PovertyPoverty is the condition of lacking basic human needs such as nutrition, clean water, health care, clothing, and shelter because of the inability to afford them. This is also referred to as absolute poverty or destitution...
has historically been accepted as inevitable as non-industrialized economies produced very little and the population grew almost as fast as the economy. Poverty reduction, or poverty alleviation, has been largely as a result of overall economic growth. The dawn of
industrial revolutionThe Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, and transport had a profound effect on the socioeconomic and cultural conditions in the United Kingdom. The changes subsequently spread throughout Europe, North...
led to high economic growth, eliminating mass poverty in what is now considered the developed world. World GDP per person quintupled during the 20th century. In 1820, 75% of humanity lived on less than a dollar a day, while in 2001, only about 20% do.
However, poverty alleviation also involves improving the living conditions of people who are already poor.
AidAid is a voluntary transfer of resources from one country to another, given at least partly with the objective of benefiting the recipient country.It may have other functions as well: it may be given as a signal of diplomatic approval, or to...
, particularly in medical and scientific areas, is essential in providing better lives, such as the
green revolutionGreen Revolution refers to the transformation of agriculture that began in 1945. One significant factor in this revolution was the Mexican government's request to establish an agricultural research station to develop more varieties of wheat that could be used to feed the rapidly growing population...
and the eradication of
smallpoxSmallpox is an infectious disease unique to humans, caused by either of two virus variants, Variola major and Variola minor. The disease is also known by the Latin names Variola or Variola vera, which is a derivative of the Latin varius, meaning spotted, or varus, meaning "pimple"...
.
Economic liberalization
Extending property rights protection to the poor is one of the most important poverty reduction strategy a nation could take. Securing property rights to land, the largest asset for most societies, is vital to their economic freedom. The
World BankThe World Bank is an international financial institution that provides leveraged loans to poorer countries for capital programs, tied to neoliberal market restructurings...
concludes increasing land rights is ‘the key to reducing poverty’ citing that land rights greatly increase poor people’s wealth, in some cases doubling it. It is estimated that state recognition of the property of the poor would give them assets worth 40 times all the foreign aid since 1945. Although approaches varied, the
World BankThe World Bank is an international financial institution that provides leveraged loans to poorer countries for capital programs, tied to neoliberal market restructurings...
said the key issues were security of tenure and ensuring land transactions were low cost. In
ChinaChina is a cultural region, an ancient civilization, and, depending on perspective, a national or multinational entity extending over a large area in East Asia....
and
IndiaIndia, officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal...
, noted reductions in poverty in recent decades have occurred mostly as a result of the abandonment of
collective farmingCollective farming is an organization of agricultural production in which the holdings of several farmers are run as a joint enterprise. A collective farm is essentially an agricultural production cooperative in which members-owners engage jointly in farming activities...
in China and the cutting of government red tape in India.
New enterprises and foreign investment can be driven away by the results of inefficient institutions, notably corruption, weak rule of law and excessive bureaucratic burdens. It takes two days, two bureaucratic procedures, and $280 to open a business in Canada while an entrepreneur in Bolivia must pay $2,696 in fees, wait 82 business days, and go through 20 procedures to do the same. Such costly barriers favor big firms at the expense of small enterprises, where most jobs are created. In
IndiaIndia, officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal...
before economic reforms, businesses had to bribe government officials even for routine activities, which was a tax on business in effect.
Trade liberalization increases total surplus of trading nations and foreign investment and export industries helped fuel the economic expansion of fast growing Asian nations. However, trade rules are often not free as they block access to richer nations’ markets and ban poorer nations from supporting their industries and agriculture. Deals can sometimes be negotiated to favor the developing country such as in China, where laws compel foreign multinationals to train their future Chinese competitors in strategic industries and render themselves redundant in the long term. In Thailand, the 51 percent rule compels multinational corporations starting operations in Thailand give 51 percent control to a Thai company in a joint venture.
