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"Poor" redirects here. Poverty_sentence_0

For other uses, see Poor (disambiguation) and Poverty (disambiguation). Poverty_sentence_1

Poverty is the state of not having enough material possessions or income for a person's basic needs. Poverty_sentence_2

Poverty may include social, economic, and political elements. Poverty_sentence_3

Absolute poverty is the complete lack of the means necessary to meet basic personal needs, such as food, clothing, and shelter. Poverty_sentence_4

The floor at which absolute poverty is defined is always about the same, independent of the person's permanent location or era. Poverty_sentence_5

On the other hand, relative poverty occurs when a person cannot meet a minimum level of living standards, compared to others in the same time and place. Poverty_sentence_6

Therefore, the floor at which relative poverty is defined varies from one country to another, or from one society to another. Poverty_sentence_7

Many governments and non-governmental organizations try to reduce poverty by providing basic needs to people who are unable to earn a sufficient income. Poverty_sentence_8

These efforts can be hampered by constraints on government's ability to deliver services, such as corruption, tax avoidance, debt and loan conditionalities and by the brain drain of health care and educational professionals. Poverty_sentence_9

Strategies of increasing income to make basic needs more affordable typically include welfare, economic freedoms and providing financial services. Poverty_sentence_10

Meanwhile, the poorest citizens of middle-income countries have largely failed to receive an adequate share of their countries’ increased wealth. Poverty_sentence_11

Definitions and etymology Poverty_section_0

The word poverty comes from the old (Norman) French word poverté (Modern French: pauvreté), from Latin paupertās from pauper (poor). Poverty_sentence_12

There are several definitions of poverty depending on the context of the situation it is placed in, and usually references a state or condition in which a person or community lacks the financial resources and essentials for a certain standard of living. Poverty_sentence_13

United Nations: Fundamentally, poverty is the inability of having choices and opportunities, a violation of human dignity. Poverty_sentence_14

It means lack of basic capacity to participate effectively in society. Poverty_sentence_15

It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one's food or a job to earn one's living, not having access to credit. Poverty_sentence_16

It means insecurity, powerlessness and exclusion of individuals, households and communities. Poverty_sentence_17

It means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation. Poverty_sentence_18

World Bank: Poverty is pronounced deprivation in well-being, and comprises many dimensions. Poverty_sentence_19

It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty_sentence_20

Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one's life. Poverty_sentence_21

Measuring poverty Poverty_section_1

See also: List of countries by percentage of population living in poverty, Poverty threshold, and Individual Deprivation Measure Poverty_sentence_22

Absolute poverty Poverty_section_2

Main article: Extreme poverty Poverty_sentence_23

See also: Purchasing power and Asset poverty Poverty_sentence_24

Absolute poverty, often synonymous with 'extreme poverty' or 'abject poverty', refers to a set standard which is consistent over time and between countries. Poverty_sentence_25

This set standard usually refers to "a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. Poverty_sentence_26

It depends not only on income but also on access to services." Poverty_sentence_27

The "dollar a day" poverty line was first introduced in 1990 as a measure to meet such standards of living. Poverty_sentence_28

For nations that do not use the U.S. dollar as currency, 'dollar a day' does not translate to living a day on the equivalent amount of local currency as determined by the exchange rate. Poverty_sentence_29

Rather, it is determined by the purchasing power parity rate, which would look at how much local currency is needed to buy the same things that a dollar could buy in the United States. Poverty_sentence_30

Usually, this would translate to having less local currency than if the exchange rate was used as the United States is a relatively more expensive country. Poverty_sentence_31

From 1993 through 2005, the World Bank defined absolute poverty as $1.08 a day on such a purchasing power parity basis, after adjusting for inflation to the 1993 U.S. dollar and in 2008, it was updated as $1.25 a day (equivalent to $1.00 a day in 1996 US prices) and in 2015, it was updated as living on less than US$1.90 per day, and moderate poverty as less than $2 or $5 a day. Poverty_sentence_32

Similarly, 'ultra-poverty' is defined by a 2007 report issued by International Food Policy Research Institute as living on less than 54 cents per day. Poverty_sentence_33

The poverty line threshold of $1.90 per day, as set by the World Bank, is controversial. Poverty_sentence_34

Each nation has its own threshold for absolute poverty line; in the United States, for example, the absolute poverty line was US$15.15 per day in 2010 (US$22,000 per year for a family of four), while in India it was US$1.0 per day and in China the absolute poverty line was US$0.55 per day, each on PPP basis in 2010. Poverty_sentence_35

These different poverty lines make data comparison between each nation's official reports qualitatively difficult. Poverty_sentence_36

Some scholars argue that the World Bank method sets the bar too high, others argue it is too low. Poverty_sentence_37

There is disagreement among experts as to what would be considered a realistic poverty rate with one considering it "an inaccurately measured and arbitrary cut off". Poverty_sentence_38

Some contend that a higher poverty line is needed, such as a minimum of $7.40 or even $10 to $15 a day. Poverty_sentence_39

They argue that these levels would better reflect the cost of basic needs and normal life expectancy. Poverty_sentence_40

One estimate places the true scale of poverty much higher than the World Bank, with an estimated 4.3 billion people (59% of the world's population) living with less than $5 a day and unable to meet basic needs adequately. Poverty_sentence_41

Philip Alston, a UN special rapporteur on extreme poverty and human rights, stated the World Bank's international poverty line of $1.90 a day is fundamentally flawed, and has allowed for "self congratulatory" triumphalism in the fight against extreme global poverty, which he asserts is "completely off track" and that nearly half of the global population, or 3.4 billion, lives on less than $5.50 a day, and this number has barely moved since 1990. Poverty_sentence_42

Still others suggest that poverty line misleads as it measures everyone below the poverty line the same, when in reality someone living on $1.20 per day is in a different state of poverty than someone living on $0.20 per day. Poverty_sentence_43

Asset poverty is a measure of absolute poverty that considers assets beyond income. Poverty_sentence_44

Conventionally, asset poverty is defined as having insufficient net worth – this includes savings and durable assets, such as a home or business – to cover three months of living expenses without an income. Poverty_sentence_45

Looking beyond more than just income is argued to be useful because without assets such as savings an economic emergency such as a hospital bill is likely to cause serious hardship even if income can usually cover basic needs. Poverty_sentence_46

Additionally, asset poor families are less likely to have a 'springboard into the middle class' because they have less assets to improve their lot even if their income helps them survive. Poverty_sentence_47

Other measures of absolute poverty without using a certain dollar amount include the standard defined as receiving less than 80 percent of minimum caloric intake whilst spending more than 80% of income on food, sometimes called ultra-poverty. Poverty_sentence_48

Relative poverty Poverty_section_3

See also: Relative deprivation, Economic inequality, and Wealth concentration Poverty_sentence_49

Relative poverty views poverty as socially defined and dependent on social context. Poverty_sentence_50

It is argued that the needs considered fundamental is not an objective measure and could change with the custom of society. Poverty_sentence_51

For example, a person who cannot afford housing better than a small tent in an open field would be said to live in relative poverty if almost everyone else in that area lives in modern brick homes, but not if everyone else also lives in small tents in open fields (for example, in a nomadic tribe). Poverty_sentence_52

