Poverty – a Corporate Creation & Ratio Controls for Eradication
Book Published by Amazon Create Space. ISBN : 978-1484087442, Forthcoming
10 Pages Posted: 11 Jun 2014
Date Written: April 19, 2013
The essential item producers and distributors in every nation, inflate the prices of their commodities, to cover up their mis-management every year, so that more and more people are not afford to buy them. Thus they create, increase and maintain an expanding below poverty line persons in the nation. This Book substantiates this statement, through verified inference. Also it suggests a dual ratio control on Essential item producers and distributors, for poverty eradication.
All the species, in this world survived over the generations, by fitting themselves within the available resources, for many millennium (Darwins’s theory). But human, because of their intelligence, survived in a 3 dimensional shell namely (a) The geography and environment (b) The social influences and (c) The economic infrastructure. The objective of this booklet is to measure the existence of the “Survival of the fittest” in this millennium, their distribution in the world, the reasons for the hand to mouth living for basic needs, how people escape from this survival stage, and possible solutions to eradicate this stage. Accordingly the methodology is chosen to pin point each segment of the world population in and under poverty line using the World Bank survey map, and the Operating ratio as the measure of the performance of the essential suppliers. Lower ratio represents prosperity, and the reverse poverty.
India is taken as a representative country for the analysis. Agriculture is found to be of little value compared to the return on land investment, due to the absence of mass farming. Milk and other essential items like travel, textiles and construction are taken as essential items. An analysis of their Operating ratio in government and private sectors indicate that the ratio is high. It is because of their mismanagement, and monopoly status. They keep the citizen as their captive customers and use price increase as a leverage for their continued survival. Hence corporate organisations producing and supplying the essential commodities create, maintain and increase the people below poverty line in any nation.
Comparatively, this ratio in developed nations are low and under control. Conversely, the operating ratio of non-essential goods in the developing nations are low and favourable, because of competition and global business operators. The golden rule is that the Essential need supplies should keep their Operating ratio at 75 % or below. In the discussion, the possible and the suggested method for keeping this ratio under control (in a normal and disturbed economic condition) is found to be through innovation in cost and expense control. The growth rate of GNP should be equal to the population growth rate OR the population growth rate should be kept equal or less than the feasible GNP growth rate. This will eradicate the poverty in the world. This is applicable to all in government, public or private sectors and all the nations in developed, developing and under developed bracket of economic status.
Keywords: aavin, agriculture, alleviation, almarai, amul, arogya, arthur lewis, auto, basic need, cement, clothing, construction, cosmetics, cost, darwin, diary, economic, environment, escape, essential, expense, fittest, food, gip, gnp, India, infrastructure, milk, nobel laureate, non essential, per capita,
JEL Classification: A12, A13, A14, B41, D61, D83, E31, F01, G13, H83, I31, I32, M14, O1, P51,Q14, R48
Suggested Citation: Suggested Citation