ways to reduce poverty essay

Poverty eradication

Related sdgs, end poverty in all its forms everywhere ....

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The 2030 Agenda acknowledges that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development.

The first Sustainable Development Goal aims to “End poverty in all its forms everywhere”. Its seven associated targets aims, among others, to eradicate extreme poverty for all people everywhere, reduce at least by half the proportion of men, women and children of all ages living in poverty, and implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable

As recalled by the foreword of the 2015 Millennium Development Goals Report, at the Millennium Summit in September 2000, 189 countries unanimously adopted the Millennium Declaration, pledging to “spare no effort to free our fellow men, women and children from the abject and dehumanizing conditions of extreme poverty”. This commitment was translated into an inspiring framework of eight goals and, then, into wide-ranging practical steps that have enabled people across the world to improve their lives and their future prospects. The MDGs helped to lift more than one billion people out of extreme poverty, to make inroads against hunger, to enable more girls to attend school than ever before and to protect our planet.

Nevertheless, in spite of all the remarkable gains, inequalities have persisted and progress has been uneven. Therefore, the 2030 Agenda for Sustainable Development and its set of Sustainable Development Goals have been committed, as stated in the Declaration of the Agenda, “to build upon the achievements of the Millennium Development Goals and seek to address their unfinished business”.

The theme of the 2017 High-Level Political Forum was "Eradicating poverty and promoting prosperity in a changing worl” ", and it included SDG 1 as one of the focus SDGs

From Agenda 21 to Future We Want In "The Future We Want", the outcome document of Rio+20, Member States emphasized the need to accord the highest priority to poverty eradication within the United Nations development agenda, addressing the root causes and challenges of poverty through integrated, coordinated and coherent strategies at all level.

In the context of the multi-year programme of work adopted by the Commission on Sustainable Development (CSD) after the 2002 World Summit on Sustainable Development (WSSD), poverty eradication appears as an "overriding issue" on the agenda of the CSD each year.

Poverty eradication is addressed in Chapter II of the Johannesburg Plan of Implementation (2002), which stressed that eradicating poverty is the greatest global challenge facing the world today and an indispensable requirement for sustainable development, particularly for developing countries.

Priority actions on poverty eradication include:

• improving access to sustainable livelihoods, entrepreneurial opportunities and productive resources;
• providing universal access to basic social services;
• progressively developing social protection systems to support those who cannot support themselves;
• empowering people living in poverty and their organizations;
• addressing the disproportionate impact of poverty on women;
• working with interested donors and recipients to allocate increased shares of ODA to poverty eradication; and
• intensifying international cooperation for poverty eradication.

The General Assembly, in its 1997 Programme for the Further Implementation of Agenda 21 (paragraph 27) decided that poverty eradication should be an overriding theme of sustainable development for the coming years. It is one of the fundamental goals of the international community and of the entire United Nations system.

"Combating poverty" is the topic of Chapter 3 of Agenda 21. It is also in commitment 2 of the Copenhagen Declaration on Social Development.

Agenda 21 emphasized that poverty is a complex multidimensional problem with origins in both the national and international domains. No uniform solution can be found for global application. Rather, country-specific programmes to tackle poverty and international efforts supporting national efforts, as well as the parallel process of creating a supportive international environment, are crucial for a solution to this problem.

The years following the 1992 Rio Conference have witnessed an increase in the number of people living in absolute poverty, particularly in developing countries. The enormity and complexity of the poverty issue could endanger the social fabric, undermine economic development and the environment, and threaten political stability in many countries.

For more information and documents on this topic,  please visit this link

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The 2015 Commemoration of the International Day for the Eradication of Poverty (IDEP) will be held at United Nations Headquarters in New York, focusing on the theme - "Building a sustainable future: Coming together to end poverty and discrimination".

• January 2015 SDG 1 Goal 1 aims to "End poverty in all its forms everywhere" and its targets aim to: 1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day 1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions 1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable 1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance 1.5 By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters 1.a Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions 1.b Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication action
• January 2012 Future We Want (Para 105- 107) Future We Want recognizes that, while there has been progress in reducing poverty in some regions, this progress has been uneven and the number of people living in poverty in some countries continues to increase, with women and children constituting the majority of the most affected groups, especially in the least developed countries and particularly in Africa. Sustained, inclusive and equitable economic growth in developing countries is identified as a key requirement for eradicating poverty and hunger and achieving the Millennium Development Goals. Therefore, Future We Want highlights the importance to complement national efforts of developing countries by an enabling environment aimed at expanding the development opportunities of developing countries. In paragraph 107, Member States recognize the important contribution that promoting universal access to social services can make to consolidating and achieving development gains. Social protection systems that address and reduce inequality and social exclusion are essential for eradicating poverty and advancing the achievement of the Millennium Development Goals.
• January 2008 2nd UN Decade for Eradication of Poverty The General Assembly declared the Second UN Decade for the Eradication of Poverty (2008-2017) in December 2007 and selected as theme “Full Employment and Decent Work for All”. This Second Decade was proclaimed to support the internationally agreed development goals related to poverty eradication, including the Millennium Development Goals. It has stressed the importance of reinforcing the positive trends in poverty reduction, experienced by some countries as well as the need of extending such trends to benefit people worldwide. This Second Decade recognizes as well the importance of mobilizing financial resources for development at national and international levels and acknowledges that sustained economic growth, supported by rising productivity and a favourable environment, including private investment and entrepreneurship is vital for rising living standards
• January 2002 JPOI (Chap. 2) Chapter 2 identifies eradication of poverty as the greatest global challenge facing the world today and as an indispensable requirement for sustainable development, particularly for developing countries. JPOI recognizes the primary responsibility and role national governments and policies have for ensuring their own sustainable development and poverty eradication strategies. The JPOI at the same time highlights the importance of concerted and concrete measures at all levels to enable developing countries to achieve their sustainable development goals as related to the internationally agreed poverty-related targets and goals, including those contained in Agenda 21, the relevant outcomes of other United Nations conferences and the United Nations Millennium Declaration.
• January 2000 Social Summit +5 As recommended by the World Summit for Social Development, the General Assembly convened a special session in 2000 to revise and assess the implementation of the outcome of the Social Summit and to identify new and further initiatives for social development. The GA held its twenty-fourth special session, entitled “World Summit for Social Development and beyond: achieving social development for all in a globalizing world”, in Geneva from 26 to 30 June 2000. Agreement was reached on a wide array of initiatives to reduce poverty and spur job growth in the global economy. Reducing poverty, promoting job growth, and ensuring the participation of all people in the decision-making process were the main objectives of the agreement. To achieve these goals, countries endorsed actions to ensure improved education and health, including in times of financial crisis. The General Assembly adopted an outcome document entitled “Further initiatives for social development” consisting of a political declaration reaffirming the Copenhagen Declaration on Social Development and Programme of Action of the World Summit for Social Development; a review and assessment of the implementation of the outcome of the Summit; and proposals for further initiatives for social development.
• January 2000 MDG 1 MDG 1 aims at eradicating extreme poverty and hunger. Its three targets respectively read: halve, between 1990 and 2015, the proportion of people whose income is less than $1.25 a day (1.A), achieve full and productive employment and decent work for all, including women and young people (1.B), halve, between 1990 and 2015, the proportion of people who suffer from hunger (1.C).
• January 1997 1st UN Decade for Eradication of Poverty The First United Nations Decade for Eradication of Poverty was declared for the period 1997-2006 by the UN General Assembly at the end of 1995. As theme for the Decade, the GA established at the end of 1996 the following: "Eradicating poverty is an ethical, social, political and economic imperative of humankind."
• January 1997 GA 19th Special Session A GA Special Session (UNGASS-19) was held in June 1997 in order to review and assess progress undergone on Agenda 21. With Resolution A/RES/S-19/2 delegates agreed on the adoption of the Programme for the Further Implementation of Agenda 21. The Programme appraised progress since the UNCED, examined implementation and defined the CSD’s work programme for the period 1998-2002. For the CSD’s subsequent four sessions, poverty and consumption and production patterns were identified as dominant issues for each year by the work programme. Delegates also agreed on the sectoral, cross-sectoral and economic sector/major group themes, endorsed the IPF’s outcome and recommended a continuation of the intergovernmental policy dialogue on forests. Subsequently, the Intergovernmental Forum on Forest (IFF) was established by ECOSOC under the CSD.
• January 1995 Copenhagen Declaration (Social Summit) The Copenhagen Declaration was adopted at the end of the World Summit for Social Development (WSSD), held in March 1995 in Copenhagen. Being the largest gathering of world leaders at that time, this event represented a crucial milestone and pledged to make the conquest of poverty, the goal of full employment and the fostering of stable, safe and just societies overriding objectives of development. Chapter 2 is entirely devoted to eradication of poverty with a particular attention to the strategies to be adopted to achieve concrete results in this matter, to improve access to productive resources and infrastructure, meet the basic human needs of all and to enhance social protection and reduce vulnerability.
• January 1992 Agenda 21 (Chap.3) Chapter 3 of the Agenda describes poverty as "a complex multidimensional problem with origins in both the national and international domains". The Agenda notes that no uniform solution can be found for global application and identifies country-specific programmes to tackle poverty and international efforts supporting national efforts, as well as the parallel process of creating a supportive international environment as crucial tools for a solution to this problem.

Solutions to Poverty

Subscribe to the center for economic security and opportunity newsletter, isabel v. sawhill isabel v. sawhill senior fellow emeritus - economic studies , center for economic security and opportunity @isawhill.

April 26, 2007

Thank you for inviting me to testify on what might be done to reduce poverty in America. As a Senior Fellow and Co-Director of the Center on Children and Families at Brookings, I have done extensive work on these issues; although I should note that the views I will express are my own and should not be attributed to other staff, trustees, or funders of the Brookings Institution. Let me first summarize my testimony.

First, I strongly believe that reducing poverty requires a focus both on what government needs to do and on what individuals need to do. We need a combination of responsible policies and responsible behavior.

Second, although there are many things that might be done to reduce poverty in the U.S., I want to argue for a focus on three priorities: getting a good education, not having children before you marry, and working full-time. Government should expect people to make real efforts to comply with each of these norms. When they do, then government should reward such behavior by making sure that those who play by the rules will not be poor. The analysis we have done at Brookings shows that individuals who play by these rules are much less likely to be poor than those who don’t.

Third, one of the most effective policies we could put in place to ensure that everyone gets a good education would be to provide very high-quality early education to all children from low-income families. Many people believe that education in the preschool years only affects young children. In fact, the evidence from both neuroscience and from carefully done program evaluations shows that preschool experiences have long-lasting effects and may be the most cost-effective way to insure that more children are successful in the K-12 years, graduate from high school, go on to college, and earn more as adults. The federal government could further this goal by providing matching funding to states that are willing to invest in high-quality early education for those living in low-income neighborhoods, starting in the first year of life.