Investments in capital and technology
Long run economic growth per person is achieved through increases in capital (factors that increase productivity), both human and physical, and technology. Improving
human capitalHuman capital refers to the stock of skills and knowledge embodied in the ability to perform labor so as to produce economic value. It is the skills and knowledge gained by a worker through education and experience...
, in the form of health, is needed for
economic growthEconomic growth is a term used to indicate the increase of total GDP. It is often measured as the rate of change of gross domestic product . Economic growth refers only to the quantity of goods and services produced; it says nothing about the way in which they are produced...
. Nations do not necessarily need wealth to gain health. For example,
Sri LankaSri Lanka , officially the Democratic Socialist Republic of Sri Lanka , is an island country in South Asia, located about off the southern coast of India...
had a maternal mortality rate of 2% in the
1930sThe 1930s was the decade that ran from January 1, 1930, to December 31, 1939. The first few years of the decade was marked by the Great Depression that had a traumatic effect worldwide. In response authoritarian regimes emerged in several countries in Europe, in particular the Third Reich in...
, higher than any
nationA nation is a body of people who share a real or imagined common history, culture, language or ethnic origin. The development and conceptualization of the nation is closely related to the development of modern industrial states and nationalist movements in Europe in the 18th and 19th centuries,...
today. It reduced it to .5-.6% in the
1950sThe 1950s was the decade that ran from January 1, 1950, to December 31, 1959. During the early 1950s in the United States manufacturing and home construction was on the rise as the American economy was on the upswing. The Korean War and the beginning of the Cold War created a politically...
and to .06% today. However, it was spending less each year on
maternal healthMaternal health care is a concept that encompasses family planning, preconception, prenatal, and postnatal care. Goals of preconception care can include providing education, health promotion, screening and interventions for women of reproductive age to reduce risk factors that might affect future...
because it learned what worked and what did not. Knowledge on the cost effectiveness of healthcare interventions can be elusive but educational measures to disseminate what works are available, such as the disease control priorities project.
http://www.dcp2.org/main/Home.html Promoting hand washing is one of the most cost effective health intervention and can cut
deathAbout 20 million children die every year , very often from preventable causes. Estimates vary depending on the age limit definition of still being a child. Child mortality in this article refers to under-5 mortality, which is the death of infants and children under the age of five...
s from the major childhood diseases of
diarrheaIn medicine, diarrhea , also spelled diarrhoea , is the condition of having frequent loose or liquid bowel movements. Acute diarrhea is a common cause of death in developing countries and the second most common cause of infant deaths worldwide...
and
pneumoniaPneumonia is an inflammatory illness of the lung. Frequently, it is described as lung parenchyma/alveolar inflammation and abnormal alveolar filling with fluid ....
by half.
Human capital, in the form of education, is an even more important determinant of economic growth than physical capital.
UN economists argue that good infrastructure, such as roads and information networks, helps market reforms to work. China claims it is investing in railways, roads, ports and rural telephones in African countries as part of its formula for economic development. It was the technology of the
steam engineA steam engine is a heat engine that performs mechanical work using steam as its working fluid.The idea of using boiling water to produce mechanical motion has a long history, going back about 2000 years...
that originally began the dramatic decreases in poverty levels. Cell phone technology brings the market to poor or rural sections. With necessary information, remote farmers can produce specific crops to sell to the buyers that brings the best price.
Good institutions
Efficient institutions that are not
corruptPolitical corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
and obey the
rule of lawThe rule of law, also called supremacy of law, means that the law is above everyone and it applies to everyone. Whether governor or governed, rulers or ruled, no one is above the law, no one is exempted from the law, and no one can grant exemption to the application of the law.Rule of law is a...
make and enforce good laws that provide security to property and businesses. Efficient and fair governments would work to invest in the long-term interests of the nation rather than plunder resources through corruption. Researchers at UC Berkely developed what they called a "Weberianness scale" which measures aspects of bureaucracies and governments
Max WeberMaximilian Carl Emil Weber was a German lawyer, politician, historian, sociologist and political economist, who profoundly influenced social theory and the remit of sociology itself. His major works dealt with the rationalization, bureaucratization, and 'disenchantment' he associated with the...
described as most important for
rational-legalRational-legal authority is a form of leadership in which the authority of an organization or a ruling regime is largely tied to legal rationality, legal legitimacy and bureaucracy...
and efficient government over 100 years ago. Comparative research has found that the scale is correlated with higher rates of economic development. With their related concept of good governance
World BankThe World Bank is an international financial institution that provides leveraged loans to poorer countries for capital programs, tied to neoliberal market restructurings...
researchers have found much the same: Data from 150 nations have shown several measures of good governance (such as accountability, effectiveness, rule of law, low corruption) to be related to higher rates of economic development.
