M3D1 Assignment Paper: Economic Aspects of Globalization

M3D1: Economic Aspects of Globalization
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M3D1: Economic Aspects of Globalization
The poverty trap according to Paul Collier is the differentiated lack of development in some of the countries when compared to others. The trap is essentially the development failures when deemed that other nations around the globe are under the success paths. Using the chutes of ladders and tables, poverty traps show the divide on areas some governments have been placed amongst others. Income growth is held back in the developing countries, which are poor as they try to bridge the economic ladder (Collier, 2007). Since the majority of the developmental projects or goals are not achievable in the meantime, the provision of the necessary requirements becomes the focus. Thus, income growth does not feature heavily in the process as the countries try first to create opportunities to utilize resources and translate into productivity. Policies are formulated to escape poverty rather than generate income for the people as the stagnation in the l...