poverty in developing countries essay

The evolution of global poverty, 1990-2030

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Homi kharas and homi kharas senior fellow - global economy and development , center for sustainable development meagan dooley meagan dooley former senior research analyst - global economy and development , center for sustainable development.

February 2, 2022

The last 30 years have seen dramatic reductions in global poverty, spurred by strong catch-up growth in developing countries, especially in Asia. By 2015, some 729 million people, 10% of the population, lived under the $1.90 a day poverty line, greatly exceeding the Millennium Development Goal target of halving poverty. From 2012 to 2013, at the peak of global poverty reduction, the global poverty headcount fell by 130 million poor people.

This success story was dominated by China and India. In December 2020, China declared it had eliminated extreme poverty completely . India represents a more recent success story. Strong economic growth drove poverty rates down to 77 million, or 6% of the population, in 2019. India will, however, experience a short-term spike in poverty due to COVID-19, before resuming a strong downward path. By 2030, India is likely to essentially eliminate extreme poverty, with less than 5 million people living below the $1.90 line. By 2030, the only Asian countries that are unlikely to meet the goal of ending extreme poverty are Afghanistan, Papua New Guinea, and North Korea.

In other parts of the world, poverty trends are disappointing. In Latin America, poverty fell rapidly at the beginning of this century but has been rising since 2015, with no substantial reductions forecast by the end of this decade. In Africa, poverty has been rising steadily, thanks to rapid population growth and stagnant economic growth. Exacerbated by a pandemic-induced rise in poverty of 11%, African poverty shows little signs of decline through 2030.

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.

	Poverty line of US$ 1.90		Poverty line of US$ 3.20
	Head count index	Number of the poor	Head count index	Number of the poor
1990	0.55	280.95	0.76	385.50
1995	0.60	352.76	0.79	463.37
2000	0.58	388.27	0.79	526.33
2005	0.52	393.57	0.76	574.25
2010	0.47	412.49	0.72	626.12
2015	0.42	417.60	0.68	679.09
2018	0.40	435.56	0.67	718.76

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.

	Pov. Gap ($1.90)	Sq. Pov. Gap ($1.90)	Pov. Gap ($3.20)	Sq. Pov. Gap ($3.20)
1990	0.25	0.15	0.42	0.28
1995	0.29	0.17	0.46	0.31
2000	0.27	0.16	0.45	0.30
2005	0.22	0.13	0.40	0.25
2010	0.19	0.10	0.36	0.22
2015	0.16	0.08	0.32	0.19
2018	0.15	0.08	0.31	0.18

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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Causes and Effects of Poverty

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Underlying causes of poverty, effects on individuals and communities, breaking the cycle.

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General Assembly
Second Committee

Extreme Poverty in Developing Countries Inextricably Linked to Global Food Insecurity Crisis, Senior Officials Tell Second Committee

Delegates warn agriculture sector underdeveloped, underfunded, beset by crises.

An increase in extreme poverty in developing countries — for the first time in two decades — is inextricably linked to the global food insecurity crisis , senior United Nations officials warned the Second Committee (Economic and Financial) today, calling for urgent strategies to turn back the tide.

Benjamin Davis, Director of the Inclusive Rural Transformation and Gender Equality Division of the Food and Agriculture Organization (FAO), presented reports of the Secretary-General titled “Eradicating rural poverty to implement the 2030 Agenda for Sustainable Development” (document A/78/238 ) and “Agriculture development, food security and nutrition” (documents A/78/218 , A/78/233 , A/78/74 ). He noted that more than 80 per cent of the world’s extreme poor live in rural areas — at rates nearly three times higher than among urban residents. He called for the implementation of inclusive, environmentally sustainable strategies that put the eradication of rural poverty at the centre.

Similarly, John Wilmoth, Officer-in-Charge of the Division for Inclusive Social Development of the Department of Economic and Social Affairs, introduced the report of the Secretary-General titled “Implementation of the third United Nations Decade for the Eradication of Poverty (2018-2027)” (document A/78/239 ), spotlighting that about 670 million people were estimated to be living in extreme poverty in 2022, an increase of 70 million people compared with pre-pandemic projections. He stressed that the poorest countries spent billions on debt payments, preventing them from investing in sustainable development.

In the ensuing debate, speakers echoed the urgency of addressing the dangers of the regressive poverty trend. Congo’s representative lamented that, after recording substantial progress in reducing extreme poverty, the world now finds itself in a state of indescribable poverty. He called for urgent action to reverse the negative trends, highlighting the need to connect rural and urban areas with infrastructure, public goods and capacity-building, as “eradicating poverty in all its forms is essential”.

The representative of Nepal, speaking on behalf of the Group of Least Developed Countries, noted that those States are host to over half of the world’s extreme poor, facing “unprecedented levels of hunger, food insecurity and malnutrition”. Agriculture, being the most important sector of the economy for these countries, has been hard hit by conflicts, leading to high costs of agricultural inputs and fertilizer shortages, a result of which “about two thirds of people facing extreme poverty in the world are workers and families in the agriculture sector”.

Viet Nam’s delegate, speaking on behalf of the Association of Southeast Asian Nations (ASEAN), recalled that agriculture provided employment for as much as 32 per cent of the region’s population and 22 per cent of gross domestic production. Citing its significant contribution towards poverty eradication and the reduction of hunger, he added that sustainable agriculture and food systems are important to ensure the availability, affordability and sustainability of food products for all. The reduction of poverty and the promotion of rural development are therefore key priorities.

The representative of Nicaragua, stressing the key priority of eradicating extreme poverty, called for a new global order and a multipolar world characterized by transparent, equitable agreements and solidarity. Many developing countries struggle with indebtedness, requiring the financial system to put forward monetary policies that are fair. She also criticized illegal unilateral coercive measures imposed by imperial and neocolonial countries on more than 30 countries, affecting more than 2 billion people.

Taking up the theme of food security as a major solution to extreme poverty, speakers pointed to its promise and potential, while lamenting that the agriculture sector is underdeveloped, underfunded and beset by crises. The representative of Samoa, speaking on behalf of the Alliance of Small Island States, said the group considers agricultural development, food security and nutrition critical. Reversal of progress in this regard is therefore a source of concern for those States, requiring drastic action to invert the disturbing trend.

Niger’s representative said that the agricultural sector employs nearly 80 per cent of its working population and represents on average 40 per cent of gross domestic product (GDP). However, despite the significant assets that Niger has — 19 million hectares of arable land — and the enormous efforts that have been made, “we face agricultural challenges” including lack of access to technology for producers and an underdeveloped agricultural transport sector.

Striking an optimistic note, the representative of the United Republic of Tanzania said his country aims to be a hub and basket of the African food supply. He cited a clear land-ownership policy, a 29 per cent increase in the budget for agriculture between 2022 and 2024, and subsidies in fertilizers and seeds. The country is piloting a youth programme to make agriculture more attractive, aiming to generate more than 10,000 enterprises in eight years.

A report was also presented by the Director of the Partnerships and United Nations Collaboration Division at FAO.

The Committee will meet again at 3 p.m. on Thursday, 12 October, to conclude its joint discussion of eradication of poverty and agriculture development, food security and nutrition, before taking up operational activities.

Introduction of Reports

JOHN WILMOTH, Officer-in-Charge of the Division for Inclusive Social Development of the Department of Economic and Social Affairs , introducing the report of the Secretary-General titled “Implementation of the Third United Nations Decade for the Eradication of Poverty (2018-2027)” (document A/78/239 ), said that the document provides a review of the progress made and the gaps and challenges in the context of ongoing global and mutually reinforcing crises. “It states that the disruptions caused by the pandemic in 2020 led to an increase in extreme poverty for the first time in more than two decades,” he said, spotlighting a compounding cost-of-living crisis and related inflationary shocks triggered by the war in Ukraine. “About 670 million people were estimated to be living in extreme poverty in 2022, an increase of 70 million people compared with pre-pandemic projections,” he stressed, adding that 1.1 billion out of 6.1 billion people in 110 countries surveyed are living in multidimensional poverty in 2023. “Projections show that almost 600 million people will still suffer from hunger in 2030,” he said, citing the report, which notes that the poorest countries spent billions on debt payments, preventing them from investing in sustainable development. The report makes recommendations on how to reach a rapid and sustainable recovery and end poverty for all, he concluded.

BENJAMIN DAVIS, Director of the Inclusive Rural Transformation and Gender Equality Division of the Food and Agriculture Organization (FAO), presented reports of the Secretary-General titled “Eradicating rural poverty to implement the 2030 Agenda for Sustainable Development” (document A/78/238 ) and “Agriculture development, food security and nutrition” (documents A/78/218 , A/78/233 , A/78/74 ).

According to the report on eradicating rural poverty, more than 80 per cent of the world’s extreme poor live in rural areas. Poverty rates, in fact, are nearly three times higher among rural than among urban residents. The report notes that progress is being thwarted by the slow and uneven recovery from COVID‑19 and other crises, such as conflict, fluctuating commodity prices and extreme weather. While people living in rural poverty contribute the least to climate change, they are the most vulnerable to it, he said, and called for the implementation of inclusive, environmentally sustainable rural development strategies that put the eradication of rural poverty at the centre. Among other things, the report calls for increasing investments in social services and emphasizes the need to expand access to financial services.

Turning to the report on agriculture development, food security and nutrition, he said that some 29.6 per cent of the global population — 2.4 billion people — were moderately or severely food-insecure in 2022, 391 million more than in 2019, with more women and people in rural areas denied access to safe, nutritious and sufficient food year-round. A long-term, holistic approach is needed to address structural problems such as political and economic shocks, unsustainable management of natural resources and socioeconomic exclusion as a result of conflict and protracted crises, he said, adding that it’s important to strengthen the interface between science, policymaking and society to improve public-private transparency, information-sharing and cross-sectoral collaboration as well as bring together modern science and technology and Indigenous, local and community knowledge to find solutions that minimize trade-offs and balance the economic, environmental and social dimensions of agrifood systems transformation.

MARCELA VILLARREAL, Director of the Partnerships and UN Collaboration Division at the Food and Agriculture Organization , introduced the Secretary-General’s report on the implementation of the Third United Nations Decade of Family Farming (2019–2028) (document A/78/233 ), noting that since the launch of the Decade in 2019, “results have been incredibly strong”, with more than 1,853 family farmers’ organizations and federations, and more than 80 intersectoral coordination mechanisms, such as national committees for family farming, have been involved in dialogue processes and platforms. Further, 12 States have approved national action plans for family farming, and 42 countries have kick-started processes to develop their own. Overall, a total of 262 policies, laws and regulations have been developed and approved to support family farming and the transformation to more efficient, inclusive, resilient and sustainable agrifood systems.

She reported that over the past few years, family farmers have faced increasing challenges from interconnected, mutually reinforcing drivers; however, they have developed innovative, tailored and locally adapted solutions, increased their capacities, strengthened their resilience and provided effective solutions to deal with the emerging needs of agrifood systems. As the midterm of the Decade approaches in 2024, a new phase will begin, moving to consolidate, strengthen and scale up the results already achieved and use them to fully leverage the innovative potential of family farmers to effectively meet the objectives of the 2030 Agenda for Sustainable Development. “A huge potential is there,” she stressed; “however, we still need broader involvement. We need greater recognition of farmers’ organizations, NGOs [non-governmental organizations], civil society organizations, academia and others as key participants in national policy dialogues,” along with appropriate financing to ensure the Decade can continue to be fully implemented.

GUEVARA RODRÍGUEZ ( Cuba ), speaking on behalf of the Group of 77 and China , said that eradicating extreme poverty is the greatest and gravest global challenge. It must, therefore, be at the forefront of all international efforts. The right to sustainable development must be realized, and the path there must ensure that all Member States can meet the environmental and developmental needs of future generations. Some 670 million people lived in extreme poverty in 2021, an increase of 70 million people compared to the pre-pandemic figures. “Poverty imposes massive human suffering,” he added. Poverty eradication is the first of the UN Sustainable Development Goals (SDGs). There is a reason for that. Extreme poverty is a scourge that affects all sectors of society, impacting everyone’s life.

Conflicts are on the rise, which has thrown a wrench in the efforts to meet the 2030 Agenda, he continued. The Group warned that the exploitation of natural resources must stop. It is critical that all Member States respect international law and enforce and respect the Charter of the United Nations. New technologies must be mobilized and made available to developing countries so that they are not “left behind”. He further reiterated the Group’s urgent call to lift unilateral coercive measures, noting their detrimental impact on the world’s most vulnerable populations. Such measures hurt many nations’ abilities to meet the SDGs and to ensure that “no one is left behind”, he added.

LOK BAHADUR THAPA ( Nepal ), speaking on behalf of the Group of Least Developed Countries , pointed out that the eradication of poverty and hunger are the foremost and overarching objectives of the 2030 Agenda and the Sustainable Development Goals, which are fundamental for least developed countries — host to over half of the world’s extreme poor — as they face “unprecedented levels of hunger, food insecurity, and malnutrition exacerbated by their pre-existing structural constraints and vulnerabilities”. She said that agriculture, being the most important sector of the economy for these countries, has been hard hit by conflicts and geopolitical tensions, leading to high costs of agricultural inputs and fertilizer shortages, a result of which “about two-thirds of people facing extreme poverty in the world are workers and families in the agriculture sector”. Climate change has become an automated and imported crisis for the least developed countries, she said, adversely impacting agricultural productivity and food insecurity.

These issues, together with multidimensional poverty, which has widened the existing global inequality gap, contribute to the growing global inequality in low-income countries. She said the social protection system of the least developed countries is the weakest in the world, cautioning that “the extreme conditions faced by the world’s poorest cannot remain ignored and unacted”. There is therefore a need for collective commitment in order to “bring hope to the lives at the bottom”. She further urged development partners and the United Nations system to materialize the commitment to providing enhanced funding for developing innovative solutions to specific problems in least developed countries. Modernization and industrialization of agriculture in these countries is urgently needed, along with increased investment in early warning systems, identification of areas likely to escalate food insecurity, and well-targeted social protection measures in response to climate change. Noting that these countries require climate as well as financial justice, she said “we need to act together and act now”.

BRIAN CHRISTOPHER MANLEY WALLACE ( Jamaica ), speaking on behalf of the Caribbean Community (CARICOM) and associating himself with the Group of 77 and China and the Alliance of Small Island Developing States, said “there was no global progress on reducing food insecurity” in 2022, adding that in the English-speaking Caribbean it had risen to 46 per cent. Furthermore, the situation in Haiti is a cause for deep concern, with over half of its population chronically food insecure. “Many parts of the Latin America and Caribbean region will become drier,” he warned, citing climate change forecasts and calling for major global investments to mitigate the challenges faced by the agricultural sector in the developing world.

“CARICOM’s common agriculture policy incorporates initiatives to address rural modernization and youth involvement, including climate-smart agriculture,” he said, stressing the importance of improving the quality of life in rural communities. Reminding that CARICOM countries import more than 75 per cent of their food, he informed about the bloc’s plan to reduce regional imports by 25 per cent by 2025. “We are also developing a cross-border agrifood investment strategy to bolster production corridors,” he said, calling for the prevention and ending of conflicts, as well as for ensuring access to finance, including climate finance, and to relevant technologies. “CARICOM reiterates our call for the reform of the international financial architecture,” he concluded.

DANG HOANG GIANG ( Viet Nam ), speaking on behalf of the Association of Southeast Asian Nations (ASEAN), aligned himself with the Group of 77 and China and said that agriculture accounts for a substantial share of Southeast Asia’s economy, providing employment for as many as 32 per cent of the population and 22 per cent of gross domestic production. Its contribution towards poverty eradication and reduction of hunger and malnutrition is significant, he said, adding that sustainable agriculture and food systems are important to ensure the availability, accessibility, utilization, affordability and sustainability of food products for all. He expressed commitment to the redoubling of efforts towards regional food security by strengthening agriculture productivity and through the promotion of sustainable agricultural practices. He also recognized the importance of an early warning system and rapid response to ensure food availability in times of crisis.

He said the reduction of poverty and the promotion of rural development are key priorities, and he highlighted important progress and commitments such as strategic initiatives that leverage regional cooperation to accelerate inclusive development and reduce poverty. He also pointed to the leveraging of new growth drivers to unleash the region’s growth potential. They included, he said, the promotion of global supply chains, trade and investment, the acceleration of the digital transformation, enhancing efforts to achieve the Green Economy, recognizing the great value and potential of the Blue Economy as a new engine of future economic growth and strengthening people-to-people exchange to break barriers.

ASBINA MARIN SEVILLA ( Venezuela ), speaking for the Group of Friends in Defense of the Charter of the United Nations , said reducing poverty in all its forms and eradicating hunger has long been a focus of the international community. “We must be humble enough to realize that, for one reason or another”, the world is off-track in achieving those goals. She reported that an estimated 670 million people, or 8.4 per cent of the global population, could continue to live in extreme poverty, while up to 783 million, or 9.2 per cent of the population, are currently experiencing hunger. This represents a pandemic which is affecting all efforts towards achieving the 2030 Agenda.

She further stressed that unilateral coercive measures constitute a flagrant violation of the Charter and international law, given their wide scope of effect and extraterritorial implications — deliberately exacerbating the multilevel crises affecting the international community and prolonging human suffering. “They must be brought to an end,” she affirmed, as the illegal application of such measures, targeting civilian populations, impedes the full achievement of economic and social development. Emphasizing that these measures make it nearly impossible to purchase equipment, software and spare parts for the agricultural sector, she recalled the joint statement by FAO, the World Food Programme (WFP) and the World Bank in 2022, affirming that such measures contribute to the rise of food prices. The international community has a moral responsibility to current and future generations “to correct the path and do it now”, she stated.

