Background
Discuss about the Eradication of Poverty in Australia.
The eradication of absolute poverty has for many years been the objective of most developing countries governments as well as international organizations. Complete elimination of poverty has positive implications and importance for the wellbeing of the society. The poverty levels have been recorded to be deteriorating in many countries since the 1980s. Despite the struggle towards improvement, reports show that in some nations poverty is still at its peak. The significant reduction has been recorded in the few developing world countries with a high income in contrast with little or no modification on the same in low-income countries (Anderson, Cockburn and Martin 2010). Poverty can be viewed in different dimensions of child and maternal mortality, education as well as gender equality. These are some of the goals in the Millennium Development Goals which was aimed to achieve a reduction in poverty by 2015 despite the many challenges facing the countries in poverty complete extermination.
Economic growth has been identified as the primary tool for the extermination of poverty levels and bridging the gaps. Bretton Woods proposed structural adjustments changes used by many of the developing countries in achieving significant improvement in poverty reduction (Cantillon 2011). The proposed reforms led to the adoption of exchange policies and international trade. The plans led to foreign investments thus promoting economic growth.
The research proposal aims at making contributions to the literature on the relationship between poverty level, economic growth and income inequality in Australia. Studies such as FOSU shows the impacts of economic growth and poverty among the Australians. The thesis compares the relations between poverty and economic growth in various regions in the country and is aimed at giving limelight on how to eradicate poverty utterly. In this paper, empirical literature will be discussed concerning the two aspects. Trends in the poverty level and economic growth, as well as inequality of income distributions among the regions in the country, will also be outlined (Christiaensen, Demery and Kuhl 2011). The other aspect to be discussed is the methodology and models used in research of the proposal. Discussion of the findings and outcomes of the study will be outlined giving various recommendations for further analysis.
- Does the economic growth have the capability of contrasting poverty, income inequality as well as human poverty?
- To what level has inequality affected economic growth in Australia?
- What is the existing relationship between poverty, economic growth, and income inequality?
- Is it necessary for a country to be concerned with the inequality of income even though bias does not affect the economic growth of a nation?
- What are the recommendations of the research which assist in future studies?
- To find the relationship between income inequality, poverty, and economic growth.
- To find out if inequality on income has any impacts on the economy.
- To test the relevance of the findings to the country’s economy
- To build knowledge on factors affecting economic growth and various steps to take to solve the problem.
A research made in Australian regions shows the high levels of poverty. Based on issues like housing stress such that the affordability of rental housing is a challenge to the Australians. Out of 40% of the total income, 30% goes to shelter. Food insecurity is a problem in most regions which portray hardship in the living standards. In the 2006 report, 18% of the Australians experience food insecurity. Women have reported being the vulnerable group affected by poverty due to unemployment and low wages not forgetting their roles to take care of family needs (Fuentes-Nieva and Galasso 2014). In the recent years, Australian regions have experienced in economic growth due to the efforts cultivated by the government to lower the level of distribution of resources and income thus reducing poverty among the citizens especially to the vulnerable groups like women, the youth, and children. This thesis aims at identifying the relationship between the economic income, poverty and income inequality and their implications for human living standards (Riskin, Renwei and Shih 2016).
A Literature Review of the Research
A Literature Review of the Research
This section reviews the empirical literature on the relationship between poverty levels, inequality of income and economic growth in developing countries such as Australia. In entirely understanding the importance of commercial distribution for economic development is relevant and essential. Kuznets’s (2015) proposal on a hypothesis which focuses on the income contribution and economic progress has received much attention in many facts finding. The plan states that in the first phase of economic growth, income inequality worsens, but in the long run of economic development income inequality achieves some improvement. The relationship between the two aspects can be represented in the ‘U’ pattern known as Kuntz’s inverted ‘U’ hypothesis (Cingano 2014). The theory acknowledges on the less development of the economy in the initial phases but in the long run especially in the developing countries would experience a more stable and favorable distribution of income.
