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TRADE & POVERTY relation

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Objective of Trade is to promote resources for population. Purpose fails when Trade grows without benefits to all population.

What is Trade: Exchanging articles for equal value is trade. Initial system of trade was based on barter system when currency did not exist. People did not have excessive needs so they exchanged only the surplus produce. Value of products then too was determined on the basis of demand and supply depending on the necessities.  


Present world necessities pushed trade to establish its importance. Thus trade became important factors of economy. To improve individual/ national/ international economy trade plays important role. Trade we can identify in forms of labour/ services and goods. Earning, savings and expenditures are the key sources to analyze the economic structure of whether individual or society. Research and development gave foundation to modern technologies resulted high competition; those who don’t follow timely, they lag behind.


Who are the poor: People unable to access to the basic needs of life due to lack of sufficient resources or the buying power. In simplest way people who come under the poverty line determined internationally. I feel poverty too is classified in two categories; Poor without basic amenities and poorest of poor without basic needs of human.  Nearly 60 % of present world population of 6.35 billion is poor and nearly 30-40% is the poorest of poor who lack even very basics for life. Most poor live in rural villages mainly depend on agriculture and labour. They have small piece of agricultural lands or partially employed or unemployed. With income generated from their resources are enough to meet basic needs.


Contribution of unorganized sectors is significant in rural and urban areas of developing countries. Nearly 80% or more are directly or indirectly involved in these sectors where labour regulations are followed least. Wage determination is based on the demand and supply of labour force. Countries with thick and illiterate population generally lack much demand of labour force, so, people have no option but to work in existing condition.  Most prefer hiring cheap labour to bring down cost of production; nevertheless, they are unable to compete internationally as use traditional methods or semi modern systems. Trading of most their products too is through informal channels where more and more mediators are involved thus real people involved does not get adequate share.  


In some developing countries,  role the of mediators are more important than the buyer and seller. For example: A small illiterate farmer depends contractors to dispose off the produce, goes to market then distributed through agents to other wholesale markets of the cities and then to retail shop. By the time it reaches from producer to the buyer the price escalates 5-10 times and for some items 10-15 times, this situation is not in agriculture alone rather exists with industrial and medicine products too; a living example of one country the ex-factory cost of a tablet is say cent but when reaches to the final customer the price is 50 cents. Transition of one product from many hands only inflates the prices. Escalation during the transition goes into the hands of mediators. They are only stockiest and do no value addition. The real players’ buyers and sellers suffer in the middle of middlemen. Similar situation is in textiles or other exports, many hands are involved from raw to finished products without adding value, unwanted escalation of cost leads to failure in competitive market. Finally the producer is still poor despite the hardship as does not get right price. Governments need to pay attention for the reformation by introducing systems of mechanism that reduces high involvement of mediators. Producers or villagers need to be better equipped with communication and resources. So that the producer and final buyer the right price. Keeping in mind the Major population lives in villages, education, research and development is in accordance to the requirements of the population. Many areas in agricultural and forest sectors are still unexplored. Most agricultural products come to the market in raw condition, whereas, if value added products comes to market can generate more jobs. More jobs mean more, income, consumption thus more resources. Funds allotted for rural growth in many cases is unutilized or absence of takers or slips into the hands of corrupt politicians or bureaucrats. Best way is to train the villagers and invest in the project, controlled by the village individuals or group and share the benefit with them. Thus the assets and machinery belong to financial institution and invested money is also covered timely provided marketing of produce in right hands. But before that education system be evolved that trains villagers to add the value to their produce. I happened to visit one of the tourist spots close to tribal area. I bought a bottle of traditional squash from one tribal society shop, made of some plant root that was used as traditional medicine too. Local tourists said that was good for digestion, cool and soothing and give freshness. What shocked me! The item with such value was sold in old used beer bottle with lousy label. She could sell only 5-10 bottles a day that too to people who knew the value.  This is the area where the research and development is required make the product to the taste of people, good look and better marketing. If this product is properly packed, and marketed could reach many parts of the county and overseas. Knowing the value would appreciate sales thus will benefit community. Similar situations we can observe in other areas too.  Absence of awareness among local leaders and appropriate Governments to initiate value added agricultural products to flow causing village products either disposed off at pity value or left to get decomposed. These are assets but we need to know to use it for the welfare of the community. Value addition to produce and minimizing mediators help minimizing poverty and generation of employment in developing countries.