Examples of good governance leading to economic development and poverty reduction include
ThailandThe Kingdom of Thailand is an independent country that lies in the heart of Southeast Asia.It is bordered to the north by Laos and Burma, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the west by the Andaman Sea and Burma...
,
TaiwanTaiwan , also known as Formosa , is the largest island of the Republic of China in East Asia. Taiwan is located east of the Taiwan Strait, off the southeastern coast of mainland China...
,
MalaysiaMalaysia is a country in Southeast Asia that consists of thirteen states and three Federal Territories, with a total landmass of . The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government. The population stands at over 28 million inhabitants...
,
South KoreaSouth Korea, officially the Republic of Korea and often simply referred to as Korea, is a country in East Asia, located on the southern half of the Korean Peninsula. It is neighbored by China to the west, Japan to the east, and North Korea to the north. Its capital is Seoul, the second largest...
, and
VietnamVietnam , officially the Socialist Republic of Vietnam , is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea to the east...
, which tend to have a strong government, called a
hard state or
development state. These “hard states” have the will and authority to create and maintain policies that lead to long-term development that helps all their citizens, not just the wealthy. Multinational corporations are regulated so that they follow reasonable standards for
payA wage is a compensation, usually financial, received by a worker in exchange for their labor.Compensation in terms of wages is given to worker and compensation in terms of salary is given to employees...
and labor conditions, pay reasonable taxes to help develop the country, and keep some of the profits in the country, reinvesting them to provide further development.
The United Nations Development Program published a report in April 2000 which focused on good governance in poor countries as a key to economic development and overcoming the selfish interests of wealthy elites often behind state actions in developing nations. The report concludes that “Without
good governanceGood governance is a indeterminate term used in development literature to describe how public institutions conduct public affairs and manage public resources in order to guarantee the realization of human rights. Governance describes the process of decision-making and the process by which decisions...
, reliance on
trickle-down"Trickle-down economics" and "trickle-down theory" are terms of political rhetoric that refer to the policy of providing tax cuts or other benefits to businesses and rich individuals in the belief that this will indirectly benefit the broad population...
economic development and a host of other strategies will not work.”
Despite the promise of such research several questions remain, such as where good governance comes from and how it can be achieved. The comparative analysis of one sociologist suggests that broad historical forces have shaped the likelihood of good governance. Ancient civilizations with more developed government organization before
colonialismColonialism is the building and maintaining of colonies in one territory by people from another territory. Sovereignty over the colony is claimed by the metropole...
, as well as elite responsibility, have helped create strong states with the means and efficiency to carry out development policies today. On the other hand strong states are not always the form of political organization most conducive to economic development. Other historical factors, especially the experiences of colonialism for each country, have intervened to make a strong state and/or good governance less likely for some countries, especially in
AfricaAfrica is the world's second-largest and second most-populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area. With a billion people in 61 territories, it accounts for about 14.8% of the...
. Another important factor that has been found to affect the quality of institutions and governance was the pattern of colonization (how it took place) and even the identity of colonizing power. International agencies may be able to promote good governance through various policies of intervention in developing nations as indicated in a few African countries, but comparative analysis suggests it may be much more difficult to achieve in most poor nations around the world.
