essay on how to reduce poverty

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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• A/69/700 - The road to dignity by 2030: ending poverty, transforming all lives and protecting the planet [Arabic] [Chinese] [English] [French] [Russian] [Spanish]
• 2017 HLFP Thematic Review of SDG 1: End Poverty in All its Forms Everywhere

• improving access to sustainable livelihoods, entrepreneurial opportunities and productive resources;
• providing universal access to basic social services;
• 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.

390 Poverty Essay Topic Ideas & Examples

• 📑 Aspects to Cover in a Poverty Essay

Students who learn economics, politics, and social sciences are often required to write a poverty essay as part of their course. While everyone understands the importance of this topic, it can be hard to decide what to write about. Read this post to find out the aspects that you should cover in your essay on poverty.

🏆 Best Poverty Topics & Free Essay Examples

👍 powerful topics on poverty and inequality, 🎓 simple & easy topics related to poverty, 📌 interesting poverty essay examples, ⭐ strong poverty-related topics, 🥇 unique poverty topics for argumentative essay, ❓ research questions about poverty.

Topics related to poverty and inequality might seem too broad. There are so many facts, factors, and aspects you should take into consideration. However, we all know that narrowing down a topic is one of the crucial steps when working on an outline and thesis statement. You should be specific enough to select the right arguments for your argumentative essay or dissertation. Below, you will find some aspects to include in your poverty essay.

Poverty Statistics

First of all, it would be beneficial to include some background information on the issue. Statistics on poverty in your country or state can help you to paint a picture of the problem. Look for official reports on poverty and socioeconomic welfare, which can be found on government websites. While you are writing this section, consider the following:

• What is the overall level of poverty in your country or state?
• Has the prevalence of poverty changed over time? If yes, how and why?
• Are there any groups or communities where poverty is more prevalent than in the general population? What are they?

Causes of Poverty

If you look at poverty essay titles, the causes of poverty are a popular theme among students. While some people may think that poverty occurs because people are lazy and don’t want to work hard, the problem is much more important than that. Research books and scholarly journal articles on the subject with these questions in mind:

• Why do some groups of people experience poverty more often than others?
• What are the historical causes of poverty in your country?
• How is poverty related to other social issues, such as discrimination, immigration, and crime?
• How do businesses promote or reduce poverty in the community?

Consequences of Poverty

Many poverty essay examples also consider the consequences of poverty for individuals and communities. This theme is particularly important if you study social sciences or politics. Here are some questions that may give you ideas for this section:

• How is the psychological well-being of individuals affected by poverty?
• How is poverty connected to crime and substance abuse?
• How does poverty affect individuals’ access to high-quality medical care and education?
• What is the relationship between poverty and world hunger?

Government Policies

Governments of most countries have policies in place to reduce poverty and help those in need. In your essay, you may address the policies used in your state or country or compare several different governments in terms of their approaches to poverty. Here is what you should think about:

• What are some examples of legislation aimed at reducing poverty?
• Do laws on minimum wage help to prevent and decrease poverty? Why or why not?
• How do governments help people who are poor to achieve higher levels of social welfare?
• Should governments provide financial assistance to those in need? Why or why not?

Solutions to Poverty

Solutions to poverty are among the most popular poverty essay topics, and you will surely find many sample papers and articles on this subject. This is because poverty is a global issue that must be solved to facilitate social development. Considering these questions in your poverty essay conclusion or main body will help you in getting an A:

• What programs or policies proved to be effective in reducing poverty locally?
• Is there a global solution to poverty that would be equally effective in all countries?
• How can society facilitate the reduction of poverty?
• What solutions would you recommend to decrease and prevent poverty?

Covering a few of these aspects in your essay will help you demonstrate the in-depth understanding and analysis required to earn a high mark. Before you start writing, have a look around our website for more essay titles, tips, and interesting topics!

