by Jaime Bravo
One of the things I have come across recently is the fact that we know very little about poverty. I mean, really. We have the Millennium Goals, settled by the UN, and, yes, poverty is decreasing in some parts of the world. In a study I made a few weeks ago, I discovered a few facts about poverty in non-developed countries that are really important. I saw that there is a big problem with GDP all across the world. The study was based on a few countries (particularly, Germany, Pakistan, Bangladesh, Argentina, Afghanistan, Colombia and Spain) and there were three different groups.
Firstly, I considered GER and SPA as the completely developed countries; ARG and COL (those from Latin-America) are considered as the upcoming-completely-developed countries among the group. Finally, PAK, AFG and BAN are the less-developed countries included in the study. What I saw was that, even though the less developed had a lower-income than the others, they were doing significant efforts (for example, the number of children in school in Afghanistan has increased a lot if we compare it with the upcoming-completely-developed economies).
Secondly, I found that the crisis hit harder to developed economies than to non-developed ones (the table I presented included data from Afghanistan, Albania, Bangladesh, Burundi, Colombia, Ethiopia, Germany, Kenya, Norway, Spain, Sudan, Thailand, France and Austria) in terms of GDP reduction. It could be because both the GDP and the exports decreased simultaneously. (The table presented considered the data from 2009, one year after the crisis started.) This is quite interesting: while non-developed economies are mainly importers of manufactured-products and exporters of commodities, they didn't stopped exporting commodities but importing manufactured products. The logic behind this is quite simple. Non-developed economies have a lot of unskilled labour and they have a lot of labour-intensive industries. In the other hand, developed economies have some kind of equilibrium between unskilled and skilled-labour and they have a lot of capital-intensive sectors/industries.