Since richer nations would have lower levels of absolute poverty, relative poverty is considered the "most useful measure for ascertaining poverty rates in wealthy developed nations" and is the "most prominent and most-quoted of the EU social inclusion indicators". Poverty_sentence_53

Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income. Poverty_sentence_54

This is a calculation of the percentage of people whose family household income falls below the Poverty Line. Poverty_sentence_55

The main poverty line used in the OECD and the European Union is based on "economic distance", a level of income set at 60% of the median household income. Poverty_sentence_56

The United States federal government typically regulates this line to three times the cost an adequate meal. Poverty_sentence_57

There are several other different income inequality metrics, for example, the Gini coefficient or the Theil Index. Poverty_sentence_58

Other aspects Poverty_section_4

Rather than income, poverty is also measured through individual basic needs at a time. Poverty_sentence_59

Life expectancy has greatly increased in the developing world since World War II and is starting to close the gap to the developed world. Poverty_sentence_60

Child mortality has decreased in every developing region of the world. Poverty_sentence_61

The proportion of the world's population living in countries where per-capita food supplies are less than 2,200 calories (9,200 kilojoules) per day decreased from 56% in the mid-1960s to below 10% by the 1990s. Poverty_sentence_62

Similar trends can be observed for literacy, access to clean water and electricity and basic consumer items. Poverty_sentence_63

Poverty may also be understood as an aspect of unequal social status and inequitable social relationships, experienced as social exclusion, dependency, and diminished capacity to participate, or to develop meaningful connections with other people in society. Poverty_sentence_64

Such social exclusion can be minimized through strengthened connections with the mainstream, such as through the provision of relational care to those who are experiencing poverty. Poverty_sentence_65

The World Bank's "Voices of the Poor", based on research with over 20,000 poor people in 23 countries, identifies a range of factors which poor people identify as part of poverty. Poverty_sentence_66

These include abuse by those in power, dis-empowering institutions, excluded locations, gender relationships, lack of security, limited capabilities, physical limitations, precarious livelihoods, problems in social relationships, weak community organizations and discrimination. Poverty_sentence_67

Analysis of social aspects of poverty links conditions of scarcity to aspects of the distribution of resources and power in a society and recognizes that poverty may be a function of the diminished "capability" of people to live the kinds of lives they value. Poverty_sentence_68

The social aspects of poverty may include lack of access to information, education, health care, social capital or political power. Poverty_sentence_69

In the United Kingdom, the second Cameron ministry came under attack for their redefinition of poverty; poverty is no longer classified by a family's income, but as to whether a family is in work or not. Poverty_sentence_70

Considering that two-thirds of people who found work were accepting wages that are below the living wage (according to the Joseph Rowntree Foundation) this has been criticised by anti-poverty campaigners as an unrealistic view of poverty in the United Kingdom. Poverty_sentence_71

Secondary poverty Poverty_section_5

Main article: Secondary poverty Poverty_sentence_72

Secondary poverty refers to those that earn enough income to not be impoverished, but who spend their income on unnecessary pleasures, such as alcoholic beverages, thus placing them below it in practice. Poverty_sentence_73

In 18th- and 19th-century Great Britain, the practice of temperance among Methodists, as well as their rejection of gambling, allowed them to eliminate secondary poverty and accumulate capital. Poverty_sentence_74

Variability Poverty_section_6

Poverty levels are snapshot pictures in time that omits the transitional dynamics between levels. Poverty_sentence_75

Mobility statistics supply additional information about the fraction who leave the poverty level. Poverty_sentence_76

For example, one study finds that in a sixteen-year period (1975 to 1991 in the U.S.) only 5% of those in the lower fifth of the income level were still at that level, while 95% transitioned to a higher income category. Poverty_sentence_77

Poverty levels can remain the same while those who rise out of poverty are replaced by others. Poverty_sentence_78

The transient poor and chronic poor differ in each society. Poverty_sentence_79

In a nine-year period ending in 2005 for the U.S., 50% of the poorest quintile transitioned to a higher quintile. Poverty_sentence_80

Global prevalence Poverty_section_7

According to Chen and Ravallion, about 1.76 billion people in developing world lived above $1.25 per day and 1.9 billion people lived below $1.25 per day in 1981. Poverty_sentence_81

In 2005, about 4.09 billion people in developing world lived above $1.25 per day and 1.4 billion people lived below $1.25 per day (both 1981 and 2005 data are on inflation adjusted basis). Poverty_sentence_82

The share of the world's population living in absolute poverty fell from 43% in 1981 to 14% in 2011. Poverty_sentence_83

The absolute number of people in poverty fell from 1.95 billion in 1981 to 1.01 billion in 2011. Poverty_sentence_84

The economist Max Roser estimates that the number of people in poverty is therefore roughly the same as 200 years ago. Poverty_sentence_85

This is the case since the world population was just little more than 1 billion in 1820 and the majority (84% to 94%) of the world population was living poverty. Poverty_sentence_86

The proportion of the developing world's population living in extreme economic poverty fell from 28 percent in 1990 to 21 percent in 2001. Poverty_sentence_87

Most of this improvement has occurred in East and South Asia. Poverty_sentence_88

In 2012 it was estimated that, using a poverty line of $1.25 a day, 1.2 billion people lived in poverty. Poverty_sentence_89

Given the current economic model, built on GDP, it would take 100 years to bring the world's poorest up to the poverty line of $1.25 a day. Poverty_sentence_90

UNICEF estimates half the world's children (or 1.1 billion) live in poverty. Poverty_sentence_91

The World Bank forecasted in 2015 that 702.1 million people were living in extreme poverty, down from 1.75 billion in 1990. Poverty_sentence_92

Extreme poverty is observed in all parts of the world, including developed economies. Poverty_sentence_93

Of the 2015 population, about 347.1 million people (35.2%) lived in Sub-Saharan Africa and 231.3 million (13.5%) lived in South Asia. Poverty_sentence_94

According to the World Bank, between 1990 and 2015, the percentage of the world's population living in extreme poverty fell from 37.1% to 9.6%, falling below 10% for the first time. Poverty_sentence_95

During the 2013 to 2015 period, the World Bank reported that extreme poverty fell from 11% to 10%, however they also noted that the rate of decline had slowed by nearly half from the 25 year average with parts of sub-saharan Africa returning to early 2000 levels. Poverty_sentence_96

The World Bank attributed this to increasing violence following the Arab Spring, population increases in Sub-Saharan Africa, and general African inflationary pressures and economic malaise were the primary drivers for this slow down. Poverty_sentence_97

Many wealthy nations have seen an increase in relative poverty rates ever since the Great Recession, in particular among children from impoverished families who often reside in substandard housing and find educational opportunities out of reach. Poverty_sentence_98

It has been argued by some academics that the neoliberal policies promoted by global financial institutions such as the IMF and the World Bank are actually exacerbating both inequality and poverty. Poverty_sentence_99

In East Asia the World Bank reported that "The poverty headcount rate at the $2-a-day level is estimated to have fallen to about 27 percent [in 2007], down from 29.5 percent in 2006 and 69 percent in 1990." Poverty_sentence_100

The People's Republic of China accounts for over three quarters of global poverty reduction from 1990 to 2005. Poverty_sentence_101

