Poverty: Its Causes and Solutions

Poverty is a multi-facet phenomenon in today’s globalised world. It is rooted in various causes and there are also multiple ways to do away with it. This paper begins with a review on the definitions and measurement of poverty and followed by discussing the various causes of poverty. This paper specifically identifies corruption, education, political instability, geographical characteristics, ineffective local governance and government policies as the causes of poverty. It then suggests possible solutions or recommendations to eradicate poverty based on the causes discussed earlier. Some of the suggestions include strengthening democratic transparency and government budget transparency, public awareness, creation of a framework for economic growth and transformation, and ways to increase the ability of the poor to raise their income.





References:
[1] Shah, A. Poverty Facts and Stats. Global Issues 2010 (cited 2012 26
March); Available from: http://www.globalissues.org/article/26/
poverty-facts-and-stats.
[2] World Population Reference Bureau. World Population Data Sheet. 2011
(cited 2012 24 March); Available from: http://www.prb.org/pdf11/
2011population-data-sheet_eng.pdf.
[3] Jahan, S. Achieving Millennium Development Goals: Partnership And
Participation. 2003; Available from: http://www.undp.org/content/dam/
aplaws/publication/en/publications/poverty-reduction/poverty-website/a
chieving-millennium-development-goals-partnership-and-participation/
Achieving%20the%20MDGs_Partnership%20and%20Participation_Jah
an_June2003.pdf.
[4] United Nations. We can end Poverty 2015. 2010 (cited 2012 20 March);
Available from: http://www.un.org/millenniumgoals/pdf/
MDG_FS_1_EN.pdf
[5] Laderchi, C.R., R. Saith, and F. Stewart, Does it Matter that we do not
Agree on the Definition of Poverty? A Comparison of Four Approaches.
Oxford Development Studies, 2003. 31(3): p. 243-274.
[6] Oxford Dictionary Online. 2012.
[7] Gordon, D. Indicators of Poverty and Hunger. 2005 (cited 2012 28
March]; Available from: http://www.un.org/sa/socdev/unyin/documents/
ydiDavidGordon_poverty.pdf.
[8] World Bank, World Development Report 2000/2001: Attacking Poverty.
2000c, Washington, D.C.: World Bank.
[9] World Bank. Participatory Poverty Assessment Niger. 2003 (cited 2012
26 March]; Available from: http://siteresources.worldbank.org/
INTPCENG/1143333-1116505707719/20509329/ba-larry-NigerFinal.pd
f.
[10] Booth, D. and H. Lucas, Good Practice in the Development of PRSP
Indicators and Monitoring Systems. ODI Working Paper. 2002, London:
Overseas Development Institute
[11] Sumner, A., Economic well-being and non-economic well-being. 2004,
Geneva, UN: World Institute for Development Economics Research.
[12] Haughton, J. and S.R. Khandker, Poverty Inequality Handbook. 2007,
Washington D.C.: World Bank.
[13] World Bank, World Development Indicators. 2001, Washington, D.C:
World Bank.
[14] Gordon, D. and P. Spicker, The international glossary on poverty. 1999,
London: CROP Publications.
[15] World Bank, Anticorruption in transition: A contribution to the Policy
Debate. 2000a, Washington, D.C.: The World Bank.
[16] Rebert Klitgaard, R., Controlling Corruption. 1988, Berkeley and Los
Angeles: University of California Press.
[17] Mauro, P., Why Worry About Corruption? Economic Issue, No. 6. 1997,
Washington, D.C.: International Monetary Fund.
[18] Warren, M.E., What does corruption mean in a democracy? American
Journal of Political Science 2004. 48(2): p. 328-43.
[19] Mauro, P., Corruption and Growth. The Quarterly Journal of Economics,
1995. 110(3): p. 681-712.
[20] Ravallion, M. and S. Chen, What can New Survey Data tell us about
recent changes in distribution and poverty? World Bank Economic
Review, 1997. 11(2): p. 357-382.
[21] Bardhan, P., Corruption and Development: A review of Issue. Journal of
Economic Literature 1997. 35: p. 1320-46.
[22] Tanzi, V., Corruption Around the World: Causes, Consequences, Scope
and Cures. Staff Papers, International Monetary Fund, 2000. 45: p.
559-94.
[23] Asian Development Bank, Governance in Asia: From Crisis to
Opportunity, in ADB Annual Report. 1998, Asian Development Bank:
Manila. p. 15-36.
[24] Acemoglu, D. and T. Verdier, The Choice Between Market Failure and
Corruption. American Economic Review, 2000. 90(1): p. 194-211.
[25] Van Rijckeghem, C. and B. Weder, Bureaucratic Corruption and the Rate
of Temptation: Do Wages in the Civil Service Affect Corruption and by
how much? Journal of Development Economics 2001. 65: p. 307-331.
[26] Ahmad, Q.K., Reforming the Parliament in Bangladesh: Structural
Constraints and Political Dilemmas. Commonwealth of Comparative
Politics 1997. 36: p. 68-91.
[27] Kochanak, S.A., Patron-Client Politics and Business in Bangladesh. 1993,
Dhaka: University Press Limited.