Fourth, too many of our teens and young adults are having children before they are married and before they are ready to be good parents. In my view, the solution to this problem resides as much in the larger culture-in what parents, the media, faith communities and key adults say and do-as it does in any shift in government policy per se. However, government can help by providing resources to those fighting this battle in the nongovernmental sector, by insuring that its own policies do not inadvertently encourage childbearing outside of marriage, and by supporting programs that have had some success in reducing early, out-of-wedlock childbearing.

Finally, encouraging and rewarding work is also very important. I support the idea of work requirements in welfare, and perhaps in other programs as well, but I fear that the kind of increased employment we’ve seen among welfare mothers will be a Pyrrhic victory if we don’t find ways to provide more assistance in the form of a higher minimum wage, a more generous EITC, and additional child care and health care assistance. In my testimony today-at the suggestion of your staff-I will focus especially on preschool education and on the need to decrease childbearing outside of marriage and increase the share of children growing up in two-parent, married families. But I have written elsewhere about the importance of providing additional work supports for low-income working families.

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how to reduce poverty essay

Poverty is a major problem that affects millions of people around the world. It can have devastating effects on individuals and communities, including poor health, limited access to education and job opportunities, and a lower standard of living. This essay will examine the various factors that contribute to poverty, and will provide a comprehensive approach to reducing poverty.

I. Understanding Poverty

A. What is Poverty?

Poverty is defined as the state of being without the basic necessities of life, such as food, shelter, and clothing. It can also refer to a lack of access to education, healthcare, and other important services.

B. Causes of Poverty

Poverty can be caused by a variety of factors, including economic, political, and social factors. Some common causes of poverty include low-paying jobs, lack of access to education, economic downturns, and political instability.

II. Approaches to Reducing Poverty

A. Economic Growth and Job Creation

One of the most effective ways to reduce poverty is to promote economic growth and job creation. This can be done by providing incentives for businesses to invest in areas with high poverty rates, and by creating job training and placement programs to help individuals find work.

B. Education and Skill Development

Education and skill development are also crucial for reducing poverty . By providing access to education and job training programs, individuals can gain the skills and knowledge they need to find better-paying jobs and increase their standard of living.

C. Access to Healthcare

Access to quality healthcare is another important factor in reducing poverty. By providing access to healthcare services, individuals and families can stay healthy and productive, and can avoid the financial burden of medical bills.

D. Social Safety Net Programs

Social safety net programs, such as food stamps and housing assistance, can help to mitigate the effects of poverty by providing support to individuals and families in need. These programs can help to provide basic necessities, such as food and shelter, and can help to alleviate the financial burden of living in poverty.

III. Implementing a Comprehensive Approach to Reducing Poverty

A. Collaboration between Governments, Nonprofits, and Private Sector

Reducing poverty requires a comprehensive and collaborative approach that involves the government, nonprofit organizations, and the private sector. Governments can provide financial support and create programs and policies to help reduce poverty, while nonprofit organizations can provide direct support and services to individuals and families in need. The private sector can provide jobs and investment, and can also support poverty reduction efforts through charitable giving and other initiatives.

B. Targeted and Evidence-Based Programs

In order to be effective, poverty reduction efforts must be targeted and evidence-based. This means that programs and policies must be designed and implemented based on data and evidence about what works and what does not.

C. Long-Term Planning and Investment

Reducing poverty requires long-term planning and investment. Programs and policies must be sustainable and must be designed with the goal of reducing poverty in the long term, rather than just providing short-term relief.

Conclusion:

In conclusion, poverty is a complex and widespread problem that requires a comprehensive approach to reducing poverty. By promoting economic growth and job creation, providing access to education and healthcare, and implementing targeted and evidence-based programs, we can work to reduce poverty and improve the standard of living for millions of people around the world.

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Ending Poverty Through Education: The Challenge of Education for All

About the author, koïchiro matsuura.

From Vol. XLIV, No. 4, "The MDGs: Are We on Track?",  December 2007

T he world made a determined statement when it adopted the eight Millennium Development Goals (MDGs) in 2000. These goals represent a common vision for dramatically reducing poverty by 2015 and provide clear objectives for significant improvement in the quality of people's lives. Learning and education are at the heart of all development and, consequently, of this global agenda. MDG 2 aims to ensure that children everywhere -- boys and girls -- will be able to complete a full course of good quality primary schooling. MDG 3 targets to eliminate gender disparity in primary and secondary education, preferably by 2005, and at all levels by 2015. Indeed, learning is implicit in all the MDGs: improving maternal health, reducing child mortality and combating HIV/AIDS simply cannot be achieved without empowering individuals with knowledge and skills to better their lives. In addition, MDG 8 calls for "more generous official development assistance for countries committed to poverty reduction". The MDGs on education echo the Education for All (EFA) goals, also adopted in 2000. However, the EFA agenda is much broader, encompassing not only universal primary education and gender equality, but also early childhood education, quality lifelong learning and literacy. This holistic approach is vital to ensuring full enjoyment of the human right to education and achieving sustainable and equitable development. What progress have we made towards universal primary education? The EFA Global Monitoring Report 2008 -- Education for All by 2015: Will we make it? -- presents an overall assessment of progress at the halfway point between 2000 and 2015. There is much encouraging news, including: • Between 1999 and 2005, the number of children entering primary school for the first time grew by 4 per cent, from 130 million to 135 million, with a jump of 36 per cent in sub-Saharan Africa -- a major achievement, given the strong demographic growth in the region. • Overall participation in primary schooling worldwide grew by 6.4 per cent, with the fastest growth in the two regions farthest from achieving the goal on education -- sub-Saharan Africa, and South and West Asia. • Looking at the net enrolment ratio, which measures the share of children of primary school age who are enrolled, more than half the countries of North America, Western, Central and Eastern Europe, East Asia and the Pacific, and Latin America and the Caribbean have rates of over 90 per cent. Ratios are lower in the Arab States, Central Asia and South and West Asia, with lows of 33 per cent (Djibouti) and 68 per cent (Pakistan). The challenge is greatest in sub-Saharan Africa, where more than one third of countries have rates below 70 per cent. • The number of children out of school has dropped sharply, from 96 million in 1999 to around 72 million by 2005, with the biggest change in sub-Saharan Africa and South and West Asia, which continue to harbour the largest percentages of children not in school. South and West Asia has the highest share of girls out of school. The MDG on education specifies that both boys and girls should receive a full course of primary schooling. The gender parity goal set for 2005, however, has not been achieved by all. Still, many countries have made significant progress. In South and West Asia, one of the regions with the widest disparities, 93 girls for every 100 boys were in school in 2005 -- up from 82 in 1999. Yet, globally, 122 out of the 181 countries with data had not achieved gender parity in 2005. There is much more to be done, particularly in rural areas and urban slums, but there are strong trends in the right direction. This overall assessment indicates that progress in achieving universal primary education is positive. Countries where enrolments rose sharply generally increased their education spending as a share of gross national product. Public expenditure on education has climbed by over 5 per cent annually in sub-Saharan Africa and South and West Asia. Aid to basic education in low-income countries more than doubled between 2000 and 2004. Progress has been achieved through universal and targeted strategies. Some 14 countries have abolished primary school fees since 2000, a measure that has promoted enrolment of the most disadvantaged children. Several countries have established mechanisms to redistribute funds to poorer regions and target areas that are lagging in terms of access to education, and to offset economic barriers to schooling for poor households. Many countries, including Burkina Faso, Ethiopia, India and Yemen, have introduced specific strategies to encourage girls' schooling, such as community sensitization campaigns, early childhood centres to release girls from caring for their siblings, free uniforms and learning materials. These strategies are working and reflect strong national commitment to achieving universal primary education. Enrolment, however, is only half the story; children need to stay in primary school and complete it. One way of measuring this is the survival rate to the last grade of primary education. Although data are not available for every country, globally the rate of survival to the last grade is 87 per cent. This masks wide regional variations, with medians of over 90 per cent all over the world, except in South and West Asia (79%) and sub-Saharan Africa (63%). Even then, some children drop out in the last grade and never complete primary education, with some countries showing a gap of 20 per cent between those who enter the last grade and those who complete it. One of the principal challenges is to improve the quality of learning and teaching. Cognitive skills, basic competencies and life-skills, as well as positive values and attitudes, are all essential for development at individual, community and national levels. In a world where the acquisition, use and sharing of knowledge are increasingly the key to poverty reduction and social development, the need for quality learning outcomes becomes a necessary essential condition for sharing in the benefits of growing prosperity. What children take away from school, and what youth and adults acquire in non-formal learning programmes, should enable them, as expressed in the four pillars of the 1996 Delors report, Learning: The Treasure Within, to learn to know, to do, to be and to live together. Governments are showing growing concern about the poor quality of education. An increasing number of developing countries are participating in international and regional learning assessments, and conducting their own. Evidence shows that up to 40 per cent of students do not reach minimum achievement standards in language and mathematics. Pupils from more privileged socio-economic backgrounds and those with access to books consistently perform better than those from poorer backgrounds with limited access to reading materials. Clear messages emerge from these studies. In primary education, quality learning depends, first and foremost, on the presence of enough properly trained teachers. But pupil/teacher ratios have increased in sub-Saharan Africa and South and West Asia since 1999. Some 18 million new teachers are needed worldwide to reach universal primary education by 2015. Other factors have a clear influence on learning: a safe and healthy physical environment, including, among others, appropriate sanitation for girls; adequate learning and teaching materials; child-centred curricula; and sufficient hours of instruction (at least 800 hours a year). Initial learning through the mother tongue has a proven impact on literacy acquisition. Transparent and accountable school governance, among others, also affects the overall learning environment. What then are the prospects for achieving universal primary education and gender parity? The EFA Global Monitoring Report 2008 puts countries into two categories depending on their current net enrolment rate: 80 to 96 per cent, and less than 80 per cent. For each category, it then assesses whether current rates of progress are likely to enable each country to reach the goal by 2015. Noting that 63 countries worldwide have already achieved the goal and 54 countries cannot be included in the analysis due to lack of adequate data, the status is as follows: Out of the 95 countries unlikely to achieve gender parity by 2015, 14 will not achieve it in primary education and 52 will not attain it at the secondary level. A further 29 countries will fail to achieve parity in both primary and secondary education. The international community must focus on giving support to those countries that are currently not on track to meet the MDGs and the EFA goals, and to those that are making progress. On current trends, and if pledges are met, bilateral aid to basic education will likely reach $5 billion a year in 2010. This remains well below the $9 billion required to reach universal primary education alone; an additional $2 billion are needed to address the wider context of educational development. Ensuring that adults, particularly mothers, are literate has an impact on whether their children, especially their daughters, attend school. In today's knowledge-intensive societies, 774 million adults are illiterate -- one in four of them women. Early learning and pre-school programmes give children a much better chance to survive and succeed once they enter primary school, but such opportunities are few and far between across most of the developing world, except in Latin America and the Caribbean. Opportunities for quality secondary education and ongoing learning programmes provide motivation for students to achieve the highest possible level of education and view learning as a lifelong endeavour. The goals towards which we are striving are about the fundamental right to education that should enable every child and every adult to develop their potential to the full, so that they contribute actively to societal change and enjoy the benefits of development. The challenge now is to ensure that learning opportunities reach all children, youth and adults, regardless of their background. This requires inclusive policies to reach the most marginalized, vulnerable and disadvantaged populations -- the working children, those with disabilities, indigenous groups, linguistic minorities and populations affected by HIV/AIDS.