Though, as noted, China accounted for nearly half of all extreme poverty in 1990. Poverty_sentence_102

In Sub-Saharan Africa extreme poverty went up from 41 percent in 1981 to 46 percent in 2001, which combined with growing population increased the number of people living in extreme poverty from 231 million to 318 million. Poverty_sentence_103

Statistics of 2018 shows population living in extreme conditions has declined by more than 1 billion in the last 25 years. Poverty_sentence_104

As per the report published by the world bank on 19 September 2018 world poverty falls below 750 million. Poverty_sentence_105

In the early 1990s some of the transition economies of Central and Eastern Europe and Central Asia experienced a sharp drop in income. Poverty_sentence_106

The collapse of the Soviet Union resulted in large declines in GDP per capita, of about 30 to 35% between 1990 and the through year of 1998 (when it was at its minimum). Poverty_sentence_107

As a result, poverty rates tripled, excess mortality increased, and life expectancy declined. Poverty_sentence_108

In subsequent years as per capita incomes recovered the poverty rate dropped from 31.4% of the population to 19.6%. Poverty_sentence_109

The average post-communist country had returned to 1989 levels of per-capita GDP by 2005, although as of 2015 some are still far behind that. Poverty_sentence_110

World Bank data shows that the percentage of the population living in households with consumption or income per person below the poverty line has decreased in each region of the world except Middle East and North Africa since 1990: Poverty_sentence_111


RegionPoverty_header_cell_0_0_0 $1 per dayPoverty_header_cell_0_0_1 $1.25 per dayPoverty_header_cell_0_0_4 $1.90 per dayPoverty_header_cell_0_0_6
1990Poverty_header_cell_0_1_0 2002Poverty_header_cell_0_1_1 2004Poverty_header_cell_0_1_2 1981Poverty_header_cell_0_1_3 2008Poverty_header_cell_0_1_4 1981Poverty_header_cell_0_1_5 1990Poverty_header_cell_0_1_6 1999Poverty_header_cell_0_1_7 2010Poverty_header_cell_0_1_8 2015Poverty_header_cell_0_1_9 2018Poverty_header_cell_0_1_10
East Asia and PacificPoverty_cell_0_2_0 15.4%Poverty_cell_0_2_1 12.3%Poverty_cell_0_2_2 9.1%Poverty_cell_0_2_3 77.2%Poverty_cell_0_2_4 14.3%Poverty_cell_0_2_5 80.5%Poverty_cell_0_2_6 61.3%Poverty_cell_0_2_7 38.5%Poverty_cell_0_2_8 11.2%Poverty_cell_0_2_9 2.3%Poverty_cell_0_2_10 1.3%Poverty_cell_0_2_11
Europe and Central AsiaPoverty_cell_0_3_0 3.6%Poverty_cell_0_3_1 1.3%Poverty_cell_0_3_2 1.0%Poverty_cell_0_3_3 1.9%Poverty_cell_0_3_4 0.5%Poverty_cell_0_3_5 Poverty_cell_0_3_6 Poverty_cell_0_3_7 7.8%Poverty_cell_0_3_8 2.5%Poverty_cell_0_3_9 1.6%Poverty_cell_0_3_10 1.2%Poverty_cell_0_3_11
Latin America and the CaribbeanPoverty_cell_0_4_0 9.6%Poverty_cell_0_4_1 9.1%Poverty_cell_0_4_2 8.6%Poverty_cell_0_4_3 11.9%Poverty_cell_0_4_4 6.5%Poverty_cell_0_4_5 13.8%Poverty_cell_0_4_6 15.2%Poverty_cell_0_4_7 13.7%Poverty_cell_0_4_8 6.2%Poverty_cell_0_4_9 4.1%Poverty_cell_0_4_10 4.4%Poverty_cell_0_4_11
Middle East and North AfricaPoverty_cell_0_5_0 2.1%Poverty_cell_0_5_1 1.7%Poverty_cell_0_5_2 1.5%Poverty_cell_0_5_3 9.6%Poverty_cell_0_5_4 2.7%Poverty_cell_0_5_5 Poverty_cell_0_5_6 6.1%Poverty_cell_0_5_7 3.8%Poverty_cell_0_5_8 2%Poverty_cell_0_5_9 3.8%Poverty_cell_0_5_10 7.2%Poverty_cell_0_5_11
South AsiaPoverty_cell_0_6_0 35.0%Poverty_cell_0_6_1 33.4%Poverty_cell_0_6_2 30.8%Poverty_cell_0_6_3 61.1%Poverty_cell_0_6_4 36%Poverty_cell_0_6_5 55.9%Poverty_cell_0_6_6 47.4%Poverty_cell_0_6_7 Poverty_cell_0_6_8 24.6%Poverty_cell_0_6_9 Poverty_cell_0_6_10 Poverty_cell_0_6_11
Sub-Saharan AfricaPoverty_cell_0_7_0 46.1%Poverty_cell_0_7_1 42.6%Poverty_cell_0_7_2 41.1%Poverty_cell_0_7_3 51.5%Poverty_cell_0_7_4 47.5%Poverty_cell_0_7_5 Poverty_cell_0_7_6 54.9%Poverty_cell_0_7_7 58.4%Poverty_cell_0_7_8 46.6%Poverty_cell_0_7_9 42.3%Poverty_cell_0_7_10 Poverty_cell_0_7_11
WorldPoverty_header_cell_0_8_0 Poverty_header_cell_0_8_1 Poverty_header_cell_0_8_2 Poverty_header_cell_0_8_3 52.2%Poverty_header_cell_0_8_4 22.4%Poverty_header_cell_0_8_5 42.3%Poverty_header_cell_0_8_6 36%Poverty_header_cell_0_8_7 28.6%Poverty_header_cell_0_8_8 15.7%Poverty_header_cell_0_8_9 10%Poverty_header_cell_0_8_10 Poverty_header_cell_0_8_11

Characteristics Poverty_section_8

The effects of poverty may also be causes as listed above, thus creating a "poverty cycle" operating across multiple levels, individual, local, national and global. Poverty_sentence_112

Health Poverty_section_9

Main articles: Diseases of poverty and Disability and poverty Poverty_sentence_113

One third of deaths around the world – some 18 million people a year or 50,000 per day – are due to poverty-related causes. Poverty_sentence_114

People living in developing nations, among them women and children, are over represented among the global poor and these effects of severe poverty. Poverty_sentence_115

Those living in poverty suffer disproportionately from hunger or even starvation and disease, as well as lower life expectancy. Poverty_sentence_116

According to the World Health Organization, hunger and malnutrition are the single gravest threats to the world's public health and malnutrition is by far the biggest contributor to child mortality, present in half of all cases. Poverty_sentence_117

Almost 90% of maternal deaths during childbirth occur in Asia and sub-Saharan Africa, compared to less than 1% in the developed world. Poverty_sentence_118

Those who live in poverty have also been shown to have a far greater likelihood of having or incurring a disability within their lifetime. Poverty_sentence_119

Infectious diseases such as malaria and tuberculosis can perpetuate poverty by diverting health and economic resources from investment and productivity; malaria decreases GDP growth by up to 1.3% in some developing nations and AIDS decreases African growth by 0.3–1.5% annually. Poverty_sentence_120