The growth of the economy of a country is essential for it clearly shows the level of the living standards of its citizens. Poverty among the citizens is a sign of the economic position of the country. Income inequality and distribution of resources in the regions also determines the economic growth of those regions. For instance, if the country doe does not offer the best infrastructure in the rural areas where farm produce is available, then the agricultural products will go into waste and later insufficient produce in the market hence hunger. The study is, therefore, aiming to know the impacts of income inequality and poverty on the economy and what should be balanced to get continuous economic growth. A survey will, therefore, be conducted in various regions of Australia to come up with unbiased data. Interviews, as well as participant observation, will be used as the method of data collection (Riskin, Renwei and Shih 2016).
We conducted a systematic review of all studies mainly focusing on poverty among the Australians citizens in the country’s region. In research in Australian regions, a report was made on the rate of poverty on the vulnerable groups. The findings indicated that poverty level was high among families of lone parents, women, and children. Gender discrimination against women in aspects of employment has let do intense poverty among women. The economic growth of the vulnerable groups such as the asylum seekers and other refugees is low. Inequality distribution of income and resources has led to moderate economic growth as well as less development of the economy. We considered the existing randomized, before and after studies and quasi-randomized to measure the rate at which inequality of income and poverty affects a country’s economic growth. The findings showed that there was a reduction in poverty levels about low levels of income inequality. In Australia, there are high levels of income inequality, and thus it is the role of the government to install policies to improve the distribution of income to achieve economic development (Dabla-Norris et al., 2015). For economic growth to reduce poverty levels in the country, the level of income inequality among the citizens should be relatively low, and the nation should have high levels of education.
Conceptual Framework
The participants of the research should not be exposed to any harm. The culture of the population should be conserved. While dealing with the aged and the single parents, the researcher should be considerate of the questions asked during the interview to protect the participant’s emotions and their culture (Milanovic 2013).
Confidentiality of the data collected should be ensured thus protecting the population dignity.
Communication with participants especially the youth should be done with utmost transparency and honesty.
Representation of primary data results should not be biased as well as misleading information. Exaggeration and evil judging of the characters especially the youth involved in promiscuous behaviors should be avoided.
The population in the target are those people in rural areas most especially the single parents, the aged and the youth population. Interviews with the single parents and the age will be conducted to know the level of their living standards (Sumner 2010). Participant observation will be done to retrieve data on the availability of basic needs of the population. The youth will be engaged in focus group t get information on the challenges they face such as unemployment which leads them to crime or promiscuous characters.
Two of the authors independently assessed the relationship between inequality in income, economic growth, and poverty in different regions. The design was based on sequence generation which assessed the possible group or region which portray both income inequality and the extent of poverty to the people in the areas (Rodrik 2014). The finding from the criterion used to get the comparison between income inequality and poverty was rated as likely, unlikely and unclear. The level of poverty was assessed about income inequality and their impacts on the growth of the economy. An analysis was done, and the overall results noted.
The findings were qualitatively synthesized which were reported in the research done for pragmatic parameters which could not be meta-analyzed (Ravallion 2017). The factors entailed the barriers, monitoring, enabling factors, poverty coverage and equity of resources. With the available casual model, the extent of income inequality and rate of poverty would be determined, and their effects on economic growth would be recorded.
The targeted audiences this report are the policymakers especially to the government to work on the remaining areas for the absolute eradication of poverty. The government is responsible for ensuring there exist income equity as well as the distribution of resources in the country. The other audience is the general public since, with the awareness of poverty and income inequality, the public will work towards making efforts in providing aid to the most affected groups such as the age. The report will be spread to this audiences through letters to the concerned offices as well as calling for seminars for the sake of the public.