Globally, the world has set its sights on sustainable human development, the only prospect for reducing inequalities and improving the quality of life for present and future generations. In this perspective, Governments, donors and international agencies must continue working jointly towards achieving universal primary education and the broader MDG agenda with courage, determination and unswerving commitment. To find out more about the EFA Global Monitoring Report 2008, please visit ( www.efareport.unesco.org ).

The UN Chronicle  is not an official record. It is privileged to host senior United Nations officials as well as distinguished contributors from outside the United Nations system whose views are not necessarily those of the United Nations. Similarly, the boundaries and names shown, and the designations used, in maps or articles do not necessarily imply endorsement or acceptance by the United Nations.

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Poverty Essay for Students and Children

500+ words essay on poverty essay.

“Poverty is the worst form of violence”. – Mahatma Gandhi.

How Poverty is Measured?

For measuring poverty United nations have devised two measures of poverty – Absolute & relative poverty.  Absolute poverty is used to measure poverty in developing countries like India. Relative poverty is used to measure poverty in developed countries like the USA. In absolute poverty, a line based on the minimum level of income has been created & is called a poverty line.  If per day income of a family is below this level, then it is poor or below the poverty line. If per day income of a family is above this level, then it is non-poor or above the poverty line. In India, the new poverty line is  Rs 32 in rural areas and Rs 47 in urban areas.

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Causes of Poverty

According to the Noble prize winner South African leader, Nelson Mandela – “Poverty is not natural, it is manmade”. The above statement is true as the causes of poverty are generally man-made. There are various causes of poverty but the most important is population. Rising population is putting the burden on the resources & budget of countries. Governments are finding difficult to provide food, shelter & employment to the rising population.

The other causes are- lack of education, war, natural disaster, lack of employment, lack of infrastructure, political instability, etc. For instance- lack of employment opportunities makes a person jobless & he is not able to earn enough to fulfill the basic necessities of his family & becomes poor. Lack of education compels a person for less paying jobs & it makes him poorer. Lack of infrastructure means there are no industries, banks, etc. in a country resulting in lack of employment opportunities. Natural disasters like flood, earthquake also contribute to poverty.

In some countries, especially African countries like Somalia, a long period of civil war has made poverty widespread. This is because all the resources & money is being spent in war instead of public welfare. Countries like India, Pakistan, Bangladesh, etc. are prone to natural disasters like cyclone, etc. These disasters occur every year causing poverty to rise.

Ill Effects of Poverty

Poverty affects the life of a poor family. A poor person is not able to take proper food & nutrition &his capacity to work reduces. Reduced capacity to work further reduces his income, making him poorer. Children from poor family never get proper schooling & proper nutrition. They have to work to support their family & this destroys their childhood. Some of them may also involve in crimes like theft, murder, robbery, etc. A poor person remains uneducated & is forced to live under unhygienic conditions in slums. There are no proper sanitation & drinking water facility in slums & he falls ill often &  his health deteriorates. A poor person generally dies an early death. So, all social evils are related to poverty.

Government Schemes to Remove Poverty

The government of India also took several measures to eradicate poverty from India. Some of them are – creating employment opportunities , controlling population, etc. In India, about 60% of the population is still dependent on agriculture for its livelihood. Government has taken certain measures to promote agriculture in India. The government constructed certain dams & canals in our country to provide easy availability of water for irrigation. Government has also taken steps for the cheap availability of seeds & farming equipment to promote agriculture. Government is also promoting farming of cash crops like cotton, instead of food crops. In cities, the government is promoting industrialization to create more jobs. Government has also opened  ‘Ration shops’. Other measures include providing free & compulsory education for children up to 14 years of age, scholarship to deserving students from a poor background, providing subsidized houses to poor people, etc.

Poverty is a social evil, we can also contribute to control it. For example- we can simply donate old clothes to poor people, we can also sponsor the education of a poor child or we can utilize our free time by teaching poor students. Remember before wasting food, somebody is still sleeping hungry.

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How to Cope with the Issues on Poverty and Unemployment

Last Updated: December 18, 2023 References

This article was co-authored by Alex Kwan and by wikiHow staff writer, Kira Jan . Alex Kwan is a Certified Public Accountant (CPA) and the CEO of Flex Tax and Consulting Group in the San Francisco Bay Area. He has also served as a Vice President for one of the top five Private Equity Firms. With over a decade of experience practicing public accounting, he specializes in client-centered accounting and consulting, R&D tax services, and the small business sector. There are 32 references cited in this article, which can be found at the bottom of the page. This article has been viewed 71,642 times.

Unemployment and poverty are linked, since a lack of income makes it hard for people to make ends meet. What can communities and governments do to reduce poverty and unemployment? Whether you’re a student or an activist, we’ve outlined the top strategies and policies recommended by experts to help you understand these complex economic issues. The solutions fall into three major buckets–helping people become more employable, creating more jobs, and supporting governmental programs to stop the cycle of poverty.

Promote education for everyone.

• Donate to scholarship funds. For instance, you can donate to the Children’s Scholarship Fund to support K-8 education in the U.S. at https://scholarshipfund.org/
• Support afterschool tutoring programs and mentorship programs that connect students with caring adults. [5] X Trustworthy Source PubMed Central Journal archive from the U.S. National Institutes of Health Go to source Visit https://secure.givelively.org/donate/afterschool-alliance to donate.
• Give money to funds that pay for transport to and from school. Search online to find local and state funds that support kids near you.

Make job training more accessible.

• Governments can provide federally-funded or state-funded job training programs. These are often run by state workforce development commissions.

Create microfinance programs.

• New studies on the impacts of microfinance question whether it’s a solution that truly benefits the poor. While it may help empower female entrepreneurs living in poverty, microfinance can potentially worsen overall debt. [13] X Research source

Increase jobs in labor-intensive industries.

• Economists find that employing more people (rather than using machines) doesn’t result in the huge drop in productivity you might imagine. [15] X Research source

To address poverty and unemployment, education, job training, microfinance, and counseling must combine with policy transformation. Safety nets must cover all while infrastructure and hiring incentives create good jobs. Healthcare access and affordability need improving too. With coordination across sectors, cycles trapping people in poverty can end.

Invest in infrastructure.

• Beyond just providing jobs, infrastructure development makes the economy more connected. When there’s more infrastructure, it’s easier for people to travel around in order to buy or sell goods and services.
• For instance, to help alleviate poverty and unemployment in the rural Philippines, better access to roads and the internet could help farmers sell their goods. [17] X Research source

Reduce barriers to unemployment insurance.

• Some states specify that only people with a certain work history length can receive unemployment benefits, and adjusting work history requirements could more people eligible. [20] X Research source
• States also could consider eliminating waiting periods for people to receive their unemployment insurance benefits. Currently, 42 states require people to wait 1 week to receive benefits. [21] X Research source
• To receive unemployment benefits, you have to prove you lost your job through no fault of your own. States might consider changing what qualifies as an “acceptable” cause of unemployment. [22] X Research source

Create affordable housing.

• For example, one region might say you have to be 50% below the median income for an area while another region might say you qualify if your income is 80% below the median income.

Ensure access to clean water and sanitation.

• Communities can improve access to water by helping people create water safety plans for keeping water contaminant-free and building water filtration systems and wells. [27] X Trustworthy Source World Health Organization Health information and news provided by the World Health Organization Go to source
• Visit The Water Project ( https://thewaterproject.org/ ) or Charity Water ( https://www.charitywater.org/ ) to donate and support bringing clean water to those in need.

Improve access to healthcare.

• On the provider level, doctors have to understand that patients in poverty might face greater obstacles to getting treatment.
• Patients in poverty may find medications too expensive, may lack transportation to get to the doctor’s office, and may not have a work schedule that lets them easily see a doctor. [29] X Trustworthy Source American Academy of Family Physicians Organization devoted to improving the health of patients, families, and communities Go to source

Offer counseling services to support families in poverty.

• Connect families in need to a Federally Qualified Health Center if they can’t afford to pay for psychological services. [32] X Research source

Increase access to financial services.

• For instance, creating free digital banking services can make it easy for people to access accounts. [34] X Research source
• In the U.S., predatory financial services, like high-cost mortgage firms, have historically targeted Black and Latino communities. Today, these communities are 30-86% more likely to be financially “underwater” as a result of high-cost mortgages. [35] X Research source

Support single-mother households.

• Support single mothers in your community by donating kids’ clothes and toys and contributing staples like canned goods to your local food bank. [37] X Research source
• If you know a single mother, offer to babysit, or carpool to school if you have kids of your own.
• In 2013, federal benefits reduced the poverty rate among single mothers by half.

Improve fairness in criminal justice systems.

• Incarceration negatively impacts communities of color more than white communities.
• Visit The Sentencing Project ( https://www.sentencingproject.org/actions/ ) to take action and connect with state and local partners working towards legal reform.

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• ↑ https://en.unesco.org/news/world-poverty-could-be-cut-half-if-all-adults-completed-secondary-education
• ↑ https://www.oecdbetterlifeindex.org/topics/education/
• ↑ https://educateachild.org/explore/barriers-to-education
• ↑ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2528798/
• ↑ Alex Kwan. Certified Public Accountant. Expert Interview. 23 April 2021.
• ↑ https://prospect.org/special-report/education-cure-poverty/
• ↑ https://www.americanprogress.org/issues/economy/reports/2018/02/22/447115/better-training-better-jobs/
• ↑ https://www.un.org/africarenewal/magazine/august-2015/microfinance-good-poor
• ↑ https://journals.sagepub.com/doi/full/10.1177/0018726716640865
• ↑ https://www.un.org/development/desa/socialperspectiveondevelopment/issues/employment-and-decent-work.html
• ↑ https://ideas.repec.org/a/sls/ipmsls/v28y20154.html
• ↑ https://www.brookings.edu/research/expanding-opportunity-through-infrastructure-jobs/
• ↑ https://www.imf.org/en/News/Articles/2020/02/06/na020620the-philippines-a-good-time-to-expand-the-infrastructure-push
• ↑ https://www.cbpp.org/research/introduction-to-unemployment-insurance
• ↑ https://www.urban.org/research/publication/how-does-unemployment-affect-family-arrangements-children
• ↑ https://www.cbpp.org/research/federal-budget/cares-act-measures-strengthening-unemployment-insurance-should-continue
• ↑ https://www.booker.senate.gov/news/press/coronavirus-booker-introduces-bill-to-get-unemployment-assistance-immediately-to-laid-off-workers
• ↑ https://www.wpr.org/evers-aims-increase-unemployment-benefits-lower-barriers
• ↑ https://archives.hud.gov/local/nv/goodstories/2006-04-06glos.cfm
• ↑ https://www.hud.gov/topics/rental_assistance/phprog
• ↑ https://news.un.org/en/story/2021/03/1087682
• ↑ https://thewaterproject.org/why-water/poverty
• ↑ https://www.who.int/westernpacific/activities/improving-access-to-safe-water-sanitation-and-hygiene
• ↑ https://www.worldbank.org/en/topic/health/brief/poverty-health
• ↑ https://www.aafp.org/about/policies/all/poverty-health.html
• ↑ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7525587/
• ↑ https://www.hrsa.gov/opa/eligibility-and-registration/health-centers/fqhc/index.html
• ↑ https://www.policylink.org/sites/default/files/BreakingTheCycle_0.pdf
• ↑ https://www.worldbank.org/en/topic/financialinclusion/overview#2
• ↑ https://www.brookings.edu/testimonies/renewing-communities-and-providing-opportunities-through-innovative-solutions-to-poverty/
• ↑ https://parents-together.org/11-realistic-ways-to-support-single-parents-during-the-covid-19-crisis/
• ↑ https://www.americanactionforum.org/research/incarceration-and-poverty-in-the-united-states/

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Solutions to Poverty to Get Us To 2030

What would Zero Poverty look like for the world in 2030? Here are a few starting points.