Poverty has been shown to impede cognitive function. Poverty_sentence_121

One way in which this may happen is that financial worries put a severe burden on one's mental resources so that they are no longer fully available for solving complicated problems. Poverty_sentence_122

The reduced capability for problem solving can lead to suboptimal decisions and further perpetuate poverty. Poverty_sentence_123

Many other pathways from poverty to compromised cognitive capacities have been noted, from poor nutrition and environmental toxins to the effects of stress on parenting behavior, all of which lead to suboptimal psychological development. Poverty_sentence_124

Neuroscientists have documented the impact of poverty on brain structure and function throughout the lifespan. Poverty_sentence_125

Infectious diseases continue to blight the lives of the poor across the world. Poverty_sentence_126

36.8 million people are living with HIV/AIDS, with 954,492 deaths in 2017. Poverty_sentence_127

Every year there are 350–500 million cases of malaria, with 1 million fatalities: Africa accounts for 90 percent of malarial deaths and African children account for over 80 percent of malaria victims worldwide. Poverty_sentence_128

Poor people often are more prone to severe diseases due to the lack of health care, and due to living in non-optimal conditions. Poverty_sentence_129

Among the poor, girls tend to suffer even more due to gender discrimination. Poverty_sentence_130

Economic stability is paramount in a poor household otherwise they go in an endless loop of negative income trying to treat diseases. Poverty_sentence_131

Often time when a person in a poor household falls ill it is up to the family members to take care of their family members due to limited access to health care and lack of health insurance. Poverty_sentence_132

The household members oftentimes have to give up their income or stop seeking further education to tend to the sick member. Poverty_sentence_133

There is a greater opportunity cost imposed on the poor to tend to someone compared to someone with better financial stability. Poverty_sentence_134

Hunger Poverty_section_10

Main article: Hunger Poverty_sentence_135

See also: Malnutrition Poverty_sentence_136

Rises in the costs of living make poor people less able to afford items. Poverty_sentence_137

Poor people spend a greater portion of their budgets on food than wealthy people. Poverty_sentence_138

As a result, poor households and those near the poverty threshold can be particularly vulnerable to increases in food prices. Poverty_sentence_139

For example, in late 2007 increases in the price of grains led to food riots in some countries. Poverty_sentence_140

The World Bank warned that 100 million people were at risk of sinking deeper into poverty. Poverty_sentence_141

Threats to the supply of food may also be caused by drought and the water crisis. Poverty_sentence_142

Intensive farming often leads to a vicious cycle of exhaustion of soil fertility and decline of agricultural yields. Poverty_sentence_143

Approximately 40% of the world's agricultural land is seriously degraded. Poverty_sentence_144

In Africa, if current trends of soil degradation continue, the continent might be able to feed just 25% of its population by 2025, according to United Nations University's Ghana-based Institute for Natural Resources in Africa. Poverty_sentence_145

Every year nearly 11 million children living in poverty die before their fifth birthday. Poverty_sentence_146

1.02 billion people go to bed hungry every night. Poverty_sentence_147

According to the Global Hunger Index, Sub-Saharan Africa had the highest child malnutrition rate of the world's regions over the 2001–2006 period. Poverty_sentence_148

As part of the Sustainable Development Goals the global community has made the elimination of hunger and undernutrition a priority for the coming years. Poverty_sentence_149

While the Goal 2 of the SDGs aims to reach this goal by 2030 a number of initiatives aim to achieve the goal 5 years earlier, by 2025: Poverty_sentence_150


  • The partnership , led by IFPRI with the involvement of UN organisations, NGOs and private foundations 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. It bases its claim that hunger can be ended by 2025 on a report by Shenggen Fan and Paul Polman that analyzed the experiences from China, Vietnam, Brazil and Thailand.Poverty_item_0_0
  • The European Union and the Bill & Melinda Gates Foundation have launched a partnership to combat undernutrition in June 2015. The program will initiatilly be implemented in Bangladesh, Burundi, Ethiopia, Kenya, Laos and Niger and will help these countries to improve information and analysis about nutrition so they can develop effective national nutrition policies.Poverty_item_0_1
  • The Food and Agriculture Organization of the UN has created a partnership that will act through the African Union's CAADP framework aiming to end hunger in Africa by 2025. It includes different interventions including support for improved food production, a strengthening of social protection and integration of the right to food into national legislation.Poverty_item_0_2

Education Poverty_section_11

See also: Impact of health on intelligence, Social determinants of health in poverty § Education, and Disability and poverty § Education Poverty_sentence_151

Research has found that there is a high risk of educational underachievement for children who are from low-income housing circumstances. Poverty_sentence_152

This is often a process that begins in primary school for some less fortunate children. Poverty_sentence_153

Instruction in the US educational system, as well as in most other countries, tends to be geared towards those students who come from more advantaged backgrounds. Poverty_sentence_154

As a result, children in poverty are at a higher risk than advantaged children for retention in their grade, special deleterious placements during the school's hours and even not completing their high school education. Poverty_sentence_155

Advantage breeds advantage. Poverty_sentence_156

There are indeed many explanations for why students tend to drop out of school. Poverty_sentence_157

One is the conditions of which they attend school. Poverty_sentence_158

Schools in poverty-stricken areas have conditions that hinder children from learning in a safe environment. Poverty_sentence_159

Researchers have developed a name for areas like this: an urban war zone is a poor, crime-laden district in which deteriorated, violent, even war-like conditions and underfunded, largely ineffective schools promote inferior academic performance, including irregular attendance and disruptive or non-compliant classroom behavior. Poverty_sentence_160

Because of poverty, "Students from low-income families are 2.4 times more likely to drop out than middle-income kids, and over 10 times more likely than high-income peers to drop out" Poverty_sentence_161

For children with low resources, the risk factors are similar to others such as juvenile delinquency rates, higher levels of teenage pregnancy, and the economic dependency upon their low-income parent or parents. Poverty_sentence_162

Families and society who submit low levels of investment in the education and development of less fortunate children end up with less favorable results for the children who see a life of parental employment reduction and low wages. Poverty_sentence_163

Higher rates of early childbearing with all the connected risks to family, health and well-being are major important issues to address since education from preschool to high school are both identifiably meaningful in a life. Poverty_sentence_164

Poverty often drastically affects children's success in school. Poverty_sentence_165

A child's "home activities, preferences, mannerisms" must align with the world and in the cases that they do not do these, students are at a disadvantage in the school and, most importantly, the classroom. Poverty_sentence_166

Therefore, it is safe to state that children who live at or below the poverty level will have far less success educationally than children who live above the poverty line. Poverty_sentence_167

Poor children have a great deal less healthcare and this ultimately results in many absences from the academic year. Poverty_sentence_168

Additionally, poor children are much more likely to suffer from hunger, fatigue, irritability, headaches, ear infections, flu, and colds. Poverty_sentence_169

These illnesses could potentially restrict a child or student's focus and concentration. Poverty_sentence_170

Harmful spending habits mean that the poor typically spend about 2 percent of their income educating their children but larger percentages of alcohol and tobacco (For example, 6 percent in Indonesia and 8 percent in Mexico). Poverty_sentence_171

Gender Poverty_section_12

In general, the interaction of gender with poverty or location tends to work to the disadvantage of girls in poorer countries with low completion rates and social expectations that they marry early, and to the disadvantage of boys in richer countries with high completion rates but social expectations that they enter the labour force early. Poverty_sentence_172