• Poverty Research Proposal To justify this, the recent and most current statistics from the Census Bureau shows that the level and rate of poverty in USA is increasing, with minority ethnic groups being the most disadvantaged.
• What Causes Poverty in the World One of the major factors that have contributed to poverty in given areas of the world is overpopulation. Environmental degradation in many parts of the world has led to the increase of poverty in the […]
• Wordsworth’s Vision of Childhood in His Poems “We Are Seven” and “Alice Fell or Poverty” Specifically, the joint publication he released in 1798 known as “Lyrical Ballads” are considered the most important publications in the rise of the Romantic literature in the UK and Europe.
• Poverty: A Sociological Imagination Perspective I was raised in a nuclear family, where my mum was a housewife, and my father worked in a local hog farm as the overall manager.
• “The Singer Solution to World Poverty” by Peter Singer The article “The Singer Solution to World Poverty” by author Peter Singer attempts to provide a workable solution to the world poverty problem.
• Poverty in the World In this paper, we will be looking at the situation of poverty in the world, its causes and the efforts of the international organizations to manage the same.
• Max Weber’s Thoughts on Poverty Weber has contributed to the exploration of the origins of poverty and the impact of religions on the attitude to it.
• Poverty in India and China India’s slow rate of poverty reduction compared to China is due to the differences in their approach to the economy. Improving the living conditions and general well being of the people is not only the […]
• Consumerism: Affecting Families Living in Poverty in the United States Hence, leading to the arising of consumerism protection acts and policies designed to protect consumers from dishonest sellers and producers, which indicates the high degree of consumer’s ignorance, and hence failure to make decisions of […]
• The End of Poverty Philippe Diaz’s documentary, The End of Poverty, is a piece that attempts to dissect the causes of the huge economic inequalities that exist between countries in the Northern Hemisphere and the Southern Hemisphere.
• Poverty Effects on Child Development and Schooling To help children from low-income families cope with poverty, interventions touching in the child’s development and educational outcomes are essential. Those programs campaign against the effects of poverty among children by providing basic nutritional, academic, […]
• Analysis of Theodore Dalrymple’s “What Is Poverty?” With ethical arguments from Burnor, it can be argued that Dalrymple’s statements are shallow and based on his values and not the experience of those he is judging.
• Relationship Between Crime Rates and Poverty This shows that the strength of the relationship between the crime index and people living below the line of poverty is.427.
• Poverty Areas and Effects on Juvenile Delinquency The desire to live a better life contributes to the youths engaging in crimes, thus the increase in cases of juvenile delinquencies amid low-income families. The studies indicate that the fear of poverty is the […]
• The Philippines’ Unemployment, Inequality, Poverty However, despite the strong emphasis of the government on income equality and poverty reduction along with the growth of GDP, both poverty and economic and social inequality remain persistent in the Philippines.
• Poverty in Africa These pictures have been published online to show the world the gravity of the poverty situation in the African continent. The pictures represent the suffering of majority of the African people as a result of […]
• Poverty and the Environment The human population affects the environment negatively due to poverty resulting to environmental degradation and a cycle of poverty. Poverty and the environment are interlinked as poverty leads to degradation of the environment.
• The Problem of Poverty in Bob Marley’s “No Woman, No Cry” To see the situation from the perspective of its social significance, it is necessary to refer to Mills’ concept of sociological imagination and to the division of problems and issues into personal and social ones.
• Community Work: Helping People in Poverty The first project would be water project since you find that in most villages water is a problem, hence $100 would go to establishing this project and it’s out of these water then the women […]
• The Singer Solution to World Poverty: Arguments Against The article compares the lives of people in the developed world represented by America and that of developing world represented by Brazil; It is about a school teacher who sells a young boy for adoption […]
• Children Living in Poverty and Education The presence of real subjects like children is a benefit for the future of the nation and a free education option for poor families to learn something new and even use it if their children […]
• Cause and Effect of Poverty For example, the disparities in income and wealth are considered as a sign of poverty since the state is related to issues of scarcity and allocation of resources and influence.
• Poverty Through a Sociological Lens Poverty-stricken areas, such as slums, rural villages, and places hit by disasters, lack the required economic activities to improve the employment and wealth status of the people.
• Poverty and Global Food Crisis: Food and Agriculture Model Her innovative approach to the issue was to measure food shortages in calories as opposed to the traditional method of measuring in pounds and stones.
• Analysis of a Social Problem: Poverty Furthermore, the World Bank predicts that both the number of people and the percentage of the population living in extreme poverty will increase in 2020 and 2021 due to the coronavirus outbreak.
• The Myth of the Culture of Poverty Unfortunately, rather all of the stereotypes regarding poor people are widespread in many societies and this has served to further increase the problem of generational poverty. Poor people are regarded to be in the state […]
• Poverty and Its Effects on Childhood Education The foremost strength of Guo’s study is that in it, author succeeded with substantiating the full soundness of an idea that children’s exposure to poverty cannot possibly be thought of as only the factor that […]
• Political Economy: Relationship Between Poverty, Inequality, and Nationalism The prevalence of nationalism leads to changes in the education system, as the government tries to justify the superiority of the country by altering the curriculum.
• Global Poverty: Famine, Affluence, and Morality In the article Famine, Affluence, and Morality, Michael Slote contends that rich people have a moral obligation to contribute more to charities.
• “The Hidden Reason for Poverty…” by Haugen It is also noteworthy that some groups of people are specifically vulnerable and join the arrays of those living in poverty.
• Poverty Policy Recommendations Different leaders have considered several policies and initiatives in the past to tackle the problem of poverty and empower more people to lead better lives.
• Poverty and Diseases A usual line of reasoning would be that low income is the main cause of health-related problems among vulnerable individuals. Such results that the relationship between mental health and poverty is, in fact, straightforward.
• Poverty Alleviation and Sustainable Development The research focuses on the causes of poverty and the benefits of poverty alleviation in achieving sustainable development. One of the causes of poverty is discrimination and social inequality.
• Social Issues of Families in Poverty With the tightened budget, parents of the families living in poverty struggle to make ends meet, and in the course of their struggles, they experience many stresses and depressions.
• Third World Countries and the Barriers Stopping Them to Escape Poverty The phrase Third World was initially used in the Cold War period to represent those countries that were neither on the West NATO nations referred to as the first world countries, nor on the East-Communist […]
• The Connection Between Poverty and Mental Health Problems The daily struggle to earn a daily bread takes a toll on an individual mental health and contributes to mental health problem.
• Poverty Simulation Reflection and Its Influence on Life Something that stood out to me during the process is probably the tremendous emotional and psychological impact of poverty on a person’s wellbeing.
• Poverty in Bambara’s The Lesson and Danticat’s A Wall of Fire Rising It is important to note the fact that culture-based poverty due to discrimination of the past or political ineffectiveness of the nation can have a profound ramification in the lives of its victims.
• Inequality and Poverty Relationship To begin with, it is necessary to define the concepts of poverty and inequality. As of inequality, it is the difference in access to income, power, education, and whatever.
• Poverty and Development Into the 21st Century The choices of citizens in the west influence the consumer, as well as political behaviors of the consumers and voters in the developing regions.
• Is Poverty a Choice or a Generational Curse? The assumption that poverty is a choice persists in public attitudes and allows policy-makers to absolve themselves of any responsibility for ensuring the well-being of the lower socioeconomic stratum of society.
• Children in Poverty in Kampong Ayer, Brunei Part of the reason is likely malnutrition that results from the eating or consumption patterns of the families and also dependency on the children to help out with the family or house chores.
• “The End of Poverty” by Phillipe Diaz In the film End of Poverty, the filmmaker tries to unravel the mystery behind poverty in the world. The film is arranged in such a way that the author has persuasively argued his case that […]
• Poverty, Government and Unequal Distribution of Wealth in Philippines The author of the book Poverty And The Critical Security Agenda, Eadie, added: Quantitative analyses of poverty have become more sophisticated over the years to be sure, yet remain problematic and in certain ways rooted […]
• Poverty, Inequality and Social Policy Understanding The roots of inequality can relate to both welfare and some other factors, for example, the judiciary. Therefore, the principle of equality is violated, and social norms cannot be considered to be respected.
• The Rise of Poverty in the US The main issue that is portrayed in the article is the presence of the invisible poor and the homeless poor in the US.
• Concept of Poverty The main difference between this definition and other definitions of poverty highlighted in this paper is the broad understanding of the concept.
• Social Issues; Crime and Poverty in Camden This has threatened the social security and peaceful coexistence of the people in the community. The larger the differences between the poor and the rich, the high are the chances of crime.
• We Can Stop Poverty in Ghana Today One of the main disadvantages of the document is that the problem of poverty is not considered separately, but only as a part of other economic and social problems.
• Environmental Degradation and Poverty It is however important to understand the causes of the environmental degradation and the ways to reduce them, which will promote the improvement of the environmental quality.
• Poverty in the Bronx: Negative Effects of Poverty South Bronx is strictly the southwestern part of the borough of Bronx and Bronx is the only borough in New York city in the mainland.
• Poverty in Urban Areas The main reason for escalation of the problem of poverty is urban areas is because the intricate problems of urban poverty are considered too small to attract big policies.
• Health, Poverty, and Social Equity: The Global Response to the Ebola Outbreak Canada and Australia, as well as several countries in the Middle East and Africa, were the most active proponents of this ban, halting the movements for both people and goods from states affected by the […]
• Tourism Contribution to Poverty Reduction Managers usually make targeting errors such as poor delivery of tourism benefits to the poor and accruing tourism benefit to the rich in the society.
• Social Business Scope in Alleviating Poverty Instead of charity work, social business aims at creating a mechanism in which the poor may be helped in a sustainable manner in that the social business makes profits just like conventional businesses, but the […]
• Global Poverty: The Ethical Dilemma Unfortunately, a significant obstacle to such global reforms is that many economic systems are based on the concept of inequality and exploitation.
• Is Globalization Reducing Poverty and Inequality? & How to Judge Globalism The article Is Globalization Reducing Poverty and Inequality by Robert Hunter Wade explores the phenomenon of globalization and its influence on the poverty and inequality ratios all over the world.
• Poverty in Orwell’s “Down and Out in Paris and London” The fact that the structure of society is discussed is especially interesting, and it is suggested that opinions of people that live in poverty are not acknowledged most of the time.
• America’s Shame: How Can Education Eradicate Poverty The primary focus of the article was global poverty, the flaws in the educational system, as well as the U.S.government’s role in resolving the problem.
• How Poverty Contributes to Poor Heath The results show that poverty is the main cause of poor health. The study was purposed to assess the effect of poverty in determining the health status of households.
• Global Poverty Project: A Beacon of Hope in the Fight Against Extreme Poverty The organization works with partners worldwide to increase awareness and understanding of global poverty and inspire people to take action to end it.
• The Causes of an Increase in Poverty in Atlanta, Georgia The key causes of the high poverty rise in the city include housing policies and instabilities, the lack of transit services and public transportation infrastructure in suburban areas, and childhood poverty.
• Thistle Farms: Help for Women Who Are Affected by Poverty As I said in the beginning, millions of women need help and assistance from the community to overcome poverty and heal emotional wounds caused by abuse. You can purchase a variety of its home and […]
• Median Household Incomes and Poverty Levels The patterns of poverty in the Denver urban area show that rates are higher in the inner suburb and the core city and lower in the outer suburb.
• Poverty: The American Challenge One of the main problems in the world is the problem of poverty, which means the inability to provide the simplest and most affordable living conditions for most people in a given country.
• The Poverty Issue From a Sociological Perspective The core of the perspective is the idea that poverty is a system in which multiple elements are intertwined and create outcomes linked to financial deficits.
• Saving the Planet by Solving Poverty The data is there to make the necessary links, which are needed when it comes to the economic variations and inadequate environmental impacts of climate change can be distinguished on a worldwide scale.
• Anti-Poverty Programs From the Federal Government The programs provide financial assistance to low-income individuals and families to cover basic needs like housing and food. The anti-poverty programs that have been most effective in reducing poverty rates in the United States are […]
• Rural Development, Economic Inequality and Poverty The percentage of the rural population is lower for developed countries, including the United States and the United Kingdom. Thus, the objective of the proposal is to determine how the inhabitants of the country in […]
• Global Poverty: Ways of Combating For example, one of such initiatives is social assistance and social protection programs, which ensure the safety and creation of various labor programs that will help increase the number of the working population.
• Poverty and Homelessness as a Global Social Problem What makes the task of defining poverty particularly difficult is the discrepancy in the distribution of social capital and, therefore, the resulting differences in the understanding of what constitutes poverty, particularly, where the line should […]
• Poverty: Aspects of Needs Assessment The target neighborhood and population for the following analysis are women of reproductive age, defined as 15 to 49 years, in Elmhurst and Corona, Queens. 2, and the percentage of births to women aged over […]
• What Is Poverty in the United States? Estimates of the amount of income required to meet necessities serve as the foundation for both the official and supplemental poverty measurements.
• The Caribbean Culture: Energy Security and Poverty Issues Globally, Latin American and the Caribbean also has the most expensive energy products and services because of fuel deprivation in the Caribbean and the Pacific regions.
• Poverty: The Main Causes and Factors Because of the constant process of societal development, the concept of poverty changes rapidly, adapting to the new standards of modern human life.
• How to Overcome Poverty and Discrimination As such, to give a chance to the “defeated” children and save their lives, as Alexie puts it, society itself must change the rules so that everyone can have access to this ticket to success. […]
• Poverty and Homelessness in American Society It is connected with social segregation, stigmatization, and the inability of the person to improve their conditions of life. The problem of affordable housing and poverty among older adults is another problem that leads to […]
• Private Sector’s Role in Poverty Alleviation in Asia The ambition of Asia to become the fastest-growing economic region worldwide has led to a rapid rise of enterprises in the private sector.
• Connection of Poverty and Education The economy of the United States has been improving due to the efforts that have been made to ensure that poverty will not prevent individuals and families from having access to decent education.
• The Opportunity for All Program: Poverty Reduction The limiting factors of the program may be the actions of the population itself, which will not participate in the employment program because of the realized benefits.
• Early Childhood Financial Support and Poverty The mentioned problem is a direct example of such a correlation: the general poverty level and the well-being of adults are connected with the early children’s material support.
• Discussion: Poverty and Healthcare One of the research questions necessary to evaluate this issue is “How do ethical theories apply to the issue?” Another critical research question worth exploring is “Which cultural values and norms influence the problem?” These […]
• Explosive Growth of Poverty in America The three richest Americans now own 250 billion USD, approximately the same amount of combined wealth as the bottom 50 percent of the country. Wealth inequality is a disturbing issue that needs to be at […]
• The Poverty and Education Quality Relationship Although the number of people living under the poverty threshold has decreased in the last 30 years, more than 800,000,000 people still have to live with insufficient money and a lack of food, water, and […]
• The Problems of Poverty and Hunger Subsequently, the cause in this case serves as a path to a solution – more social programs are needed, and wealthy citizens should be encouraged to become beneficiaries for the hungry.
• “Life on a Shoestring – American Kids Living in Poverty” by Claycomb Life on a Shoestring – American Kids Living in Poverty highlights the widening disparity between the poor and the wealthy in America and how the economic systems are set up to benefit the rich and […]
• Decreasing Poverty With College Enrollment Program In order to achieve that, it is necessary, first and foremost, to increase the high school students’ awareness of the financial aid programs, possibilities of dual enrollment, and the overall reality of higher education.
• Poverty in Rural and Urban Areas My main focus is on articles explaining the sources of poverty in rural and urban areas and the key difference between the two.
• Reducing Poverty in the North Miami Beach Community The proposed intervention program will focus on the students in the last semester of the 9th and 10th grades and the first semester of the 11th and 12th grades attending the client schools.
• Food Banks Board Members and Cycle of Poverty What this suggests is that a large portion of the leadership within these collectives aim to provide assistance and food but not to challenge the current system that fosters the related issues of poverty, unemployment, […]
• Poverty as a Social Problem in Burundi The rationale for studying poverty as a social problem in Burundi is that it will help to combat poverty through the advocacy plan at the end of this paper.
• Poverty: Subsidizing Programs Subsidizing programs are considered welfare and net initiatives that the government takes to aid low-income families and individuals affected by poverty.
• The Problem of Poverty in Chad Thus, the study of the causes of poverty in the Republic of Chad will help to form a complete understanding of the problem under study and find the most effective ways to solve it.
• “Poverty, Toxic Stress, and Education…” Study by Kelly & Li Kelly and Li are concerned with the lack of research about poverty and toxic stress affecting the neurodevelopment of preterm children.
• Poverty in “A Modest Proposal” by Swift The high number of children born to poor families presents significant problems for a country.”A Modest Proposal” is a satirical essay by Jonathan Swift that proposes a solution to the challenge facing the kingdom.
• Life Below the Poverty Line in the US The major problem with poverty in the US is that the number of people living below the poverty threshold is gradually increasing despite the economic growth of the country. SNAP is not considered to be […]
• The Relationship Between Single-Parent Households and Poverty The given literature review will primarily focus on the theoretical and empirical aspects of the relationship between single-parent households and poverty, as well as the implications of the latter on mental health issues, such as […]
• Poverty and Its Effect on Adult Health Poverty in the UK is currently above the world average, as more than 18% of the population lives in poverty. In 2020, 7% of the UK population lived in extreme poverty and 11% lived in […]
• Child Poverty in the United States The causes of child poverty in the United States cannot be separated from the grounds of adult poverty. Thus, it is essential to take care of the well-being of children living in poverty.
• Poverty in New York City, and Its Reasons The poverty rate for seniors in New York is twice the poverty rate in the United States. New York City’s blacks and Hispanics have a much higher poverty rate than whites and Asians in the […]
• Juvenile Violent Crime and Children Below Poverty The effect of this trend is that the number of children below poverty will continue to be subjected to the juvenile and criminal justice systems.
• Poverty and Homelessness as Social Problem The qualifications will include a recommendation from the community to ensure that the person is open to help and willing to be involved in the neighborhood of Non-Return.
• Discussion of the Problem of the Poverty To help prevent homelessness for the woman in question and her children, I think it would be essential to provide mental support for her not to turn to alcohol and drugs as a coping mechanism.
• Poverty Effects and How They Are Handled Quality jobs will provide income to the younger people and women in the community. The focus on developing and facilitating small and medium-sized enterprises is a great strategy but more needs to be done in […]
• Feminization of Poverty and Governments’ Role in Solving the Problem However, women form the greatest percentage of the poor, and the problem continues to spread. Furthermore, the public supports available are inaccessible and inadequate to cater for women’s needs.
• Free-Trade Policies and Poverty Level in Bangladesh The purpose of this paper is to examine the way in which the end of the quota system and introduction of a free-trade system for the garment industry in Bangladesh has impacted on poverty in […]
• Poverty and Risks Associated With Poverty Adolescents that are at risk of being malnourished can be consulted about the existing programs that provide free food and meals to families in poverty.
• Poverty and Inequality Reduction Strategies Thus, comprehending the causes of poverty and inequalities, understanding the role of globalization, and learning various theoretical arguments can lead to the establishment of appropriate policy recommendations.
• International Aid – Poverty Inc This film, the research on the impact of aid on the states receiving it, and the economic outcomes of such actions suggest that aid is a part of the problem and not a solution to […]
• Poverty Effects on American Children and Adolescents The extent to which poor financial status influences the wellbeing of the young children and adolescents is alarming and needs immediate response from the community.
• Progress and Poverty Book by Henry George George wrote the book following his recognition that poverty is the central puzzle of the 20th century. Thus, George’s allegation is inconsistent with nature because the number of living organisms can increase to the extent […]
• Vicious Circle of Poverty in Brazil The vicious circle of poverty is “a circular constellation of forces that tend to act and react on each other in such a way that the country in poverty maintains its poor state”.
• Global Education as the Key Tool for Addressing the Third World Poverty Issue Global education leads to improvements in the state economy and finances. Global education helps resolve the unemployment problem.
• Poverty, Partner Abuse, and Women’s Mental Health In general, the study aimed at investigating the interaction between poverty and the severity of abuse in women. The research question being studied in this article is how income intersects with partner violence and impacts […]
• Global Poverty and Ways to Overcome It These are some of the strategies, the subsequent application of which would significantly reduce the level of poverty around the world.
• Social Work at Acacia Network: Poverty and Inequality Around the 1980s, the number of older adults was significantly increasing in society; the local government of New York established a home for the aged and was named Acacia Network. The supporting staff may bond […]
• Poverty and Sex Trafficking: Qualitative Systematic Review The proposed research question is to learn how the phenomenon of poverty is connected to sex trafficking. To investigate the relationship between the phenomenon of poverty and sex trafficking.
• End of Extreme Poverty Importantly, the ability to remain the owners of a substantial amount of accumulated wealth is the primary motivation for such individuals.
• Poverty and Inequality in the US Despite the progress of civilization and the establishment of democratic values, in the modern United States, such problems as poverty and inequality persist, which is a significant social gap.
• The Problem of Poverty in the United States The problem of increasing poverty is one of the major political issues in the United States, which became especially agile after the appearance of the COVID-19 pandemic due to the difficult economic situation all over […]
• Poverty and Unemployment Due to Increased Taxation The government on its side defended the move while trying to justify the new measures’ benefits, a move that would still not benefit the country.
• Poverty as a Global Social Problem For example, the research shows that Kibera is the largest slum in the country, and this is where many people move to settle after losing hope of getting employed in towns.
• Researching the Problem of Poverty However, the rich people and the rich countries reduce poverty to some extent by providing jobs and markets to the poor, but the help is too little compared to the benefits they get thus accelerating […]
• Poverty, Social Class, and Intersectionality I prefer the structural approach to the issue as I believe the created structures are responsible for the existence of diverse types of oppression.
• Wealth and Poverty: The Christian Teaching on Wealth and Poverty To illustrate the gap between the world’s richest and the world’s poorest, a recent UN publication reported that the wealth of the three richest persons in the world is greater than the combined wealth of […]
• Guns Do Not Kill, Poverty Does It is widely accepted that stricter gun control policies are instrumental in alleviating the problem, as they are supposed to reduce the rate of firearm-related deaths, limiting gun access to individuals at-risk of participating in […]
• Poverty’s Effects on Delinquency The economic status of people determines their social class and the manner in which they get their basic needs. Seeing these things and the kind of life rich people lead motivates the poor to commit […]
• The Criminalization of Poverty in Canada In this regard, with a special focus on Canada, the objective of this essay is to investigate how public policy has transformed alongside the public perception of social welfare reform.
• The Issue of Vicious Circle of Poverty in Brazil The persistence of poverty, regardless of the many shocks that every state receives in the normal course of its survival, raises the feeling that underdevelopment is a condition of equilibrium and that there are pressures […]
• Community Health Needs: Poverty Generally, the higher the level of poverty, the worse the diet, and hence the higher the chances of developing diabetes. Consequently, a considerable disparity in the prevalence of diabetes occurs between communities with high levels […]
• “Poverty, Race, and the Contexts of Achievement” by Maryah Stella Fram et al. The article “Poverty, race, and the contexts of achievement: examining the educational experience of children in the U.S. Multilevel models were then applied in the analyses of how children varied in their reading scores depending […]
• Reflective Analysis of Poverty It can be further classified into absolute poverty where the affected do not have the capability to make ends meet, and relative poverty which refer to the circumstances under which the afflicted do not have […]
• Microeconomic Perspective on Poverty Evolution in Pakistan The periodic spike in poverty levels, notwithstanding economic growth, implies incongruous policy functionality in relation to drivers of poverty and the subsequent failure to improve the indicators.
• The Impact of Poverty on Children Under the Age of 11 The strengths of the Marxist views on poverty are in the structural approach to the problem. Overall, the Marxist theory offers a radical solution to the problem of child poverty.
• Dependency Theory and “The End of Poverty?” It is also reflected in the film “The End of Poverty?” narrating the circumstances of poor countries and their precondition. It started at the end of the fifteenth century and marked the beginning of the […]
• Poverty Reduction and Natural Assets Therefore, the most efficient way to increase the efficiency of agriculture and reduce its environmental impacts is ensuring the overall economic growth in the relevant region.
• Corporate Social Responsibility & Poverty Alleviation Researchers state that “preventing and managing the negative impacts of the core business on the poor” are essential indicators of the social responsibility of the company.
• Health, Poverty, and Social Equity: Indigenous Peoples of Canada Another problem that much of northern Canada’s Indigenous Peoples face is the availability of healthcare services and people’s inability to access medical help.
• The Problem of Childhood Poverty Unequal income distribution, adult poverty, government policies that exclude children and premature pregnancy are some of the items from the long list of childhood poverty causes. Before discussing the causes and effects of childhood poverty, […]
• Individualistic Concepts and Structural Views on Poverty in American Society The concepts presented in the book Poverty and power help to better understand the content of the article and the reasons for such a different attitude of people to the same problem.
• Poor Kids: The Impact of Poverty on Youth Nevertheless, the environment of constant limitations shapes the minds of children, their dreams and the paths they pursue in life, and, most importantly, what they make of themselves.
• Poverty: Causes and Effects on the Population and Country Thesis: There are a great number of factors and issues that lead a certain part of the population to live in poverty and the input that such great numbers of people could provide, would be […]
• The Internet and Poverty in Society The information that can be found on the web is a very useful resource but at the same time it is important to consider several things with the treatment and examination of the presented information.
• Poverty in Africa: Impact of the Economy Growth Rate Thus, a conclusion can be made that economic growth in Africa will result in the social stability of the local population.
• Poverty and Disrespect in “Coming of Age in Mississippi” by Anne Moody Life was not fair to a little Anne the chapters about her childhood are alike to a chain of unfortunate events that happened to her and her relatives.
• Vietnam’s Economic Growth and Poverty & Inequality A significant part of the population was active in employment, and this means that the numerous income-generating activities improved the economy of this country.
• Poverty and Disasters in the United States Focusing on the precaution measures and the drilling techniques that will help survive in case of a natural disaster is one of the most common tools for securing the population.
• Intro to Sociology: Poverty It is challenging to pinpoint the actual and not mythological reasons for the presence of poverty in America. The former can be summed up as a “culture of poverty”, which suggests that the poor see […]
• The Notion of “Poverty” Is a Key Word of a Modern Society As far as the countries of the Third World are deprived of these possibilities, their development is hampered and the problem of poverty has become a chronic disease of the society.
• The Problem of Poverty in Africa The major aim of the study is to identify the causes of poverty and propose best strategies that can help Africans come out of poverty.
• Poverty Sustainability in Sub-Saharan Countries: The Role of NGOs The position of research and statistics in undertaking social-counting work is not queried. It is after the research method is used in other tribulations of the charity that gaps emerge between management and research.
• The Effects of Poverty Within Criminal Justice The approach used in this study is deductive since the reasoning in the study proceeds from the general principle regarding the fact that poverty has a role to play in the administering of fairness in […]
• The Poverty Rates in the USA Poverty in the U. Officially the rate of poverty was at14.3%.
• Poverty in America: A Paradox Many people especially the young people living in other countries and more so in developed countries wish to immigrate to America instead of working hard to achieve the dream of better opportunities.
• Values and Ethics: Poverty in Canada The case study1 has indicated for instance, that the number of people living in poverty in 2003 is at 4. A group of individuals would therefore be granted the mandate to lead the others in […]
• War and Poverty Connection in Developing Countries The scholars claim that conflict and war in most nations have been found to exacerbate the rate of poverty in the affected nations.
• Poverty in United States. Facts and Causes Schwartz carried out a research which showed that in the United States, about 13-17|% of the individuals live below the federal poverty line at any one single time and poverty is one of the main […]
• Cultures and Prejudice: Poverty Factors For instance, if the two cultures had in the past interacted in a negative way, the poor culture directs all the blame to the well up culture.
• Poverty and Criminal Behavoiur Relation The level of accuracy that the data collected holds cannot be 100%; there is a level of error that affects the reliability of the data collected.
• Urban Relationship Between Poverty and Crime The areas with high poverty level in the US urban areas have the highest cases of crime but this is inadequate to justify that poverty is the cause of crime.
• The End of Poverty Possibility
• Poverty, Suburban Public School Violence and Solution
• Social and Economic Policy Program: Globalization, Growth, and Poverty
• Is Poverty From Developing Countries Imagined?
• How Gender and Race Structure Poverty and Inequality Connected?
• Poverty by Anarchism and Marxism Approaches
• Colonial Economy of America: Poverty, Slavery and Rich Plantations
• Poverty as a Great Social Problem and Its Causes
• Environmental Deterioration and Poverty in Kenya
• Management Issues: The Poverty Business
• Marginalization and Poverty of Rural Women
• Pockets of Poverty Mar the Great Promise of Canada
• Poverty. “How the Other Half Lives” by Jacob Riis
• The Underclass Poverty and Associated Social Problems
• Child Poverty in Toronto, Ontario
• Children’s Brain Function Affected by Poverty
• Poverty Issue in America Review
• Microeconomics. Poverty in America
• Poverty and Inequality in Modern World
• Poverty and Its Effects on Females
• Poverty and Its Effects on Women
• Poverty of America: Economic Assumptions
• Poverty as a General Problem
• Feminization of Poverty – A Grave Social Concern
• Global Poverty Dimensions and Alleviating Approaches
• Poverty Level in any Country
• Theories of Fertility. Economics Aspect and Poverty.
• The Cultural Construction of Poverty
• Poverty in the US: Causes and Measures
• Poverty Rates Issue in Alberta Analysis
• “Old Age Poverty” Study by Kwan & Walsh
• Phenomena of Poverty Review
• Development Economics: Poverty Traps in Africa
• Healthcare Development. Poverty in the 1800s
• Social Problem of Poverty in the United States
• Poverty and Hip-Hop: Notorious B.I.G.’s “Juicy”
• Globalization Issues and Impact on Poverty and Free Trade
• Anthropology: Culture of Poverty
• Poverty, Stratification and Gender Discrimination
• Teen Pregnancy Can Lead to Suicide and Poverty
• Poverty Around the World
• Poverty in Los Angeles
• “Rethinking the Sociological Measurement of Poverty” by Brady
• Poverty in the US: Essentials of Sociology
• Econometrics: Poverty, Unemployment, Household Income
• Religious Quotes on Poverty and Their Interpretations
• Poverty and Inequality in “Rich and Poor” by Peter Singer
• The Relation Between Poverty and Justice
• Canada and the Imposition of Poverty
• Poverty and Politics in “The Bottom Billion” by Collier
• The Impact of Poverty in African American Communities
• “Poverty and Joy: The Franciscan Tradition” by Short
• International Financial Institutions’ Poverty Reduction Strategy
• Social Study: Mamelodi Residents Living in Poverty
• Video Volunteers’ Interventions Against Poverty
• Poverty in American Single-Parent Families
• Single-Mother Poverty and Policies in the United States
• Poverty and Its Aspects in Historical Documents
• Economic Growth vs. Development: Dreze and Sen’s Analysis
• Poverty and Its Relative Definitions
• Poverty in America: An Ethical Dilemma
• Child Poverty and Academic Achievement Association
• Poverty as a Factor of Terrorist Recruitment
• Poverty Solution as a Political Issue in Australia
• Poverty: An Echo of Capitalism
• Breastfeeding Impact on Canadian Poverty Gaps
• Urban and Suburban Poverty in the United States
• Poverty and Child Health in the US and the UK
• Poverty Impact on Life Perception
• Energy Poverty Elimination in Developing Countries
• Why Nations Fail: The Origins of Power, Prosperity and Poverty
• Vietnamese Poverty and Productivity Increase
• Global Health Governance and Poverty
• Poverty Rates Among Whites and Blacks Americans
• Culture of Poverty in the “Park Avenue” Documentary
• Poverty in the US
• Poor Economics and Global Poverty
• Poverty as a Cause of the Sudanese Civil War
• “Halving Global Poverty” by Besley and Burges
• Do Poverty Traps Exist? Assessing the Evidence
• Poverty Reasons in Ancient Times and Nowadays
• American War on Poverty Throughout US History
• Poverty and Challenges in Finding Solutions
• Children and Poverty in “Born into Brothels” Documentary
• Poverty and Social Welfare in the United States
• Poverty in “A Theology of Liberation” by Gutierrez
• Poverty Reduction Among American Single Mothers
• The Relationship Between Poverty and Education
• Divorce Outcomes: Poverty and Instability
• African Poverty at the Millennium: Causes and Challenges
• Poverty Effect on Children
• Poverty and Education: School Funding Reinforces Inequality
• Global Poverty and the Endeavors of Addressing It
• Global Poverty Reduction: Economic Policy Recommendation
• Global Conflict and Poverty Crisis
• Poverty in the Novel “Snow” by Orhan Pamuk
• Profit From Organizing Tours to Poverty Areas
• Poverty: $2.00 a Day in America
• Detroit Poverty and “Focus Hope” Organization
• Poverty Controversy in the USA
• Poverty as the Deprivation of Capabilities
• Suburbanisation of Poverty in the USA
• The Solution to World Poverty by Peter Singer
• The Poverty Across the US Culture
• How Racial Segregation Contributes to Minority’s Poverty?
• Catholic Dealing With Poverty and Homelessness
• Human Capital and Poverty in Scottsdale
• Global Poverty Studies and Their Importance
• The World Bank and the Poverty of Reform
• Challenges of Social Integration: Poverty
• Globalization and the Issue of Poverty: Making the World a Better Place
• The Economic Effect of Issuing Food Stamps to Those in Poverty
• Business and Pollution Inequality in Poor States
• “Facing Poverty With a Rich Girl’s Habits” by Suki Kim
• What Should You Do? Poverty Issue
• Causes of Poverty Traps in an Economy, Its Results and Ways of Avoiding Them
• Millennium Development Goals – Energy and Poverty Solutions
• Sociological Indicators of Energy Poverty
• Energy and Poverty Solutions – Non-Traditional Cookstoves
• Energy and Poverty Solutions – World Bank
• How do Migration and Urbanization Bring About Urban Poverty in Developing Countries?
• Poverty and Domestic Violence
• The Rise of Extremist Groups, Disparity and Poverty
• Measuring Poverty and Social Exclusion in Australia
• Does Poverty Lead to Terrorism?
• “Urban and Rural Estimates of Poverty: Recent Advances in Spatial Microsimulation in Australia” by Tanton, R, Harding, A, and McNamara, J
• Importance of Foreign Aid in Poverty Reducing
• Hispanic Childhood Poverty in the United States
• How Poverty Affects Children Development?
• Why Is Poverty Important in Contemporary Security Studies?
• Millennium Development Goals in Kenya, Ivory Coast, Haiti, and Chad
• Development Is No Longer the Solution to Poverty
• Issues Underlying Global Poverty and Provision of Aid
• Films Comparison: “The Fields” by Roland Joffe and “Hotel Rwanda” by Terry George
• Poverty Prevalence in the United States
• Terrorism, Poverty and Financial Instability
• Global Poverty and Education
• Critical Analyses of the Climate of Fear Report From Southern Poverty Law Center
• How World Vision International Contributes to Poverty Reduction
• Global Poverty, Social Poverty and Education
• Global Poverty, Social Policy, and Education
• Poverty Reduction in Africa, Central America and Asia
• Does Parental Involvement and Poverty Affect Children’s Education and Their Overall Performance?
• African Poverty: To Aid, or Not to Aid
• Poverty Fighting in Saudi Arabia and in USA
• Technological Development in Trade and Its Impacts on Poverty
• Social Dynamics: The Southern Poverty Law Centre
• Property, Urban Poverty and Spatial Marginalization
• Rural Poverty in Indonesia
• Is Poverty of Poor Countries in Anyway Due to Wealth of the Rich?
• Poverty and Gender Violence in Congo
• Correlation Between Poverty and Obesity
• Fight Poverty, Fight Illiteracy in Mississippi Initiative
• Civil War and Poverty: “The Bottom Billion” by Paul Collier
• Analytical Research: Poverty in Thailand: Peculiarities and Perspectives
• Poverty Indicators in Developing Countries
• Poverty, Homelessness and Discrimination in Australia: The Case of the Aboriginal
• Africa’s Poverty: The Influence of Western States
• Susceptibility of Women and Aboriginal People to Poverty in Canada
• MDG Poverty Goals May Be Achieved, but Child Mortality Is Not Improving
• Microcredit: A Tool for Poverty Alleviation
• Impacts of Global Poverty Resistance
• Reducing Poverty: Unilever and Oxfam
• Poverty in the United States
• The Mothers Who Are Not Single: Striving to Avoid Poverty in Single-Parent Families
• Effect of Poverty on Children Cognitive and Learning Ability
• Sweatshops and Third World Poverty
• War on Poverty: Poverty Problem in US
• Freedom from Poverty as a Human Right and the UN Declaration of Human Rights
• War on Poverty in US
• The Causes of Poverty Concentration in the Modern World
• Poverty in Saudi Arabia
• Poverty as Capability Deprivation
• Poverty as a Peculiarity of the Economical Development
• Capitalism and Poverty
• The Problems of Poverty in the Modern World
• Poverty Among Women and Aboriginals
• On (Not) Getting by in America: Economic Order and Poverty in the U.S.
• The Singer Solution to World Poverty
• Poverty and Inequality in Jacksonian America
• Poverty in America Rural and Urban Difference (Education)
• What Is the Relationship Between Race, Poverty and Prison?
• Poverty in Russia During the Late Nineteenth Century
• Banker to the Poor: Micro-Lending and the Battle Against World Poverty: Advantages of Microcredit
• Social Welfare Policy That Facilitates Reduction of Poverty and Inequality in the US
• Immigrant Status and Poverty: How Are They Linked?
• Effects of Poverty on Immigrant Children
• Poverty in Brazil
• The Problem of Immigrants Poverty in the US
• Why Poverty Rates are Higher Among Single Black Mothers
• Poverty and Its Impact on Global Health: Research Methodologies
• Poverty Concerns in Today’s Society
• Literature Study on the Modern Poverty Concerns
• Poverty and Wealth in “The Lesson” by Toni Cade Bambara
• Peter Singer on Resolving the World Poverty
• Aspects of Global Poverty
• Concepts of Prenatal Drug Exposure vs. Poverty on Infants
• UN Summit in New York: Ending Global Poverty
• Why Has Poverty Increased in Zimbabwe?
• Should Private Donations Help Eliminate Child Poverty?
• Why Was Poverty Re-Discovered in Britain in the Late 1950s and Early 1960?
• Why Does Child Labour Persist With Declining Poverty?
• Why Are Child Poverty Rates Higher in Britain Than in Germany?
• What Are the Principles and Practices for Measuring Child Poverty in Rich Countries?
• Why Did Poverty Drop for the Elderly?
• What Is the Relationship Between Income Distribution and Poverty Reduction in the UK?
• What Are the Pros and Cons of Poverty in Latin America?
• Should Poverty Researchers Worry About Inequality?
• What Helps Households With Children in Leaving Poverty?
• What Is the Connection Between Poverty and Crime?
• Why Have Some Indian States Done Better Than Others at Reducing Rural Poverty?
• What Is the Relationship Between Lack of Education and Poverty?
• Why Are Child Poverty Rates So Persistently High in Spain?
• Trade Liberalisation and Poverty: What Are the Links?
• What Are Academic Programs Available for Youth in Poverty?
• What Are the Main Factors Contributing to the Rise in Poverty in Canada?
• Single-Mother Poverty: How Much Do Educational Differences in Single Motherhood Matter?
• What Are the Causes and Effects of Poverty in the United?
• Why Are Some Countries Poor?
• What Is the Link Between Globalization and Poverty?
• What Are the Factors That Influence Poverty Sociology?
• What Causes Poverty Within the United States Economy?
• What Is the Relationship Between Poverty and Obesity?
• Why Were Poverty Rates So High in the 1980s?
• With Exhaustible Resources, Can a Developing Country Escape From the Poverty Trap?
• Why Does Poverty Persist in Rural Ethiopia?
• Who Became Poor, Who Escaped Poverty, and Why?
• Social Norms Essay Ideas
• Drug Abuse Research Topics
• Juvenile Delinquency Essay Titles
• Segregation Research Topics
• Alcohol Abuse Paper Topics
• Challenges Essay Topics
• Community Service Questions
• Discrimination Essay Titles
• Chicago (A-D)
• Chicago (N-B)

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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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2.6 Reducing Poverty

Learning objectives.

• Explain why the United States neglects its poor.
• List any three potentially promising strategies to reduce US poverty.
• Describe how to reduce global poverty from a sociological perspective.

As this chapter noted at the outset, the United States greatly reduced poverty during the 1960s through a series of programs and policies that composed the so-called war on poverty. You saw evidence of the success of the war on poverty in Figure 2.1 “US Poverty, 1959–2010” , which showed that the poverty rate declined from 22.2 percent in 1960 to a low of 11.1 percent in 1973 before fluctuating from year to year and then rising since 2000. The Note 2.19 “Lessons from Other Societies” box showed that other democracies have much lower poverty rates than the United States because, as many scholars believe, they have better funded and more extensive programs to help their poor (Brady, 2009; Russell, 2011).

The lessons from the 1960s’ war on poverty and the experience of other democracies are clear: It is very possible to reduce poverty if, and only if, a nation is willing to fund and implement appropriate programs and policies that address the causes of poverty and that help the poor deal with the immediate and ongoing difficulties they experience.