Apr 24, 2022 | By: Angela Maya

If you believe, like we do at Concern, that we can end poverty, then the next question is: How? There’s no one simple process for achieving this goal, but that doesn’t make it impossible. Here are seven solutions to poverty that guide our work in 24 countries around the world.

Stand With Concern in the Fight for Zero Poverty

1. eliminating poverty through equity.

One of the main causes of poverty is inequality. The systemic barriers that lead to groups of people going without representation in their communities leaves them further behind in terms of resources and opportunity. In order for a community, or even a country, to alleviate poverty,  all  groups and identities must be involved in creating solutions.

One of the biggest inequalities we need to address is gender inequality. According to the  UN’s High-Level Panel for Women’s Economic Empowerment , women’s unpaid labor adds up to $10 trillion per year — 13% of the global GDP.  According to the Food and Agriculture Organization , women own less than 20% of agricultural land in parts of Africa and Asia, yet make up 60% of the agricultural workforce. As former FAO Director-General José Graziano da Silva said in 2016:

"Women are the backbone of our work in agriculture...when women have opportunities, the yields on their farms increase -- also their incomes. Natural resources are better managed. Nutrition is improved. And livelihoods are more secured."

One other important thing to note: By equality, we mean that every person must have an equality of  results  versus equality of resources. This may mean additional resources for the furthest behind, in order to ensure that they have all they need to succeed.

2. Reducing Poverty With Resilience

Poverty happens when a high amount of inequality meets a high amount of risk.

For instance, the  Democratic Republic of Congo  has suffered ongoing conflict since gaining independence from Belgium in 1960. This has left millions of Congolese vulnerable, either living in conflict zones or in displacement camps (or both). When another crisis hits, like the  DRC’s 2019 Ebola epidemic  or  2021’s Mount Nyiragongo eruption , people are much less able to cope because their resources have already been worn thin.

To offset this, we need to ensure that the most vulnerable people and communities are able to build  resilience . While the meaning of that phrase has changed in recent years, it means something very concrete in  humanitarian aid  and development. Resilience for us means working with communities to prepare for disasters — whether manmade or natural — in advance. It also means adapting to long-term changes (such as fighting climate change with  Climate Smart Agriculture  or creating programs to support the education, safety, and livelihoods of  refugees or IDPs ). These solutions to poverty help to offset the level of vulnerability communities may have in the face of risks — or even reduce the level of risk.

3. Commit to climate change solutions and climate justice

Resilience against climate change is especially important and deserves its own mention. According to the World Bank , climate change could force an additional 100 million people into extreme poverty over the next decade without any urgent action taken.

Concern maintains overall climate responses (such as Disaster Risk Reduction ), as well as specific programs (like Paribartan in India and Bangladesh , BRCiS in Somalia , and RAPID in Pakistan ). But one of the solutions to poverty that goes beyond any humanitarian mandate is a governmental commitment to climate justice, particularly on the parts of high-income countries whose carbon emissions are higher than those of the low-income countries hit hardest by climate change.

4. Eradicating poverty through education

According to UNESCO, if all students in low-income countries had just basic reading and writing skills (nothing else), an estimated 171 million people could escape extreme poverty. If all adults completed secondary education, we could cut the global poverty rate by more than half. Education develops skills and abilities, corrects some of the imbalances that come out of marginalization, and decreases both risk and vulnerability.

Some of the key areas of focus for making sure that education is truly for all involve breaking down the barriers to education : creating access to school in remote areas, supporting teachers in their work to deliver quality education , and making sure that education is available to children living in fragile contexts.

5. Halting poverty by ending hunger (and thirst)

Simply eating three meals a day and getting a healthy amount of calories and nutrients can go a long way to breaking the cycle of poverty . When a person doesn’t have enough to eat, they lack the strength and energy needed to work. Contaminated water can lead to debilitating illnesses.

What’s more, improving access to clean water can mean that those who live in rural communities. If you go back to our first point on inequality, you might be able to guess that water is a women's issue . Current estimates suggest that women and girls collectively spend 200 million hours every day walking long distances to fetch water.

Adequate healthcare options for all goes hand-in-hand with this solution, and represents a larger need for governments to offer the basic social protections and services to keep their citizens healthy, and give them affordable treatment options when they aren’t.

6. Poverty alleviation through peace

Ending all war — while ambitious — means that budgets allocated to cover the cost of conflict can be used to deliver public services. It also reduces risks faced by the most vulnerable communities, and ensures that goals towards equality and inclusion can be maintained.

We’ve seen this play out time and again: While estimates around data for the country vary, Syria 's poverty rate following the start of the Syrian crisis increased from approximately 12% in 2007 to 83% in 2019. Conversely, in Nepal, a decade-long civil war came to a close in 2006. This correlated with a sharp increase in gross national income (GNI) and gross domestic product (GDP) year-over-year.

Likewise, the establishment of a United Nations peacekeeping operation in Cambodia in 1992 (following a deadly civil war and war with Vietnam) helped to forge stability within the country and grow its middle class: The country’s poverty rate dropped from 47.8% in 2007 to 13.5% by 2014.

7. Cash solves poverty

It may seem like the simplest of answers, but cash and microfinance are two of the best solutions to poverty.

One of the ways Cambodia’s transition from wartime to peace (including the repatriation of over 300,000 Cambodian refugees) was so smooth was thanks to the idea of buying on credit. Such an influx of returnees could place a strain on resources and create financial dire straits, microfinancing models introduced into the country helped to establish village savings and loans , insurance, and cash transfer services in communities that need them the most, allowing people to purchase the tools and services they need in order to become self-sufficient. Between 1998 and 2018, Cambodia’s economy grew by an average of 8% each year, and its middle class began to flourish.

While the traditional image of humanitarian aid may be crates of supplies like food, water, and tents, distributing cash has become more common. It’s cheaper and faster to get into a country (and can even be distributed by phone now). It also gives recipients the autonomy to make their own purchasing decisions, and supports local and national economies.

Sometimes, a small startup grant (even as small as $100) is all it takes to help a family living below the poverty line to launch a new business while keeping on top of their bills and keeping their children fed. The net effect is that they are able to lift themselves out of poverty in a sustainable manner, like Stawa James in Malawi .

It’s a small step — but one that promises a ripple effect of change.

Solutions to Poverty in Action

How Village Savings and Loans Associations Are Beating Poverty Around the World

Climate Smart Agriculture: Back to the basics to fight climate change and hunger

Cash transfers, explained: A solution that beats poverty and stereotypes

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Five Easy Ways Students Can Help Reduce Poverty

Almost 24.3 percent of people in Pakistan live below the international poverty line of $1.90 a day, and the situation doesn’t appear to be getting better with each passing day. Although there are a number reasons that are said to be the basis of abject poverty, a lack of education of generations after generations is one of the key reasons. Now, the question is, how we, as students, can help to reduce poverty?

Education has a direct impact on the fortunes of an individual. It provides greater knowledge and learning to students to afford better paying jobs that help them and their households escape the clutches of poverty. On the contrary, a mason’s son that isn’t offered any education would continue to be a mason, never really amassing the means to turn his fortunes around.

Sadly, those living in conditions of extreme poverty sometimes cannot even afford the most meagre costs associated with the most inexpensive of educations; like those offered at public schools. It is, therefore, the collective responsibility of the community at large to step up efforts to help people living in such conditions gather the means to earn better livelihoods. And helping impoverished households afford education for their children is a great first step.

Considering that students are a vital force of bringing about changes in a society, we list five easy ways students can help reduce poverty and change the fate of millions who are less fortunate than us. On International Day For Eradication of Poverty 2018, it’s time to think beyond our immediate selves.

Volunteer To Teach

One of the simplest ways in which youngsters that have the gift of knowledge can give back to the community is by volunteering to teach at various charity-based schools. Entities like SOS Schools, Door of Awareness etc are doing a great job to impart education to the less privileged and students who already have knowledge under their belts can join hands with them to help the less fortunate. Various other NGOs such as Ocean Welfare Organization and Azad Foundation are working for the education of street children in Pakistan. Students can step in as volunteers and provide street children some of the knowledge that they have amassed during their academic journeys.

Pitch In Money To Buy School Supplies For Poor 

More often than not, poor people lack the resources and financial means for educating their children and are often hard pressed to afford stuff like uniforms and stationery items. For them, education really is an unaffordable luxury. But a little effort from students can help someone afford that luxury. Friends at universities or colleges can get together and create a pool with their pocket monies dedicated to helping such households afford education and related expenses for their children. It is a common issue that poor people just cannot continue the education of their children for want of expensive books and other stationery items and helping them in this respect can ensure that children do not drop of schools over such issues.

Help Fund Someone’s Vocational Training

A university or college education is certainly a costly affair and possibly outside the budget of even the most financially gifted students. However, vocational courses cost much less and friends can pool in to help someone attain skills’ training at such an institution. The training (electrician, cook, mechanic, tailor) received by a sponsored student can up his chances of making a decent livelihood that is both well-paying and sustainable, compare to something like day labouring.

Come Together To Teach Unprivileged Children At Home

If you are still thinking about your budgetary constraints, you can always find a way to help the poor with education from within the comfort of your house. You and your friends can schedule some time to teach poor children from the neighbourhood who otherwise cannot afford education. You can also teach and educate people working at your house, like maids, servants, domestic help etc. If all else seems undoable, you can surely help the children of your helpers to understand the coursework they are taught at their individual schools.  

Gather Friends To Sponsor A Child’s Education 

Even greater would be if a group of friends collectively sponsors a child’s education. Say a fee of Rs 2,000 for a child divided among 10 friends would hardly dent the budget of those students. However, it could be the difference between a lifetime of poverty and a shot at a better life for someone in need.