At the primary education level, most countries with a completion rate below 60% exhibit gender disparity at girls’ expense, particularly poor and rural girls. Poverty_sentence_173

In Mauritania, the adjusted gender parity index is 0.86 on average, but only 0.63 for the poorest 20%, while there is parity among the richest 20%. Poverty_sentence_174

In countries with completion rates between 60% and 80%, gender disparity is generally smaller, but disparity at the expense of poor girls is especially marked in Cameroon, Nigeria and Yemen. Poverty_sentence_175

Exceptions in the opposite direction are observed in countries with pastoralist economies that rely on boys’ labour, such as the Kingdom of Eswatini, Lesotho and Namibia. Poverty_sentence_176

Shelter Poverty_section_13

See also: Slums, Street children, and Orphanages Poverty_sentence_177

Poverty increases the risk of homelessness. Poverty_sentence_178

Slum-dwellers, who make up a third of the world's urban population, live in a poverty no better, if not worse, than rural people, who are the traditional focus of the poverty in the developing world, according to a report by the United Nations. Poverty_sentence_179

There are over 100 million street children worldwide. Poverty_sentence_180

Most of the children living in institutions around the world have a surviving parent or close relative, and they most commonly entered orphanages because of poverty. Poverty_sentence_181

It is speculated that, flush with money, orphanages are increasing and push for children to join even though demographic data show that even the poorest extended families usually take in children whose parents have died. Poverty_sentence_182

Experts and child advocates maintain that orphanages are expensive and often harm children's development by separating them from their families and that it would be more effective and cheaper to aid close relatives who want to take in the orphans. Poverty_sentence_183

Utilities Poverty_section_14

Water and sanitation Poverty_section_15

As of 2012, 2.5 billion people lack access to sanitation services and 15% practice open defecation. Poverty_sentence_184

The most noteworthy example is Bangladesh, which has half the GDP per capita of India but has a lower mortality from diarrhea than India or the world average, with diarrhea deaths declining by 90% since the 1990s. Poverty_sentence_185

Even while providing latrines is a challenge, people still do not use them even when available. Poverty_sentence_186

By strategically providing pit latrines to the poorest, charities in Bangladesh sparked a cultural change as those better off perceived it as an issue of status to not use one. Poverty_sentence_187

The vast majority of the latrines built were then not from charities but by villagers themselves. Poverty_sentence_188

Water utility subsidies tend to subsidize water consumption by those connected to the supply grid, which is typically skewed towards the richer and urban segment of the population and those outside informal housing. Poverty_sentence_189

As a result of heavy consumption subsidies, the price of water decreases to the extent that only 30%, on average, of the supplying costs in developing countries is covered. Poverty_sentence_190

This results in a lack of incentive to maintain delivery systems, leading to losses from leaks annually that are enough for 200 million people. Poverty_sentence_191

This also leads to a lack of incentive to invest in expanding the network, resulting in much of the poor population being unconnected to the network. Poverty_sentence_192

Instead, the poor buy water from water vendors for, on average, about five to 16 times the metered price. Poverty_sentence_193

However, subsidies for laying new connections to the network rather than for consumption have shown more promise for the poor. Poverty_sentence_194

Electricity Poverty_section_16

Similarly, the poorest fifth receive 0.1% of the world's lighting but pay a fifth of total spending on light, accounting for 25 to 30 percent of their income. Poverty_sentence_195

Indoor air pollution from burning fuels kills 2 million, with almost half the deaths from pneumonia in children under 5. Poverty_sentence_196

Fuel from Bamboo burns more cleanly and also matures much faster than wood, thus also reducing deforestation. Poverty_sentence_197

Additionally, using solar panels is promoted as being cheaper over the products' lifetime even if upfront costs are higher. Poverty_sentence_198

Thus, payment schemes such as lend-to-own programs are promoted and up to 14% of Kenyan households use solar as their primary energy source. Poverty_sentence_199

Violence Poverty_section_17

See also: Slavery and Human trafficking Poverty_sentence_200

According to experts, many women become victims of trafficking, the most common form of which is prostitution, as a means of survival and economic desperation. Poverty_sentence_201

Deterioration of living conditions can often compel children to abandon school to contribute to the family income, putting them at risk of being exploited. Poverty_sentence_202

For example, in Zimbabwe, a number of girls are turning to sex in return for food to survive because of the increasing poverty. Poverty_sentence_203

According to studies, as poverty decreases there will be fewer and fewer instances of violence. Poverty_sentence_204

In one survey, 67% of children from disadvantaged inner cities said they had witnessed a serious assault, and 33% reported witnessing a homicide. Poverty_sentence_205

51% of fifth graders from New Orleans (median income for a household: $27,133) have been found to be victims of violence, compared to 32% in Washington, DC (mean income for a household: $40,127). Poverty_sentence_206

Personality Poverty_section_18

Max Weber and some schools of modernization theory suggest that cultural values could affect economic success. Poverty_sentence_207

However, researchers have gathered evidence that suggest that values are not as deeply ingrained and that changing economic opportunities explain most of the movement into and out of poverty, as opposed to shifts in values. Poverty_sentence_208

Studies have shown that poverty changes the personalities of children who live in it. Poverty_sentence_209

The Great Smoky Mountains Study was a ten-year study that was able to demonstrate this. Poverty_sentence_210

During the study, about one-quarter of the families saw a dramatic and unexpected increase in income. Poverty_sentence_211

The study showed that among these children, instances of behavioral and emotional disorders decreased, and conscientiousness and agreeableness increased. Poverty_sentence_212

One 2012 paper, based on a sampling of 9,646 U.S, adults, claimed that poverty tends to correlate with laziness and other such traits. Poverty_sentence_213

A 2018 report on poverty in the United States by UN special rapporteur Philip Alston asserts that caricatured narratives about the rich and the poor, that "the rich are industrious, entrepreneurial, patriotic and the drivers of economic success. Poverty_sentence_214

The poor are wasters, losers and scammers" are largely inaccurate, as "the poor are overwhelmingly those born into poverty, or those thrust there by circumstances largely beyond their control, such as physical or mental disabilities, divorce, family breakdown, illness, old age, unliveable wages or discrimination in the job market." Poverty_sentence_215

A psychological study has been conducted by four scientists during inaugural Convention of Psychological Science. Poverty_sentence_216

The results find that people who thrive with financial stability or fall under low socioeconomic status (SES), tend to perform worse cognitively due to external pressure imposed upon them. Poverty_sentence_217

The research found that stressors such as low income, inadequate health care, discrimination, exposure to criminal activities all contribute to mental disorders. Poverty_sentence_218

This study also found that it slows cognitive thinking in children when they are exposed to poverty stricken environments. Poverty_sentence_219

In kids it is seen that kids perform better under the care and nourishment from their parents, and found that children tend to adopt speaking language at a younger age. Poverty_sentence_220

Since being in poverty from childhood is especially more harmful than it is for an adult, therefore it is seen that children in poor households tend to fall behind in certain cognitive abilities compared to other average families. Poverty_sentence_221

For a child to grow up emotionally healthy, the children under three need "A strong, reliable primary caregiver who provides consistent and unconditional love, guidance, and support. Poverty_sentence_222