GLADYS MOKHAWA ( Botswana ), speaking on behalf of the Group of Landlocked Developing Countries , said that the challenges facing the world are vast. Landlocked developing countries are among the most and hardest hit by myriad crises, including the COVID‑19 pandemic, supply shocks, the international crises in oil, gas and food, and soaring inflation. “Retail prices in our countries remain higher than pre-pandemic averages,” she added. Landlocked developing countries are facing increasingly complex trade-offs between fighting inflation, preserving financial stability and supporting inclusive economic recovery. Many citizens depend on agriculture for their livelihoods. The devastating impact of climate change on this sector poses a significant challenge. Food insecurity has recently spiked, as have global food costs.

There is a need to support landlocked developing countries to achieve efficient transit including by helping them build the necessary infrastructure, she went on to say. Many landlocked developing countries are dependent on primary commodities as sources of economic strength. It is therefore critical to support these countries in economic structural transformation, she added. Addressing the impact of climate change is also critical for this group of countries. However, landlocked developing countries are often left out of conversations on climate change. International support is necessary to help those vulnerable countries charter a path for their sustainable development.

ISAIA LAUTASI ( Samoa ), speaking on behalf of the Alliance of Small Island States and aligning himself with the Group of 77 and China, said because the global development blueprint highlights the urgency of eradicating poverty and hunger, the Group considers agricultural development, food security and nutrition critical. Reversal of progress in this regard is therefore a source of concern for small island developing States. Pointing out the absence of global progress in reducing food insecurity in 2022 as revealed in the State of Food Security and Nutrition in the World 2023, he called for “drastic action to reverse this disturbing trend,” adding that, as these States depend largely on food imports, they have addressed issues on food security in relation to fisheries and agriculture. However, this approach poses difficulties of healthy diet maintenance, equitable distribution of costs and revenues, and sustainability, as well as the central consideration of sufficient food for everyone. Persistent crises therefore underscore the need to holistically address these challenges.

He said the Group agrees with several of the recommendations, particularly the need for Governments to recommit to “seven years of accelerated, sustained and transformative action, both nationally and internationally, to deliver on the promise of the Sustainable Development Goals”. While these are “sound proposals,” he said the impediments to their implementation must be addressed, chief of which is the finance problem. The Group therefore continues its calls to development partners to deliver on their commitments in line with the Addis Ababa Action Agenda for resources and investments needed for developing countries to achieve the SDGs. It also calls for a reform of the international financial architecture and underscores “the negative impact climate change is having on our ambition,” while it continues leading calls for the delivery of climate finance, including the annual $100 billion commitment, and the Early Warnings for All initiative.

Mr. AL-KHAYAREEN ( Qatar ), aligning himself with the Group of 77 and China, said that his State allocated $60 million to support the Doha Programme of Action. “My country played an immense role in meeting the priorities of least developed countries,” he underscored, adding that Qatar attaches great importance to agriculture development, food security and nutrition. “Our development cooperation with the Bill [and Melinda] Gates Foundation has pledged $200 billion to support comprehensive and climate-smart agriculture development in Sub-Saharan Africa,” he stressed, also noting the allocation by his country of $90 million to WFP for meeting food needs in Yemen and $10 million for acute food security needs.

BARAHONA FIGUEROA ( El Salvador ) aligned herself with the Group of 77 and China and said that the lack of advancement of the SDGs has a significant impact on developing countries, affecting the poorest and most vulnerable. She pointed to policies that are people-focused with social investment and prioritization of early childhood initiatives. She called for rethinking means of measurements so that no one is left behind, adding that focusing on the economic aspect to measure progress will only lead to greater gaps. She said the middle-income trap is a reality. It is a global challenge that affects people in most of the world. She highlighted sustainable agriculture practices designed to improve the living situation of the rural poor who depend on livestock and farming, such as modernizing the rural infrastructure and technology.

MARKOVA CONCEPCIÓN JARAMILLO ( Panama ), aligning herself with the Group of 77 and China, noted that according to World Bank estimates, 670 million people were living in conditions of extreme poverty in 2022, an increase of 70 million people compared to projections prior to the pandemic. Given current trends, by 2030, two thirds of the world’s countries will fail to meet the goal of halving the national poverty rate. In Panama, like other territories in Latin America and the Caribbean, the rate of poverty and extreme poverty is much higher in rural areas than in urban areas. Those areas are the basis of family farming producing most of the food for local consumption; yet paradoxically, the countryside has the lowest schooling rates, and women have less participation in the labour market. She noted that 15 October is the International Day of Rural Women, calling for efforts to spotlight their invaluable contribution to development.

CHARLENE ARAVEJO BERIANNA ( Philippines ), associating herself with the Group of 77 and China and ASEAN, highlighted that her Government aims to reinvigorate job creation and accelerate poverty reduction. Mindful that poverty continues to be overwhelmingly rural and is primarily concentrated in the agricultural sector, the Philippines has ongoing projects and programmes to achieve rural development, and to modernize and strengthen the resiliency of agriculture and agribusiness, with technical, capacity-building and financial support to farmers and fisherfolk. The Philippine Rural Development Program seeks to increase rural incomes and enhance farm and fishery productivity in targeted areas by supporting smallholders and fishers, she said. With a whole-of-nation approach, the Philippines is fast-tracking efforts to achieve greater access to safer and more nutritious food towards healthier and more sustainable consumption patterns. The international community must prioritize ending hunger and poverty, she further stressed.

Ms. JALILI ( Iran ), aligning herself with the Group of 77 and China and the Group of Friends in Defense of the Charter of the United Nations, said eradicating poverty in all its forms is the greatest global challenge today and an “indispensable requirement for sustainable development”. Recent reports show that the world is not on track to end poverty, which is on the increase in different regions, particularly in the Middle East. Her country is committed to prioritizing poverty reduction through a broad range of economic, environmental and social policies, which include implementation of targeted subsidy systems on essential goods and services, promoting job creation and diversifying its economy. It is also undertaking critical projects in rural areas and promoting women’s participation in education, employment and political representation. Describing unilateral coercive measures as a “main source of increasing poverty among targeted countries”, her delegation calls for their immediate lifting. She further called on the United Nations Industrial Development Organization (UNIDO) to actively pursue inclusive and sustainable development and help build resilience in developing countries.

VÁSQUEZ SOLANO, youth delegate of Mexico , said that millions of people still live in poverty, hunger and malnutrition are on the rise and the effects of climate change become more evident. “We need a new development paradigm that seeks to redistribute power and wealth and decrease the gap between developing countries and advanced countries,” he said, adding that his country was able to lift 5.1 million people out of poverty in the last four years. “Mexico advocates for an approach based on food security as a driver that contributes to peace and, at the same time, condemns the interruption of supply chains, inputs and basic foods as a form of coercion,” he stressed, adding that never before has there been vast access to a body of knowledge, technology and resources to eradicate poverty and hunger, as well as protect the planet.

ETOUNDI AYISSI ( Cameroon ) aligned himself with the Group of 77 and China and the African Group and took notes of the reports presented to the Committee. He expressed concern over the increased number of people in distress and poverty around the world and reiterated his commitment to the 2030 Agenda and leaving no one behind. The eradication of poverty is the greatest global challenge facing the world and should therefore be at the centre of the international community’s efforts, he said, calling for the effective implementation of visionary policies for sustainable and inclusive growth. He highlighted policies in Cameroon to promote employment, gender equality, better health care and social protection, climate change mitigation and the modernization of agriculture and rural development. Challenges include insecurity and instability, the crushing weight of debt servicing, protectionism and worsening terms of trade, he said, adding that this is not a challenge that one country can overcome alone.

MATEUS PEDRO LUEMBA ( Angola ), aligning himself with the Group of 77 and China and the African Group, noted the country’s Government has been responding to the challenges of climate change by developing structural programmes to make rural communities more resilient. It has been building water transport and storage infrastructures, including the water channel “Cafu” project, to capture and transfer water from the Cunene River to several villages in the Cunene Province, to mitigate the effects of drought in populated, agricultural and livestock production areas. The Government has also implemented a social assistance programme called “Kwenda” to provide cash income transfers to the most vulnerable families and has created a food reserve to counter the adverse social effects of natural disasters. He emphasized that the potential to become a key exporting nation on the African continent can bring numerous benefits, including attracting investment and promoting regional integration.

KANTAPON SANGKHAPREECHA ( Thailand ), associating himself with the Group of 77 and China and ASEAN, reiterated that the eradication of poverty is the overarching goal of the 2030 Agenda. “We have made progress, as there are no persons living under [the] international poverty line in Thailand since 2016,” he said. Thailand has been investing in improving quality of life for vulnerable groups and low-income families, notably through providing access to universal health coverage and quality education. Thailand also believes that food insecurity in developing countries has often been a key impediment to eradicating poverty, he said, calling for the international community, including relevant international organizations, to intensify efforts in assisting developing countries to enhance their agricultural production capacity. This could be achieved through improvement of farming techniques and ensuring access to quality food and improved nutrition, he said.

VOLODYMYR LESCHENKO ( Ukraine ), expressing his country’s solidarity with innocent victims of the large-scale terrorist attack against Israel, said the “horrifying images” not only remind his delegation of the cities of Bucha, Irpin and Mariupol in April 2022, but also impress upon the world that terror must be stopped and perpetrators held accountable. He echoed the Secretary-General’s report of a decline in progress on sustainable agriculture, food security and nutrition, reiterating that “Ukraine will not give up its role as a guarantor of global food security, even under the current extraordinary circumstances”. Food volumes exported around the world would have been much higher had the Russian Federation not systematically obstructed the normal functioning of the Black Sea Grain Initiative in its attempt to weaponize the global food shortage. He expressed his country’s great interest in ending the war, adding that the sooner it “ends and respect for international law is restored, the sooner the international community will be able to address food security problems more effectively”.

Mr. HYON ( Democratic People’s Republic of Korea ) called for strengthening international cooperation for agricultural development and finding a solution to the food problem. “Nowadays, developing countries, including those in Africa, are most severely hit by the global food crisis,” he said, calling for the removal of artificial factors that lead to creating and aggravating the crisis. “Such behaviours of imposing sanctions against others, stockpiling excess food only for self-interest and extracting biofuel from agricultural products hinder agricultural development and prevent many people from getting out of the vicious cycle of hunger,” he stressed, adding that valuable successes have been made by taking practical measures to increase agricultural production and solve food problems in his country. “Thanks to the efforts of our Government to make all rural villages into the ideal community of civilization, modern rural houses have been built in all parts of the country and distributed to farmers without any cost,” he said.

CARLOS IVAN ZAMBRANA FLORES ( Bolivia ) aligned himself with the Group of 77 and China, the Group of Landlocked Developing Countries and the Group of Friends in Defense of the Charter of the United Nations. He said eradicating poverty and strengthening agricultural development is key to achieving the SDGs and highlighted the need for equity. He pointed to substantial progress in the redistribution of land, technology and the means of production. Smallholders in rural areas are important, he said, expressing commitment to their financial and technical empowerment. Food security and food sovereignty must be addressed as a vital part of the development of people, he added, stressing the need to tackle aspects of agriculture and food dependency based on fair trade. He said Indigenous Peoples and their traditional know-how can help build productive systems and solve some of these challenges. Developing countries must be able to address consumption and production patterns with different kinds of fiscal policies, he said.

Ms. NASHWA ( Maldives ), associating herself with the Group of 77 and China and the Alliance of Small Island States, noted that climate change poses a relentless threat to the food and water security of small island developing States. Climate extremes have severely hampered agricultural productivity in Maldives, while coral bleaching and ocean acidification are destroying the marine ecosystem upon which many of the islands rely for protein: fish, as her country is among the highest fish-consuming States in the world. Further, illegal and unreported fishing and competition for resources threaten the fishery sector. Her country remains committed to banning harmful fishing methods. She additionally affirmed that, as the country imports over 90 per cent of its food, it is diversifying the agriculture sector to improve food security, identifying 17 crops for cultivation across 44 islands and launching a link of ferry services to connect widely dispersed atolls.

Ms. NZUMBU ( Kenya ), aligning herself with the Group of 77 and China and the African Group, said that vulnerable populations, including the poor, small-scale food producers, women, youth, persons with disabilities and children, are disproportionately affected by the global food and energy crisis, leading to increased humanitarian needs. Kenya is actively pursuing the Bottom-Up Economic Transformation Agenda, with agricultural transformation as one of the five strategic sectors, she said, spotlighting the aim to create the most jobs “at the bottom of the pyramid” and to expand access to quality social services in health, education and appropriate social safety nets. “Notably, neglecting women’s role and investments in agriculture deprives economies of opportunities for steady growth, leading to higher unemployment, poverty and inequality,” she said, calling for effective multilateralism, collaboration and solidarity.

MAURIZIO MASSARI ( Italy ) said that eliminating poverty and hunger must continue to be at the top of international course of action. Global hunger is on the rise, with around 735 million people on average facing chronic hunger due to the combined and lasting impacts of the pandemic, climate change and conflicts, and further jeopardized by the global effects of the Russian Federation’s aggression against Ukraine, affecting in particular the Global South. Italy welcomes the new Secretary-General’s Call to Action on Food Systems Transformation launched in Rome as one of the key outcomes of the Summit and calls on all Member States to rally around it. Displacement is a driver and outcome of food insecurity, with forcibly displaced people reaching more than 108 million people. Agrifood systems account for one third of total greenhouse gas emissions and, at the same time, they are highly vulnerable to the impact of climate change, he added.

Mr. PISAREVICH ( Belarus ), citing the need to show leadership, said that such leadership was demonstrated by the Russian Federation, which donated dozens of tons of grain to a number of African countries that have been most affected by the global food crisis, as well as by China, which, through its Global Development Initiative, provides serious assistance to developing countries. “Sanctions by Western governments against Belarus and Russia — introduced, by the way, without a United Nations mandate — have led last year to a significant drop in the supply of fertilizers and grain on international markets,” he said, adding that these restrictions set off a chain of events that ultimately caused the ongoing global food security crisis and hunger for millions of people. He added that Belarus is one of the biggest producers of potash fertilizers and traditionally accounted for 20 per cent of global trade in this product. “Today this figure is only 9 per cent,” he stressed, spotlighting that Belarus’ share in African potash markets fell from 41.7 per cent in 2021 to 2.8 per cent in 2022.

NEVILLE MELVIN GERTZE ( Namibia ) said many of the SDG goals, including poverty reduction, improved health and access to quality education, intersect with sustainable food production and food security, and expressed his concern that by 2030, 30 per cent of the population in sub-Saharan Africa is anticipated to still be living in extreme poverty. He cited analysis from the World Bank, which suggests that eradicating extreme poverty in the region would require each country to have an annual growth rate of per capita gross domestic product (GDP) of 9 per cent beginning in 2023. Given that these economies grew by an average of 1.2 per cent annually in the decade preceding COVID‑19, that is a challenge. He also spoke to the gaps in income and wealth distribution, a legacy of colonialism and apartheid, which are a threat to global security and harmony. He pointed to progress in reducing poverty, even though the results have been uneven across the country, citing among other things the addition of food banks that aims to combat hunger and provide nutrition for the most vulnerable.

BOKOUM MAHAMADOU ( Burkina Faso ) said the percentage of people suffering from hunger is much higher in Africa than elsewhere in the world, and that his Government has factored malnutrition and poverty reduction efforts into its national development plans. Noting that his country’s current particularly difficult security crisis context “exacerbates the risk of people falling into poverty, particularly those living in localities plagued by terrorism”, he said his Government has, together with development partners, developed and implemented programmes and policies aimed at reducing inequality. It also, in 2015, adopted the law on the universal health insurance scheme, which aims to provide basic health coverage for all Burkinabés by 2027. Other projects for women, children and the elderly have been undertaken. He noted that the fight against poverty requires a synergy of actions by all actors and solicited the support of the international community towards defeating the terrorist group Hydra.

CAO LIWEN ( China ), aligning herself with the Group of 77 and her country, said the international community must place great emphasis on poverty reduction, especially in rural areas. Developed countries should assist least developed countries with investment, technology and capacity-building, and work towards promoting a more just and reasonable global economic order. She noted that poverty and hunger are two aspects of the same issue, requiring a whole-of-society approach cutting across industry, technology, education and cultural sectors in forming solutions. As the world’s largest developing country, China has achieved complete victory in eradicating extreme poverty, and its efforts are a useful example for other States. At the same time, it works to reduce poverty in other States through South-South cooperation, working with the FAO, WFP and other organizations, operationalizing 130 projects in 60 countries covering 30 million people.

AHMED ABDELRAHMAN AHMED ALI ALMAHMOUD ( United Arab Emirates ) said that his Government spares no effort to support food security, having allocated $1.5 billion to this objective in the past five years. He looked forward to the hosting of the twenty-eighth UN Climate Change Conference, whose aim will be to support international efforts to reduce food waste, accelerate food security initiatives and strengthen food production chains. He noted several initiatives aiming to make progress on agricultural programmes and combat malnutrition. The United Arab Emirates is committed to providing annual support to FAO. He reiterated that his Government will continue to support all actions to help the international community achieve global food security.

