attracting foreign investors to invest emerging economy

1. Introduction
Poverty is one of the highlighted issues in the world. Many countries have been devoting their efforts to develop the economy in order to reducing poverty. In developing countries, the government tries their best to satisfy people’s needs. The needs are ranging from every aspect of residents life. According to Newfoundland and Labrador Association of Social Workers (cited in Gien et al. 2007), poverty is defined as people lack of fundamental needs such as nutrition, clean water, shelter, medicine and education. Thus, providing basic needs to people is the prior mission to the developing countries.

The purpose of this report is to examine the fundamental poverty and to suggest some possible solutions to deal with them. This report firstly describes the main factors causing some developing countries to remain a cycle of poverty, and then examines two effective solutions to reduce poverty. Finally, the benefits of attracting foreign investors to invest emerging economy as well as international aid as a recommendation will be discussed. 2. The causes of poverty

There are some direct impacts on people who are vulnerable to poverty such as the lack of health care, failed policies and poor lifestyle. This might lead to the pressure of many countries overwhelmed that of individuals, because the government makes policies that are not suit for local residents lead to governments waste a lot of money. In addition to this, the lifestyle some developing countries have which is causing huge health problems ranging from parents to children. Therefore, poverty is related to different aspects of society that affects people life as well as the development of countries.

2.1 Inefficient development
There is an issue that governments have many areas to develop and directly affects people who are the target of it. Firstly, inappropriate policies may lead to residents far away from the benefits of development. Gien et al. (2007) give an example that Vietnam government carried on a reform policy for reducing poverty. However, this policy widen the gap between the rich region and the poor region resulting in rural residents as the victims of development, Ajakaiye and Adeyeye (2002) point out that this is because the process of policies reform affects economy development resulting in people easily losing their job when the policy fails. Therefore, failed policies could impose big burdens on some countries resulting in more people becoming victims of poverty. Secondly, under developed infrastructures widen the gap between the rich and the poor.