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Jaime Mogollón Michilot

Economic Student,

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How we can reduce poverty and inequality in developing countries?

I'm from Peru. A developing country. We are having a good perfomance in our economy, but we have to face a non resolved problem. One to 3 peruvians live on poverty conditions (see the link for wikipedia information bit.ly/17qs4Rw) .
How we can face this problem?

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  • Oct 1 2013: Communism. If that scares you, socialism.
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      Oct 2 2013: Dear Dustin,
      A lot of people think like you, but if we see some statistics, most of countries that has a succesfull economy believe in free market ideas, despited of countries that follow communism or socialism ideas. In my country, in simple words we are a bit better in an free market enviroment than when we was under a socialims regime. What do you think about it?
      • Oct 2 2013: It really depends on your measure of success. The economy is going to do better under a free market if we're talking about GDP but if you want a country where there isn't a large portion of your population in poverty you really need equalization measures in place. You can achieve this by having some or all of people's needs provided for by the state. In Canada we have free health care and people who are in a bad situation can get financial assistance from the government. There's also minimum wages to further help the lower class. I think giving less money but providing more of people's basic needs is a good solution. Nobody wants to just live, they will still strive to improve their lives but if everyone is provided a safe place to sleep, a doctor if they are sick and a meal if they are hungry it limits how bad things can get. Also progressive taxes help even the playing field. If you only make minimum wage in Canada you pay almost no taxes while people who earn more pay as much as 37%. I won't say Canada has the best economy or the smallest lower class but we're doing pretty good.
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          Oct 2 2013: Actually you are doing better than we are doing in Peru. You can see some numbers and compare. I cannot be more agree with you. In simple words, the growth of GDP doesn't mean a country have happy citizens.
          I think the State plays a rol: make the rules of the game and enforce them, but if an economic rule works in a country maybe in other one it doesn't. We have to adapt to different realities that characterized to differents countries in the whole world.
          If you want you can follow me on twitter (@m_michilot)

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