Economic: Poverty and Countries Essay

Submitted By phuongbui62
Words: 941
Pages: 4

Nowadays, the world has developed into a new era where countries are more connected to each other in many ways. Besides making money domestically, they should open up and trade globally with other countries, which are in need of import goods and services that they cannot provide. However, there are still billions of people who are living in poverty in many countries, such as India, Africa, etc. and the gap between rich and poor has become wider in those countries. This essay will discuss decisions and policies of rich countries with strong economy helping poor and under-developed countries. There are many reasons for the rich countries to help the poor ones. One of the reasons is that because the rich and also the poor countries around the world through international trading paid the money that they earned throughout their economic growth. Glennie (2011) has stated:” Rich countries might be going through some tough times but that doesn't change the fact that they owe the rest of the world.” Thus, if there are fewer countries, which can involve in international trading, there will be less profit and growth. Furthermore, by helping the poor countries with their economies, the rich ones can get a lot in return. As an illustration, Vietnam - U.S trade relations are the most important part of bilateral relations between U.S and Vietnam. According to Loyd (2005), Agriculture Minister of America, Mike Johanns signed an agreement with the Agriculture Minister of Vietnam, Cao Duc Phat for the corporation on Agriculture and the related fields. In the agreement, the U.S Department of Agriculture stated that they would assist the VN Department of Agriculture and Rural Development to help Vietnam to proceed science experimental projects, and to give Vietnam an opportunity to approach new technologies, especially on biology, and agro producing techniques. Moreover, both parties were strongly advised to increase communication activities and collaboration between scientists and Research Institutions for Agricultural development between two countries. In return, by helping the VN Department of Agriculture, the US government could get a lot more in return because Vietnam has been an agricultural country as well as working hard to become more industrialized. It lacked innovation and now it is seeking new technologies and have surplus on agricultural products. On the other hand, the US was industrialized. It was more developed and had technologies and innovative techniques for production than Vietnam but it lacked agro products because once a country keeps on industrializing, there will be smaller room for agriculture to grow. Therefore, both countries were having the interests that they saw in each other. As a result, the US government can import agro products such as shrimps or rice, etc. for a cheaper price, and in return, Vietnam can approach new technologies and advance their developing process.
Apart from the good effects of the support, there are still some downsides. For example, when a country decides to give away an aid, and especially in rich countries, those can make huge income by international trading, they usually measure their giveaway aid by taking out only a small proportion from the amount of their income and not literally, the aid that they’re giving away is also to buy “things” that they want, such as political support, economic advantages to import cheaper goods or to remove trade barriers and it can be indirect or directly. “The Guardian News” has stated: “Britain should be embarrassed by our level of aid giving. The idea that aid is generous is absurd. Some people, inspired by religious tradition, think it is appropriate to give 10% of what they have to charity, £10 in every £100 of earnings. In 2010, the UK gave not £10, not £1, but 56p ($0.91) in overseas aid for every £100 ($163) we…