PETAL GAHLOT ( India ) aligned herself with the Group of 77 and China and said that her country has lifted about 415 million people out of poverty over 15 years, contributing to the decline in poverty levels in South Asia. However, COVID‑19 and geopolitical conflicts have impacted the global gains of the previous decade. Countries must urgently implement social policies to mitigate the impacts of the crises, get back on track and build resilience, she said, citing a priority-sector lending approach that protects key economic sectors from severe external shocks and propels structural transformation. An important element in India’s poverty reduction efforts has been the focus on rural poverty. Through targeted policy intervention, multidimensional poverty in rural India has declined faster in the last decade, she said, adding that more than 70 per cent of rural Indian households rely on agriculture as the principal source of livelihood. She said India has built resilient food stocks, ensuring food security for more than 800 million of its citizens during the last three years.

Mr. NGUYEN ( Viet Nam ), associating himself with the Group of 77 and China and ASEAN, said that “no poverty and zero hunger” are rightly the first two Goals, as sustainable development would be neither achievable nor meaningful if people all over the world still suffered from hunger and poverty. Echoing the Secretary-General’s report that about 670 million people were in extreme poverty in 2022, with 9.2 per cent of the world still in hunger, he said “comprehensive and concrete measures are needed to address these challenges”. His delegation believes that ensuring food security is crucial to address these challenges. Transforming food systems in a more sustainable and resilient manner is imperative to better withstand and recover from multiple crises. Financing this therefore needs to be comprehensive and consistent at all levels, he added, stating that providing decent jobs must also be prioritized. His country therefore welcomes the initiatives of the Secretary-General on the Global Accelerator for Jobs and Social Protection and the International Labour Organization’s (ILO) Global Coalition for Social Justice.

MARITZA CHAN VALVERDE ( Costa Rica ) said that her country is investing in strengthening social protection tailored to the specific needs of each population group and eliminating barriers that hinder access. She informed that female hygiene products have been included in the basic basket, which primarily serves the 30 per cent of the population with the lowest income, and women’s access to the labour market is promoted. “We are making progress in key areas such as sustainability; resilience, mitigation and adaptation to climate change; strengthening family farming; financial inclusion; and the use of technological tools,” she stressed, adding that Costa Rica maintains an equitable trade-off between the agrolandscape and its conservation areas, achieving zero net deforestation and zero emissions.

TAHMINA HASANOVA ( Tajikistan ), aligning herself with the Group of 77 and China and the Group of Least Developed Countries, said that the future of the planet, with its rapid population growth, urbanization and changing consumption patterns, depends on the world’s actions to provide food security and nutrition. Challenges such as climate change and its economic impact delay the attainment of the SDGs, she said, adding that COVID-19 has put extraordinary pressures on food systems around the world. According to FAO, 3.2 billion people in 2022 live in agricultural areas with water shortages or scarcity, she said. Many of these areas are found in developing countries with severe implications for food security. Tajikistan faces several environmental challenges, including land degradation, she said, adding that her Government has identified food security and access to good quality nutrition as one of its development priorities.

LINOUSE VILMENAY JOSEPH ( Haiti ), aligning herself with CARICOM, the Group of 77 and China, the Alliance of Small Island States and the Group of Least Developed Countries, noted her country faces major economic, social and environmental problems, with the deterioration of the security situation also generating a new humanitarian crisis in recent weeks, with displaced people spontaneously occupying several sites to escape gang violence. These challenges are enormous, she stressed, requiring bold measures to promote an accelerated recovery and guarantee the socioeconomic development of everyone. She declared that “the commitment to leave no one behind must move from words to action.” Her Government initiated a participatory process aimed at merging two key priority areas: eradication of poverty and structural transformation of food systems. She further cited the priority of science, technology and innovation, and the application of a new approach to the modernization of the agricultural sector.

MUSA GARBA MAITAFSIR ( Nigeria ), aligning himself with the Group of 77 and China and the African Group, called for re-evaluating existing agricultural interventions and policies. “Collaborative initiatives involving African Governments, enterprises and international research institutes are critical to drive agricultural development as a means to alleviate poverty,” he stressed, urging to deepen initiatives to eradicate poverty and ensure food security, especially in Africa, where the population is expected to increase exponentially by 2050. “We call for an open, non-discriminatory, rule-based international trading system that affords developing countries, especially those in Africa, the latitude to trade and the requisite support to boost local manufacturing,” he said, adding that Nigeria has taken bold measures, including declaring a state of emergency on food security and plans to spend 75 billion naira to fund 75 enterprises to boost productivity.

MATETE PAUL NENA ( Lesotho ) said that now is the time to end hunger, food insecurity and malnutrition. He underscored the importance of supporting the African Union’s Agenda 2063, especially the Comprehensive Africa Agriculture Development Programme, which remains the cornerstone for the continent’s food and nutrition security and economic growth. He said farmers are encouraged to specialize and engage in more productive methods of farming to increase output, adding that those without the resources are encouraged to participate in “block farming”, under which the Government shoulders the entire cost of production and allocates 20 per cent of the produce to the landowners, a policy that led to increased production during the last cropping season, he said. COVID‑19 disrupted the global food supply chains and left most of the world’s population dependent on agricultural imports at exorbitant prices, a lesson in the need to scale up efforts towards a more resilient and sustainable food system, he said.

CARLA MARIA RODRÍGUEZ MANCIA ( Guatemala ) reminded that hunger has a human face, and those most vulnerable to malnutrition are children under 5 years of age, women in extreme poverty and rural populations. Her country has also witnessed how climate change has become a driver of hunger, destroying crops and productive infrastructure, increasing poverty and migratory flows. This requires investing in innovative agricultural technologies, promoting productivity and open trade. Further, the resilience of agrifood systems must be strengthened through social protection programmes, early warning systems, agricultural insurance and livelihood diversification. She pointed to the WFP Pro-Resilience project, which seeks to contribute to improving the food security and nutritional status of 60 communities in the dry north-eastern corridor of Guatemala, by generating income through productive activities and involvement of women in entrepreneurship at the local level. Guatemala has further made progress in implementing its “Great National Crusade for Nutrition”.

Mr. GIRMAY ( Ethiopia ), aligning himself with the Group of 77 and China, the Group of Landlocked Developing Countries, the Group of Least Developed Countries and the African Group, said that the developing States are having the heaviest burden while persistent droughts in Africa further threaten food security. “Since 2005, Ethiopia has been implementing the social protection system,” he stressed, adding that the key areas for intervention were identified as increasing small farm productivity and expanding large-scale commercial farming. “Our Government remains stiff in its commitment to intensify efforts to combat poverty, generate employment opportunities, especially for youth and women, all with the goal of fostering inclusive and sustainable economy growth,” he stated.

Ms. BARBA ( Ecuador ), aligning herself with the Group of 77 and China, said eradicating poverty is a priority, especially since it goes beyond monetary resources to cover a set of deprivations that require attention, especially the vulnerable and those in rural areas. Financial institutions need to focus on capacity-building, she said, and added that external crises, including climate change, jeopardize food security. In support of accomplishing the 2030 Agenda, she cited several strategic areas, among them better production, better nutrition and better environment, to achieve a better life. She spoke of work to transform national agrifood systems with low environmental impact, which includes inclusive dialogue that makes the contribution of women more visible. Another priority has been the successful reduction of chronic infant malnutrition, she said, adding that around 20,000 infants now have a better future.

ROYSTON ALKINS ( Guyana ), associating himself with the Group of 77 and China, the Alliance of Small Island States and CARICOM, warned that only about one-third of countries will meet the target to halve national poverty levels — and shockingly, the world is back at hunger levels not seen since 2005, with food prices remaining higher in more countries than in the period from 2015 to 2019. In that vein, he called on relevant parties to end all geopolitical conflicts and take action to halt and reverse the effects of climate change, including delivering on climate finance. Guyana, he recalled, is endowed with vast forests, farmlands and freshwater resources. However, more must be done to achieve food security, and he noted that the country is spearheading CARICOM’s Agriculture and Food Security agenda to reduce the regional food import bill by 25 per cent by 2025.

Ms. ALMEZYAD ( Kuwait ) said that combating poverty in all its dimensions is a major pillar for the implementation of the SDGs and a fundamental focus of her Government. Kuwait’s Constitution highlights the importance of social solidarity and building prosperity for all. “We are deploying efforts to ensure social protections and coverage,” she added. Kuwait has also deployed great efforts to combat poverty across its own territory through Government assistance programmes in an equitable manner in hopes of strengthening social cohesion. “We are particularly committed to reaching all of those in need, especially the elderly, women, persons living with disabilities,” she emphasized. Further, Kuwait has extended “a generous hand” to least developed countries. “We must have greater international cooperation in order to achieve our goals, most notably, [to] eradicate poverty,” she added.

MARY BETH LEONARD ( United States ) said that her country remains committed to improving global food and nutrition security. “Since January 2021, we have provided more than $17.5 billion to address global food insecurity,” she said, spotlighting that in 2022 alone the United States contributed over $7.2 billion to WFP, which fed more than 160 million people in 120 countries and territories. That amounted to more than half of WFP’s budget, she underlined. “The world’s population will grow to 10 billion people by 2050, and demand for food will increase by 50 per cent,” she noted, adding that agricultural yields are decreasing. “One of the biggest threats to global food security is Russia’s full-scale invasion of Ukraine, the world’s breadbasket,” she stated, spotlighting that the Russian Federation is weaponizing food by directly targeting Ukraine’s ports and grain exports infrastructure.

EMERY GABI ( Congo ), aligning himself with the Group of 77 and China, said that after recording substantial progress in reducing extreme poverty, the world now finds itself in a state of indescribable poverty, with climate change and environmental degradation among the challenges. He added that food insecurity disproportionately affects women and people in rural areas. He called for urgent action to reverse the negative trends and accelerate progress, highlighting the need to connect rural and urban areas with infrastructure, public goods and capacity-building. Various initiatives, especially the implementation of national development plans, have helped restructure and diversify the economy and lay the foundation for sustainable growth, he said. Among other victories are improved access to clean drinking water as well as better access to electricity. In conclusion, he said, “eradicating poverty in all its forms is essential.”

ALAN EBUN GEORGE ( Sierra Leone ), aligning himself with the Group of 77 and China and the Group of Least Developed Countries, warned that increasing inequality and poverty has forced thousands of vibrant youths to cross the Mediterranean into Europe in search of greener pastures. The consequence of this persistent migration has led to brain drain and low agricultural output that has adversely impacted the domestic economies of developing countries. To develop human capital, the Government has allocated 21 per cent of its budget to education, while offering scholarships to female students studying science, technology, innovation and engineering in university and colleges. The country has engaged in various rice production projects including cultivating 264 hectares of farm rice using combined harvesters and threshers to dramatically increase production output and meet domestic demands. Similarly, the fisheries and the aquaculture sectors have huge potential to reduce food insecurity.

Mr. ALSINDI ( Bahrain ) said that food insecurity affects 260 million people worldwide, 35 million are facing famine and hundreds of thousands are near famine conditions. Bahrain has made efforts towards agricultural development as well as the development of water resources as part of its national food strategy. Bahrain seeks to ensure food security through innovations aimed at increasing the quantity of food produced locally. It is also making efforts to address the betterment of imports, trade and investments. “We have implemented a number of projects which include arable lands for agricultural investments,” he added. Bahrain is also trying to expand the fishing sector by 2027 and will continue to harness and grow partnerships for development with regional actors.

LUIZ FELIPE ROSA DOS SANTOS ( Brazil ), aligning himself with the Group of 77 and China, said that contemporary challenges, including geopolitical tensions and multiplying humanitarian crises around the globe, are complex and intertwined. There is a need to get back on track to achieve the 2030 Agenda, he said, adding that the path to a sustainable future must start by strengthening efforts to eradicate poverty and hunger and reduce global inequalities. There were 122 million more people in 2022 facing chronic hunger than there were in 2019, and at the current pace, 575 million people will still be living in extreme poverty in 2030, he said, noting a return to trade protectionism and unilateral measures that aggravate the situation. He pointed to a national cash-transfer programme that ensures a minimal income and grants additional funds per family for each child or teenager, a policy that has lifted 3.4 million people from extreme poverty.

Mr. MANDLAPER ( South Africa ), aligning himself with the Group of 77, called for targeted investment as well as technology transfer and capacity-building support, including key areas such as industrialization, agriculture, energy, education, health, information and communications technologies and water. Ensuring sustainable development that is both just and inclusive requires collective action by all countries, sectors and actors. Calling for urgent and effective action at the United Nations on illicit financial flows and taxation, he added: “We condemn the unilateral protectionist measures taken by some countries, under the pretext of climate change and environmental crises, that distort trade and impose conditionality on multilateral or bilateral support, including carbon border adjustment mechanisms and taxes.”

ANDRÉS NAPURÍ PITA ( Peru ), aligning himself with the Group of 77, noted that around the world more than one in four workers are engaged in agriculture, mostly as self-employed and unpaid family workers. Moreover, in the agricultural sector, 93.6 per cent of workers have informal employment. Stressing the sector’s importance, he cited the example of the potato. Originally from the South American Andes, it is grown today on all continents, in more than 150 countries, with consumption having doubled in the last 30 years. Cultivated on an area of 24 million hectares, potatoes currently have an estimated global production of 470 million tons. Given it is one of the five main basic foods of humanity — a tuber that plays a fundamental role in agriculture, the economy and global food and nutritional security — he said that Peru will introduce a draft resolution that would have the General Assembly declare 30 May as the International Day of the Potato.

MD FARUK HOSSAIN ( Bangladesh ), associating himself with the Group of 77 and China, said that many people in rural areas lack access to safe, nutritious and sufficient food year-round. Food insecurity affects the goal of gender equality as well, as women and girls suffer disproportionately in the face of poverty, chronic hunger and malnutrition. Bangladesh has become self-sufficient in food production through a combination of agricultural transformations, climate adaptation and the prudent use of land. Developing countries need uninterrupted access to fertilizer, he also added. He stressed the need to prioritize security in countries in special situations. Least developed, landlocked developing and small island developing States are disproportionately affected by global shocks, including food market volatility. This must be addressed at all levels through collective action. He further emphasized the need to mobilize all stakeholders towards that goal, including donors, international financial organizations, the UN system and other global partners.

HAFIZA HUMAIRA JAVAID ( Pakistan ), aligning herself with the Group of 77 and China, said that poverty is the root cause of food insecurity and malnutrition, socioeconomic instability and political and security problems. In 2022, Pakistan faced a food emergency due to unprecedented floods — affecting 3 million people — caused by adverse effects of climate change, she said, adding that the total damage to the national economy was $30 billion, in addition to 1,700 lives lost. One third of the country was under water, sending as many as 9.1 million people into poverty. Global measures are required, she said, including reforming the international financial architecture, providing food producers with access to seeds and fertilizers, eliminating massive agriculture subsidies and reducing greenhouse gas emissions.

İLKNUR DEMİR ( Türkiye ) said the increasing frequency and intensity of natural hazards have triggered famine and food insecurity, pointing out that 9.2 per cent of the world’s population faced chronic hunger in 2022 compared to 7.9 per cent in 2015 while food insecurity increased significantly to 29.6 per cent in 2022 from 25.3 per cent in 2019. “There isn’t a country in the world where food security isn’t a concern,” she said. “This is simply unacceptable.” It is essential to intensify collective efforts, she said, noting how earthquakes in February severely impacted provinces critical for agricultural production. Strengthening the capabilities of vulnerable countries through science, technology and innovation is key to support the 2030 Agenda, she said, adding that the Black Sea Grain Initiative eased lowest-income countries’ access to food products and has allowed more than 32.8 million tons of various grain products to reach the world markets since 2022.

MUHAMMAD ZULASRI BIN ROSDI ( Malaysia ), aligning himself with the Group of 77 and China and ASEAN, noted his Government has spent more than $215 million in 2023 to accelerate poverty eradication programmes, increasing the income of more than 50,000 extremely poor households, providing appropriate training, start-up capital and incentives for agriculture, marketing and digitalization projects. Malaysia has effectively reshaped its economy, elevated living standards and transitioned from a low-income to an upper-middle-income economy in a single generation. Furthermore, the gross national income per capita has expanded 38‑fold, from $347 in 1970 to $13,382 in 2023, with absolute poverty reduced from 7.6 per cent in 2016 to 6.2 per cent in 2022. He noted that Malaysia also continues its efforts to tackle food security issues with national policies in line with the four pillars outlined by FAO: availability, access, utilization and stability.

RENATA CHIVUNDU ( Malawi ), associating herself with the Group of 77 and China, the Group of Least Developed Countries and the Group of Landlocked Developing Countries, said that given current trends, 575 million people will still be living in extreme poverty by 2030, while approximately 670 million people will still be facing hunger. Agriculture anchors Malawi’s economy, directly accounting for about a quarter of the country’s GDP. Agriculture significantly contributes to employment, economic growth, export earnings, poverty reduction, food security and nutrition. Still, many of Malawi’s farmers use traditional methods of farming and depend on rain for their crops. “It is a moral duty of each one of us to prioritize and implement comprehensive strategies that empower vulnerable populations to break free from the cycle of poverty,” she said. The international community needs to come up with a multifaceted approach that combines short-term relief and long-term sustainability.

SAŠA MART ( Serbia ) said the transformation of agrifood systems can advance progress on several SDG targets, enabling access to safe and nutritious food, reducing environmental impacts and increasing resilience vis-à-vis conflict and climate change, while also contributing to peace and security. The Agriculture and Rural Development Strategy has among its goals stability and production growth, increased competitiveness, sustainable resource management and environmental protection. He also expressed Serbia’s commitment to the implementation of the National Roadmap for Food System Transformation, which was presented at the UN Food Systems Summit in New York in 2021. Increased investment in agriculture research and development is key, he said, highlighting the building of irrigation systems, hail protection systems, storage facilities and collection centers with refrigeration equipment for storing fruits and vegetables to strengthen the agriculture sector and make it more resilient in the face of climate change.