Development aid
Some think tanks and NGOs have argued that Western monetary aid often only serves to increase poverty and social inequality, either because it is conditioned with the implementation of harmful economic policies in the recipient countries , or because it's tied with the importing of products from the donor country over cheaper alternatives, or because foreign aid is seen to be serving the interests of the donor more than the recipient. Critics also argue that some of the foreign aid is stolen by
corruptPolitical corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
governments and officials, and that higher aid levels erode the quality of governance. Policy becomes much more oriented toward what will get more aid money than it does towards meeting the needs of the people. Problems with the aid system and not aid itself are that the aid is excessively directed towards the salaries of consultants from donor countries, the aid is not spread properly, neglecting vital, less publicized area such as agriculture, and the aid is not properly coordinated among donors, leading to a plethora of disconnected projects rather than unified strategies.
Supporters of aid argue that these problems may be solved with better
auditThe general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. Audits are performed to ascertain the validity and reliability of information; also to provide an assessment of a system's internal control...
ing of how the aid is used. Immunization campaigns for children, such as against polio,
diphtheriaDiphtheria is an upper respiratory tract illness characterized by sore throat, low fever, and an adherent membrane on the tonsils, pharynx, and/or nasal cavity. A milder form of diphtheria can be restricted to the skin...
and
measlesMeasles is an infection of the respiratory system caused by a virus, specifically a paramyxovirus of the genus Morbillivirus. Morbilliviruses, like other paramyxoviruses, are enveloped, single-stranded, negative-sense RNA viruses...
have save millions of lives. Aid from
non-governmental organizationNon-governmental organization is a term that has become widely accepted as referring to a legally constituted, non-governmental organization created by natural or legal persons with no participation or representation of any government...
s may be more effective than governmental aid; this may be because it is better at reaching the poor and better controlled at the grassroots level. As a point of comparison, the annual world military spending is over $1 trillion.
Debt relief
One of the proposed ways to help poor countries that emerged during the 1980's has been
debt reliefDebt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations...
. Given that many less developed nations have gotten themselves into extensive debt to banks and governments from the rich nations, and given that the interest payments on these debts are often more than a country can generate per year in profits from exports, cancelling part or all of these debts may allow poor nations "to get out of the hole". However the effectiveness of debt relief is uncertain and whether or not it has lasting effect is disputed. It may not change the underlying conditions that have led to less long-term development in the first place.
Microloans
One of the most popular of the new technical tools for economic development and poverty reduction are microloans made famous in 1976 by the
Grameen BankThe Grameen Bank is a microfinance organization and community development bank started in Bangladesh that makes small loans to the impoverished without requiring collateral. The word "Grameen", derived from the word "gram" or "village", means "of the village"...
in
Bangladesh, officially the People's Republic of Bangladesh is a country in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
. The idea is to loan small amounts of money to farmers or villages so these people can obtain the things they need to increase their economic rewards. A small pump costing only $50 could make a very big difference in a village without the means of
irrigationIrrigation is an artificial application of water to the soil. It is usually used to assist in growing crops in dry areas and during periods of inadequate rainfall...
, for example. A couple of hundred dollars for a small bridge linking a village to a city where it can market farm products is another example. A specific example is the
ThaiThe Kingdom of Thailand is an independent country that lies in the heart of Southeast Asia.It is bordered to the north by Laos and Burma, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the west by the Andaman Sea and Burma...
government's People's Bank which is making loans of $100 to $300 to help farmers buy equipment or seeds, help street vendors acquire an inventory to sell, or help others set up small shops.
Welfare states
Welfare states have an effect on poverty reduction. Currently modern, expansive welfare states that ensure economic opportunity, independence and security in a near universal manner are still the exclusive domain of the developed nations. commonly constituting at least 20% of GDP, with the largest
ScandinaviaScandinavia is a geographical region in northern Europe that includes, and is named after, the Scanian Province. It consists of the kingdoms of Norway, Sweden, and Denmark...
n welfare states constituting over 40% of GDP. These modern welfare states, which largely arose in the late 19
th and early 20
th centuries, seeing their greatest expansion in the mid 20
th century, and have proven themselves highly effective in reducing relative as well as absolute poverty in all analyzed high-income OECD countries.
