Essay about Poverty Of South Africa And India

1245 Words Dec 8th, 2015 null Page
V. Poverty Traps in South Africa and India Hassen (2009) investigates the mechanisms in the South African economy that continually enforce poverty within the region and proposals from the new form of government dealing with structural problems in the South African economy. Evidence was gathered through primary sources and compiled in order to accurately answer the questions at hand. Hassen believes that no matter which policy is taken in light of the economic crisis, the region will not see extensive results in either the employment level or in the reduction of poverty. Hassen observes that the main poverty trap in South
Africa is the structure of its economy, specifically the lack of infrastructure and government bailout. Hassen (2009) mentions several points about poverty traps being enforced by the lack of infrastructure and by the dependency of companies on a government bailout. Both these poverty traps are detrimental to the growth of a region’s economy. The lack of infrastructure provided by the government makes it difficult for not only large corporations, but also small local businesses to transport goods and continue to grow. The dependency on government bailout creates a lack of accountability and allows companies to continually neglect improvements in technology and human capital because the bailouts guarantee continued business.
Dutta (2015) is similar to Hassen (2009) in that he finds there are multiple factors enforcing poverty in India just like South…

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