HARI PRABOWO ( Indonesia ), aligning himself with the Group of 77 and China as well as ASEAN, said that agriculture is not just a sector of the economy but is the backbone of many communities, especially in the developing world. “Indonesia has developed a national pathway for transforming our food system and agriculture,” he stressed, adding that his Government encourages more multi-stakeholder platforms supported by national civil society organizations. “Let us remember that the fight against extreme poverty is not just a moral imperative,” he stressed, urging an acceleration of both the transformation to more resilient agriculture and food systems and the ensuring of food availability and accessibility.

Mr. BAKHSH ( Saudi Arabia ), aligning himself with the Group of 77 and China, noted the Government has provided $3 million in food security assistance and is working to unify 10 development funds nationally and regionally. While recalling that there has been some development progress, he affirmed that achieving the SDGs remains difficult. His country’s Saudi Vision 2030 focuses on building a sustainable agriculture sector while promoting supporting sectors, has adopted a strategy for food security, and is addressing climate change and water shortage. The Government has further launched a number of initiatives, including a national programme to reduce food loss and waste and to encourage food recycling. Emphasizing the role of the UN and its agencies in all these areas, he stressed: “We believe in a dignified life for everyone.”

Mr. MUNGANDI ( Zambia ), associating himself with the Group of Least Developed Countries, the Group of Landlocked Developing Countries and the Group of 77 and China, said that his State, like most in Africa, has been grappling with the challenge of high poverty levels. This has been exacerbated by the effects of multiple challenges, including climate change and the pandemic. National poverty levels have remained high, increasing from 54.4 per cent in 2015 to 60.0 per cent in 2022. Some key interventions being undertaken include social cash transfer programmes, public welfare assistance schemes, school feeding programmes and other specific programmes targeted at empowering vulnerable women and girls. Other measures include investing in modern agricultural techniques, promoting smallholder farmers’ access to resources and ensuring conservation of biodiversity to ensure food security, he added.

KYAW MOE TUN ( Myanmar ), aligning himself with ASEAN, the Group of Least Developed Countries and the Group of 77 and China, said that agriculture is the backbone of his nation’s economy, while the illegal attempted military coup in his State and its atrocities, including its scorched-earth policy, have significantly aggravated the existing challenges in strengthening the agrifood system. “Even almost at midnight on 9 October, the inhumane military junta conducted aerial attacks on Munglai Hkyet internally displaced persons camp in Laiza, Kachin State, killing 30 civilians, including 13 children, and injuring many,” he said, adding that the military is creating arbitrary rules and laws to make the livelihoods of people more difficult. “Nearly 1 million children don’t receive the routine immunization, and nearly 5 million children lack sufficient vitamin A in their diets and access to supplements. Nearly one in three children in Myanmar under the age of 5 suffers due to malnutrition,” he said.

LISANDRA MARINA GUTIÉRREZ TÓRREZ ( Nicaragua ), aligning herself with the Group of 77 and China and the Group of Friends in Defense of the Charter of the United Nations, said that eradicating extreme poverty is a key priority. To do so, it is important to establish a new global order and a multipolar world characterized by transparent, equitable agreements and solidarity, she said. Debt relief is vital in this regard. Many developing countries struggle with indebtedness, she said, stressing the need for the financial system to put forward monetary policies that are fair and avoid plunging developing countries into a prolonged debt crisis. Financing is crucial to achieve sustainable development, she said, adding that developed countries must meet their as-yet unmet commitments in official development assistance (ODA). She criticized illegal and terrorist unilateral coercive measures imposed by imperial and neocolonial countries on more than 30 countries, affecting more than 2 billion people.

HUSSEIN ATHMAN KATTANGA ( United Republic of Tanzania ), aligning himself with the Group of 77 and China, and the Group of Least Developed Countries, said his country aims to be a hub and basket of the African food supply. He cited a clear land ownership policy; a 29 per cent increase in the budget for agriculture between 2022 and 2024; and subsidies in fertilizers and seeds. The country is piloting a youth programme to make agriculture more attractive, aiming to generate more than 10,000 enterprises in eight years. He further emphasized that it had the lowest inflationary rate for the past three years within the region, at an average of 3.8 per cent. The United Republic of Tanzania further hosted the Africa Food Systems Forum in September, bringing together more than 5,400 participants including five Heads of State, experts, policymakers and representatives from 70 countries.

MOHAMED-ESSEGHIR LATROUS( Algeria ), associating himself with the Group of 77 and China, said the scourge of hunger continues to dominate the international landscape and remains one of the most pressing global challenges the international community faces in the twenty-first century. “The current state of global food insecurity is primarily characterized by rising food prices and inflation,” he added. These factors have historically been catalysts for social unrest. It is evident that developing countries, particularly those in Africa, are severely affected by rising food prices, which are compounded by soaring agriculture and energy prices, climate change and geopolitical tensions. The global food supply chain must remain open and free, especially for essential raw materials. “We must refrain from banning the export of foodstuffs, especially sensitive raw materials,” he added.

Mr. MAURA ( Mozambique ), aligning himself with the Group of Least Developed Countries and the Group of 77 and China, said that the fulfilment of basic human needs in his country is understood as a human rights matter. “That is why agricultural development, aimed at food security and adequate nutrition, are important pillars in Mozambique’s economic development,” he said, adding that his Government launched an integrated management programme for family agriculture and natural resources, focused on upgrading the entire production value chain. “The number of people living in high risk of hunger in Mozambique has decreased,” he said, spotlighting that at least 10 per cent of the country’s population, or 3.5 million people, currently live in a situation of food insecurity, of which 400,000 are in critical situations.

ABDULRAHMAN HASAN YAHYA AL-BARATI ( Yemen ), aligning himself with the Group of 77 and China and the Group of Least Developed Countries, said that the world is going through a critical period with major challenges at all levels, including armed conflicts, and reconstructions to the tune of billions of dollars are required, with direct impacts on standards of living. Eradicating poverty is one the biggest challenges facing the world, and a goal of the 2030 Agenda. Eighty per cent of the population in Yemen live under the poverty line and 2 million children suffer from malnutrition, he said, adding that 24 million people require humanitarian assistance and 20 million people are at risk of famine. This dark picture is a result of the war carried out by Houthi militias since 2014, he said, adding that the Government is attempting to put up a fight but that the economy is shrinking because of the war.

KANISSON COULIBALY ( Mali ), aligning himself with the Group of 77 and China, the African Group, the Group of Least Developed Countries and the Group of Landlocked Developing Countries, cited the multidimensional crisis that the country has been going through since 2012 — further condemning the illegal and inhumane economic and financial sanctions imposed by the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union in January 2022, hindering Mali’s sustainable development. The Government is working to provide peace dividends to the population through its Strategic Framework for Economic Recovery and Sustainable Development. That programme aims at strengthening peace and security; strengthening the stability of the macroeconomic framework; and promoting accelerated, sustainable growth for the poor. It further prioritizes creating jobs; equitable access to basic social services; and institutional development and good governance.

MAHAMAN MOUSSA ( Niger ), aligning himself with the Group of 77 and China and the Group of Least Developing Countries, said that the agricultural sector employs nearly 80 per cent of Niger’s working population and represents, on average, 40 per cent of GDP. “That is why it’s important to be aware of the significant assets that Niger has in the area of agriculture, namely 19 million hectares of arable land.” Niger is focused on providing quality agricultural inputs and appropriate equipment to farmers, he added. “Despite the enormous efforts that have been made, we face agricultural challenges such as lack of access to technologies for producers, an underdeveloped agricultural transport sector, climate shocks and insecurity linked to the actions of armed terrorist groups.” On unilateral coercive measures, he said that such illegal and illegitimate sanctions have a “rare cruelty”.

TANIA SERAFIM YVONNE ROMUALDO ( Cabo Verde ), aligning with the Group of 77 and China, the African Group and the Alliance of Small Island States, and expressing steadfast commitment to the Goals, noted a substantial reduction in extreme poverty from 23.7 per cent in 2015 to 13.1 per cent in 2020. This progress was driven by increased economic growth, she said, adding that the effects of the COVID‑19 pandemic, prolonged drought and other external shocks still present hurdles. Younger people, especially, face challenges, with inadequate job opportunities, particularly for young women, she said, adding that poverty disproportionately affects female-headed households, while gender-based violence increased during the pandemic. Investment in green energy is imperative to mitigate the impact of climate change, she said, adding that the critical challenge in the relationship with nature is evident. There is an opportunity for a paradigm shift in food policies towards locally produced, affordable and nutritious foods, she said.

DMITRY S. ARISTOV ( Russian Federation ), aligning himself with the Group of Friends in Defense of the Charter of the United Nations, said that the analysis presented in the Secretariat’s reports fails to provide an objective picture. “The root of current problems cannot be focused on the events in Ukraine,” he said, adding that his country, together with WFP, has been implementing school nutrition projects around the world for many years, allocating more than $120 million for these purposes. The ongoing food crisis is caused by international supply-chain disruptions and other short-sighted actions of Western countries, including a forced energy transition and trade protectionism, he said, citing an UNCTAD report, which noted that in 2021–2022 alone, the leading trading companies in the West earned about $14 billion from increased prices.

YAWA DEBATABA, Minister for Foreign Affairs, Regional Integration and Togolese Abroad of Togo , aligning herself with the Group of 77 and China, the African Group and the Group of Least Developed Countries, said that agriculture represents more than 40 per cent of Togo’s GDP, involves nearly 65 per cent of its employed population and covers 3.6 million hectares, or 60 per cent, of its overall territory. In this regard, the Government is making efforts to modernize agriculture, including better access to financing for farmers to boost production; intensification of research and mechanization; use of fertilizers; and the emergence of agroentrepreneurs. A financing incentive mechanism to facilitate access to bank loans granted more than 27 billion Central African francs in loans to the agricultural sector in 2021. However, agriculture remains poorly supported by the banking sector, which devotes only 0.3 per cent of its loan portfolio each year, she said.

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Goal 1: End poverty in all its forms everywhere

Eradicating extreme poverty for all people everywhere by 2030 is a pivotal goal of the 2030 Agenda for Sustainable Development. Extreme poverty, defined as surviving on less than $2.15 per person per day at 2017 purchasing power parity, has witnessed remarkable declines over recent decades.

However, the emergence of COVID-19 marked a turning point, reversing these gains as the number of individuals living in extreme poverty increased for the first time in a generation by almost 90 million over previous predictions.

Even prior to the pandemic, the momentum of poverty reduction was slowing down. By the end of 2022, nowcasting suggested that 8.4 per cent of the world’s population, or as many as 670 million people, could still be living in extreme poverty. This setback effectively erased approximately three years of progress in poverty alleviation.

If current patterns persist, an estimated 7% of the global population – around 575 million people – could still find themselves trapped in extreme poverty by 2030, with a significant concentration in sub-Saharan Africa.

A shocking revelation is the resurgence of hunger levels to those last observed in 2005. Equally concerning is the persistent increase in food prices across a larger number of countries compared to the period from 2015 to 2019. This dual challenge of poverty and food security poses a critical global concern.

Why is there so much poverty

Poverty has many dimensions, but its causes include unemployment, social exclusion, and high vulnerability of certain populations to disasters, diseases and other phenomena which prevent them from being productive.

Why should I care about other people’s economic situation?

There are many reasons, but in short, because as human beings, our well- being is linked to each other. Growing inequality is detrimental to economic growth and undermines social cohesion, increas- ing political and social tensions and, in some circumstances, driving instability and conflicts.

Why is social protection so important?

Strong social protection systems are essential for mitigating the effects and preventing many people from falling into poverty. The COVID-19 pandemic had both immediate and long-term economic consequences for people across the globe – and despite the expansion of social protection during the COVID-19 crisis, 55 per cent of the world’s population – about 4 billion people – are entirely unprotected.

In response to the cost-of-living crisis, 105 countries and territories announced almost 350 social protection measures between February 2022 and February 2023. Yet 80 per cent of these were short-term in nature, and to achieve the Goals, countries will need to implement nationally appropriate universal and sustainble social protection systems for all.

What can I do about it?

Your active engagement in policymaking can make a difference in addressing poverty. It ensures that your rights are promoted and that your voice is heard, that inter-generational knowledge is shared, and that innovation and critical thinking are encouraged at all ages to support transformational change in people’s lives and communities.

Governments can help create an enabling environment to generate pro- productive employment and job opportunities for the poor and the marginalized.

The private sector has a major role to play in determining whether the growth it creates is inclusive and contributes to poverty reduction. It can promote economic opportunities for the poor.

The contribution of science to end poverty has been significant. For example, it has enabled access to safe drinking water, reduced deaths caused by water-borne diseases, and improved hygiene to reduce health risks related to unsafe drinking water and lack of sanitation.

Facts and Figures

Goal 1 targets.

If current trends continue, 575 million people will still be living in extreme poverty and only one-third of countries will have halved their national poverty levels by 2030.
Despite the expansion of social protection during the COVID-19 crisis, over 4 billion people remain entirely unprotected. Many of the world’s vulnerable population groups, including the young and the elderly, remain uncovered by statutory social protection programmes.
The share of government spending on essential services, such as education, health and social protection, is significantly higher in advanced economies than in emerging and developing economies.
A surge in action and investment to enhance economic opportunities, improve education and extend social protection to all, particularly the most excluded, is crucial to delivering on the central commitment to end poverty and leave no one behind.
The global poverty headcount ratio at $2.15 is revised slightly up by 0.1 percentage points to 8.5 percent, resulting in a revision in the number of poor people from 648 to 659 million. ( World Bank)

Source: The Sustainable Development Goals Report 2023

1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $2.15 a day

1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable

1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance

1.5 By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters

1.A Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions

1.B Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions

United Nations Development Programme
UN Children’s Fund
International Monetary Fund
UN Global Compact
UN International Strategy for Disaster Reduction

Fast Facts: No Poverty

Infographic: No Poverty

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Poverty in Developing Countries

Introduction.

Despite the numerous advancements that man has made in the 21 st century, poverty continues to be rife in most of the developing countries of the world. This is despite most of these nations having significant amounts of natural resources which can be used to develop the nations. In addition to this, efforts by the international community to reverse this situation have to a large extent failed to make a significant difference alleviating poverty in the affected nations.

This begs the question of what is responsible for poverty in developing nations and how can the same be dealt with effectively. This paper shall argue that the problem of poverty in developing nations is as a result of the exploitation by developed nations as well as badly channeled aid efforts made by the rich nations of the world. This paper shall engage in concise but informative arguments to reinforce these assertions.

Most of the developing nations were at one time under colonial rule and while most were not rich in the pre colonial era, the rampant poverty that defines them today was not present. Keller (2007, p. 47) theorizes that which Africa in particular, poverty is as a direct result of the colonial rule which was characterized by gross exploitation and organized repression.

Even after independence was attained by African countries, the African-led regimes that replaced the colonizers had the same political structure as the ones of the oppressive colonizers. In addition to this, African countries continued to be economically dependent on their former colonial powers through uneven trade.

This argument may be countered by highlighting the fact that many developed nations have taken a keen interest in Africa by helping the continent integrate itself into the world economy through removing trade barriers and promoting peace. Additionally, the international community through such fronts as the World Bank and the IMF has offered financial. However, this is a double edged sword which has also contributed to the rise of poverty in African.

Keller (2009, p.50) notes that developing countries devote a significant portion of their annual GDP to debt servicing and repayment therefore reducing the amount of money that the countries could use to alleviate poverty. With regards to the free aid, undoubtedly, the developed nations of the world have made efforts to offer aid to the developing nations. However, most of the help offered comes with strings attached or is motivated by the national interests of the donor countries as opposed to a desire to alleviate poverty (Keller 2007).

One of the arguments advanced to explain the poverty in developing nations is that they lack natural resources. This suggestion was dismissed by the renowned economist Galbraith who asserted that a shortage of natural resources did not automatically lead to poverty as could be seen from Japan and Taiwan; both rising economies with poor natural resources (Peach 2008, p.25).

For this reasons, the rich nations of the world embark on aid in the form of physical products which are aimed at making the recipient country economically developed. Peach (2008, p.26) notes that while this help is well intentioned, it fails to consider the basic needs of the majority of the poor who lack in food, clothing, education and possibly lack skills. As such, any aid offered is often wasted as a result of lack of the capacity to use it effectively.

This claim may be refuted by pointing out the great good that economic aid did to the European nations after the Second World War. This demonstrates that aid in the form of physical products can help boost a nation from desolation into being a major economy. However, the realities of the European nations in which economic aid packages had positive results cannot be compared to developing nations. This is because Europeans already had skilled manpower and basic needs and all that was lacking was the capital.

Social factors also play a role in the propagation of poverty in developing countries. While all nations of the world are afflicted with natural disasters and physical and mental health issues, people in developing countries are afflicted more due to lack of adequate support. As such, people and especially women in developing countries are more prone to depression and other mental issues which reduce their productivity thus contributing to the poverty problem.

Miller (2005, p.1577) notes that while the most disadvantaged women in the society have higher rates of depression than those in more favorable circumstances. This depression coupled with issues such as unemployment, low income and domestic violence has resulted in prevalence in suicide rates amongst women in developing nations.

This connection between depression and poverty can be alleviated through assisting the developed nations achieve success. This is through aid and other assistances which have led to the emergence of rising economies. However, Miller (2005) notes that this does not necessary result in better mental health since it leads to growing income disparities which further increases risk of depression and as such poverty.