Growth of poverty level is largely due to misunderstanding poverty. Measures controlling poverty should be linked to the suitability of the country.This site is presented to you by Poverty a Subject

Above subject is my views only, may be objectionable to some!  In case you feel uncomfortable please forgive and suggest corrections if any offence or mistakes. Students are advised to consult teachers before referring.

Of the active conflicts in 1999, the United States supplied arms or military technology to parties in more than 92% of them --39 out of 42. In over one-third of these conflicts - 18 out of 42 - the United States provided from 10% to 90% of the arms imported by one side of the dispute. Between 1986 and 1995 the United States delivered $42 billion worth of armaments to parties in 45 ongoing conflicts. U.S. arms or U.S. military technology were used by adversaries confronting U.S. soldiers in Panama, Iraq, Somalia, and Haiti. A significant portion of the $6 billion in covert U.S. arms and training sent to Afghan rebel groups in the 1980s was funneled to right-wing Islamic fundamentalist forces that now use these resources to attack U.S. allies and citizens. (fas.org)

Click links to View Rare Old Photos: Gandhi with his wife Kasturba Gandhi… 15th August 1947, First News Paper of INDEPENDENT INDIA… ... The front page of the April 16, 1912 evening edition of the Boston Globe, detailing the Titanic Disaster is shown… ... C. V. Raman - The Great Indian Physicist Sir Chandrasekhara Venkata Raman, FRS (7 November 1888 – 21 November 1970) was an Indian physicist. He was the recipient of the Nobel Prize for Physics in 1930 for the discovery that when light traverses a transparent material, some of the light that is deflected changes in wavelength. This phenomenon is now called Raman scattering and is the result of the Raman effect… ... In India First railway was built between Mumbai and thane... Star Cinema ( now at Pakistan ) 1943… ... The last train , Dhaka to Calcutta!!! Taken in 1947… ... the crown of India… ... Shooting-the-mgm-lion-logo-in-1924… ... Stalin, Lenin and Trotsky… ... An Awesome painting of Leonardo da vinci…... The original picture of Jhansi Rani Laxmi Bai. This picture has been taken by German photographer Hoffman 160 years ago… ... British India and Afghanistan border - 1934… ... A rare one of Netaji Subhash Chandra Bose and his wife Eimilie Shenkl… ...

Best education is to gain positive knowledge to survive and perform. When in the education, seeking highest marks becomes priority the objective is only how to get best percentage by hook or crook. Is this not the guidelines for children to become selfish!!!!!!!!!!!!!

Sadashivan’s quotes

"Life seems sometimes like nothing more than a series of losses, from beginning to end. That's the given. How you respond to those losses, what you make of what's left, that's the part you have to make up as you go."— Katharine Weber

child labour photos, rural poverty photos, urban poverty photos, Ignoring rural development, Economics AND Management, Why women are poor and oppressed? TRADE & POVERTY relation, What is "BEHAVIOR", What is environment? Emotion is a reaction to the influence, What is culture? Africa to Indus-Valley (Dravidian,) Africa to Indus-Valley (Vedic Age), What is religion and how did it exist, What is civilization?, "ART" is reflection of identity!!! "Stress", "LOVE" is SUBMISSION to the ATTRACTION!!! THE COMMON LANGUAGES, Learning the skill to survive is "EDUCATION" !!! Evolution is a process for suitability !!!! Sex & Attraction, enjoy tribal dance click photos, Urbanization and the Future World, movies - videos, Handmade rugs/ carpets process photographs, social study books, SOCIAL STUDY TRAVEL LINKS.