Poverty reduction

[2] Geoffrey Parker wrote: "In Antwerp and Lyon, two of the largest cities in western Europe, by 1600 three-quarters of the total population were too poor to pay taxes, and therefore likely to need relief in times of crisis.

The reconfiguration of public financing in former Soviet states during their transition to a market economy called for reduced spending on health and education, sharply increasing poverty.

[30] Deals can sometimes be negotiated to favor the developing country such as in China, where laws compel foreign multinationals to train their future Chinese competitors in strategic industries and render themselves redundant in the long term.

[1] Promoting hand washing is one of the most cost effective health intervention and can cut deaths from the major childhood diseases of diarrhea and pneumonia by half.

[51] Safaricom's M-Pesa launched one of the first systems where a network of agents of mostly shopkeepers, instead of bank branches, would take deposits in cash and translate these onto a virtual account on customers' phones.

[53] For instance, in India most of the chronically poor are wage earners in informal employment as their jobs are insecure and low paid and offer no chance to accumulate wealth to avoid risks.

Unconditional cash transfer, widely credited as a successful anti-poverty program, is based on actions such as enrolling children in school or receiving vaccinations.

[66] In Mexico, for example, the country with the largest such program, dropout rates of 16- to 19-year-olds in rural area dropped by 20% and children gained half an inch in height.

Currently modern, expansive welfare states that ensure economic opportunity, independence and security in a near universal manner are still the exclusive domain of the developed nations.

[14] For example, Eritrea is forced to spend aid money on foreign goods and services to build a network of railways even though it is cheaper to use local expertise and resources.

[88] The empowerment of women has relatively recently become a significant area of discussion with respect to development and economics; however it is often regarded as a topic that only addresses and primarily deals with gender inequality.

According to the study conducted by Bertetta et al. (2023), interventions involving more than one component, including agricultural training and income-generating activities, can improve food security and resilience in the long run.

Encouraging more economic and political participation by women increases financial independence from and social investment in the government, both of which are critical to pulling society out of poverty.

[102] Other ways to encourage female participation in the workforce to promote decline of poverty include providing childcare services, increasing educational quality and opportunities, and furthering entrepreneurship for women.

[104] Sustainable economic growth requires poor people to have influence on the decisions that affect their lives;[105] specifically strengthening women's voices in the political process builds social independence and greater consideration of gender issues in policy.

[112] Another approach that has been proposed for alleviating poverty is Fair Trade which advocates the payment of an above market price as well as social and environmental standards in areas related to the production of goods.

Following his recommendations, international organizations such as the Global Solidarity Network[121] are working to help eradicate poverty worldwide with intervention in the areas of housing, food, education, basic health, agricultural inputs, safe drinking water, transportation and communications.

The Campaign believes that a human rights framework, based on the value of inherent dignity and worth of all persons, offers the best means by which to organize for a political solution to poverty.

[122] A researcher at a leading global think-tank, the Overseas Development Institute, suggests that far more effort should be done to better coordinate and integrate poverty reduction strategies with climate change adaptation.

The quick wins are: The first of the 17 Sustainable Development Goals (SDGs) calls for an end to poverty by 2030 and seeks to ensure social protection for the poor and supporting people affected by climate-related extreme events.

For instance, one common method of poverty targeting is 'means testing' that uses a certain income or expenditure threshold for an individual or the a household to be considered as poor and eligible for support.

The May 2012 Copenhagen Consensus recommended that efforts to combat hunger and malnutrition should be the first priority for politicians and private sector philanthropists looking to maximize the effectiveness of aid spending.

[135] The partnership Compact2025, led by IFPRI with the involvement of UN organisations, NGOs and private foundations,[136] develops and disseminates evidence-based advice to politicians and other decision-makers aimed at ending hunger and undernutrition in the coming 10 years, by 2025.

Started in 2010, this movement of people from governments, civil society, the United Nations, donors, businesses and researchers publishes a yearly progress report on the changes in their 57 partner countries.

[142] With rising costs of simple commodities and privatization of the training market, economically distraught families will end up in an undeniably hard position to educate their own children.

Due to the slow economic development in the past years, this method will no longer close the income inequality or reduce the unemployment rate effectively in the future.

[152] Polak and Warwick provided practical advice: a product needed to affect at least a billion people (i.e., have universal appeal), it had to be able to be delivered to customers living where there was not a FedEx office or even a road, and it had to be "radically affordable" to attract someone who earned less than $2 a day.

Rather than encouraging multinational businesses to meet the needs of the poor, some organizations such as iDE, the World Resources Institute, and the United Nations Development Programme began to focus on working directly with helping bottom-of-the-pyramid populations become local, small-scale entrepreneurs.

According to Simanis:[157]Despite achieving healthy penetration rates of 5% to 10% in four test markets, for instance, Procter & Gamble couldn't generate a competitive return on its Pur water-purification powder after launching the product on a large scale in 2001... DuPont ran into similar problems with a venture piloted from 2006 to 2008 in Andhra Pradesh, India, by its subsidiary Solae, a global manufacturer of soy protein ... Because the high costs of doing business among the very poor demand a high contribution per transaction, companies must embrace the reality that high margins and price points aren't just a top-of-the-pyramid phenomenon; they're also a necessity for ensuring sustainable businesses at the bottom of the pyramid.Marc Gunther states that "The bottom-of-the-pyramid (BOP) market leader, arguably, is Unilever ... Its signature BOP product is Pureit, a countertop water-purification system sold in India, Africa and Latin America.

Poor consumers may spend their income disproportionately on events or goods and services that offer short-term benefits rather than invest in things that could change their lives in the long-term.

Graph (based on data from the World Bank) showing the proportion of the world's population (blue) and the absolute numbers of people (red) living on <1, <1.25, and <2 US dollars a day (2005 equivalent values) between 1981 and 2008
The number of people below different poverty lines
World GDP per capita (log scale)
World GDP per capita
Shiva Kumar – The importance of MDGs in redefining what are the poverty drivers
Helping insure farmers in Argentina and Chile
Aid for Trade Global Review 2017 Frank Matsaert, Vanessa Erogbogbo and Amelia Kyambadde
Social connectedness to people of higher income levels is a strong predictor of upward income mobility. [ 87 ] However, data shows substantial social segregation correlating with economic income groups. [ 87 ]
"Working together to end poverty one nail at a time", T-shirt, 50th anniversary of the March on Washington for Jobs and Freedom
Empowering Women - Panel discussion on the occasion of the International Women's Day
Man on bike with chickens, Ouagadougou , Burkina Faso
Sustainable Development Goals
Sustainable Development Goal 1
A poor child walks with one sandal.