It is unlikely that developing nations will be able to rise from its poverty on their own. It has been suggested that trade liberalization is the only way in which developing nations can bridge the gap between themselves and the developed nations. Acting on this, the World Trade Organization has works towards achieving free trade on a global scale.

However, this stance fails to consider many specific realities of the developing nations. Armstrong (2008) notes that in the case of Bangladesh, trade liberalization played a part in the countries growth in GDP but it is the macroeconomic advancements that are responsible for the bulk of the growth.

A lack of access to capital has been blamed on the poverty cases in most developing countries. This being the case, it would stand to reason that access to capital would result in alleviation of poverty. This is what microcredit programs which lend to the poor propose to do. Feiner and Barker (2006, p.10) reveal that this programs supposedly empower women therefore resulting in economic independence which translates to poverty alleviation.

Feiner and Barker lament that microcredit programs do nothing about the structural conditions which lead to poverty in the first place and as such are doomed to fail (Feiner & Barker 2006, p.10). This is the same condition with economic aid offered to developing nations which only consists of monetary packages.

This paper set out to argue that the problem of poverty in developing nations is as a result of the exploitation by developed nations as well as badly channeled aid efforts. These propositions have been reinforced through arguments backed by various authoritative sources.

This paper has shown that the wealthier international community will have to play a significant role to help reverse this situation since as this paper has suggested, the rich countries are to a great percentage responsible for the developing nation’s current poverty crises. However, the kind of help given needs to be more focused as monetary aid packages have been seen to provide only minimal help to the poor. Changing the structural conditions that lead to poverty has been hailed as being key to solving the developing world’s poverty crises.

Armstrong, D. 2008, Is Bigger Better? Using market incentives, Fazle Hassan Abeds antipoverty group helped pull Bangladesh out of the ashes. Next up: Africa, Forbes 66 Vol 181 Issue 11.

Feiner, S. F. & Barker, D. K. 2006, Microcredit and Women’s Poverty. American Research Library.

Keller, J. E. 2007, Africa in transition: facing the challenges of globalization. (for better or worse? Courting Africa). Harvard International Review 29.2.

Miller, G. 2005, poor Countries, Added Perils for Women. Science, 2005; 308, 5728; Academic Research library pg. 1576.

Peach, J. 2008, Galbraith and the problem of uneven development, Journal of Economic Issues 42.1: p25(11).

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Development Solutions: How to be sensitive

Half of the world’s poor live in fragile or conflict-affected countries. To end poverty, we need to break the cycle of fragility with special conflict development solutions

Part of the series "Development Solutions"
1 July 2020

By Mariella Ciuffreda, Sladjana Cosic and Harald Schölzel

No poverty . Some might call it a utopian ideal, but it is an achievable feat. Eliminating poverty is not just an economic necessity. It is our global responsibility. “ No poverty ” is the first among the United Nations Sustainable Development Goals, our blueprint for a better and more sustainable future for all. The 17 goals, intended to be achieved by 2030, are interdependent. If we cannot meet one of them, we fail at all of them.

But poverty is more than just a lack of money or assets. It is lack of food and shelter, as well as lack of access to affordable education, healthcare and basic infrastructure services. To solve poverty, we need to address the underlying issues that contribute to it. Fragility is a critical one.

Today, half of the world’s poor people live in fragile or conflict-affected countries 1 . By 2030, up to 80% of the extremely poor are projected to be living in fragile contexts 2 . Note that’s the same year by which we are supposed to end poverty altogether. This is why fragility has been recognised as a key impediment to the achievement of Sustainable Development Goals, and to our efforts to promote peace and prosperity 3 .

Today, half of the world’s poor people live in fragile or conflict-affected countries . By 2030, up to 80% of the extremely poor are projected to be living in fragile contexts

States of fragility

Addressing fragility will require investment, one that will strengthen countries’ institutions and make their economies and societies more resilient. This is why many international financial institutions, including the European Investment Bank, are scaling up the volume and types of financing they provide to fragile contexts through both public and private sector investments.

But how do we even determine which country is fragile? Fragility is characterised by unstable institutions and poor governance, which result in weak political, fiscal, security and service delivery functions. Fragile states are either unable or unwilling to fulfil these core functions for the majority of, or for specific sections of society. They are also more likely to experience violent conflict.

The link between conflict and fragility is clear. To understand conflict’s causes and drivers, one has to consider the overall institutional framework of the country. Fragility of both institutions and societies are key risk factors for conflict.

Fragility and conflict have been identified as critical development challenges , both for low- and middle-income countries, and they represent a major trap for developing countries. Since 2010, we have seen a dramatic spike in the number of violent conflicts 4 . From highly internationalised conflicts, such as the war in Syria, to localised conflicts in east Ukraine, northern Mali, and Mindanao in the Philippines.

But fragility is about more than just conflict. A country doesn’t need to experience an outright violent conflict to be deemed fragile.

To understand how fragile a country is, the European Investment Bank relies on specialised sources, such as the Organisation for Economic Co-operation and Development. Its 2020 States of Fragility report lists 57 fragile states. The European Investment Bank has planned or active operations in 39 of them . Other relevant sources include the World Bank’s Harmonized List of Fragile Situations , and the Global Peace Index .

Sense and sensitivity in conflict development solutions

Not to invest in countries affected by fragility, conflict and high levels of violence, would be to disregard two billion people living in them. The European Investment Bank has a long record of investing in fragile contexts inside and outside Europe.

The Bank itself was born at the heart of the European peace project. World War II wounds were still healing back when the EIB was founded. Economic integration was a major aspect of peacebuilding in Europe, and the European Investment Bank played a central role in it.

In the aftermath of the conflicts in former Yugoslavia in the 1990s, the Bank emerged as the leading international financier supporting reconstruction in the Western Balkans . More recently, the EIB developed, together with the European Commission, a €200 million Early Recovery Programme to support the conflict-affected areas in Ukraine . The United Nations Development Programme is helping ensure the transparency of the programme’s implementation .

Since the civil war broke out in Mali in 2012, the EIB has supported small businesses and financed water and energy infrastructure in the country. In the capital, Bamako, the Bank worked to provide clean water to more than half a million people , many of whom have fled the conflict-hit north of the country. The Bank is also contributing to the peacebuilding process in Colombia, having approved more than €600 million in financing for infrastructure projects since 2006. It set up an office in Bogotá to promote economic and social development on the continent.

To strengthen the effectiveness of our development interventions and maximize positive impact on peace, the Bank has developed a conflict sensitive approach .

The European Investment Bank’s conflict sensitive approach aims to:

reduce the risk of the conflict and fragility derailing the project
avoid the risk of conflict being exacerbated by the project and
contribute to conflict prevention and peacebuilding efforts through its investments.

Conflict sensitivity refers to the awareness of risks related to conflict, but also of the impact the project can have on the conflict itself – both in positive and negative terms.

Public and private investors need to understand that their investments don’t happen in a vacuum. Their financing can tilt the potential conflict one way or another. They can have a positive influence by contributing to conflict prevention and stabilisation. They can also unintentionally aggravate things.

To help its staff translate the principles of conflict sensitivity into action, the European Investment Bank set up a Conflict Sensitivity Helpdesk . The Helpdesk is run in collaboration with internationally renowned experts from two conflict-specialist organisations, Saferworld and Swisspeace . They help the EIB by assessing contextual risks and opportunities, and making recommendations for project adjustments, in order to make them more conflict sensitive. One of the projects in question is the desalination plant in Gaza.

Bringing water to Gaza

Gaza has a water crisis. Only 3% of its freshwater meets the World Health Organization’s quality guidelines. One of the most densely populated places in the world, Gaza faces the worst drinking-water conditions in the region. After a decade of work, however, we are close to securing clean water to two million people.

The solution: a desalination plant powered partly by solar energy , which will provide 55 million cubic meters of quality drinking water a year feeding a rehabilitated and upgraded water distribution network. This project is a result of an international collaboration spearheaded by the European Investment Bank, and its €580 million cost will be split equally between Western and Arab partners.

It’s a story over a decade in the making, due to the lack of stability in the region and the complex political context.

Anywhere else, this project might have been easy to implement. But Israel gives approval for the entry of materials and people into Gaza and takes a special interest in “dual use” materials that it considers potential security concerns. Thanks to the commitment of the parties involved, a solution has been found, which will enable the materials to travel to Gaza so the plant can be constructed.

The EIB’s Conflict Sensitivity Helpdesk supports the project by providing relevant political economy insights and suggesting appropriate measures for project preparation

The idea for a desalination plant had been recommended years before the EIB stepped in, but as many development projects in fragile areas it required an increased commitment and resourcefulness.

A common thread

Fragility is a complex phenomenon. As such it is closely linked to other significant development themes, among which climate change, gender equality, and migration and forced displacement are notable. The European Investment Bank is making important contributions in each of these.

I. Climate change

Climate change is a major driver of fragility and a threat multiplier.This doesn’t mean that conflicts emerge solely due to climate change, but that its impact often exacerbates the existing fragility. It is also likely to result in an increase in conflict and violence. On the other hand, conflict and fragility negatively affect the country’s ability to respond and adapt to climate change. The relationship is troublesome both ways.

However, climate action intervention can also contribute to conflict prevention. Reducing fragility—thereby improving a country’s ability to respond and adapt to climate change—contributes to the success of environmental and climate investments. As the EU climate bank , the EIB seeks to apply its experience in climate finance and reinforce the work on supporting climate projects in fragile contexts.

II. Gender equality

Gender considerations should be fully integrated in post-conflict and conflict-prevention policies and programmes. There is a strong correlation between women’s empowerment and gender equality and peace levels in a country 6 . A 2015 global study even named gender equality the number one predictor of peace. If you contribute to gender equality, you contribute to conflict prevention in a fragile context.

Women suffer disproportionately from the effects of violent conflict. At the same time, women have a critical role to play in peacebuilding, even though they are often excluded from positions of power. During conflict and post-conflict, women take on the roles of community mobilisers, often lead the recovery efforts and provide humanitarian aid. Women played a critical role in economic recovery in the aftermath of the 1994 genocide in Rwanda and in the Colombian peace negotiations, the result of which is internationally recognised as history’s most inclusive peace deal .

Since 2018, the European Investment Bank has provided training to its staff focusing on the connection between gender equality and fragility, and seeks to operationalize it by embedding gender equality in everything we do in fragile contexts.

III. Migration and forced displacement

An unprecedented 70.8 million people have been forced from their homes in 2019. Among them 25.9 million refugees 7 . The overwhelming part, however, were internally displaced people impacted by conflict. It’s no wonder migration and forced displacement have become major areas of focus for global development policy makers and institutions in recent years.

In 2016, the European Investment Bank launched the Economic Resilience Initiative , as part of the European Union’s response to the challenges in the Southern Neighbourhood and Western Balkans. The Economic Resilience Initiative blends funds from donors with EIB financing. It is designed to help these regions respond to crises such as refugee migration, economic downturns, political instability and natural disasters. The initiative is also focusing on creating employment and enhancing economic growth.

How things should be done

There were 54 active conflicts in the world in 2019 5 . To break the cycle of fragility and conflict we need to help these societies and their institutions recover. We need to invest in these countries, but in a way that will empower people and create the conditions for them to invest in their own lives. How can investors do that without making a bad situation worse?

Uppsala Conflict Data Program.

First, fragile states are not “blank slates” – or blank states, on which one can build new economic and social systems from scratch . This means dealing with the remnants of its institutions, however compromised they might be.

If investing in a fragile context, one needs to understand the local context. Not all fragile situations are the same. Avoid the “one size fits all” approach. Adapt strategies, products and services to fit the current and future needs of people and societies, which allow them to be flexible and resilient in times of crisis.

Expect that the project might take longer to get off the ground compared to regular circumstances. We mustn’t look for a quick fix, but rather a long-term solution. Economic investment alone might create wealth, but this wealth can be destroyed if the conflict re-emerges. This is why we need to apply a conflict sensitive approach and focus on conflict prevention. The investment should enable inclusion of different sections of society, especially those groups that are in danger of being excluded and under-represented. Ensuring an inclusive stakeholder engagement , which specifically targets marginalised groups, can lead to better development outcomes and higher levels of trust from local communities. Continuous inclusive stakeholder engagement is essential in countries where the sources of violence and conflict may be exclusion, discrimination, and marginalisation.

The main contribution of investment to conflict prevention is in providing conditions for self-sustaining economic growth, accompanied by significant employment creation and income generation. This is crucial to build peace in post-conflict situations. Employment is particularly important to short-term stability as it enables reintegration of ex-combatants and returnees.

Fragile states are not “blank slates” – or blank states, on which one can build new economic and social systems from scratch.

Partnerships with local communities, civil society organisations and relevant international organisations are especially vital in fragile and conflict-affected countries. These can strengthen project implementation and lead to efficiency savings, improved targeting of beneficiaries and potential innovations – all of which can help improve project outcomes and sustainability as well as enhance stakeholders’ sense of ownership.

Finally, the idea behind investment in post-conflict countries is not to restore these societies to the very pre-war conditions that fuelled the conflict in the first place. But to support the transformation of these societies politically, economically and socially by building institutional resilience and creating conditions for investment. Helping these countries make their institutions stronger and providing people with the support to rebuild their lives and livelihoods is the only way of breaking the vicious cycle of fragility and poverty.

Mariella Ciuffreda is a policy officer at the European Investment Bank. Sladjana Cosic is a senior social development specialist at the Environment, Climate and Social Office (ECSO) of the European Investment Bank. Harald Schölzel is a water engineer at the European Investment Bank.

The New European Consensus on Development, signed by the European Union and its Member States on 7 June 2017, stresses that "countries in situations of fragility or affected by conflict require special attention and sustained international engagement in order to achieve sustainable development" and that "the development cooperation of the EU and its Member States will be targeted where the need is greatest and where it can have most impact, especially in Least Developed Countries and in situations of fragility and conflict”.
Uppsala Conflict Data Program

Migration crisis: How the EU bank is tackling the challenge

New initiatives-and financing-from the EU bank for migrants and refugees

Impact adaptation

Adaptation to better manage the impacts of climate-related migration is crucial to protect economies – and millions of lives

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Social Sciences

Poverty in Developing Countries

18 Aug 2022

Format: APA

Academic level: College

Paper type: Essay (Any Type)

Downloads: 0

Developing countries have been on the spot for their continued underperformance despite many international institutions and governments providing a lot of funds in aid. This is evident in the rising levels of poverty that have become the order of the day. Noticeably, armed conflict proves to be another challenge and as seen in South Sudan, it robes the country of critical infrastructure and development. In the end, governments have to manage their institutions well and corruption should be eradicated if developing countries are to be developed .

Poverty in Developing Countries

If anything, one cannot help but notice that most developing countries are suffering due to their despotic political constructs. This is because in most developing countries, politics is what controls almost everything, especially wealth, and the allocation of resources such as land (Elayah, 2016). In this regard, corruption and mismanagement by the political class are what encourages poverty in developing countries.

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It is crucial to note that developing countries have to engage in mindful voting whereby they vote credible leaders who are willing to tackle corruption even among the most influential people in the country. Second is that the political class has to come to their senses and realize that with the continued mismanagement of public resources, there is no future (Elayah, 2016). For example, if funds to build infrastructure are always stolen , the next generation will wallow in poverty with their predecessors had done nothing to help them. In the end, transparency must be assured in the political structures. Transparency can be guaranteed by strengthening the judicial system and ensuring that no one takes shortcuts to circumnavigate justice (Zahonogo, 2016). Notably, procurement officials must be kept in check as well as key decision makers. If this is done , poverty will be a forgotten factor in developing countries.

International Finance in Developing Countries

It is saddening to learn that monetary assistance sent to developing countries disappears once it enters their banking systems. For instance, the World Bank supported developing countries with about $59 billion in their fiscal year between June 2016 and June 2017 (The World Bank, 2018). Despite this, the International Monetary Fund (IMF) has attested that five sub-Saharan countries are in debt distress with an additional nine being at risk to join those (Melina & Portillo, 2018). This implies that assistance to developing countries is simply stolen considering that developing nations are still wallowing in poverty. Many developing countries tend to borrow money without a proper plan on how to use it; with this in mind, money is stolen once it enters the banking system especially if it is deemed idle (Melina & Portillo, 2016). In the same way, rampant corruption tends to convince everyone that they cannot succeed in life without emptying the public coffers. It is, therefore, these and other factors that lead to the misuse of public funds.

War and Peace

Armed conflict has continued to be a crucial factor that facilitates the distractions in developing economies and their infrastructure. With 70% of the 1.1 million refugees from South Sudan being children, one cannot help but realize that the dangers of armed conflict (UNICEF, 2017). Children become orphans and some are separated from their parents, others are left to the streets as child prostitutes or soldiers. This education system is consequently broken apart and in the process, the economy of the prerequisite country falls. Also, infrastructure cannot be built in the presence of armed conflict and this is detrimental to the economy. Health infrastructures have continued to be attacked in South Sudan where about fifty medical institutions were attacked in 2016 and 2017. During armed conflict, citizens cannot take part in active and democratic elections especially with so many refugees (UNICEF, 2018). This in addition to the political class being sole decision makers even in the judicial system as it prevents any form of social upheaval from taking place.

