What Are The Most Significant Risk Factors For Anyone Living

What are the most significant risk factors for anyone living on

Answering this question requires an understanding of the multifaceted challenges faced by individuals living on less than two dollars a day, a threshold often used to identify extreme poverty. Among the most significant risk factors are inadequate access to basic needs such as clean water, nutritious food, shelter, healthcare, and education. These fundamental deficits increase vulnerability to disease and malnutrition, which further diminish the capacity to improve one's circumstances. For children, the risks are compounded; they face developmental delays, susceptibility to illness, and limited future opportunities, perpetuating a cycle of poverty.

Economic insecurity is a core risk factor, as limited income restricts access to essential services and opportunities for upward mobility. This financial instability often leads to poor housing conditions, malnutrition, and limited access to quality healthcare, making individuals more vulnerable to illness and death. Furthermore, living in environments with high exposure to environmental hazards, such as polluted water or unsafe housing, exacerbates health risks. Social factors such as discrimination, lack of social capital, and marginalization also heighten vulnerability, reducing access to social safety nets or community support systems.

Risk factors extend to societal and political contexts, including weak governance, conflict, and corruption, which hamper efforts to implement social protection programs. Additionally, gender disparities significantly influence vulnerability; women and girls may face higher risks of exploitation, violence, and limited access to resources. Children living in unstable or conflict-affected regions are especially susceptible to violence, displacement, and lack of access to vital services. Overall, these factors create a complex web that traps individuals in persistent poverty and heightens their risk of adverse health and social outcomes.

How did the global financial meltdown of 2008 occur and what were its effects on developing countries?

The global financial meltdown of 2008, often termed the Great Recession, was triggered primarily by a collapse in the U.S. housing market, driven by excessive risk-taking by financial institutions, rampant subprime mortgage lending, and complex financial derivatives such as mortgage-backed securities (MBS). These derivatives spread risk throughout the global financial system, making the entire banking sector vulnerable. As housing prices plummeted and mortgage defaults increased, financial institutions faced catastrophic losses, leading to the failure of major banks and a credit crunch worldwide.

The interconnectedness of global financial markets meant that instability quickly propagated across borders. Regulators and policymakers scrambled to contain the crisis, but the fallout was profound. Many economies faced deep recessions, rising unemployment, and declines in consumer and business confidence. Governments responded with bailouts, monetary easing, and fiscal stimulus packages to stabilize their economies.

Developing countries were significantly affected, despite often being lightly involved in the financial instruments at the heart of the crisis. The effects included reduced exports due to diminished demand from developed nations, declining foreign direct investment, and lower remittances. Capital flight from emerging markets dried up, leading to currency devaluations and increased borrowing costs. These financial shocks resulted in slowed growth, increased poverty, and setbacks in development efforts. Many developing countries also faced reduced access to international finance and aid, hampering social and infrastructural projects critical to their long-term development. Overall, the 2008 crisis underscored the interconnectedness of global economies and highlighted vulnerabilities in both advanced and developing economies.

What are the effects of war on a country’s development?

War has profound and multifaceted effects on a country’s development, often with long-lasting and deeply entrenched consequences. First, armed conflict destroys physical infrastructure such as roads, schools, hospitals, and factories, which hampers economic activity and access to essential services. The destruction of infrastructure leads to physical displacement, disrupts supply chains, and reduces overall productivity, thereby stalling economic progress.

War also severely impacts human capital. Loss of life, injuries, and psychological trauma diminish the ability of the population to contribute effectively to recovery and development. Children who are displaced or in conflict zones often miss critical education opportunities, leading to a lost generation with limited skills and prospects. Furthermore, war diverts government spending towards military efforts, often at the expense of social programs, health, and education, which are vital for sustainable development.

In addition, conflict creates economic instability and uncertainty, discouraging investment and entrepreneurial activity. Many businesses shut down or relocate due to insecurity, and the informal economy often expands as formal sectors collapse. War also fosters corruption and weakens institutions—state apparatus necessary for providing security, justice, and economic governance—leading to governance failures critical for development.

On a social level, war exacerbates divisions within society, fostering ethnic, religious, or political conflicts that may persist long after active hostilities cease. These social fractures can lead to ongoing instability, which hampers reconstruction efforts. The post-conflict period often involves extensive needs for humanitarian aid, reconstruction, and reconciliation, which can take decades to achieve meaningful progress (World Bank, 2011). The long-term consequences of war thus include impoverishment, deteriorated health outcomes, disrupted education, and weakened institutions—all of which inhibit sustained development.

What exactly is an institution and why, according to Daron Acemoglu and James A. Robinson, do weak institutions cause some nations to fail?

An institution, in the context of political science and economics, refers to the formal and informal rules and structures that govern societal behavior, organize economic activity, and establish the framework within which political and social interactions occur. Institutions include legal systems, property rights, political stability, governance mechanisms, and social norms. Strong institutions are characterized by their ability to enforce laws fairly, protect rights, and ensure accountability, thereby creating an environment conducive to economic growth and stability.

Daron Acemoglu and James A. Robinson emphasize that weak or extractive institutions—those that limit economic opportunities, fail to protect property rights, or concentrate power in the hands of a few—are primary reasons why some nations fail to develop or sustain growth. In their seminal work, "Why Nations Fail," they argue that inclusive institutions, which promote participation, innovation, and broad-based economic opportunities, are essential for long-term prosperity. Conversely, extractive institutions benefit elites at the expense of the broader population, leading to inequality, corruption, and stagnation.

Weak institutions cause failure by creating an environment where economic incentives are distorted, investment is discouraged, and corruption flourishes. Without rule of law and secure property rights, individuals and businesses lack confidence to invest or innovate. Political instability and lack of accountability prevent effective governance and the implementation of policies conducive to development. Over time, these institutional deficiencies lead to economic decline, social unrest, and the inability to mobilize resources for long-term growth. The case studies of nations like Nigeria or Haiti starkly illustrate that without strong, inclusive institutions, economic and social progress remains elusive, and the risk of failure increases (Rodrik, 2007).

References

• Acemoglu, D., & Robinson, J. A. (2012). Why Nations Fail: The Origins of Power, Prosperity, and Poverty. Crown Business.
• Rodrik, D. (2007). One Economics, Many Recipes: Reshaping Development Theory for Practical Applications. Princeton University Press.
• World Bank. (2011). World Development Report 2011: Conflict, Security, and Development. World Bank Publications.
• United Nations Development Programme. (2015). Human Development Report 2015: Work for Human Development. UNDP.
• Diamond, J. (2005). Collapse: How Societies Choose to Fail or Succeed. Viking Penguin.
• Collier, P. (2007). The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It. Oxford University Press.
• Fukuyama, F. (2014). The Origins of Political Order: From Prehuman Times to the French Revolution. Farrar, Straus and Giroux.
• North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
• Raic, P. (2002). The Role of Legal Institutions in Economic Development. British Journal of Political Science, 32(4), 359-377.
• Petersen, R. D. (2002). The Political Economy of Weak Institutions. Journal of Comparative Economics, 30(3), 579-604.