A major reason that the US poverty rate reached its low in 1973 and never went lower during the past four decades is that the United States retreated from its war on poverty by cutting back on the programs and services it had provided during that good war (Soss, et. al., 2007). Another major reason is that changes in the national economy during the past few decades have meant that well-paying manufacturing jobs have been replaced by low-paying service jobs with fewer benefits (Wilson, 2010). Yet this has also happened in other democracies, and their poverty rates remain lower than the US rate because, unlike the United States, they have continued to try to help their poor rather than neglect them.

Why does the United States neglect its poor? Many scholars attribute this neglect to the fact that many citizens and politicians think the poor are poor because of their own failings. As summarized by sociologist Mark R. Rank (Rank, 2011), these failings include “not working hard enough, failure to acquire sufficient skills, or just making bad decisions.” By thus blaming the poor for their fate, citizens and politicians think the poor do not deserve to have the US government help them, and so the government does not help, or at least not nearly as much as other democracies do. We have seen that the facts do not support the myth that the poor lack motivation to work, but that does not lessen the blame given the poor for being poor.

To renew the US effort to help the poor, it is essential that the actual facts about poverty become better known so that a fundamental shift in thinking about poverty and the poor can occur. Rank (Rank, 2011) says that one aspect of this shift must include the recognition, as noted at the beginning of this chapter, that “poverty affects us all” because it costs so many tax dollars to help the poor and because a majority of the public can expect to be poor or near poor at some point in their lives. A second aspect of this shift in thinking, adds Rank, is the recognition (following a blaming-the-system approach) that poverty stems much more from the lack of opportunity, lack of jobs, declining government help for the poor, and other structural failings of American society than from individual failings of the poor themselves. A third aspect of this shift in thinking, he concludes, is that poverty must become seen as a “moral problem” and as “an injustice of a substantial magnitude” (Rank, 2011). As he forcefully argues, “Something is seriously wrong when we find that, in a country with the most abundant resources in the world, there are children without enough to eat, families who cannot afford health care, and people sleeping on the streets for lack of shelter” (Rank, 2011). This situation, he says, must become seen as a “moral outrage” (Rank, 2011).

Sociologist Joe Soss (Soss, 2011) argues that a change in thinking is not enough for a renewed antipoverty effort to occur. What is needed, he says, is political protest and other political activity by the poor and on behalf of the poor. Soss notes that “political conflict and mass mobilization played key roles” in providing the impetus for social-welfare programs in the 1930s and 1960s in the United States, and he adds that the lower poverty rates of Western European democracies “are products of labor movements, unions, and parties that mobilized workers to demand more adequate social supports.” These twin histories lead Soss to conclude that the United States will not increase its antipoverty efforts unless a new wave of political activity by and on behalf of the poor arises. As he argues, “History suggests that major antipoverty victories can be achieved. But they won’t be achieved by good will and smart ideas alone. They’ll be won politically, when people—in poor communities, in advocacy groups, in government, in the academy, and elsewhere—mobilize to advance antipoverty agendas in ways that make politics as usual untenable.”

Antipoverty Programs and Policies

To help reduce poverty, it is essential to help poor parents pay for child care.

Herald Post – Family Child Care – CC BY-NC 2.0.

If a renewed antipoverty effort does occur for whatever reason, what types of programs and policies show promise for effectively reducing poverty? Here a sociological vision is essential. It is easy to understand why the hungry schoolchildren described in the news story that began this chapter might be going without food during a very faltering national economy. Yet a sociological understanding of poverty emphasizes its structural basis in bad times and good times alike. Poverty is rooted in social and economic problems of the larger society rather than in the lack of willpower, laziness, or other moral failings of poor individuals themselves. Individuals born into poverty suffer from a lack of opportunity from their first months up through adulthood, and poverty becomes a self-perpetuating, vicious cycle. To the extent a culture of poverty might exist, it is best seen as a logical and perhaps even inevitable outcome of, and adaptation to, the problem of being poor and not the primary force driving poverty itself.

This sort of understanding suggests that efforts to reduce poverty must address first and foremost the structural basis for poverty while not ignoring certain beliefs and practices of the poor that also make a difference. An extensive literature on poverty policy outlines many types of policies and programs that follow this dual approach (Cancian & Danziger, 2009; Greenberg, et. al., 2007; Iceland, 2006; Lindsey, 2009; Moore et al., 2009; Rank, 2004). If these were fully adopted, funded, and implemented, as they are in many other democracies, they would offer great promise for reducing poverty. As two poverty experts recently wrote, “We are optimistic that poverty can be reduced significantly in the long term if the public and policymakers can muster the political will to pursue a range of promising antipoverty policies” (M. Cancian & S. Danziger, 2009, p. 32). Cancian, M., & Danziger, S. H. (2009). Changing poverty, changing policies . New York, NY: Russell Sage Foundation. Although a full discussion of these policies is beyond the scope of this chapter, the following measures are commonly cited as holding strong potential for reducing poverty, and they are found in varying degrees in other Western democracies:

• Adopt a national “full employment” policy for the poor, involving federally funded job training and public works programs, and increase the minimum wage so that individuals working full-time will earn enough to lift their families out of poverty.
• Increase federal aid for the working poor, including higher earned income credits and child-care subsidies for those with children.
• Establish well-funded early childhood intervention programs, including home visitations by trained professionals, for poor families.
• Provide poor families with enough income to enable them to pay for food and housing.
• Increase the supply of affordable housing.
• Improve the schools that poor children attend and the schooling they receive and expand early childhood education programs for poor children.
• Provide better nutrition and health services for poor families with young children.
• Establish universal health insurance.
• Increase Pell Grants and other financial aid for higher education.

Global Poverty

Years of international aid to poor nations have helped them somewhat, but, as this chapter has shown, their situation remains dire. International aid experts acknowledge that efforts to achieve economic growth in poor nations have largely failed, but they disagree why this is so and what alternative strategies may prove more successful (Cohen & Easterly, 2009). Cohen, J., & Easterly, W. (Eds.). (2009). What works in development? Thinking big and thinking small . Washington, DC: Brookings Institution Press. One very promising trend has been a switch from macro efforts focusing on infrastructure problems and on social institutions, such as the schools, to micro efforts, such as providing cash payments or small loans directly to poor people in poor nations (a practice called microfinancing ) and giving them bed nets to prevent mosquito bites (Banerjee & Duflo, 2011; Hanlon, Barrientos, & Hulme, 2010; Karlan & Appel, 2011). Banerjee, A. V., & Duflo, E. (2011). Poor economics: A radical rethinking of the way to fight global poverty . New York, NY: PublicAffairs; Hanlon, J., Barrientos, A., & Hulme, D. (2010). Just give money to the poor: The development revolution from the global south . Sterling, VA: Kumarian Press; Karlan, D., & Appel, J. (2011). More than good intentions: How a new economics is helping to solve global poverty . New York, NY: Dutton. However, the evidence on the success of these efforts is mixed (Bennett, 2009; The Economist, 2010). Bennett, D. (2009, September 20). Small change. The Boston Globe . Retrieved from http://www.boston.com/bostonglobe/ideas/articles/2009/09/20/small_change_does_microlending_actually_fight_poverty/ ; The Economist. (2010). A better mattress. The Economist, 394 (8673), 75–76. Much more to help the world’s poor certainly needs to be done.

In this regard, sociology’s structural approach is in line with dependency theory and suggests that global stratification results from the history of colonialism and from continuing exploitation today of poor nations’ resources by wealthy nations and multinational corporations. To the extent such exploitation exists, global poverty will lessen if and only if this exploitation lessens. A sociological approach also emphasizes the role that class, gender, and ethnic inequality play in perpetuating global poverty. For global poverty to be reduced, gender and ethnic inequality must be reduced.

Writers Nicholas D. Kristof and Sheryl WuDunn (2010) Kristoff, N. D., & WuDunn, S. (2010). Half the sky: Turning oppression into opportunity for women worldwide . New York, NY: Vintage Books. emphasize the need to focus efforts to reduce global poverty of women. We have already seen one reason this emphasis makes sense: women are much worse off than men in poor nations in many ways, so helping them is crucial for both economic and humanitarian reasons. An additional reason is especially illuminating: When women in poor nations acquire extra money, they typically spend it on food, clothing, and medicine, essentials for their families. However, when men in poor nations acquire extra money, they often spend it on alcohol, tobacco, and gambling. This gender difference might sound like a stereotype, but it does indicate that aid to women will help in many ways, while aid to men might be less effective and often even wasted.

Key Takeaways

• According to some sociologists, a change in thinking about poverty and the poor and political action by and on behalf of the poor are necessary for a renewed effort to help poor Americans.
• Potentially successful antipoverty programs and policies to help the US poor include expanding their employment opportunities and providing them much greater amounts of financial and other aid.
• To help people in poor nations, gender and ethnic inequality must be addressed.

For Your Review

• Write a brief essay summarizing the changes in thinking that some sociologists argue must occur before a renewed effort to reduce poverty can take place.
• Write a brief essay summarizing any four policies or programs that could potentially lower US poverty.

Brady, D. (2009). Rich democracies, poor people: How politics explain poverty . New York, NY: Oxford University Press.

Cancian, M., & Danziger, S. H. (2009). Changing poverty, changing policies . New York, NY: Russell Sage Foundation.

Greenberg, M., Dutta-Gupta, I., & Minoff, E. (2007). From poverty to prosperity: A national strategy to cut poverty in half . Washington, DC: Center for American Progress.

Iceland, J. (2006). Poverty in America: A handbook . Berkeley, CA: University of California Press.

Lindsey, D. (2009). Child poverty and inequality: Securing a better future for America’s children . New York, NY: Oxford University Press.

Moore, K. A., Redd, Z., Burkhauser, M., Mbawa, K., & Collins, A. (2009). Children in poverty: Trends, consequences, and policy options . Washington, DC: Child Trends. Retrieved from http://www.childtrends.org/Files//Child_Trends-2009_04_07_RB_ChildreninPoverty.pdf .

Rank, M. R. (2004). One nation, underprivileged: Why American poverty affects us all . New York, NY: Oxford University Press.

Rank, M. R. (2011). Rethinking American poverty. Contexts, 10 (Spring), 16–21.

Russell, J. W. ( 2011). Double standard: Social policy in Europe and the United States (2nd ed.). Lanham, MD: Rowman & Littlefield.

Soss, J. (2011). The poverty fight. Contexts, 10 (2), 84.

Soss, J., Hacker, J. S., & Mettler, S. (Eds.). (2007). Remaking America: Democracy and public policy in an age of inequality . New York, NY: Russell Sage Foundation.

Wilson, W. J. (2010). More than just race: Being black and poor in the inner city . New York, NY: W. W. Norton.

Social Problems Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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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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The future is equal

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How we fight inequality to end poverty and injustice

Fatoumata Tangara, 14, has been a peer educator for 2 years. She says it is important that young people talk to other young people, because “sometimes when we talk with adults, we can’t say everything.” She adds that parents also have to be sensitized for them to allow their girls to go and stay in school. Photo: Laeïla Adjovi/Oxfam

Today’s economic models have failed the world. Flawed and sexist, they have concentrated power in the hands of a few, at the expense of the world’s poorest and most marginalized. They have exacerbated a climate crisis that is destroying millions of lives and livelihoods. They have sustained multiple and interlinked forms of inequality that are the root cause of poverty and injustice. Across countries and regions, people are denied the ability to shape their future.

But inequality is not inevitable. The tide is turning. A better world is within our grasp. Where women and girls have agency and people are freed from the shackles of poverty. A world where everyone has the opportunity to thrive.

We are working across regions in 85 countries, with thousands of partners and allies, supporting communities to build better lives for themselves, grow resilience and protect lives and livelihoods also in times of crisis. Because we want lasting solutions, we fight the inequalities that keep people locked in poverty and injustice, we tackle not the symptoms but the systems, and we campaign for genuine, durable change.

Valerie Mukangerero walks to her pineapple farm in Rwamurema village, eastern Rwanda. Credit: Aurelie Marrier d'Unienville/Oxfam

Our vision for a just and sustainable world

We believe all lives are equal. No-one should be discriminated against or live in poverty. We want a just and sustainable world in which everyone can safely speak truth to power, claim their human rights, and build a better future for themselves.

We offer direct support to people and communities living with poverty, above all in countries in the global South. We seek to add value to the work of our partners and of all those who challenge discrimination, exclusion and exploitation.

But for change to be sustainable, it must be systemic. To contribute to change that lasts, we mobilize to transform the systems, policies and practices that have the most significant impact on people’s lives.

A just economy is inclusive. It promotes equality, protects the planet, and ends poverty. It builds social cohesion and promotes the economic empowerment of women and marginalized groups. It supports the rights of all workers, offers social protection and ensures that livelihoods and planetary resources can be sustained.

In an increasingly unequal world, advancing gender equality is fundamental to tackling poverty and injustice. A just society is not possible unless women and girls have agency over their lives. It needs to challenge harmful social norms and belief systems that underpin gender and power relations, especially where they impact women living in poverty the most. To achieve this, it needs to expose the patriarchal practices that prevent women from realizing their rights.

The climate crisis is a man-made disaster that is already reversing progress made in the fight against poverty and inequality. It contributes to vulnerable communities becoming even more fragile and exacerbates the risk of conflict and disaster. To change its course, governments and corporations must stop destructive practices and instead invest in sustainable solutions. The voices of feminist organizations, youth, and indigenous peoples must be amplified in climate negotiations, and lead the transition towards greener and fairer economic solutions.

International norms and multilateral frameworks are consistently undermined. A populist and anti-rights agenda is chipping away at the hard-won gains achieved by the worldwide movement for women’s rights, and in the fight against poverty. The demand for accountable and inclusive governance that protects human rights and our planet has never been higher. A just and sustainable future depends on safe and vibrant spaces that allow all people to hold the powerful to account.

Aisha is one of Docoloha's community health promoters, Somaliland. Together with other women, she trains the community on hygiene, water and waste management.

How we work is as important as what we work on

We are guided by our vision, mission and values, and the transformational change that we seek. We know that to meet the challenge of a complex and unpredictable future, we need to develop new skills, innovate and improve our ability to adapt rapidly to changing contexts.

The inequalities that drive poverty and injustice are complex and multi-dimensional. They are created and sustained by unjust, deeply entrenched and interacting systems such as patriarchy, sexism, caste and racism that can affect anyone, anywhere. We take a multi-dimensional approach which makes us and our impact distinctive.

We apply a feminist lens to all our analysis and address gender justice and women’s rights across all our actions.

We amplify the voices and actions of people that experience poverty and injustice and work with those who fight for their causes.

We think and act locally and globally . We build coalitions within and between regions and from the local to the global level.

We work with communities before, during and after crises to build their resilience, save lives, and together address the root causes of conflict and disaster.

We leverage the power and influence of digital technology , expanding digital spaces and seizing the potential they offer to social justice activists.

We mobilize to transform the systems that perpetuate poverty and injustice. We innovate, identify and scale-up lasting solutions that are grounded in evidence experience.

We are part of a global movement for social justice

Change at scale is possible when we act in solidarity with, and amplify, the voices of people experiencing poverty, injustice, exclusion and crisis.

Collaboration is at the heart of everything we do. Across the world, where we share vision and values, we partner with activists, communities, social movements and civil society. We seek new ways to connect with young people and women in all their diversity and aspire to become a partner of choice for them. We know that it is our supporters, volunteers, partners, staff and donors who make it possible for us to make a difference.

Together, we generate energy for transformative change. We campaign to influence local and national governments, corporate actors, and the institutions whose decisions, policies, and practices can put an end to inequality, poverty and injustice.

Our ambition for 2030

The years to 2030 will be a time of rapid and unpredictable change, and we do not know how these complex realities will play out. Our new global strategy sets out our commitment, over the next decade, to a just and sustainable future. It is made more urgent in a world further torn apart by coronavirus and offers a framework and strategic direction that remain as relevant as ever.  

What do you think? Leave a respectful comment.

Laura Santhanam Laura Santhanam

• Copy URL https://www.pbs.org/newshour/health/why-the-u-s-is-rethinking-its-approach-to-poverty

Why the U.S. is rethinking its approach to poverty

At least one Saturday each month, Arlean Younger volunteers handing out boxes of donated food at church. Last time, she helped distribute provisions to more than 100 people. At the end of the shift, she took home a box, too — for herself and Mylie Jai, the little girl she has been taking care of since infancy.

Before the coronavirus pandemic, the number of American households in poverty was shrinking. In 2019, 34 million people lived in poverty , a decrease of 4.2 million individuals from a year earlier, according to the Census Bureau. Children made up a substantial portion of those in low-income households, according to the latest available data from a recent National Academies of Sciences study. A year since the coronavirus began its deadly rampage in the U.S., economic stresses have pushed millions more households to the brink, with some estimates suggesting it also forced an additional 2.5 million more children into poverty.

At the end of 2020, more than 50 million people were facing hunger, up 15 million from the year before, according to data from Feeding America , an anti-hunger organization. Millions of Americans have turned to food banks, with four out of 10 doing so for the first time during the pandemic.

Each month, Younger earns roughly $2,000 from her job at a company that hires home health aides. But the money is spent almost as soon as her deposit clears. Rent gobbles up $800. Utilities cost $300. Water adds $130. And $400 goes for the gas she needs to reach her health care clients. There are credit card bills and the new cost of daycare for Mylie Jae, whose school, the cost of which is normally subsidized by the state, shut down. The COVID-19 pandemic has made everything more precarious, including her own work.

Younger’s role is usually that of a manager but often demands more than overseeing client needs and people’s schedules. She supervises eight employees. Because of pandemic-driven demand, Younger said she often cares for clients herself, working far more than 40 hours, sometimes seven days a week. She drives up to 40 minutes each way to reach the clients farthest from her house; the costs are always greater than what her company reimburses her. She feels like she is struggling to provide a good home for the girl who calls her “Mama.”

Lawmakers in the U.S. have for years debated how to track poverty, and child poverty in particular. Now, in the midst of a pandemic, when the country is caught in a deep recession that has forced families deeper into financial difficulty amid widening inequalities, “it’s not surprising” that politicians have found renewed interest in curbing this hardship, said Rebecca Blank, a macroeconomist who worked on anti-poverty policy for the the Clinton and Obama administrations and now serves as chancellor at the University of Wisconsin-Madison.

Chart by Megan McGrew

Along with what it provides in COVID relief, the $1.9 trillion American Rescue Plan signed into law by President Joe Biden this month offers one of the most sweeping anti-poverty packages in recent memory. Along with one-time stimulus checks to most children and adults and an extension of unemployment benefits, the legislation increases the child tax credit to between $3,000 and $3,600, depending on the age of the child, and makes that money available over the course of the year rather than only at tax-filing time. It offers housing vouchers for those nearing homelessness, as well as health care subsidies for people whose states have not expanded Medicaid.

One estimate by the Urban Institute suggests these measures will cut child poverty in half for children, and significantly for families experiencing job loss.

READ MORE: How to help kids build resilience amid COVID-19 chaos

In the pandemic, advocates have an opportunity to generate sufficient political will for the U.S. to not only sew up some of the holes in its social safety net, but make it big enough to catch more families and individuals in need. “One thing we know out of American history is when we expand these programs, it tends to be in response to more than just the very poor having need,” Blank said. “When need is more expansive, people are more willing to think about new things.”

The bill only guarantees the expanded tax credit for a year, though Democrats have promised to extend the benefit. The question now: Could this become permanent? If the tax credit expires, the child poverty rate will double again by 2022. Many Republicans, who are seeking to regain control of Congress in the next midterm elections, have voiced concerns about supporting continued assistance, citing costs or because the measures don’t do enough to incentivize work. But advocates say the idea of a long-standing safety net has now entered the conversation, and there are a number of small models of success across the country and over time that lawmakers can draw from when considering solutions.

How the U.S. has attempted to address poverty

For years, the United States has maintained a stubbornly high rate of child poverty compared to other developed countries, the Organisation for Economic Co-operation and Development reported in November 2019 . Traditionally, Americans have bristled at giving taxpayer money to alleviate poverty, especially if that means the government will assume a greater role in people’s daily lives. But not making a serious investment in solving the problem comes with major costs.

Lack of a political will has obstructed greater progress on child poverty are cold and straightforward, said Cara Baldari, vice president, family economics, housing and homelessness at First Focus on Children, a child advocacy organization. “Kids can’t vote,” she said. That has helped perpetuate a trend in the U.S. where children are more likely than adults to live in poverty because a child’s fortune matches that of the grown-up who cares for them.

Child poverty affects an estimated 9.6 million children and costs the U.S. as much as $1.1 trillion each year, according to a 2019 report from the National Academies of Sciences, Engineering and Medicine . Studies suggest children accumulate these costs over the course of a lifetime due to worse health outcomes that end up adding up to expensive treatment and lost productivity in the job market. Children who grow up in poverty are more likely to report lower incomes, worse health outcomes and less likely to experience social and emotional turmoil.

In the 2016 National Survey on Children’s Health, parents reported that 25.5 percent of children have experienced economic hardship “somewhat” or “very often.” By that measure, poverty is the most common adverse childhood experience in the United States — more common than divorce or separation of parents or living with someone struggling with alcohol or substance use. These events offer a heightened risk of trauma that can have potentially lasting effects on a child’s physical, mental and emotional health, according to Child Trends , a research organization focused on studying child development and well-being.

Other countries have made explicit moves in recent years to tackle those kinds of issues. In 2019, Canada’s Poverty Reduction Act became law , part of a $22 billion package to create poverty reduction targets and funnel resources toward programs that can help meet the social and economic need. The country is on track to reduce child poverty by half, according to the National Academies of Sciences, Engineering and Medicine. New Zealand has also released intermediate and long-term targets designed to cut child poverty dramatically within a decade. In both countries, people receive direct monthly payments to give families a cushion against poverty.

The U.S. hasn’t yet gotten that far, instead operating multiple policies entangled in a way that sometimes pits them against one another. To stem hunger, the federal government funds Supplement Nutrition Assistance Program, or SNAP benefits. To help working families, the Earned Income Tax Credit refunds money to individuals based on what was earned and household need. And those who qualify to receive Temporary Assistance for Needy Families are often flagged to receive job training or help securing employment. But families often bump up against income thresholds, earning too little to live comfortably but too much to receive government benefits. Younger, 49, has been caring for Mylie Jai for five years, ever since she offered help to a friend who had just given birth and was hopping between rundown motels in Jackson, Mississippi, without a stable home, car or job. Mylie Jai is now in preschool, and Younger is her official legal guardian. Younger was told she earns too much money to qualify for SNAP benefits, she said.

The Mississippi Department of Human Services normally covers the cost of Mylie Jai’s school, but in late February, the building was shut down after pipes burst in a historic snowfall and ice storm. Younger was forced to instead send Mylie Jae to a small daycare operated by a friend, but the state’s vouchers got caught in bureaucratic red tape, so she said she had to come up with $90 per week out of pocket.

