About ½ of the world's population — more than 3 billion people — live on less than $2.50 a day. (Pause for a moment to take that in.)

Just eight of the richest people in the world, such as Carlos Slim and Mark Zuckerberg, own as much combined wealth as half of the human race.

Clearly, the concentration of wealth in the globalized world has gotten out of control. Factory workers in China and Bangladesh, for example, are alienated from society in the sense that they are not able to afford that which they spend their time on, the products they manufacture. Think of it this way: In order to create an Apple product, such as an iPad, it requires hundreds of workers who perform menial yet distinct, crucial tasks. These workers perform the same job every day, however, they are never able to actually see the final product they manufacture. In many parts of the world, industries pay for low skill intensive work, hence, some workers are earning less than four dollars a week.

Karl Marx once said that capitalism "enslaves" desperate individuals. That is because he believed that jobs and working conditions should exist to give meaning to the workers, as well as a sense of value. In his book, "The End of Poverty," American economist Jeffrey Sachs states "Today, we still have slave traders, they no longer find it necessary to march into the forests of Africa looking for prime specimens who will bring top dollar on the auction blocks in Charleston. They simply recruit desperate people and build a factory to produce the jackets, blue jeans, tennis shoes, automobile parts, computer components, and thousands of other items they can sell in the markets of their choosing."

The first important question we must ask ourselves is: Why? Why does poverty exist? According to Sachs, "A good plan of action begins with a good diagnosis of the specific factors that have shaped the nation's economy." In this article, only ten out of the hundreds of reasons why poverty exists will be covered.

1. Geography

Climate depends on the location of a country. Let us consider America for example. When the Puritans came to establish English colonies to the New World in the sixteenth century, they did not survive out of luck. America had good soil that allowed them to develop and produce their own food.

2. Government Failure

In his book, Sachs mentions that "Poverty is not created by the poor, but by the institutions and policies that we have established." The government is responsible for preventing economic stagnation and providing a country with proper infrastructure. Things get a little more complicated when you consider democratic governments and the idea that the citizens elect the people that best represent their needs.

3. Cultural Barriers

"Poverty and wealth are a reflection of societal values." A country cannot develop economically nor socially if half of its population is regarded as inferior to men.

4. Geopolitics

"A country is determined by its linkages to the rest of the world."A country simply cannot produce everything they need by themselves. Hence, trading with other countries is crucial.

5. Lack of Innovation

But what if certain countries do not have anything to trade? In less developed countries, innovation does not get supported by the government for various reasons. One of them is that the government simply cannot afford industrialization.

6. Lack of Aid

Bilateral and multilateral aid is not a religious act, but a universal humanitarian duty. Helping other countries develop should not have strings attached.

7. Lack of Education

American philosopher, Martha Nussbaum, once said, "The real wealth of a nation is its people." The lack of education has physical and emotional impacts. Without education, people are unexperienced and do not have the knowledge to perform many tasks—often making them feel like they are not good for anything other than placing an Apple logo on an iPad, for instance.

8. Power Politics

During colonialism, imperialist countries did not allow less developed countries to industrialize simply because it was in their best benefit to keep wages low and productivity high.

9. Bad Health Care

In many countries, Africa for example, poverty is more about disease. Malaria, tuberculosis and AIDS prevent a society from developing. "The purpose of development is to create an enabling environment for people to enjoy health and education."

10. Demographic Trap

When children die because of disease, parents often compensate the grief with more children. Therefore, creating overpopulation and devastating results.

TAKING THE NEXT STEP

Understanding that "poverty is a trap", as Sachs claims, is the first step to help alleviate poverty. Being aware that economic and social circumstances are not equal for half of the people on this world is crucial. Today, when we walk in a shop we have no idea of where items are produced, nor are we aware of the amount of workers (and their effort) that was involved in producing the product. It is extremely easy to take these things for granted. Nonetheless, as Sachs mentions, the only way to end poverty is through a global compact. An agreement that begins with one individual and eventually, it spreads to a "global network of cooperation."

Credits

"The End of Poverty" by Jeffrey Sachs.
Karl Marx's "Communist Manifesto.