Empowering women
Empowering women has helped some countries increase and sustain economic development. When given more
rightsRights are entitlements or permissions, usually of a legal or moral nature. Rights are of vital importance in the fields of law and ethics, especially theories of justice and deontology.-Theoretical distinctions:...
and opportunities women begin to receive more education, thus increasing the overall
human capitalHuman capital refers to the stock of skills and knowledge embodied in the ability to perform labor so as to produce economic value. It is the skills and knowledge gained by a worker through education and experience...
of the country; when given more influence women seem to act more responsibly in helping people in the family or village; and when better educated and more in control of their lives, women are more successful in bringing down rapid population growth because they have more say in
family planningFamily planning is the planning of when to have children, and the use of birth control and other techniques to implement such plans. Other techniques commonly used include sexuality education, prevention and management of sexually transmitted infections, pre-conception counseling and...
.
Fair trade
Another approach that has been proposed for alleviating poverty is
Fair TradeFair trade is an organized social movement and market-based approach that aims to help producers in developing countries and promote sustainability. The movement advocates the payment of a higher price to producers as well as social and environmental standards in areas related to the production of...
which advocates the payment of an above market price as well as social and environmental standards in areas related to the production of goods. The efficacy of this approach to poverty reduction is controversial.
Other approaches
Community and monetary economist
Thomas H. Greco, Jr.Thomas H. Greco, Jr. is a community economist, who blogs, writes, and speaks on the subject of free market alternative currency and monetary systems.-Life and Work:...
has argued that the mainstream global economy with its debt-based currency has built-in structural incentives that create poverty through keeping money scarce. Greco points to the success of modern
barterBartering is a medium in which goods or services are directly exchanged for other goods and/or services without a common unit of exchange . It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent...
clubs and historical local currencies such as the Wörgl Experiment at revitalizing stagnant local economies, and calls for the creation of community currency as a means to reduce or eliminate poverty.
The
Toronto DollarThe Toronto Dollar, founded in December 1998, is a paper local currency used in Toronto, Ontario and backed by the Canadian dollar.The currency is administered by Toronto Dollar Community Projects Inc., a not-for-profit community group, and is a project of St. Lawrence Works.The currency can be...
is an example of a
local currencyIn economics, a local currency, in its common usage, is a currency not backed by a national government , and intended to trade only in a small area...
oriented towards reducing poverty. Toronto Dollars are sold and redeemed in such a way that raise funds which are then given as grants to local charities, primarily ones oriented towards reducing poverty. Toronto Dollars also provide a means to create an
incentiveIn economics and sociology, an incentive is any factor that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives. It is an expectation that encourages people to behave in a certain way...
for
welfareWelfare or welfare work consists of actions or procedures — especially on the part of governments and institutions — striving to promote the basic well-being of individuals in need...
recipients to work: Toronto dollars can be given as gifts to welfare recipients who perform volunteer work for charitable and non-profit organizations, and these gifts do not affect welfare benefits.
Some have argued for radical economic change in the system. There are several fundamental proposals for restructuring existing economic relations, and many of their supporters argue that their ideas would reduce or even eliminate poverty entirely if they were implemented. Such proposals have been put forward by both left-wing and right-wing groups:
socialismSocialism refers to various theories of economic organization advocating public or direct worker ownership and administration of the means of production and allocation of resources, and a society characterized by equal access to resources for all individuals with a method of compensation based on...
,
communismCommunism is a socioeconomic structure and political ideology that promotes the establishment of an egalitarian, classless, stateless society based on common ownership and control of the means of production and property in general. Karl Marx posited that communism would be the final stage in human...
,
anarchismAnarchism is a political philosophy encompassing theories and attitudes which consider the state, as compulsory government, to be unnecessary, harmful, and/or undesirable, and favors the absence of the state ....
,
libertarianismLibertarianism is a term adopted by a broad spectrum of political philosophies which advocate the maximization of individual liberty and the minimization or even abolition of the state...
,
binary economicsBinary economics is a heterodox theory of economics that endorses both private property and a free market but proposes significant reforms to the banking system. The aim of binary economics is to ensure that all individuals receive income from their own independent capital estate, using...
and
participatory economicsParticipatory economics, often abbreviated parecon, is an economic system proposed by activist and political theorist Michael Albert and radical economist Robin Hahnel. It uses participatory decision making as an economic mechanism to guide the production, consumption and allocation of resources in...