Medicaid covers Mylie Jai’s doctor visits, Younger said, but she herself visits a community health center if she gets sick and cannot afford health insurance, despite being a health care worker.

Arlean Younger, 49, of Jackson, Mississippi, works full-time (and often logging extra hours) for a company that hires home health aides. But she struggles to make ends meet for herself and Mylie Jai, 5, for whom she is the legal guardian. Photos courtesy of Arlean Younger

Those ill-fitting pieces are problematic, said Beryl Levinger, a child policy expert and professor at Middlebury Institute, and policymakers need to take a more holistic approach, rather than hunt for a silver bullet that doesn’t exist.

Levinger also served as a researcher on a new report from child advocacy group Save the Children that used data to analyze which states offered kids the best and worst COVID-19 responses . Minnesota, Utah and Washington state ranked highest while Louisiana, Mississippi and Texas were among the lowest. This latest report suggested 6 million more children endured hunger during the pandemic, and a quarter of children lacked resources for remote learning, which made completing school work virtually impossible for many families. The report urged states to protect child care, which has unraveled during the pandemic, and address child hunger through SNAP and other federal programs.

“This problem will not end even when the last of the vaccine is distributed,” the report said. “The additional benefits and supports for these children and families will need to be made permanent until all children have access to the food they need.”

The debate over cash payments

Created as part of the Taxpayer Relief Act of 1997, the child tax credit offered a $500-per-child nonrefundable credit to ease the tax burden of middle-income households. Since then, it has become more tightly woven into the U.S. social safety net over time, said Elaine Maag, who studies programs for low-income families and children for the Urban-Brookings Tax Policy Center at the Urban Institute. Decades later, she said the policy has evolved and holds the potential to become a permanent fixture to help families.

But government programs, no matter how well designed or executed to fit a certain set of circumstances, often miss the mark, Maag said, because life is messy. She pointed to SNAP benefits as an example. With them, a person may have food, but if they get sick, do they have money to pay for a doctor’s visit or to fill a drug prescription? A mountain of research that suggests direct cash payments are the most effective way to alleviate poverty and documents a “growing understanding that people know how to solve their problems the best way,” Maag said. “Cash can be used to meet all your needs.”

Of all of the provisions in the latest relief bill, the $1,400 cash payments have the most potential to reduce poverty, according to the Urban Institute’s analysis. In recent years, there has been growing discussion of using a universal income to alleviate poverty, but it is not politically popular. Democratic presidential candidate and philanthropist Andrew Yang campaigned on this idea, but just a fraction of Democrats supported it, much less the country overall. In a July 2019 poll from PBS NewsHour, NPR and Marist , only 26 percent of Americans said they supported giving each U.S. adult $1,000 per month, a proposal that was more popular among Democrats than Republicans.

Despite robust evidence supporting the use of direct payments, Americans historically do not like to give people tax-payer dollars unless society deems them to be deserving, Maag said. Since the Great Depression, older adults, people with disabilities or some survivors of people who die have received cash benefits. But distributing cash payments to families or other more specific groups is an easier political sales pitch than to do so for all able-bodied adults, Maag said.

So for generations, the U.S. has pursued anti-poverty policies that are very specific about how people spend their resources, said Aisha Nyandoro, chief executive of Springboard to Opportunities, a direct service organization. “Why not try something different?”

That is what Nyandoro’s organization did in 2018 when it founded the Magnolia Mother’s Trust. The project gave $1,000 per month for 12 months to Black mothers living in extreme poverty in Jackson, Mississippi. The goal was to target systemic problems by empowering women with cash payments so they could decide how to improve their lives. The project has grown from helping 20 women to more than 200. During that time, Nyandoro said she has witnessed women pay off debt, return to school, cook more nutritious meals for their families and become better parents.

Tamara Ware was one of those women. In late February 2020, she had to leave her job at a child care facility, afraid she might bring the coronavirus home to her three daughters, ages 13, 14 and 17, who were struggling in school even before the virus forced classrooms to close and instruction to go virtual. She had been earning $11 per hour and had no savings to pay for food or housing.

When the COVID-19 pandemic forced Tamara Ware, 36, of Jackson, Mississippi, out of her job at a child care facility, Ware said she did not know how she could afford to raise her three daughters, age 13, 14 and 17. But when she received $1,000 per month for a year from the Magnolia Mother’s Trust, Ware said she could focus on being a more patient, present and understanding parent. For the first time in years, she threw a birthday party for her daughter, Erianna, in July. Photos courtesy of Tamara Ware

Within weeks, Ware was accepted into the trust. She found tutoring help for her daughters and counselors for them to address trauma they had endured, including the grief and loss of Ware’s twin sister, who had been shot and killed eight years earlier. She threw a party to celebrate her daughters’ birthdays, something she hadn’t been able to afford to do in years. She became a more patient and understanding mother, she said, and developed a deep sense of community with other mothers who worked to overcome struggles that had ensnared them for years.

“I could be in the moment,” Ware said. “Look, I ain’t gotta worry about nothing this month.”

She graduated from the program last month, and it gave her a chance to build her own business as a child care provider.

“My head is in the right direction,” Ware said. “I have the tools I need now.”

Many women in the program report feelings of joy, Nyandoro said. Often, that is because they struggled to survive. With a guaranteed income in place, the women’s focus could broaden beyond meeting basic needs and tapping to what they actually wanted in life.

“If you have lived a life of scarcity so often, joy is something you feel like you haven’t been allowed either. You’re constantly trying to survive,” she said. “You tell yourself dreams are something for other people.”

What works?

After the implementation of the “Great Society” programs in the 1960s, such as Medicaid and federal funding for education, the U.S. saw its child poverty rate cut in half. If successful, advocates say the American Rescue Plan could help bring the U.S. and other countries closer to a global goal set in motion by the United Nations (long before COVID-19) to end extreme child poverty by 2030 and cut child poverty rates in half worldwide.

Researchers behind a pilot universal income program that gave participants in Stockton, California, $500 a month released data that showed a 12 percent increase in full-time employment after one year, and 62 percent reported paying off debt, a 10 percent increase from before the program began.

The biggest spending category was food, their research showed, followed by merchandise, utilities and auto costs, which all have an impact on someone’s ability to get and keep a job, researchers said.

More than 40 mayors across the country who are part of a Mayors for Guaranteed Income initiative are launching similar programs.

“COVID-19 has made it very, very clear that you could play by all the rules, that you could be working, and that still may not be enough,” Michael Tubbs, the mayor of Stockton, told the PBS NewsHour in December.

Some economists reviewing Stockton’s pilot have also pointed out the complicated questions that arise around deciding who is eligible for these kinds of programs and how to reach them. Certain requirements may unintentionally cut out people who need help most, in favor of people who don’t have as much need. And cash can only go so far in solving structural issues like access to health care and education.

During the pandemic, fighting poverty has drawn some bipartisan support. Sen. Mitt Romney, R-Utah, proposed the $254 billion Family Security Act to replace some existing programs with a monthly child allowance — $350 for each young child and $250 for every school-aged child. But the cost of this program would mean making choices about discontinuing others, and some experts have raised concerns about the possible unintended consequences of replacing programs, such as TANF, that have been used to connect families to other services. That could lead to families falling through the cracks and needs going unmet.

But some critics say these programs don’t go far enough to incentivize work as a way to alleviate poverty. Robert Rector, a welfare policy expert for the conservative Heritage Foundation, said he doesn’t think the pandemic justifies the child poverty policies passed into law. Instead, he said, the U.S. already has “a very large welfare state,” adding that roughly $500 billion he said is currently devoted to poverty-alleviation programs should be “more efficient” and “targeted to be more supportive of work.”

READ MORE: How the economic relief law narrows the equity gap for farmers of color

The policies targeting child poverty in the American Rescue Plan represent “an enormous expansion of the welfare state” and are only exceeded by the Affordable Care Act, Rector said.

“You want to be compassionate to be people who need assistance, but you don’t want free handouts where an individual can take advantage of the charity extended to them,” he said.

In the 2019 report, researchers suggested expanding benefits to target food and housing insecurity, along with the earned income tax credit and the child tax credit, and creating a child allowance, as Romney’ proposed, which the study found would have the biggest impact on low-income households. Families who claim children as dependents could receive these funds as deposits from the Social Security Administration or even the Internal Revenue Service, according to proposals currently before policymakers. They predicted that those measures could stabilize families in need and reduce child poverty by almost half in the U.S. On a basic level, putting targets in place would help policymakers see if programs like these are making a difference in reducing child poverty, such as how many children and households receive SNAP benefits or if the Census Bureau develops a more accurate measure of poverty based on who actually gets benefits or has health care coverage due to household income.

Rep. Danny Davis, D-Ill., said he sees increased interest in alleviating child poverty as “investing in the future of our country.” While U.S. politics are still intensely polarized, people can still rally behind children, added Davis, who authored the Child Poverty Reduction Act.

“We are at a tremendous crossroads right now in the future of our country, and so, this will help to move America forward and not move America backwards,” Davis said.

That includes people like Younger. She said she feels one major setback away from economic catastrophe, and doesn’t know how long she can keep herself and Mylie Jai afloat.

“Any help at the time of need we’re in right now, I’m thankful for,” Younger said.

She doesn’t allow Mylie Jai to attend birthday parties because she is afraid she might get sick. Her daughter plays with baby dolls and imaginary friends, and loves to play in the park.

For Younger, having a little more money could release her from being pinned down into survival mode each day. She could focus more fully on the moments she spends with Mylie Jai and be empowered to help her secure a better future.

“What would help me is to make sure the little girl I take care of every day grows up to be a prosperous adult,” Younger said.

Laura Santhanam is the Health Reporter and Coordinating Producer for Polling for the PBS NewsHour, where she has also worked as the Data Producer. Follow @LauraSanthanam

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Why Poverty Persists in America

A Pulitzer Prize-winning sociologist offers a new explanation for an intractable problem.

A mother and son living in a Walmart parking lot in North Dakota in 2012. Credit... Eugene Richards

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By Matthew Desmond

• Published March 9, 2023 Updated April 3, 2023

In the past 50 years, scientists have mapped the entire human genome and eradicated smallpox. Here in the United States, infant-mortality rates and deaths from heart disease have fallen by roughly 70 percent, and the average American has gained almost a decade of life. Climate change was recognized as an existential threat. The internet was invented.

On the problem of poverty, though, there has been no real improvement — just a long stasis. As estimated by the federal government’s poverty line, 12.6 percent of the U.S. population was poor in 1970; two decades later, it was 13.5 percent; in 2010, it was 15.1 percent; and in 2019, it was 10.5 percent. To graph the share of Americans living in poverty over the past half-century amounts to drawing a line that resembles gently rolling hills. The line curves slightly up, then slightly down, then back up again over the years, staying steady through Democratic and Republican administrations, rising in recessions and falling in boom years.

What accounts for this lack of progress? It cannot be chalked up to how the poor are counted: Different measures spit out the same embarrassing result. When the government began reporting the Supplemental Poverty Measure in 2011, designed to overcome many of the flaws of the Official Poverty Measure, including not accounting for regional differences in costs of living and government benefits, the United States officially gained three million more poor people. Possible reductions in poverty from counting aid like food stamps and tax benefits were more than offset by recognizing how low-income people were burdened by rising housing and health care costs.

The American poor have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most.

Any fair assessment of poverty must confront the breathtaking march of material progress. But the fact that standards of living have risen across the board doesn’t mean that poverty itself has fallen. Forty years ago, only the rich could afford cellphones. But cellphones have become more affordable over the past few decades, and now most Americans have one, including many poor people. This has led observers like Ron Haskins and Isabel Sawhill, senior fellows at the Brookings Institution, to assert that “access to certain consumer goods,” like TVs, microwave ovens and cellphones, shows that “the poor are not quite so poor after all.”

No, it doesn’t. You can’t eat a cellphone. A cellphone doesn’t grant you stable housing, affordable medical and dental care or adequate child care. In fact, as things like cellphones have become cheaper, the cost of the most necessary of life’s necessities, like health care and rent, has increased. From 2000 to 2022 in the average American city, the cost of fuel and utilities increased by 115 percent. The American poor, living as they do in the center of global capitalism, have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most. As Michael Harrington put it 60 years ago: “It is much easier in the United States to be decently dressed than it is to be decently housed, fed or doctored.”

Why, then, when it comes to poverty reduction, have we had 50 years of nothing? When I first started looking into this depressing state of affairs, I assumed America’s efforts to reduce poverty had stalled because we stopped trying to solve the problem. I bought into the idea, popular among progressives, that the election of President Ronald Reagan (as well as that of Prime Minister Margaret Thatcher in the United Kingdom) marked the ascendancy of market fundamentalism, or “neoliberalism,” a time when governments cut aid to the poor, lowered taxes and slashed regulations. If American poverty persisted, I thought, it was because we had reduced our spending on the poor. But I was wrong.

Reagan expanded corporate power, deeply cut taxes on the rich and rolled back spending on some antipoverty initiatives, especially in housing. But he was unable to make large-scale, long-term cuts to many of the programs that make up the American welfare state. Throughout Reagan’s eight years as president, antipoverty spending grew, and it continued to grow after he left office. Spending on the nation’s 13 largest means-tested programs — aid reserved for Americans who fall below a certain income level — went from $1,015 a person the year Reagan was elected president to $3,419 a person one year into Donald Trump’s administration, a 237 percent increase.

Most of this increase was due to health care spending, and Medicaid in particular. But even if we exclude Medicaid from the calculation, we find that federal investments in means-tested programs increased by 130 percent from 1980 to 2018, from $630 to $1,448 per person.

“Neoliberalism” is now part of the left’s lexicon, but I looked in vain to find it in the plain print of federal budgets, at least as far as aid to the poor was concerned. There is no evidence that the United States has become stingier over time. The opposite is true.

This makes the country’s stalled progress on poverty even more baffling. Decade after decade, the poverty rate has remained flat even as federal relief has surged.

If we have more than doubled government spending on poverty and achieved so little, one reason is that the American welfare state is a leaky bucket. Take welfare, for example: When it was administered through the Aid to Families With Dependent Children program, almost all of its funds were used to provide single-parent families with cash assistance. But when President Bill Clinton reformed welfare in 1996, replacing the old model with Temporary Assistance for Needy Families (TANF), he transformed the program into a block grant that gives states considerable leeway in deciding how to distribute the money. As a result, states have come up with rather creative ways to spend TANF dollars. Arizona has used welfare money to pay for abstinence-only sex education. Pennsylvania diverted TANF funds to anti-abortion crisis-pregnancy centers. Maine used the money to support a Christian summer camp. Nationwide, for every dollar budgeted for TANF in 2020, poor families directly received just 22 cents.

We’ve approached the poverty question by pointing to poor people themselves, when we should have been focusing on exploitation.

A fair amount of government aid earmarked for the poor never reaches them. But this does not fully solve the puzzle of why poverty has been so stubbornly persistent, because many of the country’s largest social-welfare programs distribute funds directly to people. Roughly 85 percent of the Supplemental Nutrition Assistance Program budget is dedicated to funding food stamps themselves, and almost 93 percent of Medicaid dollars flow directly to beneficiaries.

There are, it would seem, deeper structural forces at play, ones that have to do with the way the American poor are routinely taken advantage of. The primary reason for our stalled progress on poverty reduction has to do with the fact that we have not confronted the unrelenting exploitation of the poor in the labor, housing and financial markets.

As a theory of poverty, “exploitation” elicits a muddled response, causing us to think of course and but, no in the same instant. The word carries a moral charge, but social scientists have a fairly coolheaded way to measure exploitation: When we are underpaid relative to the value of what we produce, we experience labor exploitation; when we are overcharged relative to the value of something we purchase, we experience consumer exploitation. For example, if a family paid $1,000 a month to rent an apartment with a market value of $20,000, that family would experience a higher level of renter exploitation than a family who paid the same amount for an apartment with a market valuation of $100,000. When we don’t own property or can’t access credit, we become dependent on people who do and can, which in turn invites exploitation, because a bad deal for you is a good deal for me.

Our vulnerability to exploitation grows as our liberty shrinks. Because labor laws often fail to protect undocumented workers in practice, more than a third are paid below minimum wage, and nearly 85 percent are not paid overtime. Many of us who are U.S. citizens, or who crossed borders through official checkpoints, would not work for these wages. We don’t have to. If they migrate here as adults, those undocumented workers choose the terms of their arrangement. But just because desperate people accept and even seek out exploitative conditions doesn’t make those conditions any less exploitative. Sometimes exploitation is simply the best bad option.

Consider how many employers now get one over on American workers. The United States offers some of the lowest wages in the industrialized world. A larger share of workers in the United States make “low pay” — earning less than two-thirds of median wages — than in any other country belonging to the Organization for Economic Cooperation and Development. According to the group, nearly 23 percent of American workers labor in low-paying jobs, compared with roughly 17 percent in Britain, 11 percent in Japan and 5 percent in Italy. Poverty wages have swollen the ranks of the American working poor, most of whom are 35 or older.

One popular theory for the loss of good jobs is deindustrialization, which caused the shuttering of factories and the hollowing out of communities that had sprung up around them. Such a passive word, “deindustrialization” — leaving the impression that it just happened somehow, as if the country got deindustrialization the way a forest gets infested by bark beetles. But economic forces framed as inexorable, like deindustrialization and the acceleration of global trade, are often helped along by policy decisions like the 1994 North American Free Trade Agreement, which made it easier for companies to move their factories to Mexico and contributed to the loss of hundreds of thousands of American jobs. The world has changed, but it has changed for other economies as well. Yet Belgium and Canada and many other countries haven’t experienced the kind of wage stagnation and surge in income inequality that the United States has.

Those countries managed to keep their unions. We didn’t. Throughout the 1950s and 1960s, nearly a third of all U.S. workers carried union cards. These were the days of the United Automobile Workers, led by Walter Reuther, once savagely beaten by Ford’s brass-knuckle boys, and of the mighty American Federation of Labor and Congress of Industrial Organizations that together represented around 15 million workers, more than the population of California at the time.

In their heyday, unions put up a fight. In 1970 alone, 2.4 million union members participated in work stoppages, wildcat strikes and tense standoffs with company heads. The labor movement fought for better pay and safer working conditions and supported antipoverty policies. Their efforts paid off for both unionized and nonunionized workers, as companies like Eastman Kodak were compelled to provide generous compensation and benefits to their workers to prevent them from organizing. By one estimate, the wages of nonunionized men without a college degree would be 8 percent higher today if union strength remained what it was in the late 1970s, a time when worker pay climbed, chief-executive compensation was reined in and the country experienced the most economically equitable period in modern history.

It is important to note that Old Labor was often a white man’s refuge. In the 1930s, many unions outwardly discriminated against Black workers or segregated them into Jim Crow local chapters. In the 1960s, unions like the Brotherhood of Railway and Steamship Clerks and the United Brotherhood of Carpenters and Joiners of America enforced segregation within their ranks. Unions harmed themselves through their self-defeating racism and were further weakened by a changing economy. But organized labor was also attacked by political adversaries. As unions flagged, business interests sensed an opportunity. Corporate lobbyists made deep inroads in both political parties, beginning a public-relations campaign that pressured policymakers to roll back worker protections.

A national litmus test arrived in 1981, when 13,000 unionized air traffic controllers left their posts after contract negotiations with the Federal Aviation Administration broke down. When the workers refused to return, Reagan fired all of them. The public’s response was muted, and corporate America learned that it could crush unions with minimal blowback. And so it went, in one industry after another.

Today almost all private-sector employees (94 percent) are without a union, though roughly half of nonunion workers say they would organize if given the chance. They rarely are. Employers have at their disposal an arsenal of tactics designed to prevent collective bargaining, from hiring union-busting firms to telling employees that they could lose their jobs if they vote yes. Those strategies are legal, but companies also make illegal moves to block unions, like disciplining workers for trying to organize or threatening to close facilities. In 2016 and 2017, the National Labor Relations Board charged 42 percent of employers with violating federal law during union campaigns. In nearly a third of cases, this involved illegally firing workers for organizing.

Corporate lobbyists told us that organized labor was a drag on the economy — that once the companies had cleared out all these fusty, lumbering unions, the economy would rev up, raising everyone’s fortunes. But that didn’t come to pass. The negative effects of unions have been wildly overstated, and there is now evidence that unions play a role in increasing company productivity, for example by reducing turnover. The U.S. Bureau of Labor Statistics measures productivity as how efficiently companies turn inputs (like materials and labor) into outputs (like goods and services). Historically, productivity, wages and profits rise and fall in lock step. But the American economy is less productive today than it was in the post-World War II period, when unions were at peak strength. The economies of other rich countries have slowed as well, including those with more highly unionized work forces, but it is clear that diluting labor power in America did not unleash economic growth or deliver prosperity to more people. “We were promised economic dynamism in exchange for inequality,” Eric Posner and Glen Weyl write in their book “Radical Markets.” “We got the inequality, but dynamism is actually declining.”

As workers lost power, their jobs got worse. For several decades after World War II, ordinary workers’ inflation-adjusted wages (known as “real wages”) increased by 2 percent each year. But since 1979, real wages have grown by only 0.3 percent a year. Astonishingly, workers with a high school diploma made 2.7 percent less in 2017 than they would have in 1979, adjusting for inflation. Workers without a diploma made nearly 10 percent less.

Lousy, underpaid work is not an indispensable, if regrettable, byproduct of capitalism, as some business defenders claim today. (This notion would have scandalized capitalism’s earliest defenders. John Stuart Mill, arch advocate of free people and free markets, once said that if widespread scarcity was a hallmark of capitalism, he would become a communist.) But capitalism is inherently about owners trying to give as little, and workers trying to get as much, as possible. With unions largely out of the picture, corporations have chipped away at the conventional midcentury work arrangement, which involved steady employment, opportunities for advancement and raises and decent pay with some benefits.

As the sociologist Gerald Davis has put it: Our grandparents had careers. Our parents had jobs. We complete tasks. Or at least that has been the story of the American working class and working poor.

Poor Americans aren’t just exploited in the labor market. They face consumer exploitation in the housing and financial markets as well.

There is a long history of slum exploitation in America. Money made slums because slums made money. Rent has more than doubled over the past two decades, rising much faster than renters’ incomes. Median rent rose from $483 in 2000 to $1,216 in 2021. Why have rents shot up so fast? Experts tend to offer the same rote answers to this question. There’s not enough housing supply, they say, and too much demand. Landlords must charge more just to earn a decent rate of return. Must they? How do we know?