Safe, predictable, stable environments. Poverty_sentence_223

Ten to 20 hours each week of harmonious, reciprocal interactions. Poverty_sentence_224

This process, known as attunement, is most crucial during the first 6–24 months of infants' lives and helps them develop a wider range of healthy emotions, including gratitude, forgiveness, and empathy. Poverty_sentence_225

Enrichment through personalized, increasingly complex activities". Poverty_sentence_226

Discrimination Poverty_section_19

Cultural factors, such as discrimination of various kinds, can negatively affect productivity such as age discrimination, stereotyping, discrimination against people with physical disability, gender discrimination, racial discrimination, and caste discrimination. Poverty_sentence_227

Women are the group suffering from the highest rate of poverty after children; 14.5% of women and 22% of children are poor in the United States. Poverty_sentence_228

In addition, the fact that women are more likely to be caregivers, regardless of income level, to either the generations before or after them, exacerbates the burdens of their poverty. Poverty_sentence_229

Marking the International Day for the Eradication of Poverty, the United Nations Special Rapporteur on extreme poverty Philip Alston warned in a statement that, “The world's poor are at disproportionate risk of torture, arrest, early death and domestic violence, but their civil and political rights are being airbrushed out of the picture.” ... people in lower socio-economic classes are much more likely to get killed, tortured or experience an invasion of their privacy, and are far less likely to realize their right to vote, or otherwise participate in the political process.” Poverty_sentence_230

Causes of poverty Poverty_section_20

Main article: Causes of poverty Poverty_sentence_231

Causes of poverty is a highly ideologically charged subject, as different causes point to different remedies. Poverty_sentence_232

Very broadly speaking, the socialist tradition locates the roots of poverty in problems of distribution and the use of the means of production as capital benefiting individuals, and calls for redistribution of wealth as the solution, whereas the neoliberal school of thought is dedicated the idea that creating conditions for profitable private investment is the solution. Poverty_sentence_233

Neoliberal think tanks have received extensive funding, and the ability to apply many of their ideas in highly indebted countries in the global South as a condition for receiving emergency loans from the International Monetary Fund. Poverty_sentence_234

The existence of inequality is in part due to a set of self-reinforcing behaviors that all together constitute one aspect of the cycle of poverty. Poverty_sentence_235

These behaviors, in addition to unfavorable, external circumstances, also explain the existence of the Matthew effect, which not only exacerbates existing inequality, but is more likely to make it multigenerational. Poverty_sentence_236

Widespread, multigenerational poverty is an important contributor to civil unrest and political instability. Poverty_sentence_237

For example, Raghuram G. Rajan, former governor of the Reserve Bank of India and former chief economist at the International Monetary Fund has blamed the ever-widening gulf between the rich and the poor especially in the US to be one of the main fault lines which caused the financial institutions to pump money into subprime mortgages – on political behest, as a palliative and not a remedy, for poverty – causing the financial crisis of 2007–2009. Poverty_sentence_238

In Rajan's view the main cause of increasing gap between the high income and low income earners, was lack of equal access to higher education for the latter. Poverty_sentence_239

Oxfam argues that the "concentration of resources in the hands of the top 1% depresses economic activity and makes life harder for everyone else – particularly those at the bottom of the economic ladder" and that the gains of the world's billionaires in 2017, which amounted to $762 billion, was enough to end extreme global poverty seven times over. Poverty_sentence_240

A data based scientific empirical research, which studied the impact of dynastic politics on the level of poverty of the provinces, found a positive correlation between dynastic politics and poverty i.e. the higher proportion of dynastic politicians in power in a province leads to higher poverty rate. Poverty_sentence_241

There is significant evidence that these political dynasties use their political dominance over their respective regions to enrich themselves, using methods such as graft or outright bribery of legislators. Poverty_sentence_242

Poverty reduction Poverty_section_21

Main article: Poverty reduction Poverty_sentence_243

See also: Aid and Development aid Poverty_sentence_244

The Sustainable Development Goal 1 of the United Nations is to "to end poverty in all its forms, everywhere" by 2030. Poverty_sentence_245

Various poverty reduction strategies are broadly categorized based on whether they make more of the basic human needs available or whether they increase the disposable income needed to purchase those needs. Poverty_sentence_246

Some strategies such as building roads can both bring access to various basic needs, such as fertilizer or healthcare from urban areas, as well as increase incomes, by bringing better access to urban markets. Poverty_sentence_247

Increasing the supply of basic needs Poverty_section_22

Food and other goods Poverty_section_23

Agricultural technologies such as nitrogen fertilizers, pesticides, new seed varieties and new irrigation methods have dramatically reduced food shortages in modern times by boosting yields past previous constraints. Poverty_sentence_248

Before the Industrial Revolution, poverty had been mostly accepted as inevitable as economies produced little, making wealth scarce. Poverty_sentence_249

Geoffrey Parker wrote that "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." Poverty_sentence_250

The initial industrial revolution led to high economic growth and eliminated mass absolute poverty in what is now considered the developed world. Poverty_sentence_251

Mass production of goods in places such as rapidly industrializing China has made what were once considered luxuries, such as vehicles and computers, inexpensive and thus accessible to many who were otherwise too poor to afford them. Poverty_sentence_252

Even with new products, such as better seeds, or greater volumes of them, such as industrial production, the poor still require access to these products. Poverty_sentence_253

Improving road and transportation infrastructure helps solve this major bottleneck. Poverty_sentence_254

In Africa, it costs more to move fertilizer from an African seaport 60 miles inland than to ship it from the United States to Africa because of sparse, low-quality roads, leading to fertilizer costs two to six times the world average. Poverty_sentence_255

Microfranchising models such as door to door distributors who earn commission-based income or Coca-Cola's successful distribution system are used to disseminate basic needs to remote areas for below market prices. Poverty_sentence_256

Health care and education Poverty_section_24

See also: Health care system and Primary education Poverty_sentence_257

Nations do not necessarily need wealth to gain health. Poverty_sentence_258

For example, Sri Lanka had a maternal mortality rate of 2% in the 1930s, higher than any nation today. Poverty_sentence_259

It reduced it to 0.5–0.6% in the 1950s and to 0.6% today while spending less each year on maternal health because it learned what worked and what did not. Poverty_sentence_260

Knowledge on the cost effectiveness of healthcare interventions can be elusive and educational measures have been made to disseminate what works, such as the Copenhagen Consensus. Poverty_sentence_261

Cheap water filters and promoting hand washing are some of the most cost effective health interventions and can cut deaths from diarrhea and pneumonia. Poverty_sentence_262

Strategies to provide education cost effectively include deworming children, which costs about 50 cents per child per year and reduces non-attendance from anemia, illness and malnutrition, while being only a twenty-fifth as expensive as increasing school attendance by constructing schools. Poverty_sentence_263

Schoolgirl absenteeism could be cut in half by simply providing free sanitary towels. Poverty_sentence_264

Fortification with micronutrients was ranked the most cost effective aid strategy by the Copenhagen Consensus. Poverty_sentence_265

For example, iodised salt costs 2 to 3 cents per person a year while even moderate iodine deficiency in pregnancy shaves off 10 to 15 IQ points. Poverty_sentence_266

