How are wealthy countries helping to cause poverty?
Global trade and aid policies, driven by wealthy nations, have long had disastrous consequences for the peoples of poor nations. These policies often destroy traditional ways of life and balances within communities, that people in developing countries rely on to avoid the worst effects of poverty. A good example is the way that imports of food from a rich country into a poor one can destroy local agriculture and trade. The imported food is often cheaper or better quality, meaning that locals can’t sell their produce at a price that will support them. A widespread decline into extreme poverty is often the result. The ‘Banana Republic’ This process is a bit easier to understand if you consider a practical example. Say you live in tropical Banania and make your living picking bananas. Since you’re a good banana picker, you can pick a hundred bananas a day. You sell each of your bananas for four cents at the local market. Half of this goes to the guy who grows the banana trees, and half is
