World Academy of Science, Engineering and Technology

International Journal of Humanities and Social Sciences

Vol:7, No:8, 2013

Poverty: Its Causes and Solutions

Alex Hou Hong Ng, Abdul Ghani Farinda, Fock Kui Kan, Ai Ling Lim, Teo Ming Ting

find it more difficult to reduce poverty.

Abstract—Poverty is a multi-facet phenomenon in today’s In the year 2000, 189 nations made a pledge to reduce
globalised world. It is rooted in various causes and there are also extreme or absolute poverty and also to lessen the various
multiple ways to do away with it. This paper begins with a review on deprivations that poor people face every day [3]. The
the definitions and measurement of poverty and followed by
Millennium Development Goals (MDGs) was set up by the UN
discussing the various causes of poverty. This paper specifically
identifies corruption, education, political instability, geographical based on this pledge. The goal is to free people from extreme
characteristics, ineffective local governance and government policies poverty situations by 2015. In 2010, UN once again reaffirmed
as the causes of poverty. It then suggests possible solutions or itself to make fast progress towards the goals. The first MDG
recommendations to eradicate poverty based on the causes discussed goal is to eradicate extreme poverty and hunger [4]. The three
earlier. Some of the suggestions include strengthening democratic main targets of MDG1 refer to the population between the years
transparency and government budget transparency, public awareness,
1990 to 2015. Its targets are to halve the proportion of people
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creation of a framework for economic growth and transformation, and

ways to increase the ability of the poor to raise their income. whose income is less than $1 a day, to achieve full and
productive employment and decent work for all, inclusive of
Keywords—Economic Policy, Government Policy, Poverty women and young people and to halve the proportion of people
Eradication, Sustainable Development. who suffer from hunger [4], [5].
This paper aims to identify causes of poverty and suggest
I. INTRODUCTION possible solutions or recommendations to reduce if not to
eradicate extreme poverty. Firstly, the paper reviews on the
A CCORDING to the 2008 World Bank Indicators which is
based on the 2005 survey, 5% of global income comes
from 40% of the world’s poorest population [1]. On the other
definitions and measurements of poverty and followed by the
discussion on various causes of poverty. Lastly, the paper
hand, 75% of global income is derived from 20% of the world’s concludes with few recommendations and discussion.
rich. The World Bank Indicators continue to show that at least
80% of the world’s population lives on less than US$10 a day II. DEFINING AND MEASURING POVERTY
and over three (3) billion people of the world live on less than
A. Definition of Poverty
US$2.50 a day. The United Nations’ (UN) in their 2011, The
Millennium Development Goal Report, states that in 2005 there The word ‘poverty’ in English has been derived from an old
were 1.4 billion people living in extreme poverty on less than French word poverte or in Latin paupertas. According to the
US$1.25 a day. It has been projected by UN that by 2015 there Oxford dictionary, poverty means “the state of being extremely
will be less than 900 million people living on a wage less than poor and the state of being inferior in quality or insufficient in
US$1.25 a day. Statistics shows that the area with a high amount” [6].
number of people living in extreme poverty is Sub-Saharan However, in this paper, the UN and World Bank’s definition
African and followed by Southern Asia. In the Democratic of poverty is used. In 1998, UN described poverty in a
Republic of Congo, eight in ten residents live on less than US$2 statement as a violation of human dignity whereby humans are
per day [2]. Seventy six percent (76%) of residents in India live denied from having choices and opportunities [7]. The World
below US$2 a day, which accounts for more than 900 million Bank [8] delineates poverty as a pronounced deprivation in
people [2]. This situation indicates that countries with high well-being and it encompasses various factors. People living in
population growth and with limited economic resources, will poverty might have low incomes and therefore unable to
purchase basic goods and services necessary for survival with
dignity. Poverty brings the poor to low levels of health and
Alex H. H. Ng is with the School of Business and Design, Swinburne
education, lack of clean water and sanitation, inadequate
University of Technology Sarawak Campus, Jalan Simpang Tiga 93350
Kuching, Sarawak, Malaysia (phone: 608 226 0874; fax: 608 242 3594; e-mail: physical security, lack of voice, and insufficient capacity and
[email protected]). opportunity to better one’s life.
Farinda A.G. is with The Centre for Continuing Education, University of Another definition of poverty provided by the World Bank’s
Malaya, 50603 Kuala Lumpur, Malaysia (e-mail: [email protected]).
F. K. Kan is with Kolej Laila Taib, 96000 Sibu, Sarawak, Malaysia. He is Participatory Poverty Assessment (PPA), includes the
now with the Department of Quantity Surveying, Kolej Laila Taib (e-mail: perspective of the poor people themselves [9]. The poor have
[email protected]). given five (5) perspectives on poverty:
A. L. Lim is with the School of Business and Design, Swinburne University
of Technology Sarawak Campus, Jalan Simpang Tiga 93350 Kuching, Sarawak, i. Poverty is complex and it consists of multiple components
Malaysia (e-mail: [email protected]). of facts.
T. M. Ting is with the Faculty of Chemical Engineering, Universiti ii. Poverty is the deficiency in the basic need of human for
Teknologi Malaysia (e-mail: [email protected]).