Paying for school meals is argued to be an efficient strategy in increasing school enrollment, reducing absenteeism and increasing student attention. Poverty_sentence_267

Desirable actions such as enrolling children in school or receiving vaccinations can be encouraged by a form of aid known as conditional cash transfers. Poverty_sentence_268

In Mexico, for example, dropout rates of 16- to 19-year-olds in rural area dropped by 20% and children gained half an inch in height. Poverty_sentence_269

Initial fears that the program would encourage families to stay at home rather than work to collect benefits have proven to be unfounded. Poverty_sentence_270

Instead, there is less excuse for neglectful behavior as, for example, children stopped begging on the streets instead of going to school because it could result in suspension from the program. Poverty_sentence_271

Removing constraints on government services Poverty_section_25

See also: Political corruption, Tax havens, Transfer mispricing, Developing countries' debt, and Conditionality Poverty_sentence_272

Government revenue can be diverted away from basic services by corruption. Poverty_sentence_273

Funds from aid and natural resources are often sent by government individuals for money laundering to overseas banks which insist on bank secrecy, instead of spending on the poor. Poverty_sentence_274

A Global Witness report asked for more action from Western banks as they have proved capable of stanching the flow of funds linked to terrorism. Poverty_sentence_275

Illicit capital flight, such as corporate tax avoidance, from the developing world is estimated at ten times the size of aid it receives and twice the debt service it pays, with one estimate that most of Africa would be developed if the taxes owed were paid. Poverty_sentence_276

About 60 per cent of illicit capital flight from Africa is from transfer mispricing, where a subsidiary in a developing nation sells to another subsidiary or shell company in a tax haven at an artificially low price to pay less tax. Poverty_sentence_277

An African Union report estimates that about 30% of sub-Saharan Africa's GDP has been moved to tax havens. Poverty_sentence_278

Solutions include corporate "country-by-country reporting" where corporations disclose activities in each country and thereby prohibit the use of tax havens where no effective economic activity occurs. Poverty_sentence_279

Developing countries' debt service to banks and governments from richer countries can constrain government spending on the poor. Poverty_sentence_280

For example, Zambia spent 40% of its total budget to repay foreign debt, and only 7% for basic state services in 1997. Poverty_sentence_281

One of the proposed ways to help poor countries has been debt relief. Poverty_sentence_282

Zambia began offering services, such as free health care even while overwhelming the health care infrastructure, because of savings that resulted from a 2005 round of debt relief. Poverty_sentence_283

The World Bank and the International Monetary Fund, as primary holders of developing countries' debt, attach structural adjustment conditionalities in return for loans which are generally geared toward loan repayment with austerity measures such as the elimination of state subsidies and the privatization of state services. Poverty_sentence_284

For example, the World Bank presses poor nations to eliminate subsidies for fertilizer even while many farmers cannot afford them at market prices. Poverty_sentence_285

In Malawi, almost five million of its 13 million people used to need emergency food aid but after the government changed policy and subsidies for fertilizer and seed were introduced, farmers produced record-breaking corn harvests in 2006 and 2007 as Malawi became a major food exporter. Poverty_sentence_286

A major proportion of aid from donor nations is tied, mandating that a receiving nation spend on products and expertise originating only from the donor country. Poverty_sentence_287

US law requires food aid be spent on buying food at home, instead of where the hungry live, and, as a result, half of what is spent is used on transport. Poverty_sentence_288

Distressed securities funds, also known as vulture funds, buy up the debt of poor nations cheaply and then sue countries for the full value of the debt plus interest which can be ten or 100 times what they paid. Poverty_sentence_289

They may pursue any companies which do business with their target country to force them to pay to the fund instead. Poverty_sentence_290

Considerable resources are diverted on costly court cases. Poverty_sentence_291

For example, a court in Jersey ordered the Democratic Republic of the Congo to pay an American speculator $100 million in 2010. Poverty_sentence_292

Now, the UK, Isle of Man and Jersey have banned such payments. Poverty_sentence_293

Reversing brain drain Poverty_section_26

Main articles: Reverse brain drain and Human capital flight Poverty_sentence_294

The loss of basic needs providers emigrating from impoverished countries has a damaging effect. Poverty_sentence_295

As of 2004, there were more Ethiopia-trained doctors living in Chicago than in Ethiopia. Poverty_sentence_296

Proposals to mitigate the problem include compulsory government service for graduates of public medical and nursing schools and promoting medical tourism so that health care personnel have more incentive to practice in their home countries. Poverty_sentence_297

It is very easy for Ugandan doctors to emigrate to other countries. Poverty_sentence_298

It is seen that only 69 percent of the health care jobs were filled in Uganda. Poverty_sentence_299

Other Ugandan doctors were seeking jobs in other countries leaving inadequate or less skilled doctors to stay in Uganda. Poverty_sentence_300

Controlling overpopulation Poverty_section_27

Main article: Human overpopulation Poverty_sentence_301

Some argue that overpopulation and lack of access to birth control can lead to population increase to exceed food production and other resources. Poverty_sentence_302

Better education for both men and women, and more control of their lives, reduces population growth due to family planning. Poverty_sentence_303

According to United Nations Population Fund (UNFPA), by giving better education to men and women, they can earn money for their lives and can help them to strengthen economic security. Poverty_sentence_304

Increasing personal income Poverty_section_28

The following are strategies used or proposed to increase personal incomes among the poor. Poverty_sentence_305

Raising farm incomes is described as the core of the antipoverty effort as three-quarters of the poor today are farmers. Poverty_sentence_306

Estimates show that growth in the agricultural productivity of small farmers is, on average, at least twice as effective in benefiting the poorest half of a country's population as growth generated in nonagricultural sectors. Poverty_sentence_307

Income grants Poverty_section_29

Main articles: Guaranteed minimum income, Social security, and Welfare Poverty_sentence_308

A guaranteed minimum income ensures that every citizen will be able to purchase a desired level of basic needs. Poverty_sentence_309

A basic income (or negative income tax) is a system of social security, that periodically provides each citizen, rich or poor, with a sum of money that is sufficient to live on. Poverty_sentence_310

Studies of large cash-transfer programs in Ethiopia, Kenya, and Malawi show that the programs can be effective in increasing consumption, schooling, and nutrition, whether they are tied to such conditions or not. Poverty_sentence_311

Proponents argue that a basic income is more economically efficient than a minimum wage and unemployment benefits, as the minimum wage effectively imposes a high marginal tax on employers, causing losses in efficiency. Poverty_sentence_312

In 1968, Paul Samuelson, John Kenneth Galbraith and another 1,200 economists signed a document calling for the US Congress to introduce a system of income guarantees. Poverty_sentence_313

Winners of the Nobel Prize in Economics, with often diverse political convictions, who support a basic income include Herbert A. Simon, Friedrich Hayek, Robert Solow, Milton Friedman, Jan Tinbergen, James Tobin and James Meade. Poverty_sentence_314

Income grants are argued to be vastly more efficient in extending basic needs to the poor than subsidizing supplies whose effectiveness in poverty alleviation is diluted by the non-poor who enjoy the same subsidized prices. Poverty_sentence_315

With cars and other appliances, the wealthiest 20% of Egypt uses about 93% of the country's fuel subsidies. Poverty_sentence_316

