Determinants of Mass Poverty in the Contemporary Global Economy
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The concept of mass poverty was defined by Galbraith in late 1970s and it applies to societies with agriculture as the dominant branch of the economy. This paper examines the importance of this phenomenon and factors affecting it in the contemporary world. There are a growing number of studies supporting the claim that the method of electricity consumption is a key factor of economic growth which makes it possible to escape mass poverty. Moreover, in order to solve the problem, it is necessary to determine access to capital in such countries and societies, understood as M2 aggregate. In this manner, the problem at hand is reduced to determination of the relationships between the following variables: percentage of rural population, rules of managing electrical energy and M2 aggregate. These findings were used to formulate three study hypotheses. According to the first hypothesis, the effect of the electricity use method on M2 varies from one country to another, with several identifiable patterns. According to the second hypothesis, the process of leaving the mass poverty sphere follows either the Bose-Einstein distribution or the Boltzmann distribution. The third hypothesis indicates that effects of efforts aimed at eliminating mass poverty in certain conditions are not permanent. Verification of these three hypotheses indicates the adequacy of the theory of mass poverty in the contemporary world.
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