Numerous NGO’s such as the Citizen’s Foundation organize donation drives for underprivileged children on a monthly basis. They sponsor their education and make them a responsible member of the society. You can either register yourself for such projects or can initiate individual efforts. You can collect money on a monthly basis from your friends and family and can support a child’s education at a local school or college.

Have more ideas about how students and young people can contribute to reduce poverty and making Pakistan a better place through education? Share your thoughts with us.

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• Poverty Essay for Students in English

Essay on Poverty

Poverty is a disease that has no cure. The deeper this disease is, the deeper its wound. By the way, man lives under compulsion. But usually one wants to avoid it. Poverty is a condition of extreme poverty for any person or human being. This is a situation when a person starts to lack important things in his life such as the roof, necessary food, clothes, medicines, etc. to continue his life.

The causes of poverty are excessive population, fatal and contagious diseases, natural disasters, low agricultural yields, unemployment, casteism, illiteracy, gender inequality, environmental problems, changing trends in the economy of the country, untouchability, little or limited access to people's rights, Problems such as political violence, sponsored crime, corruption, lack of encouragement, inaction, ancient social beliefs, etc. have to be faced.

Poverty has become a big problem of the world, efforts are being made across the world today to remove poverty, but the problem is that it does not take the name of ending. This problem affects a human's economic and daily life. Poverty teaches man to live like a slave in which he has to change the place over time, in this situation due to the lack of education of the poor, his nature and speech also make a difference. Living in a world of poor people has become a curse. Getting enough money to get food is like getting relief from a curse for the poor, that's why they do not have access to education.

Reasons of Poverty

There are many reasons that have continued with carrying it for a long time. Because of this,  freedom, mental and physical fitness, and lack of security in a person remains. It is very important that in order to live a normal life, the country and the whole world will have to work together to bring proper physical and mental health, complete education, a home for everyone, and other important things.

In today's time, there is the problem of poverty which gives all the pain, pain, and despair to the poor. Due to the lack of money from poverty, I show the lack of many things. Poverty makes children spend life in compulsion. If forced to make bread, sometimes in bringing children's books. At that time he is also unable to raise children.

We can tell poverty in many ways like it has become a common thing in India. Most of the people here are unable to get the things they need. Here a vast section of the population is illiterate, hungry, and forced to live without clothes and a home. About half of India's population suffers from this epidemic of poverty.

A poor person lives his life without possession of basic things like food for two times, clean water, house, clothes, proper education, etc. There are many reasons for poverty in India. Incorrect distribution of national income is also a reason. People in the low-income group are much poorer than those in the high-income group. Children of poor families never get proper education, nutrition, and a happy childhood environment. The main cause of poverty is illiteracy, corruption, growing population, weak agriculture, the growing gap between rich and poverty, etc.

Measures to Control Poverty

Corruption has to be erased.

Unemployed will have to give proper employment

A growing population will have to be stopped

Farmers have to be given proper facilities for farming

Education should be provided to children for proper education

Poverty is not just a human problem but it is a national problem. It should be solved by implementing some effective methods on a quick basis. Every person should be united by ending corruption. A problem has been created in which he does not get even the basics. That is why at present, many measures are being taken to prevent poverty so that the standard of living of people around the world can be improved.

Short Essays on Poverty

Poverty is akin to being a slave, as a person cannot achieve anything he desires. It has various faces that alter depending on who you are, where you are, and when. It can be defined in various ways depending on how a person feels or experiences it.

Poverty is a state that no one wants to be in, but it must be removed owing to cultural norms, natural disasters, or a lack of adequate education. The individual who is experiencing it frequently wishes to flee. Poverty is a call for poor people to earn enough money to eat, have access to education, have adequate shelter, dress appropriately, and take steps to protect themselves from social and political violence.

It's a problem that goes unnoticed yet significantly impacts a person's social life. Poverty is an entirely avoidable problem, but there are various reasons why it has persisted in the past.

Poverty robs people of their freedom, mental health, physical well-being, and security. Everyone must strive to eradicate poverty from the country and the world, ensuring appropriate physical and mental health, full literacy, a home for all, and other necessities for living a simple life.

When a person cannot do anything according to his will, he is said to be in poverty. Many different faces alter depending on who you are, where you are, and time. It can be characterized in a variety of ways, depending on how the person feels or what they have achieved. Poverty is a circumstance that no one wants to be in, even if it is forced upon them due to a lack of experience, nature, natural disasters, or a lack of suitable education. Humans have won it, but they prefer to stay away from it. Poverty is a call for needed clothing and protection against social and political violence for the poor to earn enough money to buy food, receive an education, and find a suitable place to live.

This is an unseen problem that harms a person's social life. Even though numerous factors have contributed to its long-term persistence, poverty is a perfectly preventable problem. As a result, a person's freedom, mental and physical well-being, and sense of security are all compromised. It is critical to bring poverty and poverty from worldwide to work together to live everyday life, provide adequate physical and mental health, complete education, a home for everyone, and other essential things.

FAQs on Poverty Essay for Students in English

1. What are the Effects of Poverty?

When people are not able to afford their basic necessities. For example medications and hospital fees are impossible to afford for that means they choose crook ways of obtaining money i.e. stealing, robbery, etc.  

2. What are the Possible Ways to Remove Poverty?

Since India is a developing country, eliminating poverty here is much tougher than in other countries but still some measures can be taken and government assistance would be much helpful in this step which requires some relevant planning and policies for those who fall under the poverty line. Another major factor of poverty is illiteracy and unemployment. Therefore education is the most efficient tool to confine the poverty line in the country. 

3. What is the Poverty Line?

The Below Poverty Line (BPL) signifies the state of people who fall under poverty status. It also symbolizes an economic drawback. In addition, it is used for people who are in need of help and assistance from the government.

4. What are the causes of poverty?

Poverty has several causes, including a lack of access to essentials such as water, food, shelter, education, and healthcare. Poverty is also caused by inequities such as gender or ethnic discrimination, bad governance, conflict, exploitation, and domestic violence. These disparities not only cause a person or a society to fall into poverty, but they can also prevent people from receiving social assistance that could help them get out of it. Due to political upheaval, past or present conflict, corrupt authorities, and lousy infrastructure that restricts access to education, clean water, healthcare, and other essentials, children and communities in fragile states confront greater poverty rates.

5. What can we do to put an end to extreme poverty?

We can aid in the eradication of extreme poverty by determining what causes it in a particular community and then determining what needs to change. Because poverty manifests itself differently in different regions and is caused by different circumstances, the work to end extreme poverty differs depending on the situation. More economic resources are needed to assist people in increasing their income and better providing for themselves and their families. To ensure that poverty does not return, the work must be sustainable, regardless of the solution. As a result, the community must be involved at every stage.

6. What criteria are used to assess poverty?

Each country's government determines poverty levels by conducting home surveys of its citizens. The World Bank, for example, assists and may conduct their surveys, although data collecting is time-consuming and slow. New high-frequency surveys are being created and tested, leveraging estimations and mobile phone technologies. If you want to learn more about these topics, download the Vedantu App that has been specifically designed and curated for students by experts.

7. What is the poverty cycle?

Poverty can be a catch-22 situation. To escape poverty, a person requires access to possibilities such as education, clean water, local medical services, and financial means. Poverty creates a generational cycle if these critical factors are not there. If parents cannot afford to take their children to school, they will struggle to find work when they grow up. Even natural disasters and conflicts can exacerbate the poverty cycle by bringing more people.

8. What are the United Nations' Sustainable Development Goals (SDGs)?

The Sustainable Development Goals (SDGs) are a set of goals for countries worldwide to work together in a global partnership for the benefit of people, the environment, and prosperity. The Sustainable Development Goals aim to abolish extreme poverty for all people everywhere by 2030 and to reduce the proportion of people living in poverty in all forms by at least half. In September 2015, the United Nations member states accepted this objective as one of 17 to end extreme poverty.

To end extreme poverty, getting back to pre-COVID-19 reduction rates is not enough

Marta schoch, nishant yonzan, christoph lakner.

This is the first blog in a series about how countries can correct course and make progress in global poverty reduction. For more information on the topic, read the 2022 Poverty and Shared Prosperity Report .  

In 2020, the COVID-19 crisis caused the most significant setback to global poverty reduction in decades, with 71 million more people living in extreme poverty in that year compared to 2019  . But a closer look at poverty trends shows that there’s more to the story: progress in poverty reduction was already slowing before the pandemic hit. 

Slowing progress 

From 1990 to 2014, the world made astonishing progress in reducing extreme deprivation: more than one billion people moved out of extreme poverty. The global poverty rate declined by 1.1 percentage points a year on average, from 37.8 percent in 1990 to 11.2 percent in 2014 (Figure 1).  

Figure 1: Global poverty at the US$2.15 poverty line, 1990-2019

Yet, in the period that followed, between 2014 and 2019, poverty reduction slowed to 0.6 percentage points a year — the slowest rate over the past three decades  (Figure 2). Poverty fell on average by at least one percentage point per year in all the five-year spells preceding 2015 – except for the 1995-2000 period when the Asian financial crisis caused global poverty to increase for two years in a row (1996-1998). Mathematically, it is harder to keep up the pace of poverty reduction at lower poverty rates. However, this is not the root cause for the change in trend. The main reason for the slowdown is that extreme poverty is becoming increasingly concentrated in regions with lower per capita income growth.  

Unequal progress

Two regions, East Asia and the Pacific and South Asia, accounted for most of the reduction in global poverty between 1990 and 2014. In East Asia and the Pacific, extreme poverty fell from 66 percent of the population in 1990 to 4 percent by 2014. In South Asia, poverty was reduced from 50 percent in 1990 to 18 percent in 2014. By 2014, these two regions accounted for a much smaller share of the global extreme poor. In contrast, poverty fell at a much slower rate in Sub-Saharan Africa: from 60 percent in 1990 to 38 percent in 2014.  

Figure 2:  Annualized change in the global poverty rate, by period

After 2014, South Asia was the only region with a considerable share of the global poor that continued with substantial poverty reduction. In the five years between 2014 to 2019, the region halved its extreme poverty rate to 9 percent. In Sub-Saharan Africa, as GDP growth slowed and the population continued growing fast, poverty fell by only three percentage points to 35 percent.  

With that, the share of the global extreme poor living in Sub-Saharan Africa reached 60 percent in 2019 — 389 million of the 648 million people in extreme poverty globally. This is six times higher than the region’s share in 1990 — when the region accounted for only 13 percent of the total (Figure 3).  

Figure 3:  Regional distribution of the global poor, 1990 - 2019 

What does this mean for the goal of ending extreme poverty globally?

These regional trends have important implications for our ability to reach the first Sustainable Development Goal of eradicating global poverty by 2030 or the World Bank Group’s target of reducing global extreme poverty to under three percent by 2030. The estimates beyond 2019 utilize data from Mahler ⓡ Yonzan ⓡ Lakner (2022) for 2020 and growth forecasts from the Global Economic Prospects for years 2021 to 2024 as described here . Beyond 2024, poverty is projected using each country’s historical average growth from the 2010-2019 period (see Poverty and Shared Prosperity Report 2022 for details).

