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How to reduce gap between rich and poor in developing countries
The more the economic of a nation develops, the more technological and industrial revolution, the wider the gap between rich and poor. Although it has positive sides, It also has some bad effects such as: the loose and degradation lifestyle of rich children, which means a shortage in cultural development, negative impacts on social security (crimes, social ills: homelessness, teen pregnancy, child abuse, terrorism, family violence, abortion, human trafficking, prostitution, unemployment, illiteracy, health problems: stress and depression, malnutrition), exploiting natural resources illegally and wastefully. It leads to social and economic inequality, the poor lacks of capital, knowledge and education, technology, hence, they can not earn enough money to invest and become poorer while the rich takes advantage of financial instruments in a market economy and become richer, which create bigger gap between living standards of people in the metropolis and rural communities, between rich and poor, and continue to increase social ills.
A few plans to shorten living standard gap between rich and poor including: improving capital channels for the poor and countryside/islands with some goals to create more employment or to enhance education for low-income people, considering positive and negative sides of tax policies, encouraging SMEs development in many industries: agriculture, construction, processing industry, manufacturing factories…
To reduce economic and social inequality between urban region and countryside/islands, we need the proper policies of Education, Medical and Finance, Central Bank and Bank System. Take an example of Vietnam, a country with fast growth in South East Asian and with many opportunities, there are still some areas where people has average income per capita only around 3 m VND whereas bank system has been growing quickly; hence, we need to overcome weakness of bank system, i.e a proper mechanism, microfinance or P2P lending or Fintech is needed very much to push our country to be an economic tiger , i.e expected income per capital in future will be increased from 3 to 10 m VND , that will show a better growth in personal finance.