, among others.
Inequality can be reduced by progressive taxation,
wealth taxA wealth tax is generally conceived as a direct tax on all household wealth holdings actually accumulated as purchasing power stock , including owner-occupied housing; cash, bank deposits, money funds, and savings in insurance and pension plans; investment in real estate and unincorporated...
, and
inheritance taxInheritance tax, estate tax and death duty are the names given to various taxes which arise on the death of an individual. It is a tax on the estate, or total value of the money and property, of a person who has died...
.
In
lawLaw is a system of rules, usually enforced through a set of institutions. It shapes politics, economics and society in numerous ways and serves as a primary social mediator of relations between people. Contract law regulates everything from buying a bus ticket to trading on derivatives markets...
, there has been a move to establish the absence of poverty as a human right.
The IMF and member countries have produced Poverty Reduction Strategy papers or PRSPs.
In his book
"The End of Poverty", a prominent economist named
Jeffrey SachsJeffrey David Sachs is an American economist and Director of the Earth Institute at Columbia University...
laid out a plan to eradicate global poverty by the year 2025. Following his recommendations, international organizations such as the
Global Solidarity Network are working to help eradicate poverty worldwide with intervention in the areas of housing, food, education, basic health, agricultural inputs, safe drinking water, transportation and communications.
The
Poor People's Economic Human Rights CampaignThe Poor People's Economic Human Rights Campaign is a coalition of grassroots organizations, community groups, and non-profit organizations in the United States of America committed to uniting the poor across color lines as the leadership base for a broad movement to abolish poverty.-External...
is an organization in the United States working to secure freedom from poverty for all by organizing the poor themselves. The Campaign believes that a human rights framework, based on the value of inherent dignity and worth of all persons, offers the best means by which to organize for a political solution to poverty.
Antipoverty organizations and programs
- Bill & Melinda Gates Foundation
The Bill & Melinda Gates Foundation is the largest transparently operated private foundation in the world, founded by Bill and Melinda Gates. The foundation is "driven by the interests and passions of the Gates family"...
- CAFOD
The Catholic Agency For Overseas Development , previously known as the Catholic Fund for Overseas Development, is a United Kingdom-based international aid agency working to alleviate poverty and suffering in developing countries...
- Christian Aid
Christian Aid is one of the biggest international development agencies in the world. It was formed and is still backed by the major Christian churches in the United Kingdom and Ireland....
- Compassion International
Compassion International is a Christian child sponsorship organization dedicated to the long-term development of children living in poverty around the world. Compassion International, headquartered in Colorado Springs, functions in 25 countries and currently helps more than 1,000,000 children. The...
- Empowerment
Empowerment refers to increasing the spiritual, political, social or economic strength of individuals and communities. It often involves the empowered developing confidence in their own capacities.-Definitions:...
- Free The Children
Free The Children is a children's charity founded in 1995 by children's rights advocate Craig Kielburger. The organization is largely youth-funded, specializing in sustainable development in six marginalized countries: Kenya, Sri Lanka, India, Ecuador, Sierra Leone and China.-History:Free The...
- Gawad Kalinga
Gawad Kalinga , officially the Gawad Kalinga Community Development Foundation, is a Philippine-based poverty reduction and nation-building movement launched by Couples for Christ , a Catholic lay community, to care for worse-off Filipinos and survivors of natural disasters.-History:The foundation...
- Habitat for Humanity
- Inter-American Development Bank
The Inter-American Development Bank is an international organization established and headquartered in Washington, D.C., United States, in 1959 to support Latin American and Caribbean economic and social development and regional integration by lending mainly to governments and...
- International Fund for Agricultural Development
The International Fund for Agricultural Development , a specialized agency of the United Nations, was established as an international financial institution in 1977 as one of the major outcomes of the 1974 World Food Conference. IFAD is dedicated to eradicating rural poverty in developing countries...