We estimate that poverty will decline to less than three percent of the population in most regions by 2030  — although insufficient data make projections uncertain for the Middle East and North Africa. Yet, to reach such a target in Sub-Saharan Africa, each country in the region would need to grow at about eight times the average annual growth rates achieved between 2010 and 2019.

In a more realistic scenario, we expect 30 percent of the population in Sub-Saharan Africa to be still living in extreme poverty in 2030. This would bring global extreme poverty close to 7 percent in 2030, more than double the World Bank Group’s goal of 3 percent (Figure 4).

Figure 4: Projecting extreme poverty to 2030 

Addressing fragility

One of the reasons for the high levels of poverty in Sub-Saharan Africa is the strong link between extreme poverty and a country’s fragile and conflict-affected status . Only 10 percent of the global population lives in fragile and conflict-affected areas, yet these countries are home to 40 percent of those living in extreme poverty. 

Of the 46 African countries with available data for global poverty monitoring, 19 are affected by conflict and fragility, according to 2019 data. These include the most populous country in the region, Nigeria, which has seen little progress in poverty reduction over the decade leading up to the pandemic , and the second poorest country in the region, the Democratic Republic of Congo, where more than half of the population lived in extreme poverty in 2019.

Fragility also contributed to rising poverty in the Middle East and North Africa. Extreme poverty rates are still relatively low there, but it is the only region where poverty levels have been increasing since 2014, driven mostly by the situation in fragile and conflict-affected economies. The latest data for the region shows the extreme poverty rate at 7.5 percent, three times higher than in 2014. However, the estimates for the Middle East and North Africa are subject to a great degree of uncertainty. Due to the lack of recent survey data for some countries, data coverage in the region fell below 50 percent in 2019, preventing a regional poverty estimate from being published . The latest data are from 2018.

As we live through a time of uneven post-COVID-19 economic recovery and other crises, timely and accurate data to measure progress on extreme poverty reduction will be crucial . Improvements in data availability have taken place in several parts of Sub-Saharan Africa, especially in West Africa . Yet critical gaps persist in others, such as East and Southern Africa. As poverty remains increasingly concentrated in countries impacted by conflict and fragility, which makes using traditional data-collection methods more challenging, this issue is poised to affect the monitoring of global poverty throughout this decade.

The authors gratefully acknowledge financial support from the UK Government through the Data and Evidence for Tackling Extreme Poverty (DEEP) Research Program.

Related blogs:

• Half of the global population lives on less than US$6.85 per person per day
• Financial Inclusion
• Inequality and Shared Prosperity
• Jobs & Development
• Social Protection
• The World Region
• Poverty and Shared Prosperity 2020

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Economist, Development Data Group, World Bank

Lead Economist, Poverty and Equity Global Practice, World Bank

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7 Ways You Can Help Fight Poverty in Your Community

Since the COVID-19 pandemic, 7.8 million people have fallen into poverty—the biggest jump in a single year since the government began tracking poverty 60 years ago. It’s easy to think about poverty as a national crisis that is bigger than you, but there are actually lots of things you can do to influence this systemic problem right in your own community. CommonBond works to help fight poverty through housing in Minneapolis, Milwaukee, and Iowa, and we’ve outlined some examples of how you can help fight poverty in your community .

How to Help Poverty Issues in Your Community

1. challenge ideas and assumptions.

Whether you have preconceived notions about poverty within your community, or as a concept in general, it’s important to challenge those assumptions so you aren’t unintentionally spreading harmful biases. One common misconception, for example, is that people experiencing homelessness choose not to work. This misconception is incredibly harmful because it negates the many uncontrollable and systemic conditions that can cause housing instability or poverty. In reality, there are many factors people have to deal with that make it hard to find employment, including loss of affordable housing , inequitable access to training and tools, and mental illness.

If you recognize this myth, be sure to challenge it. Want to go a step further with how to help the poor and fight poverty in your community? Learn about the specific poverty issues your town or city faces; this will educate you on matters and enable you to apply context and critical thinking while pushing back against assumptions and myths.

2. Create awareness/get informed

Poverty is in every community, so it’s important to know where the issues lie within your own. Get informed about the resources that are already available and those that are still needed. There are local groups doing this work that could use your help—you can then do your part in getting the word out and listening to these community experts about where you can be helpful in fighting poverty in your community. A great resource in Minneapolis, for example, is the Twin Cities Mutual Aid Map . This map shows a myriad of organizations and mutual aid efforts around the Twin Cities area that are accepting donations or other resources.

3.  Donate funds and time & find volunteer opportunities

One of the most straightforward ways to help fight poverty in your community is to donate funds to organizations whose mission it is to end these economic disparities. No amount of money is too small or too large. As these donations add up, organizations can put the funds toward fixing housing inequalities, education gaps, food insecurities and more.

Another helpful option is to p artner with local organizations that help the community by donating time. Whether it’s helping out in a food kitchen or working with children after school to get their homework done, there are ways that don’t require money that can still make an impact. We’ve created a volunteer list that you can join to support our work, whether you’re in Minneapolis, Milwaukee, or Iowa.

Fighting Poverty in Your Community is as Simple as Donating a Few Dollars.

Donate Today!      

4. Make kits or fundraise for those experiencing homelessness in your neighborhood

In addition to donating time, you can also reach out to local organizational leaders to see what specifically folks who are experiencing poverty in their communities need. To ensure your donations have the most impact, listen to these community experts. Be sure to donate items that are specifically being asked for, not just what you have in your pantry! Use that info to create meal kits or baskets full of food or house cleaning products that will keep people stocked up on essentials for a while, and give it to local organizations and community experts to distribute.

Another option is to hold fundraisers. How about fighting poverty in your community by throwing a pizza party where the proceeds go to local shelters or other organizations that provide critical services? Get bigger local businesses to donate services for a silent auction. Doing fundraisers like this can be a fun way to bring people together for an important cause.

5. Attend demonstrations or rallies to increase awareness

Another way to create and increase awareness and help fight poverty in your community is to attend events like demonstrations and rallies. These may be block parties or parades or any other kind of peaceful event that will grab the community’s attention and turn it toward fighting against systemic poverty. There are organizations that regularly hold events that both raise awareness, as well as stand in solidarity with those affected by poverty—and by joining their work, you may learn how to be a better advocate.

6. Create jobs

If you own a business or an organization in the community, look for areas you could use some help with. Many people living in poverty may not have had access to higher education or specialty certifications, but that doesn’t mean they don’t have skills to contribute. Identifying areas of opportunities within your business or organization, expanding your recruiting pool, and paying a living wage is one way to make a change to help neighbors living in poverty in your community.

DONATE TODAY!

7. Provide paid leave and paid sick days

If you’re a business owner within your community, offer paid leave and paid sick days. Although it’s an investment for you, taking a day off every now and then without pay can seriously hurt some of your employees, especially if they’re under the poverty line. Your employees are going to get sick from time to time—let them rest easy by offering paid sick leave. For staff who are earning under the area median income, consider offering stipends for childcare, or even consider an on-site childcare option to create an environment where working families don't have to choose between income and childcare.

CommonBond Can Help

Poverty affects more people than you think, and as you now know, there are many ways to help fight poverty in your community. Serving your community by donating time or money is a valuable way to get involved. Our team at CommonBond wants to help you in your fight, whether you’re in Minneapolis, Milwaukee, or Iowa. Get in touch to learn more about how to help the poor and fight poverty in your community today!

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Why the Fight against Poverty Is Failing: A Contrarian View

October 31, 2006 • 20 min read.

Abraham George is the founder of The George Foundation, an NGO engaged in humanitarian work in India, and the author of India Untouched: The Forgotten Face of Rural Poverty. In this contrarian essay, he explores why the current strategies that governments and development agencies are employing to reduce poverty are not working the way they should. Among his arguments: Microcredit programs, as they are now practiced in India, do little to help the poor.

• Public Policy

By the World Bank’s broad definition of poverty ($2.00 or less a day per person), there are more poor people in the world today than a quarter century ago. Nearly half the world’s population, over three billion people, lives in poverty. In India alone, two-thirds of its one billion-plus population is poor. Yet, the strategy for alleviating poverty across practically every developing nation has remained essentially the same for the past several decades.

There is plenty of talk about ways to increase income, reduce illiteracy and ill-health, and empower women. The increased attention given to these issues and pledges of additional financial assistance by world leaders are not matched by new and effective national initiatives that can significantly reduce poverty. So far, none of the poor countries has been able to achieve any of its key developmental targets. The emphasis is still on more funding for programs that have been in existence for many years. Yet these programs have had only marginal effect, and have not kept up with population increases.

My personal experience on developmental projects is confined to India, but the broader lessons learned there are applicable to most developing countries. What follows explains what I consider are misconceptions in the current approaches, and how the attack on global poverty can be far more successful.

International Development Assistance Hasn’t Worked

The UN Millennium project argues that it is the poverty trap of poor health, poor education and poor infrastructure reinforcing each other rather than bad planning, corruption, and ineffective execution that is hindering development of poor countries. The idea is that underdeveloped nations can be saved through more outside assistance and by expanding existing programs that are run mostly by governments. Those who support this notion want the World Bank and other international agencies and donors to make increased contributions to supplement domestic government resources. But there is very little evidence that foreign assistance has made much difference in overcoming the poverty trap in any country.

As a consequence of the financial assistance received from international agencies, national governments rely on strategies developed by planners at organizations such as the World Bank and the United Nations. There is no shortage of ideas, enthusiasm, and expectations at the planning level, but what is lacking is good execution.

Planners have no responsibility for ensuring that funded projects meet their goals in the field. Other than requiring periodic written reports and demonstration of individual cases where success has been prearranged, there is little feedback or accountability.  Beneficiaries are not in a position to let their views be known, nor do they understand what is expected in the longer run.

Misuse of Funds

Governments, international agencies and donors have spent billions of dollars to address poverty. For example, in rural India, the government spends significant funds on subsidies (for electricity, fertilizer, fuels, etc.), food rations, price supports, land allocation/distribution, job training and financial assistance for initiatives in agriculture and small businesses. Loans from the World Bank and other international agencies and bilateral aid supplement domestic government resources. But who has benefited from all these programs and assistance?

The beneficiaries are usually corrupt officials who manage and distribute funds, and landlords and powerbrokers who directly or indirectly extract benefits for themselves. In India, over 90% of the agricultural land is owned and partly cultivated by less than 10% of the rural population who are termed farmers; others are mostly laborers. Governments allocate land to the poor, but they are unable to utilize it because of limited water resources, bad soil conditions, and/or the inability to secure credit. Larger subsidies benefit bigger farmers, but the poor do not gain much directly from any government programs.