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International Journal of Humanities and Social Sciences
Vol:7, No:8, 2013

example food or shelter. “Weakens public service delivery, misdirects public

iii. Poverty leads to the poor being exploited as they do not resources, and holds back the growth that is necessary to pull
have a voice, are powerless and independence. This leads people out of poverty . . . [Corruption] undermines the driving
to being humiliated and sometimes inhuman treatment by forces behind reform. . . Vital resources are siphoned off shore.
others with power and status when they seek help. Foreign investors turn away in frustration . . . [It] reduces
iv. The poor are deprived of essential infrastructure such as public revenue, undermines public trust, and weakens the
clean water, health facilities and education. In terms of credibility of the state [15], p. xiv)”.
education, it is highly valued but it is irrelevant in the lives Renowned scholar Rebert Klitgaard [16] hypothesized that
of poor as they are more concerned about the deprivation corruption is more likely to occur in an environment where
of their basic needs. officials have monopolistic control over state resources such as
v. Poor people are more concerned of what they own than who can gain access to the resource. While the mechanisms for
employment, and because they lack assets, they are holding these officials responsibility for their actions are weak
therefore vulnerable. and this reduces private investment in that society. It is widely
recognized today as a symptom of poor governance and a major
B. Measurement of Poverty
obstacle to poverty reduction efforts which causes reduction in
According to Booth and Lucas [10] measuring poverty is quality of goods and services available to the public [17]. While
important as the indicator will help to designate who is poor, in the past, some scholars argued that corruption could increase
how many people are poor [11] and identify the different types economic efficiency in countries with burdensome regulations
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of poor people. So that different approaches can be used to help and dominant government role in the economy [18]. Corruption
them. Likewise, Haughton and Khandker [12] also stated that can have adverse consequences, both directly and indirectly,
the reasons for measuring poverty are to keep the poor people especially for the poor countries in South Asia, Indo China,
on the agenda of authorities, to identify the poor and Central American, Brazil and Africa [19].
implement, monitor, maintain and evaluate programs that are Although, higher economic growth rate is associated with a
suitable for the targeted poor. higher rate of poverty reduction [20], but in reality the attitude
Generally, there are various ways to measure poverty. of corruption slows the rate of poverty reduction, undermines
Summer [11] differentiates the poor by looking at their economic growth, and the general welfare of the community
economic and non-economic well-being whereas, some look at [19] of that particular country. It can thus be expected that
whether the poor falls into the basket of extreme poverty or corrupt government are interested in private gains rather than in
relative poverty. The measure of economic well-being takes supporting the development of their own people and countries
into account the income of the people [11]. The advantage of [21].
this measure is that the data is quick to retrieve, easier to Public sector corruption is defined as the abuse of public
measure, and generally updated regularly [13]. The measure of power for private benefit [22]. Corruption refers to preferential
non-economic well-being takes into account the indicators of access to public goods and services, gratuitous insuring of
education, health and nutrition, environment and, public procurement and contracts, illegal hiring in the public
empowerment and participation in society [11]. These sector, bribery or grafting, abuse of official information,
indicators are used to evaluate the well-being of the people on a inconsistent application of rules etc [23]. The phenomenon
longer term trend. leads to forfeiture of public trust. In many countries, money
To be specific, poverty can be further defined in both collected from corruption is used to finance political parties
extreme and relative terms. Absolute poverty means lack of the [22]. By undermining the purpose of government intervention
ability to meet fundamental human needs, for example food and into the economy, corruption is the main cause of government
shelter. Its indicator is in terms of a monetary threshold for failure due to misallocated resources as caused by denigrating
example a poverty line of USD1 a day [14]. Extreme poverty the country developmental objective [24] that leads to country
may also be called as absolute poverty. Gordon and Spicker poverty.
[14] continue to define relative poverty as poverty in terms of Among the factors found to increase corruption are low
its relations to the standards that exist elsewhere in society. It levels of law enforcements, lack of clarity of rules,
merely says that one may be considered as poor if they earn transparency and accountability in public actions, too many
much less than other people in their area of residence, but if controls that give too much discretion to the public officials,
compared to others in another society, they may not be too much centralization and monopoly give to the public
considered as poor. Hence, it is not easy to quantify relative officials, low relative wages of public officials, as well as the
poverty. large size of the public sector [25]. However, not all these
factors would affect corruption all the time, but agreed that the
III. CAUSES OF POVERTY larger the government sector, the lower the relative wage of the
public sector and the lower the quality of the bureaucracy, the
A. Corruption
more widespread corruption is likely to be [25]. Country like
The World Bank recognizes the harmful effects of Bangladesh and India face this public sector corruption
corruption. It argues that the practice especially in the police department, customs, taxation and the

