Nowadays, we have enough foodstuffs that can feed and save around 12 billion people. However, the reality that 50 or more countries have undergone absolute poverty is perhaps not a scientific problem but a social problem. The gap is getting bigger and bigger. In comparison to 100 years ago, the average income rate of the poor and wealthy countries was 1:6. Sadly, today, it is highly increased to 1:70. At present, there are about 200 countries in the world, and they are divided into some rich countries and poor countries. 

The world's poorest nations were 25 in total in 1971, but the number was increased to 48 in 2017. In the past 40 years, the wealth of the whole world was increased, in opposition to the number of it. However, seven countries which belonged to the G7 have only 10 percent of the world's population, but the amounts of their wealth are half of the world. Especially, the United States holds the top spot of the world's economy by possessing 22 percent of it. There is a "Law of Price" in economics that determines the free competition and price flexibility of some group of people that sell their goods at the same rate. Then, how come poverty occurs inevitably?

▲ The poverty rate has been polarized over the years.

We can explain the factors of poverty into the inner and external causes. The absence of innovation, greedy and incompetent dictator and lazy national character are some of the inner causes. The development process of a country has an intimate connection with another. To develop the economy, we have to focus on technology improvement. Some of the reasons why there is poverty are the lack of access to technology and experience in manufacturing business by an inequality exchange in the business trade. Also, today's advanced countries are improved and developed by this method.

Globalization is a process wherein interaction and interdependence are increasing in various areas such as economy, social aspect, and culture by exceeding physical distance. The first globalization started when Spain dominated the American continent after Columbus arrived in there. At that time, according to the first globalization, the world's division of labor structure was formed by the force of imperialism. Now, the rich countries are widening their base and developing laissez-faire capitalism by forming colonies and inequality division of labor structure. However, now, the poor countries are plundered and stripped off of the chances to improve their economy. The first globalization made a huge barrier between wealthy and poor countries.

▲ International poverty was actually caused by the trip of Columbus

To solve the present problem of poverty, we need to agonize the way that we are and improve together. Also, we should think of ways on how to develop our country. Therefore, we have to seek out the possibility to implement good capitalism while vanishing western imperialism. South Korea has succeeded in an exemplary way, but we do not need to narrate the next page of the chronicles of poverty.

Sep. 15th, 2019

by Kim Dae-hwan