The presumption that with more money, corrupt and inefficient governments and bureaucratic institutions will utilize funds efficiently and improve the deplorable conditions of the poor is an illusion. There are too many impediments to poverty reduction: bribery, political influence in the allocation of land and/or credit, diffused focus and priorities, poor execution, a shortage of rural infrastructure, and social inequality, among other factors. Supporters of the “more money” approach should be reminded of what the late Indian Prime Minister Rajiv Gandhi once admitted: Less than 15 cents of each dollar in assistance intended for the poor finally gets to them. That is not to say that assistance should not be increased. But the real focus should be on ensuring that the allocated resources reach the poor.

Corruption and misallocation of development funds are ultimately the result of failed governance. Why bad governance? Unethical and illegal practices flourish in countries without free and independent press to investigate wrongful practices. Where the press is not sufficiently strong, there is little chance of preventing the “opportunistic behavior” of individuals, businesses and officials. Corruption can be reduced by assuring press freedom and strengthening private social institutions (such as advocacy groups) that stay independent. (Surprisingly, a democracy like India does not permit private radio stations to broadcast daily news!)

If citizens cannot rely on an impartial judicial system, there is little hope for a just and fair society. Societies that do not protect property and persone from predators cannot expect to create sufficient wealth for everyone. It is the erosion of press independence and the weakness of legal system that are most troubling.

The Limited Role of NGOs

There are several participants in the developmental arena: national and foreign governments, international agencies, private companies and non-governmental organizations (NGOs). The role of NGOs has gained attention in recent years as they focus on micro-issues and provide grass-roots assistance. Many have taken up projects to improve the quality of education and healthcare, while focusing on specific critical areas such as HIV/AIDS, illiteracy and women’s empowerment.

NGOs have been advocates for the poor, pointing out issues of concern and presenting ideas for improvement, often figuring out how to press through the corrupt and self-serving regulations faced by their beneficiaries. Several are involved in income generation activities, offering microcredit or assisting with water resource management and use of indigenous technology. Some private companies have formed NGOs to attract grants from their governments and international agencies. These efforts usually complement those of governments in the implementation process.

Despite positive contributions, NGOs have not been involved in major developmental undertakings intended to create large employment and wide income generation through sustainable businesses. This is attributable to their lacking good managerial skills and organizational structure to take up business ventures. Further, donor funds are usually restricted to narrowly defined projects. Consequently, the role that NGOs are best suited to play is in support of projects funded by governments and international agencies, or those limited initiatives approved by private donors.

Unfortunately, those NGOs that actually carry out developmental work in the field are stuck within programs specified by planners in developmental agencies and donor institutions. New ideas that deviate from those already specified by planners seldom qualify for any funding. Thus, project proposals are prepared to reflect the requirements set by these planners in terms of methodology and outcomes. There is little initiative from the ground up, and no real feedback. Demonstrating compliance on paper ends up more important than actually getting the job done effectively. As a result, recipients of developmental funds spend significant time preparing reports for the planners to qualify for continued funding, and less time worrying about what benefits the poor.

Microfinance Is Not a Panacea

The expression “social entrepreneurship” was coined to reflect corporate benevolence toward the poor. Muhammad Yunus, who founded the Grameen Bank in Bangladesh in 1976, intended exactly that when he started giving poor people credit and assisting them in their local business ventures. Subsequently, many NGOs around the world started offering small loans to women who could otherwise not obtain credit from commercial banks. As different microcredit programs sprang up in poor countries, governments, international agencies and private donors joined in with necessary capital. Several experts in these institutions termed microcredit a revolutionary concept, and there is growing belief among many that it might be the way to solve poverty.

Today, some for-profit funds and supposedly not-for-profit organizations market microcredit lending in developing countries, and even offer advertised returns on investment. One such microcredit intermediary in India recently publicized that it has been charging 36% interest until recently, when it dropped the rate to 26% for some borrowers by making the lending process more efficient. After all, it argued, credit card companies charge as high as 28% interest for credit-risk customers.

The assumption is that poor people can be rescued quickly and easily with a modicum of money. (Microcredit is intended mainly for starting or expanding small businesses run by borrowers.) The claim is that microcredit (loans of around $100) has lifted tens of millions out of poverty in the developing world. However, assertions that more than 90% of the people who receive microcredit are poor, that most of them succeed in businesses started with these loans, and that they repay the loans at 24% annual interest or higher, go unchallenged.

So far, there has not been any outcry on the high rate of interest. The poor do not have any voice in, or understanding of, financial markets. They are happy to get loans to meet personal emergencies (such as expenses toward surgery, marriage or dowry) or to pay off financial obligations to local money lenders who charge even higher rates. Microcredit intermediaries claim that this is social entrepreneurship, and not living on the backs of the poor.

In my personal experience in rural India, I have observed that a small number of people, mostly village leaders and their family members, operate the few shops and businesses. They are the only ones who have the support mechanisms, knowledge, and skills to make a business succeed. A great majority of the poor rural populations do not have the ability or experience to start or run businesses, with or without access to credit. To expect them to succeed in business is unrealistic. They are uneducated and labor for landowners and for the few nearby businesses. At best, they might benefit from the trickle down effect if landlords and small businesses prosper.

The George Foundation is engaged in poverty alleviation projects in rural Tamil Nadu, India, focusing on income generation activities, education, healthcare and community development. The foundation has studied some 17 villages and over 50 microcredit programs in South India. Data show that less than 5% of those receiving micro-loans start any business of their own. One preferred activity is buying and selling sheep, hopefully at a profit equal to the wages foregone. These types of activities are unsustainable in the long run. Consequently, less than 2% continue beyond the first three years, and very f ew succeed in any such “business” with small amounts of money and little or no support, training, or skills.

Microcredit lenders are not concerned about what the borrowers do with their loans. Loans are usually made to individuals, but guaranteed by groups that can demonstrate their capacity to repay. Most borrowers of microcredit repay loans from income received at regular jobs, or from grants provided by governments for self-help programs. Not surprisingly, it is the intermediaries — commercial banks and loan facilitators — that gain the most from the spread between the cost of funds for the intermediaries and the loan interest charged by them. Commercial banks in India, for example, receive funds for microcredit programs from the government-run NABARD bank at 5% to 6%. They then lend at 10% to12% to a microcredit intermediary which, in turn, lends at 24% to 36% to the final borrower.

The assurance of loan repayment makes microcredit popular among lenders, in addition to the high interest charged. Borrowers are motivated to repay loans because of an expectation of future monetary benefits. If one borrows and repays twice (no need to start any business, but maintain good paperwork), then he/she becomes eligible for a grant for $100 or more from a separate government program (each state offers its own variation of this facility). The free money from the government can be used to repay the third micro-loan made to that beneficiary. The government is short the amount of the grant, but the borrower is debt free, and the microcredit middle man is assured of capital and high returns.

Why this round about way to offer free money when there are several direct means to reduce the debt burden of the poor? The answer probably lies in the fact that this form of “hand-out” is invisible within “social entrepreneurships”. Moreover, major financial institutions have become embroiled in this commercial activity. A new breed of educated and well-trained loan sharks, with bank support, is now in the microcredit business in India. Microcredit has become a trendy cure-all. If poverty alleviation were a matter of lending, the world could eradicate poverty easily. It would cost about $300 billion at $100 per person — a small sum in comparison to the trillions of dollars already expended over the past half a century. The present form of microcredit, as practiced in India, results in little or no sustainable development benefit for the poor. 

Importance of Private Sector Participation

In developing countries, the government bears the primary responsibility for delivering basic services for the poor. It has traditionally been the agent for healthcare, education and job training, especially due to the inability of rural populations to pay for basic services. A significant portion of the costs associated with public services will continue to be borne by the state until rural incomes rise and/or until the private sector finds it attractive to be involved in such efforts.

Government-run institutions have, for the most part, failed to offer quality services because they are unable to motivate those who carry out the tasks in the field. Those who can afford to pay for quality services rely on private providers. Even those who work for government go to private clinics for their healthcare needs, and send their children to private schools. Quality will never improve unless service providers have the incentive to serve the poor. Until then, the “haves” have markets to choose from, while the “have-nots” have bureaucrats to dictate to them.

But, lack of affordability should not prohibit private sector participation. With NGOs as project facilitators, opportunities exist for public-private partnership. Private institutions can deliver services at reduced prices, but at a profit, within a competitive and independently monitored system where the costs are subsidized or even fully paid for by the government.

In developing countries there is no serious effort to involve private companies, though most rural areas are, in fact, ideally suited for industries in herbal products , alternate fuels, cement and tile, lumber and pulp, meat, dairy and poultry. These private industries should function in a free market with sufficient checks and balances to ensure that they operate in a socially and environmentally responsible manner. By offering job opportunities in villages, they would alleviate migration to cities for employment.

Financial incentives like low-interest loans and tax breaks, and physical infrastructure improvements will motivate private companies to build factories in rural areas. Elimination of controls on the sale of agricultural products, and assistance in finding new markets will attract many businesses. These measures will in turn improve the demand for produce and boost commodity prices to levels that can financially sustain rural families. Further, international agencies and donors must consider equity participation in companies instead of simply channeling funds through governments or offering grants. They should provide loans at low interest rates directly to local entrepreneurs who can demonstrate an ability to run successful businesses. In short, some of the available developmental funds must be used to support commercial activities in deprived communities. With more economic activity, the poor labor class can gain employment at better wages.

Government’s role ought to be that of a catalyst. There should be no room for bribes. The focus should be to provide incentives for private (and community) participation. When private individuals and institutions find it worthwhile to take risks and invest in economically depressed areas, there will be sustainable development and poverty reduction. As incomes rise, there will be less need for government involvement in the delivery of many services currently provided.

It is not money alone but integrity and ideas that will make the real difference. A noted economist once asked me how I would go about improving the productivity of rural laborers on our farms. Creative thinking was my thought! We have instituted a program of de-worming drugs every six months, and daily iron tablets and protein-rich nutritional supplements prepared from locally available grains and nuts. Our workers wear wide hats protecting them from direct sunlight. These are simple, low cost measures, but they have contributed to a healthier and more productive labor force on our farms. For less than $10 per person a year, we have doubled their productivity!

A New Model for Corporate Philanthropy

Contrary to the recognized activities of NGOs, our foundation has embarked on a path similar to those of private organizations: We build institutions, develop human resources and managerial skills, and undertake major commercial projects — for humanitarian reasons. One project currently underway is a 250-acre banana farm, the second largest in South India. My life-long experience in business, my convictions about free and open markets and the need to encourage an entrepreneurial spirit in the individual have helped me not to rely on donor funds alone. Instead, our foundation has invested in sustainable projects that generate “profits” as well as steady income for the poor.

Our decision to confine business activities to farming results from the fact that the rural adult population in India is generally illiterate and lacks industrial skills. It is farming that gives them opportunities to better their lives; it is what villagers have a natural affinity for; and it is an industry where large numbers can be employed.

With the goal of empowering poor women and elevating their income-generating capacity, The George Foundation set up Baldev Farms, a “learn while you earn” program. The farm uses precision agricultural tools, organic fertilizers and superior technology in drip irrigation to conserve water. Apart from the farm workers’ daily wages, we set a portion of the profits generated from the sale of produce in a savings account to be used at the end of five years for the purchase of one third to one half acre of land for each family. Families will then cultivate their newly purchased land, sharing resources, such as wells and tractors. The foundation will remain a support organization to help address concerns and difficulties, while also offering know-how and access to markets.