We need more housing; no one can deny that. But rents have jumped even in cities with plenty of apartments to go around. At the end of 2021, almost 19 percent of rental units in Birmingham, Ala., sat vacant, as did 12 percent of those in Syracuse, N.Y. Yet rent in those areas increased by roughly 14 percent and 8 percent, respectively, over the previous two years. National data also show that rental revenues have far outpaced property owners’ expenses in recent years, especially for multifamily properties in poor neighborhoods. Rising rents are not simply a reflection of rising operating costs. There’s another dynamic at work, one that has to do with the fact that poor people — and particularly poor Black families — don’t have much choice when it comes to where they can live. Because of that, landlords can overcharge them, and they do.

A study I published with Nathan Wilmers found that after accounting for all costs, landlords operating in poor neighborhoods typically take in profits that are double those of landlords operating in affluent communities. If down-market landlords make more, it’s because their regular expenses (especially their mortgages and property-tax bills) are considerably lower than those in upscale neighborhoods. But in many cities with average or below-average housing costs — think Buffalo, not Boston — rents in the poorest neighborhoods are not drastically lower than rents in the middle-class sections of town. From 2015 to 2019, median monthly rent for a two-bedroom apartment in the Indianapolis metropolitan area was $991; it was $816 in neighborhoods with poverty rates above 40 percent, just around 17 percent less. Rents are lower in extremely poor neighborhoods, but not by as much as you would think.

Yet where else can poor families live? They are shut out of homeownership because banks are disinclined to issue small-dollar mortgages, and they are also shut out of public housing, which now has waiting lists that stretch on for years and even decades. Struggling families looking for a safe, affordable place to live in America usually have but one choice: to rent from private landlords and fork over at least half their income to rent and utilities. If millions of poor renters accept this state of affairs, it’s not because they can’t afford better alternatives; it’s because they often aren’t offered any.

You can read injunctions against usury in the Vedic texts of ancient India, in the sutras of Buddhism and in the Torah. Aristotle and Aquinas both rebuked it. Dante sent moneylenders to the seventh circle of hell. None of these efforts did much to stem the practice, but they do reveal that the unprincipled act of trapping the poor in a cycle of debt has existed at least as long as the written word. It might be the oldest form of exploitation after slavery. Many writers have depicted America’s poor as unseen, shadowed and forgotten people: as “other” or “invisible.” But markets have never failed to notice the poor, and this has been particularly true of the market for money itself.

The deregulation of the banking system in the 1980s heightened competition among banks. Many responded by raising fees and requiring customers to carry minimum balances. In 1977, over a third of banks offered accounts with no service charge. By the early 1990s, only 5 percent did. Big banks grew bigger as community banks shuttered, and in 2021, the largest banks in America charged customers almost $11 billion in overdraft fees. Previous research showed that just 9 percent of account holders paid 84 percent of these fees. Who were the unlucky 9 percent? Customers who carried an average balance of less than $350. The poor were made to pay for their poverty.

In 2021, the average fee for overdrawing your account was $33.58. Because banks often issue multiple charges a day, it’s not uncommon to overdraw your account by $20 and end up paying $200 for it. Banks could (and do) deny accounts to people who have a history of overextending their money, but those customers also provide a steady revenue stream for some of the most powerful financial institutions in the world.

Every year: almost $11 billion in overdraft fees, $1.6 billion in check-cashing fees and up to $8.2 billion in payday-loan fees.

According to the F.D.I.C., one in 19 U.S. households had no bank account in 2019, amounting to more than seven million families. Compared with white families, Black and Hispanic families were nearly five times as likely to lack a bank account. Where there is exclusion, there is exploitation. Unbanked Americans have created a market, and thousands of check-cashing outlets now serve that market. Check-cashing stores generally charge from 1 to 10 percent of the total, depending on the type of check. That means that a worker who is paid $10 an hour and takes a $1,000 check to a check-cashing outlet will pay $10 to $100 just to receive the money he has earned, effectively losing one to 10 hours of work. (For many, this is preferable to the less-predictable exploitation by traditional banks, with their automatic overdraft fees. It’s the devil you know.) In 2020, Americans spent $1.6 billion just to cash checks. If the poor had a costless way to access their own money, over a billion dollars would have remained in their pockets during the pandemic-induced recession.

Poverty can mean missed payments, which can ruin your credit. But just as troublesome as bad credit is having no credit score at all, which is the case for 26 million adults in the United States. Another 19 million possess a credit history too thin or outdated to be scored. Having no credit (or bad credit) can prevent you from securing an apartment, buying insurance and even landing a job, as employers are increasingly relying on credit checks during the hiring process. And when the inevitable happens — when you lose hours at work or when the car refuses to start — the payday-loan industry steps in.

For most of American history, regulators prohibited lending institutions from charging exorbitant interest on loans. Because of these limits, banks kept interest rates between 6 and 12 percent and didn’t do much business with the poor, who in a pinch took their valuables to the pawnbroker or the loan shark. But the deregulation of the banking sector in the 1980s ushered the money changers back into the temple by removing strict usury limits. Interest rates soon reached 300 percent, then 500 percent, then 700 percent. Suddenly, some people were very interested in starting businesses that lent to the poor. In recent years, 17 states have brought back strong usury limits, capping interest rates and effectively prohibiting payday lending. But the trade thrives in most places. The annual percentage rate for a two-week $300 loan can reach 460 percent in California, 516 percent in Wisconsin and 664 percent in Texas.

Roughly a third of all payday loans are now issued online, and almost half of borrowers who have taken out online loans have had lenders overdraw their bank accounts. The average borrower stays indebted for five months, paying $520 in fees to borrow $375. Keeping people indebted is, of course, the ideal outcome for the payday lender. It’s how they turn a $15 profit into a $150 one. Payday lenders do not charge high fees because lending to the poor is risky — even after multiple extensions, most borrowers pay up. Lenders extort because they can.

Every year: almost $11 billion in overdraft fees, $1.6 billion in check-cashing fees and up to $8.2 billion in payday-loan fees. That’s more than $55 million in fees collected predominantly from low-income Americans each day — not even counting the annual revenue collected by pawnshops and title loan services and rent-to-own schemes. When James Baldwin remarked in 1961 how “extremely expensive it is to be poor,” he couldn’t have imagined these receipts.

“Predatory inclusion” is what the historian Keeanga-Yamahtta Taylor calls it in her book “Race for Profit,” describing the longstanding American tradition of incorporating marginalized people into housing and financial schemes through bad deals when they are denied good ones. The exclusion of poor people from traditional banking and credit systems has forced them to find alternative ways to cash checks and secure loans, which has led to a normalization of their exploitation. This is all perfectly legal, after all, and subsidized by the nation’s richest commercial banks. The fringe banking sector would not exist without lines of credit extended by the conventional one. Wells Fargo and JPMorgan Chase bankroll payday lenders like Advance America and Cash America. Everybody gets a cut.

Poverty isn’t simply the condition of not having enough money. It’s the condition of not having enough choice and being taken advantage of because of that. When we ignore the role that exploitation plays in trapping people in poverty, we end up designing policy that is weak at best and ineffective at worst. For example, when legislation lifts incomes at the bottom without addressing the housing crisis, those gains are often realized instead by landlords, not wholly by the families the legislation was intended to help. A 2019 study conducted by the Federal Reserve Bank of Philadelphia found that when states raised minimum wages, families initially found it easier to pay rent. But landlords quickly responded to the wage bumps by increasing rents, which diluted the effect of the policy. This happened after the pandemic rescue packages, too: When wages began to rise in 2021 after worker shortages, rents rose as well, and soon people found themselves back where they started or worse.

Antipoverty programs work. Each year, millions of families are spared the indignities and hardships of severe deprivation because of these government investments. But our current antipoverty programs cannot abolish poverty by themselves. The Johnson administration started the War on Poverty and the Great Society in 1964. These initiatives constituted a bundle of domestic programs that included the Food Stamp Act, which made food aid permanent; the Economic Opportunity Act, which created Job Corps and Head Start; and the Social Security Amendments of 1965, which founded Medicare and Medicaid and expanded Social Security benefits. Nearly 200 pieces of legislation were signed into law in President Lyndon B. Johnson’s first five years in office, a breathtaking level of activity. And the result? Ten years after the first of these programs were rolled out in 1964, the share of Americans living in poverty was half what it was in 1960.

But the War on Poverty and the Great Society were started during a time when organized labor was strong, incomes were climbing, rents were modest and the fringe banking industry as we know it today didn’t exist. Today multiple forms of exploitation have turned antipoverty programs into something like dialysis, a treatment designed to make poverty less lethal, not to make it disappear.

This means we don’t just need deeper antipoverty investments. We need different ones, policies that refuse to partner with poverty, policies that threaten its very survival. We need to ensure that aid directed at poor people stays in their pockets, instead of being captured by companies whose low wages are subsidized by government benefits, or by landlords who raise the rents as their tenants’ wages rise, or by banks and payday-loan outlets who issue exorbitant fines and fees. Unless we confront the many forms of exploitation that poor families face, we risk increasing government spending only to experience another 50 years of sclerosis in the fight against poverty.

The best way to address labor exploitation is to empower workers. A renewed contract with American workers should make organizing easy. As things currently stand, unionizing a workplace is incredibly difficult. Under current labor law, workers who want to organize must do so one Amazon warehouse or one Starbucks location at a time. We have little chance of empowering the nation’s warehouse workers and baristas this way. This is why many new labor movements are trying to organize entire sectors. The Fight for $15 campaign, led by the Service Employees International Union, doesn’t focus on a single franchise (a specific McDonald’s store) or even a single company (McDonald’s) but brings together workers from several fast-food chains. It’s a new kind of labor power, and one that could be expanded: If enough workers in a specific economic sector — retail, hotel services, nursing — voted for the measure, the secretary of labor could establish a bargaining panel made up of representatives elected by the workers. The panel could negotiate with companies to secure the best terms for workers across the industry. This is a way to organize all Amazon warehouses and all Starbucks locations in a single go.

Sectoral bargaining, as it’s called, would affect tens of millions of Americans who have never benefited from a union of their own, just as it has improved the lives of workers in Europe and Latin America. The idea has been criticized by members of the business community, like the U.S. Chamber of Commerce, which has raised concerns about the inflexibility and even the constitutionality of sectoral bargaining, as well as by labor advocates, who fear that industrywide policies could nullify gains that existing unions have made or could be achieved only if workers make other sacrifices. Proponents of the idea counter that sectoral bargaining could even the playing field, not only between workers and bosses, but also between companies in the same sector that would no longer be locked into a race to the bottom, with an incentive to shortchange their work force to gain a competitive edge. Instead, the companies would be forced to compete over the quality of the goods and services they offer. Maybe we would finally reap the benefits of all that economic productivity we were promised.

We must also expand the housing options for low-income families. There isn’t a single right way to do this, but there is clearly a wrong way: the way we’re doing it now. One straightforward approach is to strengthen our commitment to the housing programs we already have. Public housing provides affordable homes to millions of Americans, but it’s drastically underfunded relative to the need. When the wealthy township of Cherry Hill, N.J., opened applications for 29 affordable apartments in 2021, 9,309 people applied. The sky-high demand should tell us something, though: that affordable housing is a life changer, and families are desperate for it.

We could also pave the way for more Americans to become homeowners, an initiative that could benefit poor, working-class and middle-class families alike — as well as scores of young people. Banks generally avoid issuing small-dollar mortgages, not because they’re riskier — these mortgages have the same delinquency rates as larger mortgages — but because they’re less profitable. Over the life of a mortgage, interest on $1 million brings in a lot more money than interest on $75,000. This is where the federal government could step in, providing extra financing to build on-ramps to first-time homeownership. In fact, it already does so in rural America through the 502 Direct Loan Program, which has moved more than two million families into their own homes. These loans, fully guaranteed and serviced by the Department of Agriculture, come with low interest rates and, for very poor families, cover the entire cost of the mortgage, nullifying the need for a down payment. Last year, the average 502 Direct Loan was for $222,300 but cost the government only $10,370 per loan, chump change for such a durable intervention. Expanding a program like this into urban communities would provide even more low- and moderate-income families with homes of their own.

We should also ensure fair access to capital. Banks should stop robbing the poor and near-poor of billions of dollars each year, immediately ending exorbitant overdraft fees. As the legal scholar Mehrsa Baradaran has pointed out, when someone overdraws an account, banks could simply freeze the transaction or could clear a check with insufficient funds, providing customers a kind of short-term loan with a low interest rate of, say, 1 percent a day.

States should rein in payday-lending institutions and insist that lenders make it clear to potential borrowers what a loan is ultimately likely to cost them. Just as fast-food restaurants must now publish calorie counts next to their burgers and shakes, payday-loan stores should publish the average overall cost of different loans. When Texas adopted disclosure rules, residents took out considerably fewer bad loans. If Texas can do this, why not California or Wisconsin? Yet to stop financial exploitation, we need to expand, not limit, low-income Americans’ access to credit. Some have suggested that the government get involved by having the U.S. Postal Service or the Federal Reserve issue small-dollar loans. Others have argued that we should revise government regulations to entice commercial banks to pitch in. Whatever our approach, solutions should offer low-income Americans more choice, a way to end their reliance on predatory lending institutions that can get away with robbery because they are the only option available.

In Tommy Orange’s novel, “There There,” a man trying to describe the problem of suicides on Native American reservations says: “Kids are jumping out the windows of burning buildings, falling to their deaths. And we think the problem is that they’re jumping.” The poverty debate has suffered from a similar kind of myopia. For the past half-century, we’ve approached the poverty question by pointing to poor people themselves — posing questions about their work ethic, say, or their welfare benefits — when we should have been focusing on the fire. The question that should serve as a looping incantation, the one we should ask every time we drive past a tent encampment, those tarped American slums smelling of asphalt and bodies, or every time we see someone asleep on the bus, slumped over in work clothes, is simply: Who benefits? Not: Why don’t you find a better job? Or: Why don’t you move? Or: Why don’t you stop taking out payday loans? But: Who is feeding off this?

Those who have amassed the most power and capital bear the most responsibility for America’s vast poverty: political elites who have utterly failed low-income Americans over the past half-century; corporate bosses who have spent and schemed to prioritize profits over families; lobbyists blocking the will of the American people with their self-serving interests; property owners who have exiled the poor from entire cities and fueled the affordable-housing crisis. Acknowledging this is both crucial and deliciously absolving; it directs our attention upward and distracts us from all the ways (many unintentional) that we — we the secure, the insured, the housed, the college-educated, the protected, the lucky — also contribute to the problem.

Corporations benefit from worker exploitation, sure, but so do consumers, who buy the cheap goods and services the working poor produce, and so do those of us directly or indirectly invested in the stock market. Landlords are not the only ones who benefit from housing exploitation; many homeowners do, too, their property values propped up by the collective effort to make housing scarce and expensive. The banking and payday-lending industries profit from the financial exploitation of the poor, but so do those of us with free checking accounts, as those accounts are subsidized by billions of dollars in overdraft fees.

Living our daily lives in ways that express solidarity with the poor could mean we pay more; anti-exploitative investing could dampen our stock portfolios. By acknowledging those costs, we acknowledge our complicity. Unwinding ourselves from our neighbors’ deprivation and refusing to live as enemies of the poor will require us to pay a price. It’s the price of our restored humanity and renewed country.

Matthew Desmond is a professor of sociology at Princeton University and a contributing writer for the magazine. His latest book, “Poverty, by America,” from which this article is adapted, is being published on March 21 by Crown.

An earlier version of this article referred incorrectly to the legal protections for undocumented workers. They are afforded rights under U.S. labor laws, though in practice those laws often fail to protect them.

An earlier version of this article implied an incorrect date for a statistic about overdraft fees. The research was conducted between 2005 and 2012, not in 2021.

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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.

Policies to reduce poverty

In summary, to reduce poverty, government policies could include:

• Means-tested welfare benefits to the poorest in society; for example, unemployment benefit, food stamps, income support and housing benefit.
• Minimum wages . Regulation of labour markets, for example, statutory minimum wages
• Free market policies to promote economic growth – hoping that rising living standards will filter down to the poorest in society.
• Direct provision of goods/services – subsidised housing, free education and healthcare.

There are two major types of poverty:

• Absolute poverty – when people have insufficient income to afford the necessities of life, such as food, rent and clothing.
• Relative poverty – when people have income significantly less than the average income for society.

Some policies, such as promoting economic growth may be successful in reducing absolute poverty but less successful in relative poverty.

Economic policies in more detail

1. Sustained economic growth

The argument is that promoting economic growth increases total income in society, creating more jobs and income which could be redistributed. In the past 100 years, economic growth has been a major factor in reducing the levels of poverty which were seen in pre-war Britain and the US. However, it is not necessarily the case that income and wealth will trickle down to the poorest . There is a concern that economic growth could widen relative poverty because it benefits the highly skilled and wealthy classes more than those at the bottom. See: Inequality and economic growth

2. Reduce Unemployment

Unemployment is a major cause of poverty because the unemployed have little income, relying on state benefits. Unemployment can be reduced through both supply-side policies, such as free training schemes for those who are structurally unemployed.

Poverty and unemployment are often geographical problems, with depressed areas seeing higher levels of poverty. Policies to overcome geographical poverty could include government subsidies for firms to set up in depressed areas. Also building better infrastructure (transport and communication) in depressed areas can provide an economic stimulus to create new jobs.

See also Policies for reducing unemployment

3. Progressive Taxes

Increasing progressive taxes, such as the higher rate of income tax from 40% to 50%, will take more income from those on high-income levels. This enables cuts in regressive taxes (e.g. VAT/Sales tax) and increased welfare benefits which help increase the income of the poor. This can be an effective way to reduce relative poverty.

• However, critics argue higher income taxes create a disincentive to work., leading to less output. This is because higher tax makes work less attractive and reduces the opportunity cost of leisure. Therefore people work less and enjoy more leisure. This is known as the substitution effect. Similarly higher corporation tax may discourage investment in the UK
• However, this is disputed by other economists, who point out that higher tax reduces incomes and this may encourage people to work more, to maintain their income. (This is known as the income effect )
• Evidence suggests that higher income tax has little incentive on the supply of labour, suggesting labour supply is relatively inelastic. However, it also depends at what level income tax is set. There is certainly a level where higher income tax will reduce incentives to work.
• Other problems with increasing income tax, include tax evasion and the fact firms may adjust wages to compensate for the higher taxes.

4. Increasing benefits to the poor

Means-tested benefits involve increasing welfare benefits to those on low incomes. For example, universal tax credit, food stamps or child benefit.

Advantages of means-tested benefits:

• They allow money to be targeted to those who need it most. e.g family tax credit or pension credit.
• It is cheaper than universal benefits and reduces the burden on the taxpayer.

However, the problem with using benefits to reduce poverty include:

• Means-tested benefits are often unpopular because people are stigmatised as being poor.
• Also, it may create a disincentive to earn a higher wage because if you do get a higher paid job you will lose at least some of your benefits and pay more tax. This is known as “the benefits trap” or the “ poverty trap ”. The poverty trap occurs where people on low incomes are discouraged from working extra hours or getting a higher paid job because any extra income they earn will be taken away in lost benefits and higher taxes. To avoid the poverty trap the government can grade benefits so that there isn’t an immediate cut off point.
• Some relatively poor may fall just outside the qualifying limit.
• Also, not everyone entitled to means-tested benefit will collect them because of ignorance or difficulties in applying.

The government used to prefer universal benefits because it avoided the above problem, and people feel if they contribute towards taxes they deserve their benefits regardless of their wealth.

However, in recent years, the welfare state has faced increased demands due to demographic factors leading to more calls for means-tested benefits.

5. National Minimum Wage   The government could increase the national minimum wage. This is an effective way of increasing the incomes of the low paid and therefore reducing wage inequality. A related concept is the Voluntary Living Wage – an attempt to encourage firms to pay higher wages.

In recent years, minimum wages have become more important in tackling in-paid work in both the UK and US.

• In the UK, the number of workers benefitting from the minimum wage has increased from 830,000 in 1999 to 2 million in 2018.
• In the US, there is a proposal to increase federal minimum wage to $15 by 2024 – a move that could see 33.5 million U.S. workers and 6.2 million workers in poverty see a rise in the minimum wage.
• A potential problem of increasing the minimum wage is that it may cause unemployment because firms may not be able to afford the workers. If it does cause unemployment, poverty could worsen. However, if firms have monopsony power, then they will be able to afford higher wages. Empirical evidence suggests that we can increase minimum wages fairly significantly before the cost of falling employment and higher prices outweigh the benefit of rising wages and higher productivity. See more on raising the minimum wage

6. Benefits in kind . These are important public services which are provided free at the point of use (or subsidised). They mainly involve education and health care. Free education enables those from low-income families to gain skills and qualifications which can help lead to better jobs and higher incomes in the future.

7. Universal basic income (UBI) A universal basic income or citizen’s income involves giving every citizen a weekly benefit – regardless of circumstances and income. The idea is to ensure everyone has a minimum income guarantee, but without any disincentives of losing means-tested benefits from working more. See more at Universal basic income (UBI)

Policies to reduce poverty in developing economies

To reduce poverty in developing economies, the focus may be on different policies.

• Education – greater spending on education and training can enable higher-skilled workforce.
• Foreign Aid – aid from developed countries can be used to invest in better health care and education. However, some argue aid can encourage dependency.
• Diversification of economy away from agriculture to manufacturing. This enables greater economic development but may be difficult to do without the right skills and infrastructure.
• Policies for economic development

Poverty levels in the UK

• Will increasing the minimum wage reduce poverty?
• Policies for improving economic development
• Should welfare benefits be increased to reduce poverty?

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How to Cope with the Issues on Poverty and Unemployment

Last Updated: April 19, 2024 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 81,829 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.

Expert Q&A

You Might Also Like

• ↑ 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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How to reduce poverty and increase economic mobility

Subscribe to the center for economic security and opportunity newsletter, ron haskins ron haskins senior fellow emeritus - economic studies.

October 27, 2015

• 20 min read

I have been invited to talk with you about what this Subcommittee could do to reduce poverty and increase economic mobility. I begin with a brief word about the problem; namely, how difficult it has been reduce the poverty rate. This leads to an overview of one of the most successful government reforms to reduce poverty, the welfare reform law of 1996 and its impacts on work rates and poverty. I then turn to review of what this Subcommittee could do to replicate the success of welfare reform while avoiding its most important problem.

Are We Reducing Poverty and Increasing Economic Mobility?

Figure 1 shows the changes in poverty rates since 1959 for three important groups— all children, children in female-headed families, and the elderly. Trends in poverty among the elderly show something like the progress everyone hopes we can make in reducing poverty among all Americans. There was rapid progress in the early 1960s followed by a slower rate of decline but very few years in which the poverty rate increased. Poverty among the elderly today is 10 percent, much lower than the rate among children in the other two groups. The explanation for this pattern can be found in two words—Social Security. [1] Most of the elderly receive a monthly cash payment from the federal government that in most cases, including for the elderly who have few or no additional sources of income, is adequate to keep them out of poverty.

