Global Financial Crisis - Wall Street and the European Banking Sector

Poverty

The global financial crisis through Wall Street and the European Banking sector have impacted many lives, especially the most vulnerable, pushing millions of people into deeper poverty and hundreds of thousands into death. The crisis resulted from the collapse in large financial institutions, downturns in the stock market, and the bail out of banks from the national government. Less growth in the economy and financial market has resulted in countries such as Africa, Mexico, Philippines, and Bangladesh to be affected in a substantial manner.

Less growth in the economy and a decrease in income distribution have setback institutions from providing international aid and budget assistance to poverty prone countries. Reports indicate that the increase in child mortality has grown extensively to two hundred to four hundred thousand due to the rise in child malnutrition. This also includes various countries not being able to receive enough funds to provide primary education for kids starting school. With the decrease in distribution funds, many countries are also enduring an increase in unemployment rates and decrease in labor earning for manufacturing jobs worked by the middle class.

A required seven billion in increased aid would be needed to satisfy the demand for poor countries. Aid donors, governments, financial institutions, and other rich countries would need to combine greater efforts to tackle our structural issues of extreme poverty and inequality. The European Union has made valiant efforts to provide aid, but have been limited in what they can provide. Rich countries cannot use this financial crisis as an excuse to turn their back on the world poor and should provide necessary international aid to help resolve our global economy.