Within three years of starting Baldev Farms, more than 150 villagers, mostly women, have found labor and supervisory employment in the field; hundreds of others have benefited indirectly. Most have already come out of poverty, paid off their debt and freed themselves from bonded labor status. As the foundation expands its farming activity in high-value fruits and vegetables, it will soon generate sufficient cash flow to finance other humanitarian initiatives.

Though the final chapter on this program is not yet written, the concept of offering each poor family a piece of the land to cultivate profitable crops is proving to be sound. With the profit sharing plan in place, everyone in our farm is highly motivated, takes initiatives and works hard. It is becoming increasingly clear to us that good management and a dedicated work force are assuring profitability to empower the poor.

Admittedly, our “corporate” approach to philanthropy cannot be replicated by most NGOs. Only private for-profit companies have skill bases and resources to undertake such business ventures. But they must recognize that market opportunities can be tapped only when the purchasing power of consumers rises. Hence, for the foreseeable future, investment in the rural sector ought to be toward production as opposed to selling to the “bottom of the pyramid.” In the longer run, it is competitive markets and involvement of the community in sustainable development projects that will solve poverty.

As long as significant poverty exists around the world, and the disparity between the rich and the poor widens, private companies in developing countries need to make a contribution to solving the problem. A dialogue must begin between and among business leaders on devising rules for business conduct in deprived communities. The model must consider how poor people can be brought into the mainstream of consumers with sufficient purchasing power within a reasonable time period. Those who work must earn enough to be able to come out of poverty. Minimum wages and benefits must be adequate to meet at least basic human needs, and farmers must be able to sell their crops at prices that assure a fair net gain. Economic success and social justice must go hand in hand.

There is serious concern in many circles, and rightly so, about whether the private sector can be trusted to operate fairly in communities that are poor. The fear is that free markets mean exploitation, citing what they call the “Wal-Mart Syndrome” of forcing suppliers, especially those from poor countries, to offer products at prices that leave little gain for workers.

Troubling issues like this one will always exist. But they can be addressed through effective enforcement of laws and regulations concerning minimum wages, worker safety and benefits, non-competitive practices and environmental protection. Private companies must resist the temptation to extract government funds for their business activities in the name of social entrepreneurship. They must recognize that it is in their long-term interest to win the support of the communities where they operate. Repressive local norms in compensation and treatment of labor must be replaced with fair practices that assist the poor in adequately caring for their families. Market forces of supply and demand and competition for gaining a dedicated labor force and loyal consumers are powerful factors in motivating good behavior on the part of corporations.

There are no easy answers. Poverty, in large part, can be solved if the poor gain new skills and if more jobs become available in the rural sector. For some, the solution lies in ownership of a permanent income generating asset: land. The poor need to have the opportunity to own and develop land, and grow profitable crops that can be sold in a competitive market.

More money is not a prerequisite for success; proper use of available funds is. There is no substitute for good planning, effective organization and execution with accountability. Only those who bear financial risk can be expected to perform effectively.

Handouts will not solve poverty; neither will it be solved by grand government projects, or by piecemeal interventions of NGOs. Instead, poverty will be solved with vibrant economic activity driven mostly by the private sector. The hundreds of millions of new jobs that are needed each year will come mainly from corporate business ventures in rural areas. The developmental strategy to address poverty must embrace this reality.

A market-based approach to poverty reduction will result in income and wealth creation, and lay the groundwork for the next generation to avail of a wider range of opportunities with enhanced resources.

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In Yemen, Renewed Conflict and Rising Hunger Stalk a Lean Ramadan

Airstrikes, crippling inflation and a drop in foreign aid are raising alarms about a new humanitarian crisis in the world’s poorest Arab country.

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By Saeed Al-Batati and Vivian Nereim

Saeed Al-Batati reported from Al Mukalla, Yemen, and Vivian Nereim from Riyadh, Saudi Arabia.

In the years before war and hunger upended daily life in Yemen, Mohammed Abdullah Yousef used to sit down after a long day of fasting during Ramadan to a rich spread of food. His family would dine on meat, falafel, beans, savory fried pastries and occasionally store-bought crème caramel.

This year, the Islamic holy month looks different for Mr. Yousef, 52, a social studies teacher in the coastal city of Al Mukalla. He, his wife and their five children break their fast with bread, soup and vegetables. Earning the equivalent of $66 a month, he frets that his salary sometimes slips from his hands in less than two weeks, much of it to pay grocery bills.

“I’m fighting to make ends meet,” Mr. Yousef said in an interview, describing how even before Ramadan he had begun skipping meals to stretch his meager paychecks, yet could barely afford bus fare to his job at a primary school.

A decade ago, his salary covered his family’s needs and more. But conflict, poverty and hunger have overtaken much of Yemen. As rapid inflation eats away at their spending power, middle-class Yemenis like Mr. Yousef have found themselves sliding into economic collapse.

Muslims abstain from food and water between dawn and sunset in observance of Ramadan, which is meant to be a time of worship, celebratory gatherings and nightly feasts. But it has been a desperate occasion this year for many across Yemen. The country is home to one of the world’s worst humanitarian crises, precipitated by a war that began 2014, which experts warn may be drifting toward a deeper disaster.

After two years of relative quiet, conflict in Yemen is threatening to ramp up again. The Iran-backed Houthi militia that controls much of the country’s north is attacking ships in the Red Sea, calling it a campaign to pressure Israel over its bombardment of Gaza. In response, a U.S.-backed coalition is carrying out airstrikes on Yemen — all of which is increasing the insurance cost of shipping goods to the country, which is dependent on imports.

More than 18.2 million people out of the population of 35 million now require humanitarian assistance, but funding has fallen as international donors turn their attention to other crises, including the war in Ukraine and an imminent famine in Gaza .

In December, the World Food Program suspended food distribution in Houthi-controlled territories, where a vast majority of Yemenis live. The agency, which is run by the United Nations, said the decision was driven by “limited funding,” as well as disagreements with the Houthi authorities over reducing the number of people served to focus on the neediest families.

Edem Wosornu, the director of operations and advocacy at the United Nations Office for the Coordination of Humanitarian Affairs, warned on March 14 that food insecurity and malnutrition in Yemen had surged in recent months. The progress the agency had observed over the past two years was “at the risk of unraveling,” she said.

Spring is generally a harvest season of relative plenty in Yemen, said Peter Hawkins, a UNICEF representative to Yemen. But he said he worried what would happen in the summer and the fall, when the “hunger season” arrives.

Last year, the United Nations sought $4.3 billion to pay for aid operations in Yemen and received less than half that from donors. This year, it put out a more modest plea for $2.7 billion .

“Lack of food today, tomorrow, is not a big problem,” Mr. Hawkins said. “It’s the cumulative impact that is a big problem, because that’s where destitution starts to settle in.” The bigger concern, he said, was that the international community had not yet responded to 2024 food aid needs. “And every day that they delay,” he added, “every day it will get worse.”

Yemenis like Mr. Yousef split their lives into periods before and after the war splintered their country. Before, he used to be able to afford special purchases for his family like a whole goat, and he was even able to pay for a trip to Mecca for an Islamic pilgrimage, he said.

Then, in 2014, the Houthis — an armed group with a stronghold in Yemen’s northern mountains — seized on a period of political instability to take over the country’s capital, Sana. A Saudi-led military coalition, backed by U.S. assistance and weapons, began a bombing campaign in 2015 to try to restore the internationally recognized government. The coalition enforced a de facto naval and air blockade that restricted the flow of food and other goods into Houthi-held territory.

As the war ground on for years, hundreds of thousands of people died from violence, hunger and disease. Children starved to death — their emaciated bodies documented in stark photographs published by Western news outlets — and the potential of a widespread famine loomed.

The Saudi-led coalition eventually faced international pressure to pull back, and in 2022, a tentative truce took hold. That left the Houthis entrenched in power in the north and Yemenis in a sort of limbo — not peace, but a respite from war’s worst consequences. The country’s already fragile economy, however, was decimated.

Mr. Yousef’s salary has technically gone up by more than 50 percent since the war began, but that increase has vanished amid inflation, as the Yemeni currency becomes increasingly worthless. Dueling central banks in the north and the south of the country set different exchange rates, and the black market operates on a third. In 2014, it took about 215 Yemeni riyals to equal $1; now, where Mr. Yousef lives, it is 1,650.

Al Mukalla is in southern Yemen, nominally controlled by the internationally recognized government. In Houthi-controlled territories, thousands of state workers, including teachers, have not received salary payments in years.

As a result, deprivation is a feature of daily life. Each night, Mr. Yousef’s family crowds into one room to sleep because it is the only one with an air-conditioning unit to ease the sweltering heat. Even if he could afford another cooling unit, he said, he could not pay the electricity bill to operate it.

“We have foregone meals and stopped purchasing stuff to maintain our dignity and avoid asking others for money,” he said.

Mohammed Omer Mohammed, a grocery store owner in Al Mukalla for three decades, can see the impact in his shop as purchasing power plummets. Instead of rice, customers buy subsidized bread. He said he stopped stocking goods like Nutella and high-quality canned tuna because his customers can no longer afford them.

In the evenings, Ramadan shoppers still gather at a busy market in the city, where vendors sell hamburgers and fresh fruits. But merchants said the trade was not what it used to be. Shoppers stop to ask how much things cost, then buy nothing. Those who do buy haggle relentlessly over the price.

“Each year becomes worse than the previous one,” said Abdullah Badwood, a gold merchant, who has found that instead of buying gold, many of his customers want to sell.

This Ramadan has been particularly difficult for Hussein Saeed Awadh, 38, a father of three in Al Mukalla. He earns 55,000 Yemeni riyals a month as an Arabic teacher, a salary that is now worth less than $35. That disappears in a few days as he pays off bills, he said, so in the afternoons he has taken a second job as a street vendor.

Years ago, Mr. Awadh’s family broke their Ramadan fasts with fresh fruits, pastries and chocolates. Now for their evening meal they have coffee and dates, and — because he cannot pay for more expensive meat — they eat soup with tripe.

A whole chicken would cost more than 5,000 Yemeni riyals — a tenth of his monthly salary. A kilogram of local mangos would cost 3,000 riyals; imported oranges about 3,500. All of it is more than many Yemenis can afford. But it is not just food that is out of reach.

Recently, Mr. Awadh found that his 6-year-old daughter’s teeth had been breaking because she was not getting enough calcium. A four-pound container of powdered milk costs 14,000 riyals — an entire week of his wages as a teacher.

“The doctor prescribed medicine and told me to give her milk,” he said. “But I can’t afford it.”

Vivian Nereim is the lead reporter for The Times covering the countries of the Arabian Peninsula. She is based in Riyadh, Saudi Arabia. More about Vivian Nereim