Progress among the other two groups is far less impressive, with an exception to be examined in more detail below. The poverty rate for all children under the official measure shows rapid progress in the 1960s, but little consistent progress since. The child poverty rate in 1960 was 14 percent. By 1980, it was over 21 percent. Worse, in no subsequent year has the child poverty rate reached the 14 percent achieved in 1969. The rate last year, the most recent available, was well over 20 percent. Changes over time in the poverty rate of children in female-headed families has been uneven, and has rarely been below 30 percent. But there was a major decline in the late 1990s that holds an important clue about reducing poverty. I examine this decline in more detail below. [2]

Official Poverty Rates for the Elderly, Female-Headed Households with Children and All Children, 1959-2014

Income Quintile of Children When They Grow Up Relative to Their Parents’ Income Quintile

Note: Numbers are adjusted for family size.

Source: Pew Charitable Trusts, “Pursuing the American Dream: Economic Mobility Across Generations” (Washington: July 2012).

Figure 2 shows a standard measure of economic mobility; namely, the economic position of children compared to the economic position of their own parents based on data from the Panel Study of Income Dynamics that started collecting data on 5,000 families in the 1960s. [3] Then, as the children of parents in the original sample grew up, they were followed as well, yielding data on family income for both the parents and their children. In Figure 2, the five bar graphs divide the parents into five parts (called “quintiles”) based on family income with an equal number of parents in each bar graph. Thus, the 20 percent of parents with the lowest income during their prime earning years are in the bar graph on the left and the 20 percent with the highest income are in the bar graph on the right; parents with income between these two groups are displayed in the middle three bar graphs. Notice that each bar graph is divided into five parts. Each of these five parts represents the income quintile the children of parents in that income quintile wound up in during their prime earning years.

Figure 2 provides an informative way to look at economic mobility across generations. If children wound up in an income quintile that was not correlated in any way with their parents’ income, each bar graph would have five equal parts, each containing 20 percent of the children of the parents represented in the bar graph. This pattern is close to the one found in the middle bar graph which shows that children from parents in the middle income quintile were almost equally likely to wind up in each of the five income quintiles.

But the other quintiles, especially the bottom and the top quintiles, show that where children wind up in the income distribution in their generation is greatly influenced by their parents’ income. Consider the bottom quintile. Adult children from the bottom quintile have a 43 percent chance of winding up in the bottom themselves and only 4 percent of them wind up in the top quintile. Now consider the top quintile. Here we see that adult children whose parents were in the top 20 percent were more likely than adult children in the other quintiles to wind up in or near the top. For example, whereas only 4 percent of the adult children of parents in the bottom quintile made it all the way to the top, 40 percent of adult children with parents in top quintile made it to the top. Equality of opportunity this is not. Several studies have shown that this pattern has not changed much over the generations. [4] We do not now have equality of economic opportunity in America, nor have we ever, although there are and have been many examples of individuals rising far above their parents’ income—and vice versa.

The conclusions are obvious, and almost everyone who studies poverty and economic mobility agrees: progress against poverty has been modest or nonexistent, depending on the group, and the nation has an unequal distribution of income that persists across generations. We have limited equality of educational and economic opportunity in America.

Why Are We Having Trouble Fighting Poverty and Increasing Mobility?

Why has it been so difficult to reduce poverty and increase economic mobility? We now spend around a trillion dollars a year on programs for poor and low-income families and individuals. [5] Until recently, spending increased almost every year. But as spending increased, the nation neither reduced poverty by much nor increased economic mobility. Why, despite all this spending, have we made so little progress?

Most analysts would agree that the dissolution of the two-parent family, little progress in improving the educational achievement of the poor relative to that of the more advantaged, and the decline of work among men are major factors in accounting for our lack of progress. [6] More specifically:

• An ever rising share of American children live in female-headed families, the family type in which children are five times as likely to be poor as children in married-couple families and in which their development is negatively affected. [7]
• In addition, until recent years, more and more children were born outside marriage, in most cases instantly creating the family form in which children are likely to be poor. [8]
• Although education levels have improved modestly, the education gap between kids from poor and rich families has increased substantially, making it difficult for children from poor families to close the income gap between themselves and children from rich families. [9]
• Although work rates among women, especially low-income and poorly educated women, have shown improvement, the work rate for men has declined over the last four decades and wages for men in the lower half of the wage distribution have been stagnant. [10]

A comprehensive strategy to fight poverty and increase mobility would attack these causes on three fronts by aiming to increase the share of children growing up in married-couple families, in part by delaying unplanned births; to increase the educational achievement and years of schooling completed among children from poor families; and to increase work rates among the poor. In this testimony, I confine my attention to increasing work rates, an important determinant of poverty and mobility that this Subcommittee could actually do something about. I begin with the example of welfare reform.

What to Do: An Example

In 1996 Congress passed and President Clinton signed one of the most sweeping pieces of welfare reform legislation ever passed by Congress.  [11]   A primary goal of the legislation was to help, encourage, and cajole mothers to work. The law did three things to try to increase work rates: it ended the legal entitlement to welfare payments, thereby clearing the way for cash benefits to be contingent on working or preparing to work; it placed a five-year time limit on receipt of cash welfare for most mothers; and it required states to place half their welfare caseload in programs designed to help recipients find work or prepare for work. After the welfare reform law was enacted, work rates among single mothers increased dramatically, the welfare rolls fell more than ever before, and child poverty rates declined to their lowest level ever among black children and among all children in female-headed families. These effects cannot be attributed exclusively to welfare reform. There is general agreement among researchers who study welfare that the growing economy of the second half of the 1990s and the maturing of a system of federal and state subsidies for low-income workers with children, which will be referred to here as the “work support system,” also played important roles in accounting for the dramatic increases in work and falling poverty rates. [12]

Effect of Earnings, Transfers, and Taxes on the Poverty Rate among Households Headed by Single Mothers, 1987-2013

In the early period from 1987 to 1993, the poverty rate among female-headed families with children based only on the mothers’ earnings was very high—well over 50 percent in every year and averaging 54.3 percent. Then the poverty rate based on earning plummeted for the next seven years, falling from 54.3 percent to 40.8 percent, the lowest it had ever been for female-headed families. This precipitous decline in poverty was caused mostly by much more work among single mothers, attributable in large part to welfare reform.

Now consider how work support programs impacted the poverty rate based on earnings only. Government transfer programs drove the poverty rate down from 54.3 to 41.7 percent in 1987-93, [14] a reduction of about 23 percent. But when the work rate was much higher in 2000, the poverty rate based exclusively on earnings was only 40.8 percent, 25 percent lower than the comparable rate in the 1987-1993 period. Even better, after single mothers received the package of work-based benefits, the 2000 poverty rate fell to 26.8 percent, a decline of 34 percent. [15]

In 2010, work declined and poverty rose, due to the Great Recession. Yet the combination of relatively high work rates in 2010 (relative to the 1987 to 1993 period) kept poverty lower than during the earlier period and the impact of government programs in percentage terms produced nearly twice as great a decline in poverty as in the earlier period (a reduction of 40.9 percent vs. 23.2 percent).

Finally, the figures for 2013 show that female heads are now increasing their earnings from work,  and the work-based safety net continues to reduce poverty a great deal (nearly 39 percent).

This analysis shows that the federal work support system achieves the goal of, as President Clinton put it so tersely, “making work pay.” [16]   The most important element of the work support system was the creation of the EITC program in 1975 and its expansion, almost always on a bipartisan basis, on several occasions since. The EITC provides working families that include children with nearly $60 billion each year, mostly in one-time cash payments. The passage of the Additional Child Tax Credit (ACTC) as part of the Bush 2001 tax reforms, along with subsequent expansions of the ACTC, were also important and now provide working families that include children with around $30 billion each year. In addition, child care subsidies have been expanded on numerous occasions, the Supplemental Nutrition Assistance Program (SNAP) has been modified to make it easier for working families to claim the benefit, the Medicaid program has been modified and extended (in part by creating the Child Health Insurance Program in 1997) to cover almost all children under 200 percent of poverty, and a number of other improvements have been made in the work-based safety net at both the federal and state levels. This system is available to all low-income working families with children and virtually guarantees that if parents work close to full time, they and their children can escape poverty.

What to Do: Two Ideas for the Nutrition Subcommittee

There are two actions this Subcommittee could take in the near future that would have an excellent chance of reducing poverty. The most important outcome of welfare reform was increased work rates by single mothers. Not only did the work rate of single mothers increase in the years after welfare reform, they have stayed higher than they were in the early 1990s and previously despite two recessions and the increased unemployment that comes with recessions. Given the importance of benefits from the work support system in fighting poverty, work becomes even more important because welfare recipients have to work to get benefits from the work support system. So work opens up two sources of income—earnings from the employment and benefits, especially tax credits, that can only be obtained if mothers work.

The food stamp program currently has modest work requirements, but they do not appear to be rigorously enforced. Last year Congress, at the instigation of the House Agriculture Committee, wisely provided $200 million over a period of years for the Department of Agriculture to sponsor ten pilot demonstration programs by states that are willing to explore innovative ways to encourage work among food stamp recipients. [17] An interesting parallel of this action is that the 1996 welfare reforms were preceded by more than 40 states conducting demonstration programs aimed at testing ideas about how to promote work, many of which were evaluated by high quality research designs. These demonstrations generally showed that mothers on welfare could work and that programs that helped them prepare for work and look for jobs increased work rates and reduced the welfare rolls. [18] By the time of the welfare reform debate of 1995-96, most members of Congress on both sides of the aisle realized that many mothers on welfare were capable of working and that good programs that helped them prepare for and find jobs could substantially increase their work rate and reduce the welfare rolls. It seems likely that the ongoing food stamp demonstration programs will provide solid ideas about how states can increase work rates among food stamp recipients, in this case both women and men. These results can be expected to provide the Subcommittee with ideas about how to write legislation that would encourage work among food stamp recipients.

An outcome of welfare reform that should be emphasized is that most mothers who found employment worked in low-wage, mostly unskilled jobs. Thus, their earnings were generally quite low. [19] Few states had effective programs that attempted to upgrade the skills of mothers. Even low-wage jobs provided a step toward self-sufficiency, but many analysts think that with training (especially training for jobs available in the local economy), these mothers could attain the skills that would lead to better jobs, higher earnings, and even lower poverty rates. There is now a large and growing literature on how skilled jobs that require a certificate, a license, or a two-year degree, often from a community college, can help young people from poor and low-income families qualify for good jobs with higher incomes. [20] According to the Department of Agriculture, the work demonstration pilots will test “a range of job-driven strategies, including intensive sector-based approaches and career pathways that prepare workers for specific occupations.” And because the pilots are being subjected to scientific evaluations, we can be confident that the findings will be reliable. These pilots, in other words, are very likely to provide the basis for legislation that will encourage or require states to establish programs that increase both work rates and earning among food stamp recipients.

A word of caution, based on the results of welfare reform, is in order. The share of families in poverty receiving welfare cash payments has declined as compared with the share receiving cash under Aid to Families with Dependent Children (AFDC), the cash welfare program that preceded the 1996 welfare reforms. In 1979, for every 100 families in poverty, 82 families received AFDC. By contrast, in 2013, for every 100 families in poverty, only 26 families received Temporary Assistance for Needy Families (TANF), the cash welfare program established by the welfare reform law of 1996. [21] Some observers have concluded that the increases in work and reductions in poverty achieved by welfare reform resulted from work requirements and time limits that forced too many mothers off TANF without jobs. But there is little evidence that harsh provisions are necessary to encourage able-bodied adults to work. Reasonable requirements, strongly enforced, and accompanied by the carrots for work provided by the work support system, may well be enough to encourage adults to work. And in any case, the Subcommittee will have the results from ten state food stamp pilot work programs to provide ideas about how food stamp recipients can be encouraged to work without resorting to harsh measures.

A second caution is that some people believe the goal of food stamp work requirements should be to get as many people as possible off food stamps. This goal, however, sharply conflicts with another goal of food stamps as a vital part of the work support system; namely, to supplement the earnings of low-wag

e workers and thereby both improve their economic standing and provide a strong work incentive. Just as many mothers who join the welfare rolls lack the skills and experience to fill the requirements of high wage jobs, so many recipients of food stamps are similarly qualified only for low-wage jobs. To both Congress and society, the goal of luring people into work and helping them improve their economic condition should be the most important goals. Some of these people will work their way into jobs that pay enough that they will no longer qualify for food stamps. But most people, including parents, who are on food stamps will not have the skills to command high wages. In these cases, food stamps will provide an incentive to continue working and will allow workers to boost their income.

Over the last four decades, Congress has constructed a work support system that not only makes work pay, but also provides substantial work incentive. The food stamp program is a vital element of that system. When the incentives of the work support system are combined with effective programs that encourage work, help people acquire skills, and help them find employment, many of the adults receiving food stamps today and in the future will join the workforce, increase their self-sufficiency, set an example for their children, and improve their economic condition. Moreover, the state food stamp work demonstrations now being implemented seem likely to serve as a beacon to help states implement and sustain programs of this type.

Note: The views expressed in this piece are those of the author and should not be attributed to the staff, officers, or trustees of the Brookings Institution.

[1] Jonathan Gruber and Gary Engelhardt, “Social Security and the Evolution of Elderly Poverty,” in Public Policy and the Income Distribution, ed. Alan Auerback, David Card, and John Quigley (New York: Russell Sage Foundation, 2006), 259-287.

[2] “Income and Poverty in the United States: 2014” (Washington: United States Census Bureau, September 2015).

[3] Pew Charitable Trusts, “Pursuing the American Dream: Economic Mobility Across Generations” (Washington: July 2012).

[4] Raj Chetty, Nathaniel Hendren, Patrick Kline, Emmanuel Saez, and Nick Turner, “ Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility ,” American Economic Review Papers and Proceedings  104 (2014):141-147.

[5] “CRS Report: Welfare Spending the Largest Item in the Federal Budget,” accessed October 23, 2015, http://1.usa.gov/1O4ZADy.

[6] Ron Haskins and Isabel Sawhill, Creating an Opportunity Society (Washington: Brookings Institution Press, 2009).

[7] David Ribar, “Why Marriage Matters for Child Wellbeing,” Future of Children, Policy Brief, Fall 2015.

[8] Ron Haskins, “The Family is Here to Stay—Or Not,” Future of Children 25(2) (Fall 2015): 129-153.

[9] Sean Reardon, “The Widening Academic Achievement Gap Between the Rich and the Poor: New Evidence and Possible Explanations,” in Whither Opportunity? Rising Inequality, Schools, and Children’s Life Chances , edited by Greg Duncan and Richard Murnane (New York: Russell Sage Foundation, 2011), p. 91-116.

[10] Harry Holzer and Marek Hlavac, “A Very Uneven Road: US Labor Markets Since 2000,” US2010 series (New York: Russell Sage Foundation, 2012).

[11] Ron Haskins, Work over Welfare: The Inside Story of the 1996 Welfare Reform Law (Washington, DC: Brookings, 2006).

[12] Carolyn J. Heinrich and John Karl Scholz, ed., Making the Work-Based Safety Net Work Better: Forward-Looking Policies to Help Low-Income Families (New York: Russell Sage, 2011).

[13] Figures were adapted from Thomas Gabe, “Welfare, Work, and Poverty Status of Female-Headed Families with Children,” R41917 (Washington: Congressional Research Service, November 21, 2014), especially Figure 13, p. 33.

[14] Poverty rates in this section that take benefits into account are not the official federal poverty rate. They are based on the official poverty threshold (the amount of income that divides the poor and nonpoor) but add benefits that are mostly not included in calculating the official poverty rate.

[15] The bottom line in Figure 9 includes payments from programs enacted as part of the American Recovery and Reinvestment Act of 2009, most (but not all) of which are now expired. Also included in the last line is income the mother receives from other household members.

[16] The combination of work support benefits does have work disincentives in the sense that some program benefits are reduced as earnings rise. In most cases, however, the combination of earnings and work support benefits yield higher total income than either earnings alone or welfare benefits alone. According to the Congressional Budget Office, the marginal tax rates on earnings for low-income working families can be as high as 60 percent. See Congressional Budget Office, “Effective Marginal Tax Rates for Low- and Moderate-Income Workers” (Washington: CBO, November 2012).

[17] Department of Agriculture, “2014 SNAP E & T Pilots,” accessed October 22, 2015, http://www.fns.usda.gov/2014-snap-e-t-pilots.

[18] Judith M. Gueron and Howard Rolston, Fighting for Reliable Evidence (New York: Russell Sage, 2013).

[19] Greg Acs and Pamela Loprest, “TANF Caseload Composition and Leavers Synthesis Report,” (Washington, DC: Urban Institute, March 28, 2007).

[20] Tamar Jacoby, “The Certification Revolution,” in Michael Petrilli, ed., Education for Upward Mobility (New York: Rowman & Littlefield, 2016); Sheila Maguire et al., “Tuning Into Local Labor Markets: Findings from the Sectoral Employment Impact Study” (Philadelphia: Public/Private Ventures, 2010).

[21] LaDonna Pavetti, “Testimony of LaDonna Pavetti, Ph.D., Vice President, Family Income Support Policy, Before the House Ways and Means Committee, Subcommittee on Human Resources” (Washington: Center on Budget and Policy Priorities, April 30, 2015), http://waysandmeans.house.gov/wp-content/uploads/2015/06/LaDonna-Pavvetti-Testimony-043015-HR3.pdf

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Home > Books > Rural Development - Education, Sustainability, Multifunctionality

Poverty Reduction Strategies in Developing Countries

Submitted: 01 June 2021 Reviewed: 02 November 2021 Published: 02 February 2022

DOI: 10.5772/intechopen.101472

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The existence of extreme poverty in several developing countries is a critical challenge that needs to be addressed urgently because of its adverse implications on human wellbeing. Its manifestations include lack of adequate food and nutrition, lack of access to adequate shelter, lack of access to safe drinking water, low literacy rates, high infant and maternal mortality, high rates of unemployment, and a feeling of vulnerability and disempowerement. Poverty reduction can be attained by stimulating economic growth to increase incomes and expand employment opportunities for the poor; undertaking economic and institutional reforms to enhance efficiency and improve the utilization of resources; prioritizing the basic needs of the poor in national development policies; promoting microfinance programs to remove constraints to innovation, entrepreneurship, and small scale business; developing and improving marketing systems to improve production; providing incentives to the private sector; and, implementing affirmative actions such as targeted cash transfers to ensure that the social and economic benefits of poverty reduction initiatives reach the demographics that might otherwise be excluded.

• poverty reduction
• inclusive economic growth

Author Information

Collins ayoo *.

• Department of Economics, Carleton University, Ottawa, Ontario, Canada

*Address all correspondence to: [email protected]

1. Introduction

Poverty is a serious economic and social problem that afflicts a large proportion of the world’s population and manifests itself in diverse forms such as lack of income and productive assets to ensure sustainable livelihoods, chronic hunger and malnutrition, homelessness, lack of durable goods, disease, lack of access to clean water, lack of education, low life expectancy, social exclusion and discrimination, high levels of unemployment, high rate of infant and maternal mortality, and lack of participation in decision making [ 1 , 2 , 3 ]. Because poverty has deleterious impacts on human well-being, its eradication has been identified as an ethical, social, political and economic imperative of humankind [ 1 , 3 , 4 ]. Thus, the eradication of poverty and hunger were key targets in the Millennium Development Goals that the United Nations adopted in September 2000, and continue to be a priority in the pursuit of the Sustainable Development Goals that the United Nations General Assembly subsequently adopted in January 1, 2016 [ 5 , 6 , 7 , 8 , 9 ]. Although poverty exists in all countries, extreme poverty is more widespread in the countries in Sub-Saharan Africa and South Asia [ 8 , 10 ]. The causes of poverty in these countries are complex and include the pursuit of economic policies that exclude the poor and are biased against them; lack of access to markets and meaningful income-earning opportunities; inadequate public support for microenterprises through initiatives such as low interest credit and skills training; lack of infrastructure; widespread use of obsolete technologies in agriculture; exploitation of poor communities by political elites; inadequate financing of pro-poor programs; low human capital; conflicts and social strife; lack of access to productive resources such as land and capital; fiscal trap; and governance failures. Liu et al. [ 11 ], Beegle and Christiaensen [ 12 ], and Bapna [ 13 ] note that although considerable progress has been made to reduce poverty in the last two decades, more needs to be done to not only reduce the rate of extreme poverty further, but to also reduce the number of those living under extreme poverty. This is an important aspect of poverty reduction given that the rate of poverty can fall while the number of the poor is increasing simultaneously. For example, the poverty rate in Africa decreased from 54% in 1990 to 41% in 2015 but the number of the poor increased from 278 million in 1990 to 413 million in 2015. This constitutes a compelling case for robust well-thought out policies that not only stimulate economic growth but also produce outcomes that are inclusive and sustainable and address other dimensions of well-being such as education, health and gender equality [ 1 , 8 , 12 , 14 , 15 , 16 , 17 , 18 , 19 , 20 ]. Examples of poverty reduction initiatives that various countries have adopted are Ghana’s poverty reduction strategy, Ethiopia’s sustainable development and poverty reduction program, Kenya’s economic recovery strategy for wealth and employment creation, Senegal’s poverty reduction strategy, and Uganda’s poverty eradication action plan. Toye [ 21 ] notes that the measures outlined in these strategic policy documents have not been effective in reducing poverty because they were initiated as a condition for development assistance under the debt relief initiative of the International Monetary Fund and the World Bank. A critical analysis of the poverty reduction measures contained in these documents, however, reveals that to a large extent their failure to significantly reduce the incidence of poverty can be largely attributed to factors such as how the programs were designed, how the poverty reduction policies were targeted, and how they were implemented. This chapter is based on the premise that success in poverty reduction can be achieved by identifying who the poor are, assessing the extent of poverty in the different regions of developing countries, determining both the root causes of poverty and the opportunities that exist for reducing the incidences of poverty and improving the standards of living, and removing the various obstacles to poverty reduction [ 1 , 3 , 6 , 15 , 22 ]. The assumption that economic growth automatically results in a reduction of poverty also needs to be re-examined given the existence of empirical evidence that shows that economic growth can occur while poverty is worsening [ 8 , 16 , 17 , 23 , 24 , 25 , 26 , 27 ]. The focus needs to be on inclusive growth that addresses the unique needs of the poor and increases their access to basic services, employment and income generating opportunities, reliable markets for their products, information, capital and finance, and adequate social protections that remove the causes of the vulnerability of the poor [ 3 , 7 , 14 , 19 , 25 , 28 , 29 , 30 , 31 ]. The experience of diverse rapidly growing developing countries demonstrates that with political will and visionary leadership that is committed to justice, equality, and rule of law, the goal of reducing poverty and improving the living standards of the poor is achievable. Sachs [ 4 ] notes that through such leadership the downward spiral of impoverishment, hunger, and disease that certain parts of the world are caught in can be reversed and the massive suffering of the poor brought to an end. Sachs is categorical that although markets can be powerful engines of economic development, they can bypass large parts of the world and leave them impoverished and suffering without respite. He advocates that the role of markets be supplemented with collective action through effective government provision of health, education and infrastructure. The World Bank [ 1 , 32 , 33 ], Acemoglu and Robinson [ 34 ], and Beegle and Christiaensen [ 12 ] argue that in much of Sub-Saharan Africa where agriculture is the main occupation, low agricultural productivity is a primary cause of poverty. They assert that the low agricultural productivity is a consequence of the ownership structure of the land and the incentives that are created for farmers by the governments and the institutions under which they live. More recently, the COVID-19 global pandemic has significantly increased the number of the newly poor. The World Bank [ 16 ] estimates that in 2020, between 88 million and 115 million people fell into extreme poverty as a result of the pandemic and that in 2021 an additional between 23 million and 35 million people will fall in poverty bringing the new people living in extreme poverty to between 110 million and 150 million. But the World Bank also points out that even before the pandemic, development for many people in the world’s poorest countries was too slow to raise their incomes, enhance living standards, or narrow inequality. Coates [ 35 ] contends that in February 2020, poverty was in fact increasing in several countries while many others were already off track to achieving Sustainable Development Goal 1. In what follows, I explore these issues and identify practical measures that can be applied to stimulate inclusive growth and reduce extreme poverty in developing countries. I also present some case studies to demonstrate how these measures have been successfully applied in various developing countries.

