Friday, January 27, 2012

Assignment # 1


In Chapter 2 of Poor Economics, the authors argue that the reason poor people are hungry and malnourished in developing countries is not because of a scarcity of food but a consequence of certain decisions the poor make with regard to their income. They see the problem as not a lack of food but more a lack of proper nutrition.  They believe that an increase in the poor’s income will not change their eating habits. However, proper changes in government policy, such as investment in pregnant mothers and children, could increase their income and health in the long run.
The hunger-based poverty trap is a cycle of poverty caused by hunger and malnutrition.  Because the poor in developing countries do not have enough money to purchase food they do not get the nutrition and energy that is required to be productive at work.  By not having sufficient energy to supply labor they cannot increase their incomes.  The authors used statistics to show that the reason for hunger and malnutrition may not be because of the poverty trap.  They use statistics that argue that if the poor were to choose to spend their limited money on better quality food with higher nutritional value rather than spending it on better tasting food that is of poor nutritional value they could escape the poverty trap.  They also use statistics to show that real incomes are increasing and food prices are decreasing and that there is no scarcity of food in the world today.  They compare the affect of calorie consumption and productivity in labor and find that there is not a large increase in income when people consume more calories.  They also statistically show that poor people choose to allocate their income for other goods instead of nutritious food. 
I believe that some portion of the poor in developing countries act in the ways that the authors described.  However, I also believe that there are a lot of poor people who are stuck in the poverty trap because of limited education, limited opportunities, limited talents and rigid social and cultural structures .  Though nutrition is probably an important factor, just because there is enough nutritious food to feed everybody in the world that could give the poor additional energy does not mean that every person in the world will be productive in society.