor poverty? Since when we realized that we have poverty? Did poverty happen over-night? What are the differences between absolute poverty and relative poverty? Why economic models, including the ones that won the Nobel Prize were successful to solve poverty only in limited parts of the world? So, many questions to be asked and even with proper answers on these questions we will continue to have poverty unless we have sincere and serious sustainable solutions.

Though United Nations was founded 1945 ( it was not until recently when UN observed that there is poverty and started to set ambitious goals in 2000 to reduce global poverty and inequality by 2015. Yet much of the poverty is still left and more seriously many impacts and threats from poverty are expanding and deepening on several scales. While the UN claims that it successfully cut extreme poverty in half, the multinational groups are conflicted about how much developing regions such as sub-Saharan Africa can improve by 2030 ( 

GDP, which is used in economic models, by the World Bank and by politicians to monitor the economic growth around the world, fails enormously to bring about sustainable socio-economic developments around the world. It has even brought severe negative impacts in the developing countries and created new threats for the whole planet Earth and on the global scale. What regards the developing countries GDP can very well be used not as “Growth Domestic Product” but as “Growth Domestic Poverty”, as least for some if not for many developing countries. Major solutions need to be taken to switch over to more realistic indicators other than GDP that keeps pushing the developing world down hell the poverty spiral.

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