Method
Conclusion
The eradication of absolute poverty has for many years keen the objective of most developing countries governments as well as international organizations. Complete destruction of poverty has positive implications and importance for the wellbeing of the society. The poverty levels have been recorded to be deteriorating in many countries since the 1980s. Despite the struggle towards improvement, reports show that in some nations poverty is still at its peak. The significant reduction has been recorded in the few developing world countries with a high income in contrast with little or no modification on the same in low-income countries. The importance of economic growth and the eradication of poverty through the equal distribution of resources in the regions of Australia has become one of the objectives of the country into maintaining the living standards of its citizen to be beyond average. Various forms of economic policies changes have been proposed in the nation in the fight against poverty.
- Countries should not only focus on the income of the poor people, but they should focus on improving the living standards and the life expectancies to eliminate poverty.
- In the improvement of human needs, factors like government funding and foreign aid to the countries can also improve the living standard of the poor.
- The Australian government should also enhance on promoting economic stability, proper channeling of resources and development and the funding of the state.
- The government should initiate policies that will fight aid mistreatment such as corruption and embezzlement of funds to promote a conducive environment which enhances the effectiveness of the foreign aid.
- Australian state should promote good health and adequate health facilities which will improve the health status of the poor.
- The government should aim at stabilizing the macroenvironment such as corruption, political violence, bad government policies and ethnic violence which are factors that affect the stability of the economy and development of the country.
- The government with other partners globally should assemble and review the millennium development goals and targets by setting other possible goals which may be mere effective in solving the poverty issues.
- The state ought to implement on policies that aim at equal distribution of wealth considering the poor and the middle-class families to bridge the widening poverty gap between the poor and the rich.
References
Anderson, K., Cockburn, J., and Martin, W. eds., 2010. Agricultural price distortions, inequality, and poverty. World Bank Publications.
Cantillon, B., 2011. The paradox of the social investment state: growth, employment, and poverty in the Lisbon era. Journal of European social policy, 21(5), pp.432-449.
Christiaensen, L., Demery, L. and Kuhl, J., 2011. The (evolving) role of agriculture in poverty reduction—An empirical perspective. Journal of development economics, 96(2), pp.239-254.
Cingano, F., 2014. Trends in income inequality and its impact on economic growth.
Dabla-Norris, M.E., Kochhar, M.K., Suphaphiphat, M.N., Ricka, M.F., and Tsounta, E., 2015. Causes and consequences of income inequality: A global perspective. International Monetary Fund.
Fuentes-Nieva, R. and Galasso, N., 2014. Working for the Few: Political capture and economic inequality. Oxfam.
Haggblade, S., Hazell, P. and Reardon, T., 2010. The rural non-farm economy: Prospects for growth and poverty reduction. World development, 38(10), pp.1429-1441.
Hajkowicz, S.A., Heyenga, S. and Moffat, K., 2011. The relationship between mining and socio-economic well being in Australia’s regions. Resources Policy, 36(1), pp.30-38.
Hall, G.H., and Patrinos, H.A. eds., 2012. Indigenous peoples, poverty, and development. Cambridge University Press.
Kaplinsky, R., 2013. Globalization, poverty, and inequality: Between a rock and a hard place. John Wiley & Sons.
Milanovic, B., 2013. Global income inequality in numbers: In history and now. Global policy, 4(2), pp.198-208.
Ortiz, I. and Cummins, M., 2011. Global inequality: beyond the bottom billion–a rapid review of income distribution in 141 countries.
Ravallion, M., 2017. Poverty comparisons. Routledge.
Riskin, C., Renwei, Z. and Shih, L., 2016. China’s retreat from equality: Income distribution and economic transition. Routledge.
Rodrik, D., 2014. The past, present, and future of economic growth. Challenge, 57(3), pp.5-39.
Sumner, A., 2010. Global Poverty and the New Bottom Billion: What if Three?Quarters of the World’s Poor Live in Middle?income Countries? IDS Working Papers, 2010(349), pp.01-43.
Wilkinson, R. and Pickett, K., 2011. The spirit level: Why greater equality makes societies stronger. Bloomsbury Publishing USA.
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