Institutional Management

Notably, the ability to properly manage the institutions of a country is a key factor to assuring development. Such institutions that require proper management include the legislative, judicial, and financial systems. The legislative is needed to make laws, and in most cases, it is composed of a parliamentary system (Zahonog, 2016). It is, however, important to note that most developing countries tend to have corrupt parliamentarians who are simple “stamp it all” robots that do what they the elite requires them to (Zahonogo, 2016). This is a form of mismanagement that does not encourage development. On the other hand, the financial system should be credible enough to provide that funds are channelled to their right use. Instead, developing countries have created loopholes in their financial arrangements with bloated budgets and doubtful procurement structures that result in the loss of public funds. In this respect, mismanagement of institutions by the government is vital if development is to be realized in developing countries.

Conclusion

In conclusion, developing countries seem to grapple under the banner of arrested developments despite institutions such as the World Bank lending about $59 billion in 2016. Admittedly, this lack of progress is due to rampant corruption and armed conflicts that prevent critical social upheavals that would lead to development . With an example of South Sudan which has an ongoing armed conflict, it is evident that developing countries have to manage their government institutions well to assure change and encourage growth.

References

Elayah, M. (2016). Lack of foreign aid effectiveness in developing countries between a hammer and an anvil. Contemporary Arab Affairs , 9(1), 82-99.

Melina, G. & Portillo, R. (2018). Economic fluctuations in sub-Sahara Africa. International Monetary Fund.

The World Bank (2018). Nearly $59 billion in World Bank group support to developing countries in fiscal year 2017. Retrieved from www.worldbank.org/en/news/press-release/2017/07/18/nearly-59-billion-in-world-bank-group-support-to-developing-countries-in-fiscal-year-2017

UNICEF (2018). Reaching children in South Sudan . Retrieved from www.unicef.org/infobycountry/southsudan_74635.html

Zahonogo, P. (2016). Trade and economic growth in developing countries: Evidence from sub-Saharan Africa. Journal of African Trade, 3(1-2), pp. 41-56.

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Poverty and Health

Poverty is a major cause of ill health and a barrier to accessing health care when needed. This relationship is financial: the poor cannot afford to purchase those things that are needed for good health, including sufficient quantities of quality food and health care. But, the relationship is also related to other factors related to poverty, such as lack of information on appropriate health-promoting practices or lack of voice needed to make social services work for them.

Ill health, in turn, is a major cause of poverty. This is partly due to the costs of seeking health care, which include not only out-of-pocket spending on care (such as consultations, tests and medicine), but also transportation costs and any informal payments to providers. It is also due to the considerable loss of income associated with illness in developing countries, both of the breadwinner, but also of family members who may be obliged to stop working or attending school to take care of an ill relative. In addition, poor families coping with illness might be forced to sell assets to cover medical expenses, borrow at high interest rates or become indebted to the community.

Strong health systems improve the health status of the whole population, but especially of the poor among whom ill health and poor access to health care tends to be concentrated, as well as protect households from the potentially catastrophic effects of out-of-pocket health care costs. In general, poor health is disproportionately concentrated among the poor.

The World Bank’s work in the area of health equity and financial protection is defined by the 2007 Health, Nutrition and Population Strategy . The strategy identifies “preventing poverty due to illness (by improving financial protection)” as one of its four strategic objectives and commits the Bank’s health team, both through its analytical work and its regional operations, to addressing vulnerability that arises from health shocks.

The strategy also stresses the importance of equity in health outcomes in a second strategic objective to "improve the level and distribution of key health, nutrition and population outcomes... particularly for the poor and the vulnerable".

The Bank supports governments to implement a variety of policies and programs to reduce inequalities in health outcomes and enhance financial protection. Generally, this involves mechanisms that help overcome geographic, social and psychological barriers to accessing care and reducing out-of-pocket cost of treatment. Examples include:

Reducing the direct cost of care at the point of service, e.g. through reducing/abolishing user fees for the poor or expanding health insurance to the poor (including coverage, depth and breadth).
Increasing efficiency of care to reduce total consumption of care, e.g. by limiting “irrational drug prescribing,” strengthening the referral system, or improving the quality of providers (especially at the lower level).
Reducing inequalities in determinants of health status or health care utilization, such as reducing distance (through providing services closer to the poor), subsidizing travel costs, targeted health promotion, conditional cash transfers.
Expanding access to care by using the private sector or public-private partnerships.

The Bank’s health team also promotes the monitoring of equity and financial protection by publishing global statistics on inequalities in health status, access to care and financial protection, as well as training government officials, policymakers and researchers in how to measure and monitor the same.

Examples of how World Bank projects have improved health coverage for the poor and reduced financial vulnerability include:

The Rajasthan Health Systems Development Project resulted in improved access to care for vulnerable Indians. The share of below-poverty line Indians in the overall inpatient and outpatient load at secondary facilities more than doubled between 2006 and 2011, well exceeding targets. In the same period, the share of the vulnerable tribal populations in the overall patient composition tripled.

The Georgia Health Sector Development Project supported the government of Georgia in implementing the Medical Insurance Program for the Poor, effectively increasing the share of the government health expenditure earmarked for the poor from 4% in 2006 to 38% in 2011. It also increased the number of health care visits of both the general population and the poor, but by more for the poor (from 2 per capita per year to 2.6) than for the general population (from 2 to 2.3) over the same time period.

The Mekong Regional Health Support Project helped the government of Vietnam to increase access to (government) health insurance from 29% to 94% among the poor, as well as from 7% to 68% among the near-poor. Hospitalization and consultation rates, at government facilities, also increased among both the poor and near-poor.

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Please note you do not have access to teaching notes, self-employment: a means to reduce poverty in developing countries.

Journal of Economic Studies

ISSN : 0144-3585

Article publication date: 21 January 2022

Issue publication date: 24 February 2023

With self-employment providing earning opportunities to many working poor in developing countries, the study examines its role in alleviating poverty.

Design/methodology/approach

A five-year average of 56 developing countries from 1995–2019 is used. The empirical analysis is based on the dynamic two-step system GMM approach. While poverty is measured in terms of incidence, depth and severity; self-employment is used in three forms – total, male and female.

In line with the theoretical prediction, evidence suggests that self-employment in developing countries reduces poverty, albeit smaller magnitude. However, the poverty-reducing effects of self-employment differed based on poverty measure and threshold. The poverty-reducing effects are more prominent in poverty severity than incidence and intensity, and the magnitude of the impact is largest when poverty is measured at $1.90 a day as against $3.20 and $5.50 a day. Finally, the poverty-reducing effects of female self-employment are lower than their counterparts.

Practical implications

First, poverty-mitigating strategies in developing countries are advised to recognise self-employment as an essential tool to alleviate poverty. Consequently, alongside supporting the existing self-employed, policy focus should be on creating more and better self-employment opportunities for the poor. Second, rather than using generic measures to mitigate poverty, interventions specific to poverty measures and thresholds might ensure the maximum impact of such interventions. Third, gender-specific rather than gender-neutral labour market policies in addressing poverty are advised.

Originality/value

To the best of the author’s knowledge, this is the first study to examine the empirical relationship between self-employment and poverty. As such, it makes novel contributions to both labour and development economics.

Self-employment
Developing countries
Dynamic panel data
Two-step system GMM

Acknowledgements

The author thanks the anonymous reviewer and the editor for reviewing the manuscript and providing constructive and insightful comments to enhance the overall quality of the manuscript.

Data availability statement: The data supporting the study findings are available from the corresponding author upon reasonable request.

Yerrabati, S. (2023), "Self-employment: a means to reduce poverty in developing countries?", Journal of Economic Studies , Vol. 50 No. 2, pp. 129-146. https://doi.org/10.1108/JES-08-2021-0411

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Open Access

Peer-reviewed

Research Article

Evaluating poverty alleviation strategies in a developing country

Roles Conceptualization, Formal analysis, Funding acquisition, Methodology, Writing – original draft, Writing – review & editing

* E-mail: [email protected]

Affiliation Institute of Rural Management Anand (IRMA), Anand, Gujarat, India

Roles Data curation

Pramod K. Singh,
Harpalsinh Chudasama

Published: January 13, 2020
https://doi.org/10.1371/journal.pone.0227176
Peer Review
Reader Comments

A slew of participatory and community-demand-driven approaches have emerged in order to address the multi-dimensional nature of poverty in developing nations. The present study identifies critical factors responsible for poverty alleviation in India with the aid of fuzzy cognitive maps (FCMs) deployed for showcasing causal reasoning. It is through FCM-based simulations that the study evaluates the efficacy of existing poverty alleviation approaches, including community organisation based micro-financing, capability and social security, market-based and good governance. Our findings confirm, to some degree, the complementarity of various approaches to poverty alleviation that need to be implemented simultaneously for a comprehensive poverty alleviation drive. FCM-based simulations underscore the need for applying an integrated and multi-dimensional approach incorporating elements of various approaches for eradicating poverty, which happens to be a multi-dimensional phenomenon. Besides, the study offers policy implications for the design, management, and implementation of poverty eradication programmes. On the methodological front, the study enriches FCM literature in the areas of knowledge capture, sample adequacy, and robustness of the dynamic system model.

Citation: Singh PK, Chudasama H (2020) Evaluating poverty alleviation strategies in a developing country. PLoS ONE 15(1): e0227176. https://doi.org/10.1371/journal.pone.0227176

Editor: Stefan Cristian Gherghina, The Bucharest University of Economic Studies, ROMANIA

Received: September 27, 2019; Accepted: December 9, 2019; Published: January 13, 2020

Copyright: © 2020 Singh, Chudasama. This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Data Availability: All relevant data are within the manuscript and its Supporting Information files. The aggregated condensed matrix (social cognitive map) is given in S1 Table . One can replicate the findings of this study by analyzing this weight matrix.

Funding: The World Bank and the Ministry of Rural Development, Government of India

Competing interests: We hereby declare that none of the authors have any conflict of interest on this paper.

1. Introduction

1.1. poverty alleviation strategies.

Although poverty is a multi-dimensional phenomenon, poverty levels are often measured using economic dimensions based on income and consumption [ 1 ]. Amartya Sen’s capability deprivation approach for poverty measurement, on the other hand, defines poverty as not merely a matter of actual income but an inability to acquire certain minimum capabilities [ 2 ]. Contemplating this dissimilarity between individuals’ incomes and their inabilities is significant since the conversion of actual incomes into actual capabilities differs with social settings and individual beliefs [ 2 – 4 ]. The United Nations Development Programme (UNDP) also emphasises the capabilities’ approach for poverty measurement as propounded by Amartya Sen [ 5 ]. “ Ending poverty in all its forms everywhere ” is the first of the 17 sustainable development goals set by the United Nations with a pledge that no one will be left behind [ 6 ]. Development projects and poverty alleviation programmes all over the world are predominantly aimed at reducing poverty of the poor and vulnerable communities through various participatory and community-demand-driven approaches [ 7 , 8 ]. Economic growth is one of the principal instruments for poverty alleviation and for pulling the poor out of poverty through productive employment [ 9 , 10 ]. Studies from Africa, Brazil, China, Costa Rica, and Indonesia show that rapid economic growth lifted a significant number of poor people out of financial poverty between 1970 and 2000 [ 11 ]. According to Bhagwati and Panagariya, economic growth generates revenues required for expanding poverty alleviation programmes while enabling governments to spend on the basic necessities of the poor including healthcare, education, and housing [ 9 ]. Poverty alleviation strategies may be categorised into four types including community organisations based micro-financing, capability and social security, market-based, and good governance.

Micro-finance, aimed at lifting the poor out of poverty, is a predominant poverty alleviation strategy. Having spread rapidly and widely over the last few decades, it is currently operational across several developing countries in Africa, Asia, and Latin America [ 12 – 21 ]. Many researchers and policy-makers believe that access to micro-finance in developing countries empowers the poor (especially women) while supporting income-generating activities, encouraging the entrepreneurial spirit, and reducing vulnerability [ 15 , 21 – 25 ]. There are fewer studies, however, that show conclusive and definite evidence regarding improvements in health, nutrition, and education attributable to micro-finance [ 21 , 22 ]. For micro-finance to be more effective, services like skill development training, technological support, and strategies related to better education, health and sanitation, including livelihood enhancement measures need to be included [ 13 , 17 , 19 ].

Economic growth and micro-finance for the poor might throw some light on the financial aspects of poverty, yet they do not reflect its cultural, social, and psychological dimensions [ 11 , 21 , 26 ]. Although economic growth is vital for enhancing the living conditions of the poor, it does not necessarily help the poor exclusively tilting in favour of the non-poor and privileged sections of society [ 4 ]. Amartya Sen cites social exclusion and capability deprivation as reasons for poverty [ 4 , 27 ]. His capabilities’ approach is intended to enhance people’s well-being and freedom of choices [ 4 , 27 ]. According to Sen, development should focus on maximising the individual’s ability to ensure more freedom of choices [ 27 , 28 ]. The capabilities approach provides a framework for the evaluation and assessment of several aspects of the individual’s well-being and social arrangements. It highlights the difference between means and ends as well as between substantive freedoms and outcomes. An example being the difference between fasting and starving [ 27 – 29 ]. Improving capabilities of the poor is critical for improving their living conditions [ 4 , 10 ]. Improving individuals’ capabilities also helps in the pooling of resources while allowing the poor to engage in activities that benefit them economically [ 4 , 30 ]. Social inclusion of vulnerable communities through the removal of social barriers is as significant as financial inclusion in poverty reduction strategies [ 31 , 32 ]. Social security is a set of public actions designed to reduce levels of vulnerability, risk, and deprivation [ 11 ]. It is an important instrument for addressing the issues of inequality and vulnerability [ 32 ]. It also induces gender parity owing to the equal sovereignty enjoyed by both men and women in the context of economic, social, and political activities [ 33 ].

The World Development Report 1990 endorsed a poverty alleviation strategy that combines enhanced economic growth with provisions of essential social services directed towards the poor while creating financial and social safety nets [ 34 , 35 ]. Numerous social safety net programmes and public spending on social protection, including social insurance schemes and social assistance payments, continue to act as tools of poverty alleviation in many of the developing countries across the world [ 35 – 39 ]. These social safety nets and protection programmes show positive impacts on the reduction of poverty, extent, vulnerability, and on a wide range of social inequalities in developing countries. One major concern dogging these programmes, however, is their long-term sustainability [ 35 ].

Agriculture and allied farm activities have been the focus of poverty alleviation strategies in rural areas. Lately, though, much of the focus has shifted to livelihood diversification on the part of researchers and policy-makers [ 15 , 40 ]. Promoting non-farm livelihoods, along with farm activities, can offer pathways for economic growth and poverty alleviation in developing countries the world over [ 40 – 44 ]. During the early 2000s, the development of comprehensive value chains and market systems emerged as viable alternatives for poverty alleviation in developing countries [ 45 ]. Multi-sectoral micro-enterprises may be deployed for enhancing productivity and profitability through value chains and market systems, they being important for income generation of the rural poor while playing a vital role in inclusive poverty eradication in developing countries [ 46 – 48 ].

Good governance relevant to poverty alleviation has gained top priority in development agendas over the past few decades [ 49 , 50 ]. Being potentially weak in the political and administrative areas of governance, developing countries have to deal with enormous challenges related to social services and security [ 49 , 51 ]. In order to receive financial aid from multinational donor agencies, a good governance approach towards poverty reduction has become a prerequisite for developing countries [ 49 , 50 ]. This calls for strengthening a participatory, transparent, and accountable form of governance if poverty has to be reduced while improving the lives of the poor and vulnerable [ 50 , 51 ]. Despite the importance of this subject, very few studies have explored the direct relationship between good governance and poverty alleviation [ 50 , 52 , 53 ]. Besides, evidence is available, both in India and other developing countries, of information and communication technology (ICT) contributing to poverty alleviation programmes [ 54 ]. Capturing, storing, processing, and transmitting various types of information with the help of ICT empowers the rural poor by increasing access to micro-finance, expanding the use of basic and advance government services, enabling the development of additional livelihood assets, and facilitating pro-poor market development [ 54 – 56 ].

1.2. Proposed contribution of the paper

Several poverty alleviation programmes around the world affirm that socio-political inclusion of the poor and vulnerable, improvement of social security, and livelihood enhancement coupled with activities including promoting opportunities for socio-economic growth, facilitating gender empowerment, improving facilities for better healthcare and education, and stepping up vulnerability reduction are central to reducing the overall poverty of poor and vulnerable communities [ 1 , 11 ]. These poverty alleviation programmes remain instruments of choice for policy-makers and development agencies even as they showcase mixed achievements in different countries and localities attributable to various economic and socio-cultural characteristics, among other things. Several poverty alleviation programmes continue to perform poorly despite significant investments [ 8 ]. The failure rate of the World Bank’s development projects was above 50% in Africa until 2000 [ 57 ]. Hence, identifying context-specific factors critical to the success of poverty alleviation programmes is vital.

Rich literature is available pertinent to the conceptual aspects of poverty alleviation. Extant literature emphasises the importance of enhancing capabilities and providing social safety, arranging high-quality community organisation based micro-financing, working on economic development, and ensuring good governance. However, the literature is scanty with regard to comparative performances of the above approaches. The paper tries to fill this gap. This study, through fuzzy cognitive mapping (FCM)-based simulations, evaluates the efficacy of these approaches while calling for an integrative approach involving actions on all dimensions to eradicate the multi-dimensional nature of poverty. Besides, the paper aims to make a two-fold contribution to the FCM literature: i) knowledge capture and sample adequacy, and ii) robustness of the dynamic system model.

The remainder of the paper proceeds as follows: We describe the methodology adopted in the study in section two. Section three illustrates key features of the FCM system in the context of poverty alleviation, FCM-based causal linkages, and policy scenarios for poverty alleviation with the aid of FCM-based simulations. We present our contribution to the extant literature relating to FCM and poverty alleviation. Finally, we conclude the paper and offer policy implications of the study.

