ABSTRACT

Guinea-Bissau perhaps epitomizes a group of countries that exposes the sheer incapacity of humanity to bring about progress and minimum living conditions to all human beings on this planet. System Dynamics is the method employed to model Guinea-Bissau’s poverty trap. A formalized system dynamics model allows the explicit representation of mental models of the system causing the problematic behavior. The Human Development Index is a summary measure for assessing long-term progress in three basic dimensions: a long and healthy life; access to knowledge; and a decent standard of living. The chapter aims to develop a model that captures the interplay between macro factors in determining the prevalence of low human development in Guinea-Bissau. It presents the simulation of two scenarios based on the proposed model: one considering “business as usual” and the other testing the comprehensive intervention in the country, named “Terra Ranca.”