- International Monetary Fund
The International Monetary Fund is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments...
- One Laptop per Child
- Oxfam
Oxfam International is a confederation of 14 organisations working with over 3,000 partners in more than 70 countries to find lasting solutions to poverty and injustice....
- Word Made Flesh
Word Made Flesh was started in 1991, as a non-profit 501 organization that exists to serve and advocate for the poorest of the poor in urban centers of the majority world...
- World Bank
The World Bank is an international financial institution that provides leveraged loans to poorer countries for capital programs, tied to neoliberal market restructurings...
- World Vision
World Vision, founded in the United States in 1950, is an international Christian relief and development organization whose stated goal is "to follow our Lord and Saviour Jesus Christ in working with the poor and oppressed to promote human transformation, seek justice and bear witness to the good...
Millennium Development Goals
Eradication of
extreme povertyExtreme poverty is the most severe state of poverty. Many cannot meet basic needs for food, water, shelter, sanitation, and health care. To determine the affected population, the World Bank defines extreme poverty as living on less than $1.25 per day...
and
hungerHunger is a feeling experienced when one has a desire to eat. Satiety is the absence of hunger. The often unpleasant feeling of hunger originates from the hypothalamus releasing hormones that target receptors in the liver...
by 2015 is a
Millennium Development GoalThe Millennium Development Goals are eight international development goals that 192 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015...
. In addition to broader approaches, the
SachsJeffrey David Sachs is an American economist and Director of the Earth Institute at Columbia University...
Report (for the UN Millennium Project) proposes a series of "quick wins", approaches identified by development experts which would cost relatively little but could have a major constructive effect on world poverty. The quick wins are:
- Access to information on sexual and reproductive health
A sexually transmitted disease , also known as sexually transmitted infection or venereal disease , is an illness that has a significant probability of transmission between humans or animals by means of sexual contact, including vaginal intercourse, oral sex, and anal sex...
.
- Action against domestic violence
Domestic violence, also known as domestic abuse, spousal abuse, child abuse or intimate partner violence , can be broadly defined a pattern of abusive behaviors by one or both partners in an intimate relationship such as marriage, dating, family, friends or cohabitation...
.
- Appointing government scientific advisors in every country.
- Deworming school children in affected areas.
- Drugs for AIDS
Acquired immune deficiency syndrome or acquired immunodeficiency syndrome is a disease of the human immune system caused by the human immunodeficiency virus ....
, tuberculosisTuberculosis is a common and often deadly infectious disease caused by mycobacteria...
, and malariaMalaria is a vector-borne infectious disease caused by a eukaryotic protist of the genus Plasmodium. It is widespread in tropical and subtropical regions, including parts of the Americas, Asia, and Africa. Each year, there are approximately 350–500 million cases of malaria, killing between one and...
.
- Eliminating school fees
Tuition means "instruction" or "teaching." In American English, the term "tuition" is often used to refer to a fee charged for educational instruction; especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition...
.
- Ending user fees
Fee-for-service is a standard business model where services are unbundled and paid for separately.In the health insurance and the health care industries, fee-for-service occurs when doctors and other health care providers receive a fee for each service such as an office visit, test, procedure, or...
for basic health care in developing countries.
- Free school meal
The term free school meal refers to a meal that is provided to a child or young person during a school break that is paid for out of Government funding. For a child to qualify for a Free School Meal, their parent or carer must be receiving particular eligible benefits as stated by Government...
s for schoolchildren.
- Legislation for women’s rights, including rights to property.
- Planting trees.
- Providing soil nutrients
Fertilizers are chemical compounds applied to promote plant and fruit growth. Fertilizers are usually applied either through the soil or by foliar feeding...
to farmers in sub-Saharan AfricaSub-Saharan Africa is a geographical term used to describe the area of the African continent which lies south of the Sahara, or those African countries which are fully or partially located south of the Sahara...
.
- Providing mosquito net
A mosquito net offers protection against mosquitos, flies, and other insects, and thus against diseases such as malaria. Its fine, see-through, mesh construction stops many insects from biting and disturbing the person using the net...
s.