[28] Gupta, S., H. Davoodi, and R. Alonso-Terme, Does Corruption Affect
Income Inequality and Poverty?, I.W.P.N. WP/98/76, Editor. 1998.
[29] World Bank, Corruption in Bangladesh-Costs and Cures. 2000b, Dhaka:
World Bank.
[30] Alesina, S. and D. Rodrick, Distributive Politics and Economic Growth.
Quarterly Journal of Economics, 1994. 109: p. 465-90.
[31] Persson, T. and G. Tabellini, Is Inequality Harmful for Growth? American
Economic Review, 1994. 108: p. 345-58.
[32] Glaeser, E., J. Scheinkman, and A. Shleifer, The Injustice of Inequality.
Journal of Monetary Economics, 2003. 50: p. 199-222.
[33] Li, H., L.C. Xu, and Heng-fuZou, Corruption, Income distribution and
Growth. Economics and Politics, 2000. 12: p. 155-82.
[34] Hendriks, J., M. Keen, and A. Muthoo, eds. Corruption, Extortion and
Evasion. Discussion Paper No. 98/09. 1998, University of Exeter,
Department of Economics.
[35] Johnston, M., Corruption, Inequality and change, in Corruption,
Development, and Inequality: Soft touch and Hard Graft P.M. Ward,
Editor. 1989, Routledge: London.
[36] Meltzer, A.H. and S.F. Richard, A Rational Theory of the Size of
Government. Journal of Political Economy, 1981. 89: p. 914-27.
[37] Wei, S., How taxation is Corruption on International Investors? Review
of Economics and Statistics 2000. 82(1): p. 1-11.
[38] Londono, J.L. and M. Szekely, Surprises after a Decade of Reforms: Latin
America in the Nineties, in Latin America After a Decade of Reforms:
What Comes Next?, R.H.a.E. Lora., Editor. 1997, Inter-American
Development Bank: Washington, D.C.
[39] Fields, G.S., Poverty, Inequality and Development. 1980, Cambridge:
Cambridge University Press.
[40] World Bank, Nigeria: Structural Adjustment Program: Policies,
Implementation and Impact. 1994, Washington, D.C.: World Bank.
[41] Romer, P.M., Human Capital and Growth: theory and evidence.
Carnegie-Rochester Series on Public Policy, 1990. 32: p. 251-286.
[42] Jeffery, R. and A.M. Basu, Girls Schooling, Women’s Autonomy and
Fertility Change in South Asia. 1996, New Delhi: Sage.
[43] Ishikawa, M. and D. Ryan, Schooling basic skills and economic
outcomes. Economics of Education Review, 2002. 21: p. 231-243.
[44] Mauro, P., Corruption and the Composition of Government Expenditure.
Journal of Public Economics, 1998. 69: p. 263-279.
[45] Barro, R.J., Economic growth in a cross section of countries. Quarterly
Journal of Economics, 1991. 2: p. 407-443.
[46] USA Census Bureau Current Population Survey, Annual Social and
Economic Supplement, Microdata, Calculation. 2007: The Mid America
Institute on Poverty of Heartland Alliance.
[47] Daniel, C., The Wealth of the World and the Poverty of Nations. 1998,
Cambridge, MA: MIT Press.
[48] Hoynes, H.W., M.E. Page, and A.H. Stevens, Poverty in America: Trends
and Explanations. Journal of Economic Perspectives, 2006. 20(1): p.
47-68
[49] Sen, A.K., Democracy as a Universal Value. Journal of Democracy, 1999.
10(3): p. 3-17.
[50] Shaul, M.S., School dropouts: Education could play a stronger role in
identifying and disseminating promising prevention strategies, in Report
to the Honorable Jim Gibbons, House of Representatives. 2002, General
Accounting Office: Washington D.C.
[51] Valetta, R. and J. Hodges, Age and education effects on the employment
rate. FRBSF Economic Letter, Number 2005-15. 2005, San Francisco.
[52] Mishel, L., J. Berstein, and S. Allegretto, The State of Working America
2006/2007. Economic Policy Institute. 2006, Ithaca, New York: ILR
Press.
[53] Newman, K.S. and R.P. Massengill, The texture of hardship: Quanlitative
Sociology poverty 1995-2005. Annual Review of Anthropology, 2006.
25: p. 423-446.
[54] Collier, P. and A. Hoeffler, Greed and Grievance in Civil War, in CSAE
WPS/2002-01. 2002, World Bank.
[55] Collier, P. and A. Hoeffler, Greed and Grievance in Civil War. Oxford
Economic Papers, 2004. 56(4): p. 563-595.
[56] Collier, P. and A. Hoeffler, On Economic Causes of Civil War, in Oxford
Economic Papers. 1998.
[57] New York Times. An Oil Dispute Escalates Toward All-Out War. 2012
(cited 2012 7 May); Available from: http://topics.nytimes.com/top/news/
international/countriesandterritories/sudan/index.html.
