Poverty can be defined as pronounced deprivation in well being. Individuals are considered poor if their income falls below the poverty line or poverty level. Poverty has affected both developing and developing nations, but it is widely spread in developing countries Although Latin America has plenty of natural resources, it is faced with a serious poverty problem. The Economic Commission and the Caribbean indicate that poverty has grown in both absolute and relative terms in Latin America. Recently, a good number of countries in that region have endorsed poverty eradication mechanisms and demonstrated that they can tackle poverty and reduce inequality. Below are some prescriptions on how to eradicate and reduce poverty.
Aids are allocated among countries so that they can meet certain objects like, funding education programs, to improve health facilities or to meet humanitarian emergencies. The most commonly cited objective is to support aid program is poverty reduction. Poverty efficient allocations of aid can roughly double the impact as indicated in research by Paul Collier and David Dollar. Donors affect growth and development when they allocate funds to low income countries, and in turn they reduce poverty. According to Dollar and Kraal (2001), average growth per capita GDP translates in proportional growth of income of the poor. Good growth and development policies affect the income of the poor in a positive manner.
Aids should not just be allocated randomly; they should be distributed to countries with good policies with serious poverty problems. For this idea to be effective, this program should be restricted to minimizing poverty levels only. Donors programs often target the poor and in some cases they alter the distribution of income. However, these alterations may not be significant in some developing countries due to increase in public expenditure.
International experience in the past few decades indicate that growth is essential when eradicating poverty. Quality growth has a positive impact in people’s lives, and it favors employment. Between 2003 and 2007 Argentina had to put in place certain key polices that played a significant role in poverty eradication. Industries majorly contributed to the growth through exports, and there was a significant increase in terms of consumption and employment. Industries were encouraged by active policies that sought to improve domestic demand through exchange rate and support of exports (Kliksberg,1999).
Private investments are particularly useful for eradicating poverty. The private investments that were created in Argentina accounted for 18% of the gross domestic product in 1990s.in 2006 investments were ten times higher as compared to 2002, amongst many other things around six million residents benefited from water and sewers projects. More than one and a half million benefited by gaining employment from the projects. In the tourism sector, public promotion policies and maximization of private investment attracted a very large number of tourists in the country. The number of tourists visiting the country between 2001 and 2006 doubled.
To eradicate poverty, major world communities should play a leading role in supporting the developing, and under developed countries by pooling a lot of energy and resources to reduce diseases, illiteracy, encourage local investment and proper use of readily available resources. Governments in most developing countries have lacked enough commitment in poverty eradicating program because most of them are full of corruption. They should show commitment and come up with programs and policies that can create employment for young people. To eradicate poverty, they must also be keen on the policies they put in place and ensure that they are well implemented.
Good governance and roper administration encourage proper growth and development. They also aid in effective fighting of poverty. A good government aims and promoting social stability and preserves social cohesion, which is majorly achieved through democracy. It also respects human rights and supports its citizens in encouraging and providing god policies for self employment. Forging global alliances by the international communities with governments, from all the countries, international financial organizations and civil societies should join hands to help eradicate poverty especially in countries that the majority of the people live below the poverty line.
Poverty alleviation can also involve efforts that target to improve the living conditions of individuals of people who are already suffering with poverty. Aids especially for health care and scientific areas are essential in improving the living conditions like the Green Revolutions and projects that aim at eradicating smallpox. Continuous economic development is affected by lack of economic freedom. To encourage economic liberation, property rights should be extended to poor people, especially on land. The government should help the poor access financial services with low interests so that they are able to invest.
Non industrialized economies produce very little, hence wealth distribution is very scarce while the population is high and most of the people remain poor. Industrialization contributes to rapid economic growth and hence eliminates mass poverty making the country developed. Two cities in Western Europe, Antwerp and Lyon had 75% of its population poor. This was to the extent that they could not afford to pay taxes. Poverty was reduced as a result of economic growth. Industrial Revolution is what eradicated poverty in those two cities. In addition, in relation to poverty eradication and development women empowerment primarily address gender equality and both women and men are given an opportunity are given a chance to work and develop a nation. Greater gender equality offers a greater opportunity for poverty reduction.