2. Some definitions and statistics

A clear definition of poverty is vital to identifying the causes of poverty, measuring its extent, and in assessing progress towards its eradication. The World Bank defines poverty in terms of poverty lines that are based on estimates of the cost of goods and services needed to meet the basic subsistence needs. Thus, the poor are regarded as those whose incomes is at or below specific poverty lines. The most commonly used international poverty line is $1.90 per day [ 5 , 17 ]. A concept that is closely related to the poverty line is the head count index which is the proportion of the population below the poverty line. Table 1 shows that Sub-Saharan Africa made significant progress in poverty reduction between 1990 and 2018 as indicated by the decrease in the head count index from 55–40%. Over this period, the population of Sub-Saharan Africa increased by 112% from 509.45 million to 1078.31 million and the population of the poor increased by 55% from 280.95 million to 435.56 million. This increase in the number of the poor by about 154.61 million is significant and suggests an urgent need to intensify poverty reduction efforts.

Head count index (%) and the number of the poor (millions) in sub-Saharan Africa.

Source: PovCalNet, World Bank.Online.

The rate of poverty in Sub-Saharan Africa is significantly greater if it is assessed using a $3.20 a day poverty line. Several researchers argue that $3.20 a day is a more realistic yardstick for assessing poverty and are critical of the commonly used $1.90 a day poverty line that they regard as being too low for standard of living assessments. As expected, Table 1 shows that over the period under consideration the poverty rates in Sub-Saharan Africa were higher using a $3.20 a day poverty line as compared to poverty rates estimated using a $1.90 a day poverty line. Specifically, using the $3.20 a day poverty line shows that the poverty rates were 76% in 1990 and declined to 67% in 2018. However, over 1990–2018 period, the number of those living in poverty increased by 333.26 million from 385.5 million to 718.76 million ( Figures 1 – 3 ).

Headcount index (%) sub-Saharan Africa. Source: PovCalNet [ 36 ], World Bank. Online.

Number of the poor (millions) in sub-Saharan Africa. Source: PovCalNet [ 36 ], World Bank. Online.

Poverty gap in sub-Saharan Africa. Source: PovCalNet [ 36 ], World Bank. Online.

A useful metric in analyzing poverty issues is the poverty gap which is the ratio by which the mean income of the poor fall below the poverty line. The poverty gap is an indicator of the severity of the poverty problem in any context and provides an estimate of the income that is needed to bring the poor out of poverty. The squared poverty gap is also an indicator of the severity of poverty and is computed as the mean of the squared distances below the poverty line as a proportion of the poverty a line. Its usefulness stems from the fact that it gives greater weight to those who fall far below the poverty line than those who are close to it. Estimates of the squared poverty gap can be used to more effectively target poverty alleviation policies to segments of communities that are more severely impacted by poverty and thus bring about better and more equitable outcomes. Some values of the squared poverty gaps for Sub-Saharan Africa are presented in Table 1 and depicted in Figure 4 . They corroborate the overall picture of the severity of poverty declining in sub-Saharan Africa between 1990 and 2018 ( Table 2 ).

Squared poverty gap in sub-Saharan Africa. Source: PovCalNet [ 36 ], World Bank. Online.

Poverty gap and squared poverty gap (%) in sub-Saharan Africa.

Source: PovCalNet [ 36 ], World Bank.Online.

3. Poverty alleviation strategies

Poverty is a challenge that developing countries can overcome through, among others, good economic and social policies, innovative and efficient use of resources, investments in technological advancement, good governance, and visionary leadership with the political will to prioritize the needs of the poor. Sachs [ 4 ] notes that these elements are vital in enabling the provision of schools, clinics, roads, electricity, soil nutrients, and clean drinking water that are basic not only for a life of dignity and health, but also for economic productivity. In several countries measures are already being implemented to combat extreme poverty and improve the standards of living of the impoverished communities with steady progress being realized in several cases. Policy makers can learn important lessons from these poverty reduction measures and replicate and scale them up in other regions. Some strategies that developing countries can apply to reduce both the rate of poverty and number of the poor are:

3.1 Stimulating inclusive economic growth

Economic growth is vital in enabling impoverished communities to utilize their resources to increase both their output and incomes and thus break the poverty trap and be able to provide for their basic needs [ 1 , 4 , 19 , 20 , 22 , 23 , 25 , 37 , 38 ]. However, for economic growth to be effective in reducing poverty, it needs to be both inclusive and to occur at a rate that is higher than the rate of population growth. The fact that agriculture is the dominant economic sector in most poor communities implies that efforts to combat extreme poverty need to be directed towards increasing agricultural production and productivity [ 28 , 30 , 39 , 40 , 41 , 42 ]. Some concrete ways for achieving this overall goal include promoting the adoption of high yielding crop varieties and use of complementary inputs such as fertilizers and pesticides; intensifying the use of land through technological improvements such as increased use of irrigation where water is a constraint to agricultural production; and, adoption of post-harvesting measures that reduce the loss of agricultural produce. These measures are costly and are likely to be unaffordable to poor households. Their increased adoption requires the provision of cheap credit on terms that are flexible and aligned to the unique circumstances of the poor. How credit programs are designed is critical because it can have a significant impact on poverty reduction and livelihood outcomes [ 35 , 43 ]. When well designed, these programs can stimulate economic growth and enable poor communities to access financial capital for investment in income-generating activities. If poorly designed (e.g. if the interest rates are high and the repayment periods are short), credit programs can be not only exclusionary and inequitable, but the credit can also be misapplied, the poor entrapped in debt cycles, and economic growth and poverty reduction undermined.

Stimulating economic growth also requires public investments in infrastructure such as roads, electrical power, schools, hospitals, and water and sanitation systems [ 23 ]. These investments are important for several reasons. Good roads reduce transportation costs and generate diverse economic benefits that include increased ease of transporting agricultural produce to markets, ease of accessing agricultural inputs, and an increase in the profitability of income-generating businesses [ 23 ]. Providing electric power to impoverished areas not only results in improved standards of living but also stimulates the establishment of small-scale industries that process agricultural produce and thus contribute to value addition, in addition to creating much needed jobs. Providing safe, good-quality water for drinking and domestic use is vital in reducing incidences of debilitating water-borne diseases that are expensive to treat, saving time used to fetch water and enable the time and effort saved to be employed in more productive activities. More generally, investment in infrastructure will make rural economies more productive, increase household incomes, contribute to meeting basic needs, and enable greater saving for the future thus putting the economy on a path of sustainable growth [ 4 , 35 , 40 ].

A key challenge that developing countries face in providing the infrastructure they need is financing. On this issue several researchers advocate for increased use of foreign aid to finance public infrastructure in poor developing countries. According to Sachs [ 4 ], the rationale for this policy proposal is that developing countries are too poor and lack the financial resources for providing the infrastructure that they require to break the poverty trap and enable the provision of basic needs. He argues that if the rich world had committed $195 billion in foreign aid per year between 2005 and 2025, poverty could have been entirely eliminated by the end of this period. Moyo [ 44 ], Easterly [ 45 , 46 ], and Easterly and Levine [ 47 ] are however critical of foreign aid and assert that it not only undermines the ability of poor communities to develop solutions to their problems but also fosters corruption in governments and results in the utilization of the aid funds on non-priority areas. Banerjee and Duflo [ 43 ] and Page and Pande [ 23 ] opine that foreign aid can foster economic growth if well-targeted and used efficiently. They however point out that in most cases foreign aid is a small fraction of the overall financing that is required and that developing countries must increasingly rely on their own resources that are generated through taxes. Successful financing of critical infrastructure and social services will therefore require more efficient expenditures of public resources and the eradication of corruption in governments.

3.2 Economic and institutional reforms

An important step in reducing poverty in developing countries is the implementation of economic and institutional reforms to create conditions that attract investment, enhance competitiveness, ensure increased efficiency in the use of resources, stimulate economic growth, and create jobs. If well designed and implemented, these reforms can be instrumental in strengthening governance and reducing endemic corruption and poor accountability that have contributed to the poor economic performance of several developing countries [ 23 , 27 ]. Some reforms that are needed include the strengthening of land tenure systems to encourage risk-taking and investment in productive income-generating activities; improving governance to ensure greater inclusivity, transparency and accountability; reducing the misuse of public resources and unproductive expenditures; ensuring a greater focus on the needs and priorities of the poor; maintaining macroeconomic stability and addressing structural constraints to accelerating growth e.g. by reducing the high costs of doing business and excessive regulatory burdens; and involving the poor, women, and the youth in decision-making [ 8 ]. These reforms can benefit the poor by improving their access to land and other productive resources and by ensuring that their needs and priorities are adequately considered in policy making. Developing countries also need to reform their tax systems to make them more efficient and pro-poor.

3.3 Promoting microfinance institutions and programs

Lack of finance is a major constraint to the establishment of small scale businesses and other income generating activities in impoverished communities in several developing countries [ 48 , 49 ]. Through microfinance institutions, this constraint can be removed and the much-needed credit provided to small businesses that are often unable to access credit from formal financial institutions. In this way, micro-credit can be instrumental in stimulating economic activity, creating jobs in the informal sector, increasing household incomes, and reducing poverty [ 1 , 3 , 28 , 43 , 48 , 50 , 51 , 52 ]. Vatta [ 53 ] has noted that microfinance institutions have good potential to reach the rural poor and to address the basic issues of rural development where formal financial institutions have not been able to make a significant impact. Some advantages of obtaining credit from microfinance institutions include less stringent conditions with regard to providing collateral thus easing access to credit; the possibility of the poor obtaining small amounts of loans more frequently thus enabling the credit needs for diverse purposes and at shorter time intervals to be met; reduced transaction costs; flexibility of loan repayment; and an overall improvement in loan repayment. The small informal self-help groups that are often the units for microcredit lending are also valuable for social empowerment and fostering learning, the development of skills, entrepreneurship, exchange of ideas and experiences, and greater accountability by the group members [ 49 , 54 ]. Sachs [ 4 ] supports microfinance as a viable and promising path to poverty alleviation and cites Bangladesh as a country where micro-credit has contributed to a reduction in poverty through group lending that enabled impoverished women who were previously considered unbankable and not credit worthy to obtain small loans as working capital for microbusiness activities. He further notes that by opening to poor rural women improved economic opportunites, microcredit can be instrumental in reducing fertility rates and thus improve the abilities of households to save and provide better health and education for their children.

3.4 Improving the marketing systems

According to Karnani [ 55 ], the best way to reduce poverty is to raise the productive capacity of the poor. Efficient marketing systems are vital in enabling the poor to increase their production because they permit the delivery of products to markets at competitive prices that result in increased incomes. This is also the reason why developing countries need to explore ways of expanding export markets. The plight of cotton, rice, tea, coffee, and cashew nut farmers in Kenya demonstrates the importance of improving the marketing systems. Weaknesses and inefficiencies in the marketing of these commodities has resulted in the impoverishment of the farmers who face problems such as damage to their harvests, low commodity prices and thus low profits and incomes, and exploitation by middlemen. By improving the marketing system, the growers of these commodities can benefit from better storage that would cushion them from price fluctuations, the pooling of their resources that would enable a reduction of their costs, and the processing of their products to enable value-addition and an improvement on the returns. The implementation of these measures can stimulate local, regional, and national economies; underpin the establishment of a robust agro-industrial sector; create jobs; increase production and incomes; and, contribute to equitable and sustained reduction of poverty.

3.5 Cash/income transfer programs

The fight against poverty needs to consider the fact that among the poor are those who cannot actively participate in routine economic activities and are therefore likely to suffer exclusion from the benefits of economic growth. This category of the poor include the old and infirm, the sick and those afflicted by various debilitating conditions, families with young children, and those who have been displaced by war and domestic violence. Special affirmative actions that transfer incomes to these groups are required to provide for their basic needs and ensure more equity in poverty reduction. In impoverished regions where children contribute to the livelihoods of their families by supplying agricultural labor and participating in informal businesses, income transfer programs can provide families with financial relief and enable regular school attendance by children. Such investment in the education of the children is vital in improving their human capital and prospects for employment and can therefore play an important role in long term poverty reduction [ 7 , 8 , 56 ]. Kumara and Pfau [ 57 ] analyzed such programs in Sri Lanka and found that cash transfers in the country significantly reduced child poverty and also increased school attendance and child welfare. Barrientos and Dejong [ 58 ], Monchuk [ 59 ], Banerjee et al. [ 60 ], Page and Pande [ 23 ], Hanna and Olken [ 61 ], and World Bank [ 8 ] strongly support cash transfer programs and contend that these programs are a key instrument in reducing poverty, deprivation, and vulnerability among children and their households. They cite South Africa, Bangladesh, Brazil, Mexico and Chile as examples of countries where cash transfer programs have significantly reduced poverty and vulnerability among poor households. They also point out that cash transfer programs are beneficial to households because they are flexible and enhance the welfare of households given that households are free to use the supplemental income on their priorities.

Cash transfer programs are central to social protection that is much needed in developing countries that face heightened social and economic risks due to structural adjustments driven by globalization. As noted by Sneyd [ 2 ], Monchuk [ 59 ], Barrientos et al. [ 62 ], and Barrientos and Dejong [ 58 ], globalization has resulted in greater openness of developing economies and exposed them to changes in global markets leading to a greater concentration of social risk among vulnerable groups. They regard social protection as the most appropriate framework for addressing rising poverty and vulnerability in the conditions that prevail in developing countries. They recommend that if significant and sustained reduction in poverty is to be achieved, cash transfer programs be accompanied by complementary actions that extend economic opportunities and address the multiple dimensions of poverty such as food, water, sanitation, health, shelter, education and access to services. Fiszbein et al. [ 29 ] strongly support the increased use of social protection programs such as cash transfers to alleviate extreme povery and estimate that in 2014 these programs prevented about 150 million people from falling into poverty. It needs to be noted that although well designed cash transfer programs can be effective in reducing poverty, they are expensive and may be difficult to finance in a sustained manner [ 23 ]. However, by reducing wasteful expenditures and instituting tax reforms, the required resources can be freed for investment in cash transfer programs [ 29 ]. The viability of this approach is evident in the case of Bangladesh and a number of central Asian countries that have been able to successfully finance cash transfers from their national budgets. Countries that are not able to finance cash transfer programs from their own resources need to explore the possibilities of securing medium-term support from international organizations [ 4 , 7 , 29 , 58 , 63 ].

A major concern that several researchers have expressed regarding cash transfer programs is that they have a short term focus of alleviating only current poverty and have thus failed to generate sustained decrease in poverty independent of the transfer themselves. Critics of cash transfers also argue that they are a very cost ineffective approach to poverty alleviation and an unnecessary waste of scarce public resources. Furthermore, they claim that many cash transfer programes are characterized by unnecessary bureaucracy, high administrative costs, corruption, high operational inefficiencies, waste, and poor targeting. The overall result of these weaknesses is that program benefits have to a large extent failed to reach the poorest households. Where these shortcomings exist, they need to be identified through rigorous audits and addressed through improved program design. But more fundamentally, it also needs to be recognized that cash transfer programs are not simply handouts but are investments in poor households that regard the programs as their only hope for a life free from chronic poverty, malnutrition and disease.

4. Selected case studies on poverty reduction in developing countries

The goal of poverty reduction can be achieved through sound policies that address the root causes of poverty, promote inclusive economic growth, prioritize the basic needs of the poor, and provide economic opportunities that empower the poor and enable them to improve their standards of living [ 6 , 8 , 64 ]. In what follows we present a few case studies from sub-Saharan Africa, Asia and Latin America to illustrate real world examples of policies that have resulted in significant reduction in poverty. Policy makers can learn important lessons from these case studies in their attempts to combat poverty in different contexts.

4.1 Sub-Saharan Africa

Several countries in Sub-Saharan Africa have developed poverty reduction plans that are currently being implemented to improve the standards of living of the poor and vulnerable. In Kenya where poverty is widespread and is estimated to exceeed 60 percent, the key elements of the poverty reduction strategy are facilitating sustained and rapid economic growth; increasing the ability of the poor to raise their incomes; improving the quality of life of the poor; improving equity and the participation of the poor in decision-making and in the economy; and improving governance and security [ 65 ]. The government has also implemented macroeconomic reforms to reduce domestic debt burden and high interest rates - this is expected to promote higher private-sector led growth and thus contribute to poverty reduction. An important action that is being carried out to reduce poverty in Kenya is promoting agricultural production. This focus is underpinned by the fact that the majority of Kenyans derive their livelihoods and income from agriculture and live in rural areas. Some specific poverty reduction measures in Kenya that target the agricultural sector include providing subsidized fertilizers and seeds; encouraging the growing of high value crops; rehabilitation and expansion of irrigation projects; and, provision of subsidized credit to alleviate capital contraints. To support agricultural production, the government has also prioritized the strengthening and streamling of the marketing system and the expansion of rural roads to improve the access of the poor to markets, increase economic opportunities, and create employment. Robust efforts are also underway to increase agricultural exports as a means for stimulating domestic agricultural production and increasing the country’s foreign exchange earnings. Other poverty reduction measures that are being implemented in Kenya are the promotion of small scale income generating enterprises; subsidization of education and health care to reduce the costs to poor households; school-feeding programs; rural employment schemes through public works projects; investments in technical and vocational training to enable the youth acquire skills in areas such as carpentry, masonry, and, auto mechanics; and, family planning programs to reduce the fertility rates.

In collaboration with international development partners, Kenya and other low and middle income countries in Sub-Saharan Africa have been implementing cash transfer programs on a limited scale to address extreme poverty and assist vulnerable households. The cash transfers were unconditional in the intial phases with disbursements made to all applicants. Subsequently however, and based on the lessons learned from the earlier phases, several countries have redesigned their cash transfer programs and made them conditional and contingent on means-testing. This is important given the severe budget contraints that developing countries face, the need to target the cash transfers on the poorest and most vulnerable households, and the need to ensure that social protection expenditures are efficient and result in the greatest reduction in poverty. Egger et al. [ 66 ] conducted an empirical study of a cash transfer program in rural western Kenya between mid-2014 and early 2017 and concluded that the program had several positive effects on both the households that received the cash transfers and those that did not. Some specific benefits attributable to the cash transfer program were an increase in consumption expenditures and holdings of durable assets by households; increased demand-driven earnings by local enterprises; increased food security; improved child growth and school attendance; improvement in health of members of the recipient households; female empowerment; and, enhanced psychological well-being. Furthermore, the cash transfer program had a stimulatory effect on local economic activities and these effects persisted long after the cash disbursements. The experience with cash transfer programs demonstrates that they can contribute significantly to a reduction in extreme poverty if they are scaled up, and if they are well designed and targeted at the poorest households.

Since March of 2020, Kenya’s progress in poverty reduction has been adversely affected by the COVID-19 pandemic that is estimated to have increased the number of the poor by an additional 2 million through adverse impacts on incomes and jobs [ 24 , 67 ]. The containment measures that were implemented in response to the pandemic significantly slowed economic activity, reduced revenues from household-run businesses, exacerbated food insecurity, and posed a serious threat to the lives and livelihoods of large segments of the population. Some of the actions that the government of Kenya took to address these challenges included allocating more resources to the healthcare sector to combat the pandemic; instituting taxation and spending measures to support healthy firms from permanent closure in order to protect jobs, incomes and the productive capacity of the economy; and, scaling-up social protection programs to offset the increase in poverty and protect the most vulnerable households [ 24 , 67 ].

A number of countries in Asia have developed and implemented programs that have been impactful in significantly reducing extreme poverty. According to the Asian Development Bank (ADB) [ 68 ], these programs were predicated on rapid economic growth driven by innovation, structural reform, and the application of private sector solutions in the public sector. Asia’s progress in raising prosperity and reducing poverty is evident from the fact that since 1990 over a billion people have emerged from extreme poverty and also from the fact that in the decade spanning 2005–2015 more that 611 million people were lifted out of extreme poverty – four-fifths of these were in China (234 million) and India (253 million) [ 68 ]. The general approach that governments of Asia have taken to poverty reduction include accelerating economic growth, increasing the delivery of social services, developing lagging areas, increasing investments to generate jobs, promoting small and medium-sized enterprises, redistributing incomes, balancing rural–urban growth, and developing social protection interventions [ 68 , 69 ].

An example of a successful poverty reduction initiative in Asia is the Shanxi Integrated Agricultural Development Project (SIADP) that was implemented between 2009 and 2016 in the Shanxi province in China with a $ 100 million loan from the ADB. The goal of the SIADP was to improve agricultural production in the region as a way to stimulate economic growth and reduce the level of poverty. Prior to the implementation of the SIADP most farmers in Shanxi province mainly grew wheat and corn that generated low incomes and required extensive use of water and agrochemicals. The farmers in the region also engaged in free-range livestock grazing, an environmentally unsustainable practice that resulted in soil and water pollution from uncontrolled disposal of untreated animal waste. They were also unorganized and did not have good access to markets and finance, and the participation of women in the economy was marginal and their social and economic rights ignored. According to the ADB [ 68 ], the SIADP was implemented by first training farmers in improved production techniques that resulted in the development of a sustainable agricultural sector with the farmers starting to grow high-value crops, and forming contract farming agreements with agro-enterprises that enabled the farmers to gain access to stable markets and premium prices for their produce. The farmers also started breeding and raising livestock under more controlled conditions that enabled not only an increase in livestock output but also the turning of animal waste into compost or biogas which is a source of clean energy. These measures were instrumental in stimulating the region’s bioeconomy, improving the quality of the environment, increasing farm incomes, and reducing the level of poverty in Shanxi province.