2. Methodology

We conducted the study with the aid of the FCM-based approach introduced by Kosko in 1986 [ 58 ]. The process of data capture in the FCM approach is considered quasi-quantitative because the quantification of concepts and links may be interpreted in relative terms [ 59 ] allowing participants to debate the cause-effect relations between the qualitative concepts while generating quantitative data based on their experiences, knowledge, and perceptions of inter-relationships between concepts [ 60 – 64 , 65 – 68 ]. The FCM approach helps us visualise how interconnected factors/ variables/ concepts affect one another while representing self-loop and feedback within complex systems [ 62 , 63 , 69 ]. A cognitive map is a signed digraph with a series of feedback comprising concepts (nodes) that describe system behavior and links (edges) representing causal relationships between concepts [ 60 – 63 , 65 , 70 – 72 ]. FCMs may be created by individuals as well as by groups [ 60 , 72 , 73 ]. Individual cognitive mapping and group meeting approaches have their advantages and drawbacks [ 72 ]. FCMs allow the analysis of non-linear systems with causal relations, while their recurrent neural network behaviour [ 69 , 70 , 74 ] help in modelling complex and hard-to-model systems [ 61 – 63 ]. The FCM approach also provides the means to build multiple scenarios through system-based modelling [ 60 – 64 , 69 , 74 , 75 ].

The strengths and applications of FCM methodology, focussing on mental models, vary in terms of approach. It is important to remember, though, that (i) the FCM approach is not driven by data unavailability but is responsible for generating data [ 60 , 76 ]. Also that (ii) FCMs can model complex and ambiguous systems revealing hidden and important feedback within the systems [ 58 , 60 , 62 , 69 , 76 ] and (iii) FCMs have the ability to represent, integrate, and compare data–an example being expert opinion vis-à-vis indigenous knowledge–from multiple sources while divulging divergent viewpoints [ 60 ]. (iv) Finally, FCMs enable various policy simulations through an interactive scenario analysis [ 60 , 62 , 69 , 76 ].

The FCM methodology does have its share of weaknesses. To begin with: (i) Respondents’ misconceptions and biases tend to get encoded in the maps [ 60 , 62 ]. (ii) Possibility of susceptibility to group power dynamics in a group model-building setting cannot be ruled out; (iii) FCMs require a large amount of post-processing time [ 67 ]. (iv) The FCM-based simulations are non-real value and relative parameter estimates and lack spatial and temporal representation [ 60 , 77 , 78 ].

These drawbacks notwithstanding, we, along with many researchers, conceded that the strengths and applications of FCM methodology outweighed the former, particularly with regard to integrating data from multiple stakeholders with different viewpoints.

We adopted the multi-step FCM methodology discussed in the following sub-sections. We adopted the multi-step FCM methodology discussed in the following sub-sections. We obtained individual cognitive maps from the participants in two stages: ‘open-concept design’ approach followed by the ‘pre-concept design’ approach. We coded individual cognitive maps into adjacency matrices and aggregated individual cognitive maps to form a social cognitive map. FCM-based simulation was used to build policy scenarios for poverty alleviation using different input vectors.

2.1. Obtaining cognitive maps from the participants

A major proportion of the literature on fuzzy cognitive maps reflects an ‘open-concept design’ approach, while some studies also rely on a ‘pre-designed concept’ approach with regard to data collection.

In the case of the ‘open-concept design’ approach, concepts are determined entirely by participants and are unrestricted [ 59 , 60 , 62 , 63 , 65 – 67 , 79 , 80 ]. While the researcher determines the context of the model by specifying the system being modelled, including the boundaries of the system, participants are allowed to decide what concepts will be included. This approach provides very little restriction in the knowledge capture from participants and can be extremely beneficial especially if there is insufficient knowledge regarding the system being modelled.

In the case of the ‘pre-designed concept’ approach, concepts are pre-determined either by experts or by researchers using available literature [ 64 , 69 , 74 , 81 , 82 ]. In this approach, the researcher is able to exercise a higher degree of control over how the system is defined. The ‘pre-designed concept’ approach is likely to be more efficient compared to the ‘open-concept design’ in the context of time required for model building. However, it restricts the diversity of knowledge captured from participants and is able to influence more heavily the way in which this knowledge is contextualised based on input and interpretation.

We have adopted a ‘mixed-concept design’ approach for this study involving data collection in two stages:

2.1.1. Stage one: ‘Open-concept design’ approach.

During the first stage, we engaged with the experts and national-level policy-makers who designed the Deendayal Antyodaya Yojana -National Rural Livelihoods Mission (DAY-NRLM), a centrally sponsored programme in India. The DAY-NRLM aims at abolishing rural poverty by promoting multiple livelihoods for the rural poor and vulnerable households. The programme is focussed on organising the rural poor and vulnerable communities into self-help groups (SHGs) while equipping them with means of self-employment. The four critical components of the programme viz ., (i) universal social mobilisation and institution building, (ii) financial inclusion, (iii) convergence and social development, and (iv) livelihood enhancement are designed to address the exclusions of these communities, eliminate their poverty, and bring them within the ambit of mainstream economic and social systems. Participants comprising three experts from the World Bank, nine experts from the National Mission Management Unit of the DAY-NRLM, and 25 monitoring and evaluation experts from 25 states of India created 37 FCMs. A sample map of FCMs obtained from these participants is provided in S1 Fig . We demonstrated the construction of fuzzy cognitive maps with the aid of a map from a neutral problem domain referring to direct and consequential impacts of deforestation, which had been approved by the ‘Research Ethics Committee’ of our Institute.

A group discussion was held with the participants regarding the issues under investigation subsumed under the title “critical factors required to ensure that people come out of poverty on a sustainable basis”. It prompted them to identify major concepts pertaining to the above. These were listed down on a whiteboard by the researchers. Once the participants had understood the process of drawing a fuzzy cognitive map and identified major concepts responsible for poverty alleviation, they were asked to draw a fuzzy cognitive map individually. The participants used the concepts listed on the whiteboard to draw fuzzy cognitive maps. Many participants added new concepts while drawing the maps. They then connected all the concepts through various links based on their personal understanding. The links, represented by arrows in between concepts, show the direction of influence between them.

The participants assigned weights to each link on a scale of 1–10 to describe the relationship strength between two concepts [ 60 ]. Ten denoted the highest strength and one the lowest; the numbers 1–3 signified relationships with low strength, 4–6 signified relationships with medium strength, and 7–10 signified relationships with high strength. After constructing the FCMs each participant made a presentation, which was video-recorded, explaining their map to the researchers. The researchers, based on causal relationships between the concepts, assigned positive and negative polarities to the weights of the links [ 59 , 60 , 62 – 64 , 66 – 68 , 72 ].

2.1.2. Stage two: ‘Pre-designed concept’ approach.

During the second stage, an instrument depicting 95 concepts under 22 concept categories was prepared based on the FCMs obtained from participants during the first stage ( S2 Fig ). The instrument also contained links between the 22 concept categories. ‘Research Ethics Committee’ of our Institute approved this instrument as well. We used this instrument during the second stage to obtain FCMs. We obtained 123 additional FCMs, of which 20 FCMs were obtained from the Chief Executive Officers along with experts from livelihood, enterprise, and community development domains belonging to the National Mission Management Unit in the states of Bihar, Jharkhand, Madhya Pradesh, and Maharashtra. The remaining 103 FCMs were obtained from 103 district project coordinators, who had agreed to participate in the study. Unlike most FCM-based studies, which usually rely upon 30 to 50 participants, this study involved 174 experts and project implementers. Most participants produced FCMs individually and some in pairs. The 174 participants produced 160 FCMs.

The participants were given the instrument and were instructed to assign weights to each concept, wherever applicable, and leave other cells blank. These weights were assigned based on the concepts’ significance regarding poverty alleviation in India. The instrument was designed to allow participants to add new concepts and/or remove existing ones from the instrument based on their understanding and perceptions. Later, the participants were asked to assign weights to all pre-established links between the 22 concept categories. The instrument also allowed participants to draw new linkages between the categories and/or discard the existing relationships based on their understanding and perceptions. After constructing the FCMs each participant made a presentation to the researchers, which was video-recorded. During the process, participants added 55 new concepts within the pre-classified 22 concept categories. Five new concepts were added under a new category. The final data comprised 23 concept categories and 155 concepts ( S3 Fig ).

2.2. Coding individual cognitive maps into adjacency matrices

The individual FCMs were coded into separate excel sheets, with concepts listed in vertical and horizontal axes, forming an N x N adjacency matrix. The weights of the links, on a scale of 1−10, were normalised in the −1 to +1 range [ 62 , 63 ]. The values were then coded into a square adjacency matrix whenever a connection existed between any two concepts [ 60 , 62 – 64 , 66 ].

2.3. Aggregation of individual cognitive maps

This aggregation approach has been adopted by many researchers [ 59 , 60 , 63 – 67 , 74 , 79 , 84 – 87 ]. A large number of concepts in an aggregated (social/ group) fuzzy cognitive map with many interconnections and feedback form a complex system. Aggregation of all the 160 individual cognitive maps produced a social cognitive map ( S1 Table ). This shows the cumulative strength of the system.

2.4. Structural analysis of the system

Structural analysis of the final condensed social cognitive map was undertaken using the FCMapper software. The graph theory of a cognitive map provides a way of characterising FCM structures employing several indices in addition to the number of concepts (C) and links (W) such as in-degree, out-degree, centrality, complexity index, and density index [ 60 ].

The degree centrality of a concept is the summation of its in-degree and out-degree. The higher the value, the greater is the importance of a concept in the overall model [ 60 ].

Transmitter concepts (T) depict positive out-degree and zero in-degree. Receiver concepts (R) represent positive in-degree and zero out-degree. Ordinary concepts (O) have both a non-zero in-degree and out-degree [ 60 ].

2.5. Fuzzy cognitive maps-based simulations

The scenarios formed through FCM-based simulations can serve to guide managers and policy-makers during the decision-making process [ 62 – 64 , 66 , 69 , 82 , 88 – 90 ]. An FCM is formed out of the adjacency matrix and a state vector, representing the values of the connections between the concepts and the values of the system concepts [ 62 , 63 , 69 ]. The weighted adjacency matrix of an FCM forms a recurrent neural network, including concepts and interconnections for processing the information and feedback loops [ 88 , 91 ]. These have been used to analyse system behavior by running FCM-based simulations in order to determine possible future scenarios.

In order to understand FCM-based simulations, let us understand the FCM as a quadruple, i.e. M = (C n , W , A , f) , where, n is the set of all concepts ( C ) in the map, W : ( C i , C j ) → w ij is a function which defines the causal weight matrix, W M × M , A : ( C i ) → A ( t ) i is a function that computes the activation degree of each concept C i at the discrete-time step t ( t = 1, 2, …, T ), and f (.) is the transfer function [ 63 , 71 , 92 , 93 ]. Knowledge and experience of stakeholders regarding the system determine the type and number of concepts as well as the weights of the links in FCMs. The value A i of a concept C i , expresses the quantity of its corresponding value. With values assigned to the concepts and weights, the FCM converges to an equilibrium point [ 71 , 91 ]. At each step, the value A i of a concept is calculated, following an activation rule, which computes the influence of other concepts to a specific concept.

Where, n is the total number of concepts, A i ( t +1) is the value of concept C i at simulation step t +1, A i ( t ) is the value of concept C i at simulation step t , A j ( t ) is the value of concept C j at simulation step t , w ji is the weight of the interconnection between concept C j and concept C i , and f is the transformation function [ 64 , 90 ]. The restriction i ≠ j is used when self-causation is assumed to be impossible [ 91 ].

2.5.1. Development of input vectors for policy scenarios.

Identifying pivotal concepts is a traditional approach in scenario planning that helps linking storylines to the quantitative model [ 96 ]. In the FCM-based scenario analysis, recognition of such pivotal concepts, termed as input vectors, mainly relies upon participants’ perceptions along with the characteristics of the model. We identified four input vectors for four poverty alleviation policy scenarios based on existing literature on poverty alleviation strategies. The fifth input vector is based on the concepts with the highest weights identified by the participants. In the sixth input vector, the concept representing entrepreneurship is replaced by the concept representing livelihood diversification considering its importance based on existing literature [ 15 , 40 ]. All six scenarios are explained below:

Scenario 1 : High-quality community organisation based micro-financing —Input vector 1: C2, C3, C4, C5, C11, and C12 (strong institutions of the poor, community heroes driving the programme, capacity building of the community organisations, mainstream financial institutions supporting community organisations, need-based finance, and developing repayment culture). This scenario tries to examine how high-quality community organisation based micro-finance could alleviate poverty.

Scenario 2 : Capabilities and social security —Input vector 2: C19, C20, C21, C22, and C23 (affordable and approachable education and healthcare, social inclusion, building personal assets, adequate knowledge base, and vulnerability reduction). This scenario tries to estimate how improving the capabilities of the poor and providing them social security would help alleviate poverty.

Scenario 3 : Market-based approach —Input vector 3: C13, C14, C15, C16, and C17 (livelihood diversification, entrepreneurship, multi-sectoral collective enterprise, value addition by collectives, and market linkages). This scenario tries to evaluate how a market-based approach could alleviate poverty.

Scenario 4 : Good governance approach —Input vector 4: C6, C7, C8, C9, and C10 (good governance systems and processes, robust monitoring mechanisms, implementation process, linkages/ convergence/ partnerships, and enabling policy & political will). This scenario tries to evaluate how good governance is crucial for poverty alleviation.

Scenario 5 : Integrative approach 1 —Input vector 5: C2, C3, C6, C9, C10, C14, and C19 (strong institutions of the poor, community heroes driving the programme, sound governance systems and processes, enabling policy & political will, linkages/ convergence/ partnerships, entrepreneurship, and affordable and approachable education and healthcare). This scenario tries to assess how the most critical concepts, identified by the participants, are crucial for poverty alleviation.

Scenario 6 : Integrative approach 2 —Input vector 6: C2, C3, C6, C9, C10, C13, and C19 (strong institutions of the poor, community heroes driving the programme, good governance systems and processes, enabling policy & political will, linkages/ convergence/ partnerships, livelihood diversification, and affordable and approachable education and healthcare). This scenario tries to assess how the most important concepts, including livelihood diversification, are critical for the alleviation of poverty. Based on the relative weights, scenarios 4 to 6 also had alternative input vectors incorporating sensitive support structure (C1) without any demonstrable results.

2.5.2. Simulation process.

Each concept in the system has an initial state vector A 0 that varies from 0 to |1|. which is associated with an activation vector, where 0 means ‘non-activated’ and |1| means ‘activated’ [ 65 , 80 ]. A new state of the concepts can be calculated by multiplying the adjacency matrix with the state vector [ 69 ]. When one or more concepts are ‘activated’ this activation spreads through the matrix following the weighted relationships. During the simulation process, each iteration produces a new state vector with ‘activated’ concepts and ‘non-activated’ concepts. Self-loops and feedback cause a repeated activation of concepts, introducing non-linearity to the model [ 61 , 70 , 88 ]. The activation of concepts is iterated, using a ‘squashing function’ to rescale concept values towards |1|, until the vector values stabilise and the model reaches equilibrium or steady-state [ 61 , 65 , 70 ]. The resulting concept values may be used to interpret outcomes of a particular scenario and to study the dynamics of the modeled system [ 61 – 63 , 70 ].

The simulation process is carried out with the initial state vector of the input vectors, identified in each scenario (1 to 6), clamped to 1 ( A 1 ) and the initial state vector of all the other concepts clamped to 0 ( A 0 ). We applied the activation rule proposed by Stylios [ 94 ], to run simulations because of its memory capabilities along with the sigmoid transformation function as the links have only positive values. The sensitivity of the system was analysed by clamping the concepts of each input vector to 0.1, 0.2, 0.3, 0.4, 0.5, 0.6, 0.7, 0.8, and 0.9 ( S4 Fig ) to determine whether the system behaves in a similar manner in each simulation [ 62 , 63 , 72 , 89 ].

3. Results and discussions

3.1. key features of the fcm system in the context of poverty alleviation.

The social cognitive map built by combining the individual FCMs comprises 23 concepts and 51 links ( Fig 2 and S1 Table ). This FCM system has a density index of 0.088, which signifies that 8.8% links are actually made of the maximum number of links that could theoretically exist between the 24 concepts. The FCM system has a complexity index of 0.125, which showcases more utility outcomes and less controlling forcing functions. However, unless the density and complexity values of the FCM system are compared to those of other FCM systems representing a similar topic, interpretation of these figures is challenging [ 75 ].

There are some autonomous concepts virtually disengaged from the system. Some dependent concepts although have a relatively low degree of influence, exhibit strong dependence. The contribution of a concept in a cognitive map can be understood by its degree centrality, which is the summation of in-degree and out-degree. Table 1 illustrates the in-degree and out-degree and degree centrality of the FCM system. Concepts have been depicted such as C2: strong institutions of the poor, C15: multi-sectoral collective enterprise development, C13: livelihood diversification and C14: entrepreneurship have higher degree centrality. These concepts should be interpreted as the greatest strength of poverty alleviation strategies. The most influential concepts (i.e., those with the highest out-degree) affecting the poverty alleviation strategies are C6: good governance systems and processes, C19: affordable and approachable education and healthcare, C18: climate-smart production systems, C2: strong institutions of the poor, and C5: mainstream financial institutions supporting CBOs. Scenario analysis results will later help us gain a deeper understanding of the connectivity and influencing concepts of poverty alleviation.