In some countries, fuel subsidies are a larger part of the budget than health and education. Poverty_sentence_317

A 2008 study concluded that the money spent on in-kind transfers in India in a year could lift all India's poor out of poverty for that year if transferred directly. Poverty_sentence_318

The primary obstacle argued against direct cash transfers is the impractically for poor countries of such large and direct transfers. Poverty_sentence_319

In practice, payments determined by complex iris scanning are used by war-torn Democratic Republic of Congo and Afghanistan, while India is phasing out its fuel subsidies in favor of direct transfers. Poverty_sentence_320

Additionally, in aid models, the famine relief model increasingly used by aid groups calls for giving cash or cash vouchers to the hungry to pay local farmers instead of buying food from donor countries, often required by law, as it wastes money on transport costs. Poverty_sentence_321

Economic freedoms Poverty_section_30

See also: Economic freedom and Red tape Poverty_sentence_322

Corruption often leads to many civil services being treated by governments as employment agencies to loyal supporters and so it could mean going through 20 procedures, paying $2,696 in fees, and waiting 82 business days to start a business in Bolivia, while in Canada it takes two days, two registration procedures, and $280 to do the same. Poverty_sentence_323

Such costly barriers favor big firms at the expense of small enterprises, where most jobs are created. Poverty_sentence_324

Often, businesses have to bribe government officials even for routine activities, which is, in effect, a tax on business. Poverty_sentence_325

Noted reductions in poverty in recent decades has occurred in China and India mostly as a result of the abandonment of collective farming in China and the ending of the central planning model known as the License Raj in India. Poverty_sentence_326

The World Bank concludes that governments and feudal elites extending to the poor the right to the land that they live and use are 'the key to reducing poverty' citing that land rights greatly increase poor people's wealth, in some cases doubling it. Poverty_sentence_327

Although approaches varied, the World Bank said the key issues were security of tenure and ensuring land transactions costs were low. Poverty_sentence_328

Greater access to markets brings more income to the poor. Poverty_sentence_329

Road infrastructure has a direct impact on poverty. Poverty_sentence_330

Additionally, migration from poorer countries resulted in $328 billion sent from richer to poorer countries in 2010, more than double the $120 billion in official aid flows from OECD members. Poverty_sentence_331

In 2011, India got $52 billion from its diaspora, more than it took in foreign direct investment. Poverty_sentence_332

Financial services Poverty_section_31

See also: Microfinance and Microcredit Poverty_sentence_333

Microloans, made famous by the Grameen Bank, is where small amounts of money are loaned to farmers or villages, mostly women, who can then obtain physical capital to increase their economic rewards. Poverty_sentence_334

However, microlending has been criticized for making hyperprofits off the poor even from its founder, Muhammad Yunus, and in India, Arundhati Roy asserts that some 250,000 debt-ridden farmers have been driven to suicide. Poverty_sentence_335

Those in poverty place overwhelming importance on having a safe place to save money, much more so than receiving loans. Poverty_sentence_336

Additionally, a large part of microfinance loans are spent not on investments but on products that would usually be paid by a checking or savings account. Poverty_sentence_337

Microsavings are designs to make savings products available for the poor, who make small deposits. Poverty_sentence_338

Mobile banking utilizes the wide availability of mobile phones to address the problem of the heavy regulation and costly maintenance of saving accounts. Poverty_sentence_339

This usually involves 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. Poverty_sentence_340

Cash transfers can be done between phones and issued back in cash with a small commission, making remittances safer. Poverty_sentence_341

Environmental issues Poverty_section_32

Main article: Sustainable development Poverty_sentence_342

See also: Effects of global warming Poverty_sentence_343

A report published in 2013 by the World Bank, with support from the Climate & Development Knowledge Network, found that climate change was likely to hinder future attempts to reduce poverty. Poverty_sentence_344

The report presented the likely impacts of present day, 2 °C and 4 °C warming on agricultural production, water resources, coastal ecosystems and cities across Sub-Saharan Africa, South Asia and South East Asia. Poverty_sentence_345

The impacts of a temperature rise of 2 °C included: regular food shortages in Sub-Saharan Africa; shifting rain patterns in South Asia leaving some parts under water and others without enough water for power generation, irrigation or drinking; degradation and loss of reefs in South East Asia, resulting in reduced fish stocks; and coastal communities and cities more vulnerable to increasingly violent storms. Poverty_sentence_346

In 2016, a UN report claimed that by 2030, an additional 122 million more people could be driven to extreme poverty because of climate change. Poverty_sentence_347

Global warming can also lead to a deficiency in water availability; with higher temperatures and CO2 levels, plants consume more water leaving less for people. Poverty_sentence_348

By consequence, water in rivers and streams will decline in the mid-altitude regions like Central Asia, Europe and North America. Poverty_sentence_349

And if CO2 levels continue to rise, or even remain the same, droughts will be happening much faster and will be lasting longer. Poverty_sentence_350

According to a study led by Professor of Water Management, Arjen Hoekstra, and made in 2016, four billion people are affected by water scarcity at least one month per year. Poverty_sentence_351

Many think that poverty is the cause of environmental degradation, while there are others who claim that rather the poor are the worst sufferers of environmental degradation caused by reckless exploitation of natural resources by the rich. Poverty_sentence_352

A Delhi-based environment organisation, the Centre for Science and Environment, points out that if the poor world were to develop and consume in the same manner as the West to achieve the same living standards, "we would need two additional planet Earths to produce resources and absorb wastes. Poverty_sentence_353

", reports Anup Shah (2003). Poverty_sentence_354

in his article Poverty and the Environment on Global Issues. Poverty_sentence_355

Voluntary poverty Poverty_section_33

See also: Simple living and Evangelical counsels Poverty_sentence_356

Among some individuals, poverty is considered a necessary or desirable condition, which must be embraced to reach certain spiritual, moral, or intellectual states. Poverty_sentence_357

Poverty is often understood to be an essential element of renunciation in religions such as Buddhism, Hinduism (only for monks, not for lay persons) and Jainism, whilst in Roman Catholicism it is one of the evangelical counsels. Poverty_sentence_358

The main aim of giving up things of the materialistic world is to withdraw oneself from sensual pleasures (as they are considered illusionary and only temporary in some religions – such as the concept of dunya in Islam). Poverty_sentence_359

This self-invited poverty (or giving up pleasures) is different from the one caused by economic imbalance. Poverty_sentence_360

Some Christian communities, such as the Simple Way, the Bruderhof, and the Amish value voluntary poverty; some even take a vow of poverty, similar to that of the traditional Catholic orders, in order to live a more complete life of discipleship. Poverty_sentence_361

Benedict XVI distinguished "poverty chosen" (the poverty of spirit proposed by Jesus), and "poverty to be fought" (unjust and imposed poverty). Poverty_sentence_362

He considered that the moderation implied in the former favors solidarity, and is a necessary condition so as to fight effectively to eradicate the abuse of the latter. Poverty_sentence_363

As it was indicated above the reduction of poverty results from religion, but also can result from solidarity. Poverty_sentence_364

Charts and tables Poverty_section_34

See also Poverty_section_35

Credits to the contents of this page go to the authors of the corresponding Wikipedia page: en.wikipedia.org/wiki/Poverty.