Social protection programs are vital in cushioning poor and vulnerable households from crises they are unable to cope with and that are likely to cause an overall reduction and degradation of their physical and social assets [ 68 ]. This is exemplified by the food stamp program that was implemented in 2008 through a partnership between the Government of Mongolia and the ADB. The food stamp program was put in place at a time when the overall poverty rate in Mongolia was 32.6 percent of the population with about 5 percent of the population being categorized as extremely poor. There was also a high level of food insecurity in the country and a high inflation rate that had reached 32.2 percent [ 68 ]. To help reduce the adverse impact of food insecurity and high inflation, the government of Mongolia established a food subsidy program that targeted poor households. The program was very effective in assisting the poor to buy enough floor, rice and other basic commodities and also freed up money that the poor could then spend on other necessities. Following the introduction of this program, school attendance by children increased and their mean grades improved [ 68 ]. The program also supported the poor households in developing alternative food sources. The ADB [ 68 ] notes that the participants in the food stamp program also learned valuable skills in backyard gardening, food storage and food preservation with many of them reporting significant earnings from vegetable production. Thus, the program contributed directly to poverty reduction by mitigating the adverse effects of the food and financial crises on the poor and is a strategy that developing countries need to seriously consider in their efforts to reduce povery and improve living standards.

4.3 Latin America

As a region, Latin America has performed reasonably well in reducing extreme poverty and boosting shared prosperity [ 70 ]. A country-specific assessment however reveals a significant heterogeneity across and within the countries in the region. The countries that have performed well include Argentina, Bolivia, Brazil, Panama, Uruguay, and Peru while those that have performed poorly include Guatemala, Mexico, Honduras, Nicaragua and the Dominican Republic. For the well-performing countries, the reasons include rapid and inclusive economic growth, and the adoption of redistributive policies such as improved access to education, healthcare, and social protections. In these countries, there has been a significant increase in the participation of the poor in labor markets thus enhancing their ability to generate labor income. Cord et al. [ 70 ] assert that the growth in female labor force participation in particular has been strong and has contributed to the substantial drop in poverty rates that has been observed in the well-performing countries. It is worth noting that these gains in poverty reduction and promotion of shared prosperity have been aided by prudent macro fiscal economic policies and positive terms of trade. These countries have also benefitted immensely from remittance flows that have not only complemented the expansion of government transfers and the broadening of pension coverage but have also enabled greater macroeconomic stability, higher savings, more entrepreneurship and better access to healthcare and education. In a country like El Salvador which is one of the largest remittance-receiving countries in the region, these private remittances have played a major role in poverty reduction [ 70 ]. Although, the income transfer programs that several countries in Latin America have implemented have been effective in reducing persistent intergenerational poverty, the incidence of poverty in the region has remained high due, in part, to the limited scale of these programs and weaknesses in their design [ 71 ]. By supplementing household consumption, these programs are playing a key role in human development and preventing future poverty because present consumption improves productive capacity through the expected positive impact of improved nutrition and health status on labour productivity [ 71 ]. Further reduction in poverty in the region requires not only the scaling up of the income transfer programs and improvements in their design to ensure greater efficiency in service delivery, but also the redressing of other critical drivers of poverty such as the long-standing inequalities in access to land and other productive resources [ 71 ]. A problematic issue that needs to be addressed is the over-reliance of these programs on external financing; it poses to policy-makers the challenge of identifying and crafting alternative sources of financing to ensure the sustainability of these programs.

5. Conclusions and policy implications

Poverty is a serious challenge that developing countries are facing today and requires focused and sustained action to significantly reduce it, break the cycle of poverty, and improve the standards of living. Although income is the yardstick that is most commonly used to measure and assess it, poverty is multidimensional and entails diverse aspects of well-being that include food, water, sanitation, health, shelter, education, access to services and human rights [ 20 ]. According to the World Bank, the extent of poverty is highest in Sub Saharan Africa, South Asia, and Latin America where the number of the poor has been increasing due to high population growth and modest economic performance in these regions. Various reports also indicate that the youth are the majority of the population in these countries so that targeting them can be effective in reducing poverty. Developing countries are currently in various stages implementing policies aimed at reducing poverty and vulnerability, and improving the standards of living. Promoting inclusive economic growth is vital not only in increasing output and incomes but also in ensuring that the benefits of economic growth are broadly shared. Some ways of promoting inclusive economic growth are investing in infrastructure and technology; liberalizing trade and expanding export markets; providing incentives to small and medium businesses; providing fiscal stimulus to the economy; ensuring macroeconomic stability; and improving public management and governance [ 8 , 26 , 33 ]. The implementation of these measures in an integrated manner can have positive economy wide effects, incentivize the private sector, create the much needed employment opportunities, and reduce the levels of poverty.

Poverty reduction can also be enhanced through microfinance institutions that not only provide credit to small borrowers who are often unable to access credit from formal financial institutions, but also mobilize domestic savings and channel these savings towards income generating activities [ 43 ]. This role of microfinance institutions is particularly important in developing countries where most businesses are small scale and face severe financing constraints [ 43 , 48 , 51 , 52 ]. The available empirical evidence demonstrates that microfinance has been instrumental in supporting income generating activities in impoverished regions and thus contributed to the provision of basic needs and reduction of poverty. Developing countries can also address the challenge of poverty by improving the efficiency and competitiveness of their economies. This can be accomplished through economic and institutional reforms that reduce the cost of doing business, strengthen the linkages between various sectors of the economy, protect property rights, reduce corruption, and foster greater accountability in public management. Tax regimes also need to be reformed to make them more efficient, provide incentives to small businesses, effect redistribution in favor of the poor, and generate more resources that can be used to finance critical services such as education, health, water and sanitation, and shelter for the poor. Furthermore, through tax reforms employment opportunities can be expanded as a key step in poverty reduction. Finally, carefully designed affirmative actions and social protection programs need to be included as a key pillar of the poverty reduction strategies of developing countries given that there will invariably be groups in society whose unique circumstances result in their exclusion from the economic and social benefits of conventional poverty reduction measures. This is the rationale for the cash transfer programs that several developing countries are increasingly implementing to reduce poverty and vulnerability. The private sector and international development institutions can play an important role in poverty reduction in developing countries by providing expertise and the supplemental resources and assistance that are needed to implement poverty reduction plans. Success in poverty eradication requires a focus on areas where poverty is widespread and the use of innovative and practical policy instruments that are most likely to lift the greatest number of the poor out of poverty. It is a goal that is attainable through collaboration among all stakeholders, prioritization of the basic needs of the poor, the determination to improve economic performance to realize inclusive economic growth and break the vicious cycle of povery, empowering the poor to take control of their future, and by mainstreaming poverty reduction into national policies and actions.

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© 2021 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution 3.0 License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Solutions to Poverty Essay

The situation where one is unable to fulfil the minimum requirements of life such as food, clothing, housing, education, and health facilities is referred to as poverty. 

After reading this post ‘Solution to Poverty Essay’ you will learn everything you need to reduce poverty in your country.

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Solutions to Poverty Essay (650+ Words)

The problem of poverty can be solved by accelerating the pace of economic growth. A higher growth rate creates new employment and income-earning opportunities. Efforts should be made to incorporate new and modern techniques of production so as to improve productivity and production. Similarly, mechanization should be followed in the agriculture sector so as to improve production. An increase in production would lead to higher income and thereby, help eradicate poverty.

In addition to rapid economic growth, it is necessary to ensure that the increased income does not remain concentrated in a few hands. In other words, to remove poverty it is necessary to remove the inequality of income and wealth. This can be achieved by means of legislative and fiscal measures. Legislative measures include such measures as the Minimum Wages Act, Minimum Support Price, Right to Education, etc. Such measures raise the income earning capacity of people and improve their standard of living.

On the other hand, fiscal measures comprise taxation and subsidy measures of the government. A high rate of taxes can be levied on the high-income group while the poor are granted subsidies. In this sense, the purchasing power is transferred from the rich to the poor. Similarly, pensions, scholarships, grants, etc. can be granted to the poor. Both the legislative as well as fiscal measures are aimed at encouraging an egalitarian society and reducing poverty.

A high population growth rate offsets the benefits of a high economic growth rate. Even when the level of national income is high, the per capita income will remain low if the population growth rate is high. Thus, to combat poverty, it becomes necessary to control the population growth rate.

People should be made aware of the benefits of a small family and different family control measures. Another measure of controlling the population is encouraging female education and employment. Stress should also be laid on other similar measures such as education, research in the field of family planning, and population control.

The poor are worse hit by the rising prices. Rising prices reduce purchasing power and make it difficult for the poor to purchase even the basic necessities. To reduce poverty steps must be taken to ensure stability in the prices. A two-fold methodology can be adopted for price stability. First, by increasing the production of goods and services, and second, by distributing the essential goods to the poor through fair price shops and ration shops.

Unemployment is one of the major causes of poverty. Steps must be taken to eradicate unemployment. India is a labour-abundant country, and one of the measures to increase employment can be to adopt labour-intensive techniques of production. Similarly, to absorb the labour in rural areas cottage and small-scale industries must be encouraged.

Self-employment must be encouraged in both rural areas and urban areas. Self-employed persons should be provided with such facilities as credit, marketing, transportation, technical training, etc. Besides, to improve employment in the country, it is necessary to make the education system more job-oriented, so that people have the practical knowledge and skill required for gainful employment. A reduction in unemployment through these measures will help in the reduction of poverty.

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A modest intervention that helps low-income families beat the poverty trap

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Many low-income families might desire to move into different neighborhoods — places that are safer, quieter, or have more resources in their schools. In fact, not many do relocate. But it turns out they are far more likely to move when someone is on hand to help them do it.

That’s the outcome of a high-profile experiment by a research team including MIT economists, which shows that a modest amount of logistical assistance dramatically increases the likelihood that low-income families will move into neighborhoods providing better economic opportunity.

The randomized field experiment, set in the Seattle area, showed the number of families using vouchers for new housing jumped from 15 percent to 53 percent when they had more information, some financial support, and, most of all, a “navigator” who helped them address logistical challenges.

“The question we were after is really what drives residential segregation,” says Nathaniel Hendren, an MIT economist and co-author of the paper detailing the results. “Is it due to preferences people have, due to having family or jobs close by? Or are there constraints on the search process that make it difficult to move?” As the study clearly shows, he says, “Just pairing people with [navigators] broke down search barriers and created dramatic changes in where they chose to live. This was really just a very deep need in the search process.”

The study’s results have prompted U.S. Congress to twice allocate $25 million in funds allowing eight other U.S. cities to run their own versions of the experiment and measure the impact.

That is partly because the result “represented a bigger treatment effect than any of us had really ever seen,” says Christopher Palmer, an MIT economist and a co-author of the paper. “We spend a little bit of money to help people take down the barriers to moving to these places, and they are happy to do it.”

Having attracted attention when the top-line numbers were first aired in 2019, the study is now in its final form as a peer-reviewed paper, “ Creating Moves to Opportunity: Experimental Evidence on Barriers to Neighborhood Choice ,” published in this month’s issue of the American Economic Review .

The authors are Peter Bergman, an associate professor at the University of Texas at Austin; Raj Chetty, a professor at Harvard University; Stefanie DeLuca, a professor at Johns Hopkins University; Hendren, a professor in MIT’s Department of Economics; Lawrence F. Katz, a professor at Harvard University; and Palmer, an associate professor in the MIT Sloan School of Management.

New research renews an idea

The study follows other prominent work about the geography of economic mobility. In 2018, Chetty and Hendren released an “Opportunity Atlas” of the U.S., a comprehensive national study showing that, other things being equal, some areas provide greater long-term economic mobility for people who grow up there. The project brought renewed attention to the influence of place on economic outcomes.

The Seattle experiment also follows a 1990s federal government program called Moving to Opportunity, a test in five U.S. cities helping families seek new neighborhoods. That intervention had mixed results : Participants who moved reported better mental health, but there was no apparent change in income levels.

Still, in light of the Opportunity Atlas data, the scholars decided revisit the concept, with a program they call Creating Moves to Opportunity (CMTO). This provides housing vouchers along with a bundle of other things: Short-term financial assistance of about $1,000 on average, more information, and the assistance of a “navigator,” a caseworker who would help troubleshoot issues that families encountered.   

The experiment was implemented by the Seattle and King County Housing Authorities, along with MDRC, a nonprofit policy research organization, and J-PAL North America. The latter is one of the arms of the MIT-based Abdul Latif Jameel Poverty Action Lab (J-PAL), a leading center promoting randomized, controlled trials in the social sciences.

The experiment had 712 families in it, and two phases. In the first, all participants were issued housing vouchers worth a little more than $1,500 per month on average, and divided into treatment and control groups. Families in the treatment group also received the CMTO bundle of services, including the navigator.

In this phase, lasting from 2018 to 2019, 53 percent of families in the treatment group used the housing vouchers, while only 15 percent of those in the control group used the vouchers. Families who moved dispersed to 46 different neighborhoods, defined by U.S. Census Bureau tracts, meaning they were not just shifting en masse from one location to one other.

Families who moved were very likely to want to renew their leases, and expressed satisfaction with their new neighborhoods. All told, the program cost about $2,670 per family. Additional research scholars in the group have conducted about changes in income suggest the program’s direct benefits are 2.5 times greater than its costs.

“Our sense is that’s a pretty reasonable return for the money compared to other strategies we have to combat intergenerational poverty,” Hendren says.

Logistical and emotional support

In the second phase of the experiment, lasting from 2019 to 2020, families in a treatment group received individual components of the CMTO support, while the control group again only received the housing vouchers. This way, the researchers could see which parts of the program made the biggest difference. The vast majority of the impact, it turned out, came from receiving the full set of services, especially the “customized” help of navigators.

“What came out of the phase two results was that the customized search assistance was just invaluable to people,” Palmer says. “The barriers are so heterogenous across families.” Some people might have trouble understanding lease terms; others might want guidance about schools; still others might have no experience renting a moving truck.

The research turned up a related phenomenon: In 251 follow-up interviews, families often emphasized that the navigators mattered partly because moving is so stressful.

“When we interviewed people and asked them what was so valuable about that, they said things like, ‘Emotional support,’” Palmer observes. He notes that many families participating in the program are “in distress,” facing serious problems such as the potential for homelessness.

Moving the experiment to other cities

The researchers say they welcome the opportunity to see how the Creating Moves to Opportunity program, or at least localized replications of it, might fare in other places. Congress allocated $25 million in 2019, and then again in 2022, so the program could be tried out in eight metro areas: Cleveland, Los Angeles, Minneapolis, Nashville, New Orleans, New York City, Pittsburgh, and Rochester. With the Covid-19 pandemic having slowed the process, officials in those places are still examing the outcomes.

“It’s thrilling to us that Congress has appropriated money to try this program in different cities, so we can verify it wasn’t just that we had really magical and dedicated family navigators in Seattle,” Palmer says. “That would be really useful to test and know.”

Seattle might feature a few particularities that helped the program succeed. As a newer city than many metro areas, it may contain fewer social roadblocks to moving across neighborhoods, for instance.

“It’s conceivable that in Seattle, the barriers for moving to opportunity are more solvable than they might be somewhere else.” Palmer says. “That’s [one reason] to test it in other places.”

Still, the Seattle experiment might translate well even in cities considered to have entrenched neighborhood boundaries and racial divisions. Some of the project’s elements extend earlier work applied in the Baltimore Housing Mobility Program, a voucher plan run by the Baltimore Regional Housing Partnership. In Seattle, though, the researchers were able to rigorously test the program as a field experiment, one reason it has seemed viable to try replicate it elsewhere.

“The generalizable lesson is there’s not a deep-seated preference for staying put that’s driving residential segregation,” Hendren says. “I think that’s important to take away from this. Is this the right policy to fight residential segregation? That’s an open question, and we’ll see if this kind of approach generalizes to other cities.”

The research was supported by the Bill and Melinda Gates Foundation, the Chan-Zuckerberg Initiative, the Surgo Foundation, the William T. Grant Foundation, and Harvard University.

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Economists report on a modest intervention that helps low-income families beat the poverty trap

by Peter Dizikes, Massachusetts Institute of Technology

Many low-income families might desire to move into different neighborhoods—places that are safer, quieter, or have more resources in their schools. In fact, not many do relocate. But it turns out they are far more likely to move when someone is on hand to help them do it.

That's the outcome of a high-profile experiment by a research team including MIT economists, which shows that a modest amount of logistical assistance dramatically increases the likelihood that low-income families will move into neighborhoods providing better economic opportunity.

A paper describing this work is published in the journal American Economic Review .

The randomized field experiment, set in the Seattle area, showed that the number of families using vouchers for new housing jumped from 15% to 53% when they had more information, some financial support, and, most of all, a navigator who helped them address logistical challenges.

"The question we were after is really what drives residential segregation," says Nathaniel Hendren, an MIT economist and co-author of the paper detailing the results. "Is it due to preferences people have, due to having family or jobs close by? Or are there constraints on the search process that make it difficult to move?" As the study clearly shows, he says, "Just pairing people with [navigators] broke down search barriers and created dramatic changes in where they chose to live. This was really just a very deep need in the search process."

The study's results have prompted U.S. Congress to twice allocate $25 million in funds, allowing eight other U.S. cities to run their own versions of the experiment and measure the impact.

That is partly because the result "represented a bigger treatment effect than any of us had really ever seen," says Christopher Palmer, an MIT economist and a co-author of the paper. "We spend a little bit of money to help people take down the barriers to moving to these places, and they are happy to do it."

New research renews an idea

The study follows other prominent work about the geography of economic mobility. In 2018, Chetty and Hendren released an "Opportunity Atlas" of the U.S., a comprehensive national study showing that other things being equal, some areas provide greater long-term economic mobility for people who grow up there. The project brought renewed attention to the influence of place on economic outcomes.

The Seattle experiment also follows a 1990s federal government program called Moving to Opportunity, a test in five U.S. cities helping families seek new neighborhoods. That intervention had mixed results: Participants who moved reported better mental health, but there was no apparent change in income levels.

Still, in light of the Opportunity Atlas data, the scholars decided to revisit the concept, with a program they call Creating Moves to Opportunity (CMTO). This provides housing vouchers along with a bundle of other things: Short-term financial assistance of about $1,000 on average, more information, and the assistance of a navigator, a caseworker who would help troubleshoot issues that families encountered.

The experiment was implemented by the Seattle and King County Housing Authorities, along with MDRC, a nonprofit policy research organization, and J-PAL North America. The latter is one of the arms of the MIT-based Abdul Latif Jameel Poverty Action Lab (J-PAL), a leading center promoting randomized, controlled trials in the social sciences.

The experiment included 712 families and two phases. In the first, all participants were issued housing vouchers worth a little more than $1,500 per month on average, and divided into treatment and control groups. Families in the treatment group also received the CMTO bundle of services, including the navigator.

In this phase, lasting from 2018 to 2019, 53% of families in the treatment group used the housing vouchers, while only 15% of those in the control group used the vouchers. Families who moved dispersed to 46 different neighborhoods, defined by U.S. Census Bureau tracts, meaning they were not just shifting en masse from one location to one other.

Families who moved were very likely to want to renew their leases, and expressed satisfaction with their new neighborhoods. All told, the program cost about $2,670 per family. Additional research scholars in the group have conducted about changes in income suggest the program's direct benefits are 2.5 times greater than its costs.

"Our sense is that's a pretty reasonable return for the money compared to other strategies we have to combat intergenerational poverty," Hendren says.

Logistical and emotional support

In the second phase of the experiment, lasting from 2019 to 2020, families in a treatment group received individual components of the CMTO support, while the control group again only received the housing vouchers. This way, the researchers could see which parts of the program made the biggest difference. The vast majority of the impact, it turned out, came from receiving the full set of services, especially the "customized" help of navigators.

"What came out of the phase two results was that the customized search assistance was just invaluable to people," Palmer says. "The barriers are so heterogenous across families." Some people might have trouble understanding lease terms; others might want guidance about schools; still others might have no experience renting a moving truck.

The research turned up a related phenomenon: In 251 follow-up interviews, families often emphasized that the navigators mattered partly because moving is so stressful.

"When we interviewed people and asked them what was so valuable about that, they said things like, "Emotional support,'" Palmer observes. He notes that many families participating in the program are "in distress," facing serious problems such as the potential for homelessness.

Moving the experiment to other cities

The researchers say they welcome the opportunity to see how the Creating Moves to Opportunity program, or at least localized replications of it, might fare in other places. Congress allocated $25 million in 2019, and then again in 2022, so the program could be tried out in eight metro areas : Cleveland, Los Angeles, Minneapolis, Nashville, New Orleans, New York City, Pittsburgh, and Rochester. With the COVID-19 pandemic having slowed the process, officials in those places are still examining the outcomes.

"It's thrilling to us that Congress has appropriated money to try this program in different cities, so we can verify it wasn't just that we had really magical and dedicated family navigators in Seattle," Palmer says. "That would be really useful to test and know."

Seattle might feature a few particularities that helped the program succeed. As a newer city than many metro areas, it may contain fewer social roadblocks to moving across neighborhoods, for instance.

"It's conceivable that in Seattle, the barriers for moving to opportunity are more solvable than they might be somewhere else." Palmer says. "That's [one reason] to test it in other places."

Still, the Seattle experiment might translate well even in cities considered to have entrenched neighborhood boundaries and racial divisions. Some of the project's elements extend earlier work applied in the Baltimore Housing Mobility Program, a voucher plan run by the Baltimore Regional Housing Partnership. In Seattle, though, the researchers were able to rigorously test the program as a field experiment, one reason it has seemed viable to try to replicate it elsewhere.

"The generalizable lesson is there's not a deep-seated preference for staying put that's driving residential segregation," Hendren says. "I think that's important to take away from this. Is this the right policy to fight residential segregation? That's an open question, and we'll see if this kind of approach generalizes to other cities."

Journal information: American Economic Review

Provided by Massachusetts Institute of Technology

This story is republished courtesy of MIT News ( web.mit.edu/newsoffice/ ), a popular site that covers news about MIT research, innovation and teaching.

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