Causes And Consequences Of Poverty

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“According to the World Bank, more than one billion people today live on less than $1 per day; about 70% of those people are women. Every 3.5 seconds, a child dies in the developing world from poverty-related circumstances” (“The Effects of Poverty Causes and Consequences of Poverty Today”). The solution to poverty is a very broad topic that has been and is still being discussed and studied. The solution clearly depends on what is causing the problem, poverty, in the first place. Although many attempts have been made to eradicate poverty completely, most of them have failed; however what has had an effect on the population is the reduction, to a certain extent, of the level of poverty that is currently found in the world. Therefore in order…show more content…
These suggestions, if implemented properly, would move the economy out and away from the poverty cycle and into development, growth, and/or both. To reduce poverty in less developed, poor countries, one can start by improving the supply of clean water available, which can reduce the percentage of sickness and mortality rates; improving healthcare services which will reduce the susceptibility of catching diseases; and improving training and equipment for farming and agriculture in order to help increase crop yields and conserve the environment (“Solutions to world poverty, a look at the basic answers”). Also, rich countries could begin by improving the quality of education available for poor children such as providing public education for the entire population along with creating job opportunities. This would generate an incentive and motivate the people to work harder (“Solutions to world poverty, a look at the basic answers”). For all these improvements to occur, the government of a country should allocate a larger national budget. This is one of the major concerns, financial capital, since almost all countries are in debt. Therefore, a more realistic approach that will attempt to formulate possible polices that will reduce poverty gradually is the introduction to the topic of microfinance and…show more content…
Microfinance has made an impact and plays an important role in reducing poverty. It achieves this by promoting productivity and initiating self-employment and income generating activities. Microfinance offers poor people the availability and access to loans, savings and other essential financial services (“About Microfinance How we can end Poverty”). Poor people are usually not given the right to borrow money from the bank because they usually do not have sufficient assets, credit history, and employment records therefore these types of loans are needed by them so they can have some financial capital in order to build a business, enhance their existing small business and be able to grow (“About Microfinance How we can end Poverty”). “With microfinance at the helm, focus moved toward the fostering and support of the “informal” sector, in hopes that a helping hand would allow people to essentially pull themselves above the poverty line” (Leikem 6). “In 2008 it was estimated that there were more than 2,000 microfinance institutions, representing 99 million borrowers in more than 100 countries” (Gonzalez 2008). Many of the institutions of this type did not require previous credit history or the ownership of several assets. It has been recorded and reported that loan repayment rates are above 95

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