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https://doi.org/10.1371/journal.pone.0227176.t001

The participants also provided the state vector values (A) of all the concepts (C) based on their understanding of the relative significance of these concepts regarding poverty alleviation in India ( Fig 1 ).

https://doi.org/10.1371/journal.pone.0227176.g001

The results show that participants assigned greater significance to the following concepts- C3: community heroes driving the programme, C1: quality support structure, C19: affordable and approachable education and healthcare, C6: good governance systems and processes, C2: strong institutions of the poor, C12: developing repayment culture, and C7: robust monitoring mechanisms.

The results acknowledge that building strong institutions of the poor for a community-demand-driven and community-managed poverty alleviation programme is likely to enjoy greater success. They also confirm that developing robust monitoring mechanisms can ensure better functioning of the community-based organisations (CBOs). Robust governance systems and processes are essential for vibrant CBOs. They can empower communities to have better access to affordable education and healthcare facilities. Better access to micro-finance for these CBOs could help alleviate the economic poverty of the poor and vulnerable communities.

The results, however, fail to capture the cultural and social dimensions of poverty.

3.2. Understanding the poverty alleviation strategy

This section summarises the views of participants across the concepts based on the presentations made by them to the researcher during both the stages of knowledge capture. Fig 2 illustrates the cognitive interpretive diagram formed using the social cognitive map. The concepts, represented by each node in the diagram, are connected by several links. These links establish relationships between the concepts representing the basis of degree centrality. The central concept is people coming out of poverty, which is depicted with yellow color in Fig 2 .

Participants indicated that setting up a quality and dedicated support structures at multiple levels (national, state, district, and block) is essential for poverty alleviation ( Fig 2 : C1). The support structures should be staffed with professionally competent and dedicated human resources. The crucial role of these support structures is to build and nurture strong institutions of the poor ( Fig 2 : C2) at multiple levels and evanesce when community heroes start driving the programme. Building and sustaining strong, inclusive, self-managed, and self-reliant institutions of the poor at various levels such as self-help groups (SHGs), village organisations (VOs), and cluster-level federations (CLFs) through training, handholding, and systematic guidance are crucial to the success of a poverty alleviation programme. However, superior CBOs are required to ensure the quality of primary-level institutions and their sustainability. Adherence to the five principles (regular meetings, regular savings, regular inter-loaning, timely repayment of the loans, and up-to-date books of accounts), co-ordination, and cohesiveness between the members would go a long way in building strong institutions of the poor.

https://doi.org/10.1371/journal.pone.0227176.g002

Participants emphasised the importance of community heroes in driving the poverty alleviation programme ( Fig 2 : C3). The poverty eradication programme is likely to meet with greater success if it is entirely operated and managed by the community. Involving experienced community members for social mobilisation, capacity building and scaling-up of various processes within the project will ensure effective functioning and implementation of the programme. Participants believed that the capacity building of the CBOs, community resource persons, community cadres, and community service providers ( Fig 2 : C4) are essential for poverty alleviation. Apart from training in social and financial inclusion, these community members should be provided with knowledge, skills, and tools to improve their existing livelihoods and for managing innovative livelihood collectives and micro-enterprises. Providing access to financial services to society’s most vulnerable group in a cost-effective manner through mainstream financial institutions and allowing the poor to become preferred clients of the banking system is fundamental to the financial inclusion strategy of a poverty alleviation programme ( Fig 2 : C5). The SHG-bank linkage enables an easy access to micro-finance for the SHGs. It also serves to foster their faith towards the banking system.

Good governance systems and processes are crucial to building sensitive support structures and strong institutions of the poor ( Fig 2 : C6). A well-structured process for participatory identification of the poor by the community helps identify very poor, poor, vulnerable, tribal, differently-abled, and other marginalised communities in a village. A robust process for grading the quality of SHGs and their federations could help maintain a high standard for these institutions. Strong, robust, and transparent monitoring mechanisms ( Fig 2 : C7) could ensure good governance systems and processes. The process-oriented approach of the programme needs to undergo continuous review, assessment, and course-correction from the qualitative and quantitative progress achieved at various levels. Hence, participants suggested that a robust ICT-based monitoring and evaluation system remain in place for facilitating informed decision-making at all levels. The participants also indicated the urgency of robust implementation of institutional accountability and a self-monitoring process in institutions of the poor at all levels, including peer internal review mechanisms, external social auditing, public expenditure tracking, and community scorecards, in order to build stronger institutions of the poor ( Fig 2 : C8). Transparency in the functioning of human resources at all levels aided by regular meetings, reviews, and monitoring of progress could ensure effective implementation of the programme. Maintaining equity and transparency in releasing finances and ensuring effective fund utilisation across all eligible groups could also help focus on the most vulnerable groups.

The participants believed that a poverty alleviation programme should have a strong convergence with other welfare programmes ( Fig 2 : C9). Stronger emphasis should be placed on convergence for developing synergies directly and through the institutions of the poor. Participants suggested that the programme recognise the importance of engaging with industries to set up platforms for public-private-partnerships in farm and non-farm sectors while developing various sector-specific value chains to harness the comparative advantage of the micro-enterprise sector. The political will to support and encourage CBOs, enabling policies for smooth and efficient working of the institutions of the poor, diminished political influence in the decision-making of CBOs, and timely and adequate resource allocation on the part of government institutions is critical for poverty alleviation programmes ( Fig 2 : C10).

Participants acknowledged that livelihood augmentation requires customised need-based financing for the poor and vulnerable ( Fig 2 : C11). Access to micro-finance at affordable rates of interest coupled with desired amounts and convenient repayment terms are needed for the poverty reduction of communities. Providing interest subvention for all SHG loans availed from mainstream financial institutions, based on prompt loan repayment, helps develop a healthy loan repayment culture ( Fig 2 : C12).

Participants opined that diversification of livelihoods would ensure steady incomes for households ( Fig 2 : C13). The development of micro-enterprise in farm and non-farm sectors could encourage institutions of the poor in the aggregation of produce, value-addition, and marketing of finished goods. Therefore, it is imperative that more and more sustainable enterprises be created by the poor to improve their livelihood security. The demand-driven entrepreneurship ( Fig 2 : C14) programmes could be taken up through public-private-partnerships. Provisions could be made for incubation funds and start-up funds for the development of multi-sectoral livelihood collectives ( Fig 2 : C15) to foster a collective entrepreneurship spirit. Livelihood activities, in order to be commercially viable, would require economy of scale, enabling the adoption of available technologies while providing better bargaining power, offering a more significant political clout, and influencing public policy over time. Building specialised multi-sectoral collective institutions of the poor, such as producers’ companies and co-operatives could make the latter key players in the market. These livelihood institutions could carry out participatory livelihood mapping and integrated livelihood planning as well as build robust livelihood clusters, supply chains, and value chains. They could also identify gaps in the supply and value chains, create backward and forward linkages, and tap market opportunities for intervention and collectivisation for chosen livelihood activities ( Fig 2 : C16; C17). Developing adequate and productive infrastructure for processing, storage, packaging, and transportation is crucial for value addition ( Fig 2 : C16). The demand-based value chain development is currently evident in micro-investment planning processes. Identifying non-farm activities to support enterprises in a comprehensive way could also be crucial. Adequate market linkages and support services like branding, market research, market knowledge, market infrastructure, and backward linkages would go a long way in deriving optimum returns from the chosen livelihood activities ( Fig 2 : C17).

Several eco-friendly, climate-smart, and innovative approaches in agriculture production systems will ensure the sustainability of production systems even in the context of climate change ( Fig 2 : C18). Contemporary grassroots innovations supplemented by robust scientific analysis, mainly supported by various government programmes, are likely to ensure enhanced and efficient production systems. Focus on developing adequate infrastructure for processing, storing, and transporting for value addition would serve to reduce post-harvest losses.

Participants believed that affordable and approachable quality education up to the secondary level as well as affordable and quality healthcare facilities are crucial for poverty alleviation ( Fig 2 : C19). Convergence with mid-day-meal schemes will not only encourage communities to send their children to schools but also help curb malnutrition. An affordable and approachable healthcare system is likely to help reduce health-related vulnerabilities of the poor. Crucial is an approach that identifies all needy and poor households while primarily focussing on vulnerable sections like scheduled castes, scheduled tribes, particularly vulnerable tribal groups, single women and women-headed households, disabled, landless, migrant labor, isolated communities, and those living in disturbed areas. Equally crucial is including them in institutions of the poor ( Fig 2 : C20). Customised micro-financing coupled with adequate instruments on healthcare and education could aid vulnerability reduction ( Fig 2 : C23). The social, human, and personal assets created by developing institutions of the poor are crucial for sustaining and scaling-up of the poverty alleviation programme ( Fig 2 : C21). This will also allow women to articulate their problems and improve their self-confidence, enhance their respect in society, develop leadership qualities, inspire them to speak and express their feelings unhesitatingly, and empower them economically and socially. Developing an academic understanding of the factors that support community institutions is crucial for the social infrastructure developed to facilitate the social capital building of the poor and vulnerable communities ( Fig 2 : C22).

3.3. FCM-based simulations

In order to evaluate critical factors responsible for poverty alleviation, we used six input vectors for FCM-based simulations. For each scenario, causal propagation occurs in each iteration until the FCM system converges [ 62 – 65 , 67 , 70 , 91 ]. This happens when no change takes place in the values of a concept after a certain point, also known as the system steady-state; the conceptual vector at that point is called the final state vector [ 62 – 65 , 67 , 70 , 91 ]. Values of the final state vectors depend on the structure of the FCM system and concepts considered for input vectors. The larger the value of the final state vectors, the better the selected policies [ 62 – 65 ]. Comparisons between the final state vectors of the alternative simulations are drawn in order to assess the extent of the desired transition by activating each set of input vectors. The initial values and final state vectors of all the concepts for every scenario are presented in Table 2 . The graphical representation of various scenarios for poverty alleviation is provided in the S5 Fig .

https://doi.org/10.1371/journal.pone.0227176.t002

The first scenario highlights the effects of high-quality community organisations based micro-financing approach. If strong institutions of the poor are built and community heroes start driving the poverty alleviation programme, capacity building of the CBOs gets underway. If mainstream financial institutions start supporting CBOs while customised need-based finance and a repayment culture is developed significant efforts would still be required for putting good governance systems and processes in place along with linkages/ convergences/ partnerships along with other schemes while building capabilities of the poor. In the case of successful micro-financing, there will be opportunities for livelihood diversification, entrepreneurship, multi-sectoral collective enterprise development, value addition by collectives, and market linkages.

The second scenario highlights the effects of the capabilities approach and social security. In this case, affordable and approachable education and healthcare, social inclusion, the building of personal assets, adequate knowledge base, and vulnerability reduction are ensured. In this context, ample efforts will be required for mainstream financial institutions supporting CBOs, good governance systems and processes, and linkages/ convergences/ partnerships with other schemes. Efforts will also be required for a quality support structure and customised need-based finance. The capability and social security enhancement could have prospects for strong institutions of the poor, better implementation processes, livelihood diversification, entrepreneurship, value addition by collectives, multi-sectoral collective enterprise development, and vulnerability reduction.

The third scenario highlights the outcomes of the market-based approach. Here, livelihood diversification, entrepreneurship, multi-sectoral collective enterprise development, value addition by collectives, and market linkages are activated. In such a situation, adequate efforts will be required for mainstream financial institutions supporting CBOs, good governance systems and processes, and linkages/ convergences/ partnerships with other schemes. Efforts will also be required for continuous capacity building of the CBOs, customised need-based finance, affordable and approachable education and healthcare, and vulnerability reduction.

The fourth scenario highlights the outcomes of good governance. Here, good governance systems and processes, robust monitoring mechanisms, implementation processes, enabling policies and political will, and linkages/ convergence/ partnership with other governmental schemes are ensured. In such a situation, plentiful efforts will be required for mainstream financial institutions to lend their support to CBOs and for the building of personal assets. Efforts will also be required for developing a repayment culture, climate-smart production systems, and vulnerability reduction. Good governance is likely to ensure strong institutions of the poor, development of collective enterprises, livelihood diversification, entrepreneurship, value addition by collectives, and market linkages.

In the fifth and sixth scenarios, we activated the most important concepts identified by the participants. The sixth scenario is similar to the fifth one except that the concept C14: entrepreneurship has been replaced by the concept C13: livelihood diversification. The simulation results reveal that quality of CBOs, strong institutions of the poor, community heroes driving the programme, good governance systems and processes, convergence with other schemes/ programmes, enabling policies and political will, and livelihood diversification are very critical for poverty alleviation in a developing nation.

The participants judged a relatively higher weight for the concept C1 (sensitive support structure) ( Fig 1 ). This could be attributed to a conflict of interest on the part of the participants. Even after activating the concept C1 across policy scenarios 4 to 6, the outcome does not change. This also justifies the fact that any community-demand-driven and community-managed poverty alleviation programme has to be self-sustainable in the long-term. Therefore, while a poverty alleviation programme may make use of a support structure in its initial phase, it should persist at thriving even after the support structure has been withdrawn.

4. Contributions to FCM and poverty literature and future research directions

This section deals with contributions of the paper to FCM and poverty literature while offering a practical approach to address multi-dimensional poverty. The paper makes a two-fold contribution to FCM literature: i) knowledge capture and sample adequacy and ii) robustness of the dynamic system model. FCM sampling is often extended if additional maps keep adding new dimensions/ insights. The saturation of FCM sampling is formally measured by tracking the number of new concepts introduced in subsequent exercises and estimating an accumulation curve of concepts. When the point of saturation is reached data collection is stopped. In most studies, the saturation of FCM sampling is reported at 30–32 maps [ 60 , 62 , 63 , 66 , 72 ]. This study does demonstrate, however, that in the event of a ‘mixed-concept design’ approach when the participants gain access to concepts already identified by other sets of participant groups the latter participants continue to add new concepts, making the system much more complex and the data richer. Most FCM-based case studies published in scientific journals have taken weights of the causal interactions between the concepts. This study has not only obtained weights of the causal interactions between the concepts but also obtained weights of each concept. Results of the FCM-based simulations, by and large, match with the most critical concepts identified by participants represented by higher relative weights. This demonstrates in-depth understanding of participants of the subject matter and robustness of the system.

Scenarios are defined as ‘a plausible description of how the future may develop based on a coherent and internally consistent set of assumptions’ [ 97 ]. It also represents uncertainty as a range of plausible futures. Hence, in order to establish proper causal pathways of various poverty eradication approaches, it may be necessary to design random control trial experiments along each of the poverty eradication approaches and carry out the efficacy of each approach delineated above using the difference-in-difference micro-econometric model.

5. Conclusions

The results of our FCM-based simulations reveal that in order to eradicate poverty one needs to provide micro-finance through high-quality community organisations, enhance capabilities of the poor while providing social safety nets to the poor and vulnerable, ensure good governance within community organisations and institutions supporting them, continue to diversify livelihood options, and provide market linkages to small producers. Our findings confirm that various approaches to poverty alleviation are rather complementary and need to be implemented simultaneously for a comprehensive poverty alleviation drive. However, in relative terms, factors like good governance within community organisations and supporting institutions, high-quality community organisations based micro-financing, and enhancement of capabilities coupled with social security assurance seem to work better than a market-based approach. There is rich literature available on radical approaches like land reforms, decentralisation and poverty alleviation that have not been evaluated in this study. Nevertheless, findings of the study lead us to conclude that in order to address multi-dimensional poverty an integrated and multi-dimensional poverty alleviation approach is needed. Findings of the study are likely to help improve the design, management, and implementation of poverty eradication programmes in developing countries.

Supporting information

S1 fig. a simple fcm obtained during the workshop conducted in phase 1..

https://doi.org/10.1371/journal.pone.0227176.s001

S2 Fig. The survey instrument used during phase 2 of the data collection.

https://doi.org/10.1371/journal.pone.0227176.s002

S3 Fig. A list of all the concept categories and sub-concepts after data collection.

https://doi.org/10.1371/journal.pone.0227176.s003

S4 Fig. Sensitivity analysis of the system.

https://doi.org/10.1371/journal.pone.0227176.s004

S5 Fig. Various scenarios for poverty alleviation.

https://doi.org/10.1371/journal.pone.0227176.s005

S1 Table. Social cognitive map.

https://doi.org/10.1371/journal.pone.0227176.s006

Acknowledgments

We thank the World Bank team and functionaries of DAY-NRLM at national, state, and district levels for participating in the study. Indrani Talukdar is acknowledged for language editing. We thank the Academic Editor and the two anonymous reviewers for providing insightful comments and constructive suggestions.

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The evolution of global poverty, 1990-2030

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Poverty Reduction Strategies in Developing Countries

Rural Development - Education, Sustainability, Multifunctionality

Author Information

1. Introduction

2. Some definitions and statistics

3. Poverty alleviation strategies

3.1 Stimulating inclusive economic growth

3.2 Economic and institutional reforms

3.3 Promoting microfinance institutions and programs

3.4 Improving the marketing systems

3.5 Cash/income transfer programs

4. Selected case studies on poverty reduction in developing countries

4.1 Sub-Saharan Africa

4.3 Latin America

5. Conclusions and policy implications

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Evaluating poverty alleviation strategies in a developing country

1. Introduction

1.2. Proposed contribution of the paper

2. Methodology

2.1. Obtaining cognitive maps from the participants

2.1.1. Stage one: ‘Open-concept design’ approach.

2.1.2. Stage two: ‘Pre-designed concept’ approach.

2.2. Coding individual cognitive maps into adjacency matrices

2.3. Aggregation of individual cognitive maps

2.4. Structural analysis of the system