[58] Elbadawi, I.A., Civil Wars and Poverty: the Role of External
Interventions, Political Rights and Economic Growth, in Civil Conflicts,
Crime and Violence. 1999, World Bank’s Development Economic
Research Group (DECRG): World Bank, Washington, D.C.
[59] Collier, P. and J.W. Gunning, Explaining African Economic Performance.
Journal of Economic Literature, 1999. 37 p. 64-111.
[60] Collier, P. and J.W. Gunning, Explaining African Economic Performance.
Journal of Economic Literature, 1999a. 37: p. 64-111.
[61] Collier, P. and J.W. Gunning, Why Has Africa Grown Slowly? The
Journal of Economic Perspectives, 1999b. 13(3): p. 3-22.
[62] Fédération Internationale des Droits de l’Homme, Rapport sur la
Commission d’enquête sur les violations des droits de l’Homme au
Rwanda depuis le 1er Octobre 1990. 1993, Paris-New York: Africa
Watch
[63] Justino, P. and P. Verwimp, Poverty Dynamics, Violent Conflict and
Convergence in Rwanda., in MICROCON Research Working Paper 4.
2008, A Micro Level Analysis of Violent Conflict, Institute of
Development Studies at the University of Sussex, Brighton BN1 9RE:
Brighton.
[64] Collier, P. and J.W. Gunning, Why Has Africa Grown Slowly? The
Journal of Economic Perspectives, 1999. 13(3): p. 3-22.
[65] Sachs, J.D., et al., Ending Africa's Poverty Trap, in Brookings Papers on
Economic Activity, 1, W.C. Barainard and G.L. Perry, Editors. 2004, The
Brookings Institution: Washington D.C. p. 117-240.
[66] Bloom, D.E. and J.D. Sachs., Geography, Demography, and Economic
Growth in Africa, in BPEA, no. 2. 1998. p. 207-273.
[67] Lwanga-Ntale, C. and K. McClean, The face of Chronic Poverty in
Uganda from the Poor’s Perspective, Journal of Human Development
2004. 5(2): p. 177-194
[68] Grove, A.T., The African Environment, in Africa 30 Years On, D.
Rimmer, Editor. 1991, James Currey: London.
[69] Hillman, A.L., The World Bank and the persistence of poverty in poor
countries. European Journal of Political Economy, 2002. 18: p. 783–795.
[70] Crook, R.C., Decentralisation and Poverty Reduction in Africa: The
Politics of Local-Central Relations. Public Administration and
Development, 2003. 23: p. 77-88.
[71] Ghana Central Bureau of Statistics, Quarterly Digest of Statistics. 1988:
Accra.
[72] Kenya Central Bureau of Statistics, Statistical Abstract. 1996: Nairobi.
[73] Pradhan, S., Evaluating Public Spending, in World Bank Discussion
Paper 323. 1996: Washington DC.
[74] Fafchamps, M., J.W. Gunning, and R. Oostendorp, Inventories, Liquidity
and Contractual Risk in African Manufacturing. 1998, Department of
Economics, Stanford University, mimeo.
[75] Reinikka, R. and J. Svensson, Investment Response to Structural Reforms
and Remaining Constraints: Firm Survey Evidence from Uganda. 1998,
World Bank: Mimeo, Africa Region.
[76] Easterly, W.i. and R. Levine., Africa's Growth Tragedy: Policies and
Ethnic Divisions. Quarterly Journal of Economics, 1997. CXII: p.
1203-1250.
[77] Widner, J., A. , The Courts as Restraints, in Investment and Risk in Afnca,
P. Collier and C. Pattillo, Editors. 1999, Macmillan: London.
[78] Sacks, J.D. and M. Warner., Sources of Slow Growth in African
Economies. Journal of Afncan Economies, 1997. 6: p. 335-376.
[79] Dollar, D., Outward-Oriented Developing Economies Really do Grow
More Rapidly: Evidence from 95 LDCs 1976-85. Economic Development
and Cultural Change, 1992. 40: p. 523-44.
[80] Dercon, S., Peasant supply response and macroeconomic policies: cotton
in Tanzania. Journal of African Economies, 1993. 2: p. 157-94.
[81] Hanlon, J. and A. Pettifor, Kicking the Habit; Finding a lasting solution to
addictive lending and borrowing—and its corrupting side-effects. 2000,
London: Jubilee Research.
[82] Dhar, S., India: Civil Society Shows Its Muscle, in Inter Press Service.
2011.
[83] Mshoro, I.B., Reducing Poverty Through Education – and How, in UN
Chronicle. 2010.
[84] Rice, S.E., C. Graff, and J. Lewis, Poverty and Civil War: What
Policymakers Need to Know. 2006, Washington DC: The Brookings
Institution.
[85] United Nations Economic Commission for Africa, Africa Review Report
on Drought and Desertification. 2007, Addis Ababa.
[86] Pandey, S. and H. Bhandari, Drought, coping mechanisms and poverty.
2009, Rome: International Fund for Agricultural Development (IFAD).
[87] Okidi, J.A. and G.K. Mugambe, An overview of Chronic Poverty and
Development Policy in Uganda. 2002, Uganda: Chronic Poverty
Research Centre.