#1Today, economy, GDP stands for Gross Domestic

#1Today, many countries are facing the issue of poverty and economic development, especially in developing countries. Countries that have poor economies may not have education, shelter, and enough food. This will lead to a country’s corruption in economies and poverty rates. In economy, GDP stands for Gross Domestic Product, it is an indicator that is used for testing the country’s economic health or growth. GDP represents the total money in a time period that all the goods and services are provided. After the financial crisis in 2008, there was economic growth seen in many countries. In the other hand, the poverty line means the minimum income that allows a person to have basic needs. Many people in developing countries are living below the poverty line. There are two kinds of poverty line. International poverty line is the extreme poverty measured across countries, which is $1.90 per day for a person. National poverty line is a relative poverty line defined according to the economy of a specific country depending on the cost of living in one country. In the world, ½ of the world population (3 billion people) is living less than $2.50 per day, and more than 769 million people is living in extreme poverty of $1.90 per day in 2013 (The world bank). According to UNICEF, 22,000 children die everyday because of poverty. Poverty and economic development are critical issues in many countries around the world.#2Poverty and economic development also occured in Egypt. There is an economic growth in Egypt, but many people are still living in poverty. Egypt has made the country to be inflation, and inequality, causing the poverty rate to be worse. According to the data, the GDP of Egypt is increasing. For example, in 1970, the GDP is 7.682 billion in 1970, rising up to 336.297 billion in 2016, making the Egypt’s GDP ranking up to 32 place in 2016 in the world (The world bank). In addition, Egypt’s GDP growth increases and it has a very stable growth, reaching up to 4.3% in 2016, making a very good economic condition. From the world bank graph, the rate of people living under the international poverty line in Egypt in 2005 is 4.4%, decreasing to 1.4% in 2015. However, the population that is under the national poverty line is 19.6%, increasing to 27.8% in 2015. Why does the rate of international poverty line decreased and the rate of national poverty line increased while the GDP is getting better? We can interpret that the benefits and growth of the GDP didn’t “trickle down” to the poor citizens in Egypt (saif). The profit of the wealthy citizens and the government did not equally distribute to all of the poor citizens in the country. The problems of inflation, and inequality all lead to Egypt’s poverty. From the researchers, the increasing of consumptive prices like food and commodities, caused Egypt has a high cost of doing business, and that made the price of the product to be very high, so people that has little money can’t afford it. The Egyptian poverty line was raised from LE326 monthly in the 2012/2013 survey to LE482 in 2015, which had 48% higher (Masriya). The poverty line in Egypt is increasing because people need to spend more money to buy the same amount of food. Furthermore, Egypt is organized into different regions, one of them are the upper Egypt and lower Egypt area. Researcher had seen higher poverty levels at the rural areas of the upper Egypt, which was recorded 56.7 percent, while, in lower Egypt at the nile delta, the poverty level only reached 19.7 percent which is way more lower than upper Egypt. That means the urban areas population in lower Egypt is richer than the rural areas population in upper Egypt. Thus, the problem of economic development and poverty is also a serious issue in Egypt.#3The government of Egypt stated in 2017 that they are working for a few ways to reduce poverty in their country. Minister of Finance Amr El Garhy said, that the government is racing time to accelerate economic growth, stressing that achieving high growth rates is the most appropriate mechanism to reduce poverty (Ayyad). He pointed out that the most important thing is to increase growth and employment rates. The Egyptian government is also working on increasing the quality of health, education, and public services, stating that they are increasing the efficiency of social protection to protect more people in the city. However, the government should work more on reducing poverty in Egypt. For instance, in the article “4 Ways to Revive Egypt’s Economy”, the author suggested that Egypt can reduce their government spendings, unleash egypt’s entrepreneurs, incentivize large-scale investment, and the last one “communicate, communicate, communicate”. The author gives a real life example “as my mother always told me, you should not spend more than you earn, because you will end up in trouble”, (Sobhy). This means when a government spends very much money, they had to borrow it from the local banks or international investors, making troubles in the economy. Not giving low oil prices, the government is trying to increase the interest rates which will lead to a better economy and create more jobs. In conclusion, the Egyptian government should do something in order to let children have education, decrease the urban- and rural gap, distribute equal treatment to the poor citizens, and finally, but most importantly, create a equal, peace, and stable government.