- Access to electricity
Rural electrification is the process of bringing electrical power to rural and remote areas. Electricity is used not only for lighting and household purposes, but it also allows for mechanization of many farming operations, such as threshing, milking, and hoisting grain for storage; in areas...
, waterWater is an ubiquitous chemical substance that is composed of hydrogen and oxygen and is essential for all known forms of life.In typical usage, water refers only to its liquid form or state, but the substance also has a solid state, ice, and a gaseous state, water vapor or steam. Water covers 71%...
and sanitationSanitation is the hygienic means of promoting health through prevention of human contact with the hazards of wastes. Hazards can be either physical, microbiological, biological or chemical agents of disease. Wastes that can cause health problems are human and animal feces, solid wastes, domestic...
.
- Supporting breast-feeding.
- Training programs for community health
Community health, a field public health, is a discipline that concerns itself with the study and betterment of the health characteristics of biological communities. While the term community can be broadly defined, community health tends to focus on geographic areas rather than people with shared...
in rural areas.
- Upgrading slums, and providing land for public housing.
Fields of study that deal with poverty reduction
- Development economics
Development economics is a branch of economics which deals with economic aspects of the development process in low-income countries. Its focus is not only on methods of promoting economic growth and structural change but also on improving the potential for the mass of the population, for example,...
explains economic growth of developing countries
- Macroeconomics
Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national or regional economy as a whole. Along with microeconomics, macroeconomics is one of the two most general fields in economics. It is the study of the behavior and decision-making of entire...
deals with entire economies while MicroeconomicsMicroeconomics is a branch of economics that studies how households and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold...
with individual players in the economy
See also
- Welfare trap
The welfare trap theory asserts that taxation and welfare systems can jointly contribute to keep people on social insurance. This is also known as the unemployment trap or poverty trap in the UK....
- Poverty trap
A Poverty Trap is "any self-reinforcing mechanism which causes poverty to persist." The trap becomes cyclical and begins to reinforce itself if steps are not taken to break the cycle...
- Poverty
Poverty is the condition of lacking basic human needs such as nutrition, clean water, health care, clothing, and shelter because of the inability to afford them. This is also referred to as absolute poverty or destitution...
- Poverty in the United States
The most common measure of poverty in the United States is the "poverty threshold" set by the U.S. government. This measure recognizes poverty as a lack of those goods and services commonly taken for granted by members of mainstream society. The official threshold is adjusted for inflation using...
- Poverty Reduction Strategy Paper
Poverty Reduction Strategy Papers are in many ways the replacement for Structural Adjustment Programs, and are documents required by the IMF and World Bank before a country can be considered for debt relief within the HIPC programme...
- Poverty threshold
The poverty threshold, or poverty line, is the minimum level of income deemed necessary to achieve an adequate standard of living in a given country...
- Community economic development
Community Economic Development is action taken locally by a community to provide economic opportunities and improve social conditions in a sustainable way. Often CED initiatives aim to improve the lot of those who are disadvantaged...
- Debt relief
Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations...
- Heavily Indebted Poor Countries
Heavily Indebted Poor Countries are a group of 40 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund and the World Bank....
- Millennium Development Goals
The Millennium Development Goals are eight international development goals that 192 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015...
- Make poverty history
The Make Poverty History campaign is a Great Britain and Ireland coalition of charities, religion groups, trade unions, campaigning groups and celebrities who mobilise around the UK's prominence in world politics, as of 2005, to increase awareness and pressure governments into taking actions...
- Inclusive business
An inclusive business is a sustainable business that benefits low-income communities.Large corporations traditionally target consumers in the middle and high-income segments of society, and established suppliers and service providers from the formal economy...
- Ecological sanitation
Ecological sanitation, also known as ecosan or eco-san, is a sanitation process that uses human excreta and household wastewater as resources to be recovered, treated , and reused, instead of as waste...
- Bottom of the pyramid
In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. In global terms, this is the four billion people who live on less than $2 per day, typically in developing countries. The phrase “bottom of the pyramid” is used in particular by people developing new models of...
External links