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national secretariat [26]. In Bangladesh and India, bribery is the Johnston, Gupta, Hendriks and Li [28], [33]-[35] argue that
most damaging form of corruption in the public sector. It has corruption increases income inequality through several
become a standard practice in most departments to bribe the channels. First, to the extent that corruption decreases
concerned officials [27]. The set back of this bribery cause the economic growth and development, which is more likely to
department delaying decisions until payment is made which increase the income share of the poor than the rich, it increases
means it is the quantity of bride and not the merit of the country income inequality and poverty level of the country. Second, as
development. inequality increases there will be likely demand more extensive
Due to the administrative excesses and arbitrary behavior, it redistribution through higher level of progressive taxation [34],
would add to the suffering of the people. Hence, the people [36]. This leads to a bias of the tax system which is in favor of
have developed fear and wariness about the officers because of the rich. As the redistributive pressures increase, the rich
the excesses they perpetrate on them and the way they abuse correspondingly will have greater motivation to use political
power [27]. Thus the overall quality of administration has corruption to lower the tax rates and the bureaucratic corruption
deteriorated due to the abuse of power or double standard of to further circumvent the collection of taxes. Thus, making the
rules imposed in each department. Not surprisingly, public not effective tax system regressive [34], it places additional
officials are increasingly seen as unresponsive to public needs burden of the tax system and the pressure eventually falls
and lack of any moral and ethical values [25]. disproportionately on the poor which lead to increase in the
Besides, the price that society pays for all unethical practices poverty level of the country.
like corruption in the public sector is considerable in terms of For example in African countries, the notional tax system is
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cost and inconvenience to the society. The impact of corruption not regressive [37]. However, corruption allows the rich and
is clearly visible in social, political and economic spheres. Thus powerful to escape their tax obligations, hence the tax burden
billions of dollars have been injected by major international aid falls almost exclusively on the poor [37]. Corruption leads to
agencies as development and growth assistance over the years the concentration of assets among a few wealthy elite that can
and nearly half a dozen five-year plans have been influence public policy and increase income inequality.
‘implemented’, but countries like Bangladesh, India, and Because earning power depends, to some extent, on resource
Central America has remained one of the poorest countries endowment (including inherited wealth), the rich are able to use
measured by most socioeconomic indicators [28]. Apart from their wealth to further consolidate their economic and political
public inconvenience and hassle, bureaucratic corruption and power such as trade policies, including exchange rate, spending
inefficiency are taking a heavy toll on the country’s economy programs and preferential tax treatment of their assets [34].
causing hundreds of millions of dollars worth of loss in terms of These policies will result in higher returns to the assets owned
unrealized investment and income [28]. Especially in by the wealthy and lower returns to the assets owned by the less
Bangladesh, an estimate shows that during the first six months well-to-do, thereby increasing income inequality. Furthermore,
of 2000 alone, a total of Tk 115.3 billion has gone missing in the rich can use their assets as collateral to borrow and invest in
the public sector due to 1,345 corruption incidents in various business which will therefore lead to inequality in ownership of
agencies [28]. According to the estimation of the per-capita assets that will limit the ability of the poor to borrow to increase
income in corruption-free Bangladesh would have been double their lifetime income and will perpetuate poverty in income
of the current figure [29]. It is obvious, that corruption lead to inequality [33], [38].
the slowing down of the country economy and hindering the Fields [39] argues that the choice of development strategy
process of growth and development of the country. Corruption influences income inequality as labor intensive development
has social costs that tend to hit the basics of society destroying strategy leads to equitable distribution of income while the
moral and ethical values. opposite is true for a capital intensive development strategy
Secondly, corruption in income inequality can be harmful to [38]. Large subsidies on capital result in a capital intensive
a country’s growth [30], [31] by adversely affecting the development strategy, which increases income inequality [34].
economic growth, limiting poverty reduction and deterring In African countries, production decisions are highly
investment into the country [20]. In other words, as inequality influenced by an elaborate system of taxes and subsidies [37].
increases, so does the poverty level of the country. As income While capital is heavily subsidized, labor is taxed at a high rate
inequality increases, the rich have more to lose at fair political, with the result that businesses choose capital intensive
administrative, and judicial processes but the rich also have technologies over labor intensive ones [37]. This policy of
greater resources that can be used to buy influence, both legally subsidizing capital is exacerbated by high level of corruption in
and illegally law making process [32]. The rich, as a class or as most African countries. This strategy leads to low demand for
interest groups, can use legal lobbying and political labor, low wages; a strategy that effectively redistributes
contributions or bribery (grand political corruption) to income from the poor to the rich since the subsidies are paid
influence law making processes. The rich, as interest groups, as with taxes paid by the poor.
firms, or as individuals, may use bribery or connections to
B. Education
influence law-implementing processes (bureaucratic
corruption) and to buy favorable interpretations of the law Poverty is not only a problem of low incomes but it is a
(judicial corruption) [32]. multidimensional problem that includes low access to

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opportunities for developing human capital and education [40]. thus they are denied the opportunity of participating in
Due to the multidimensional problem, more attention needs to schooling [53]. A larger proportion of children from the poor
be focused on investment in human capital, particular in families participate in low-wage employment yielding
education as a means to increase earnings, quality of jobs and economic activities. Low-wage employment has limited
improving the quality of life [41] such as better utilization of benefits, poor working environment and shrinking wages
health facilities, shelter, water and sanitation [42]. Statistically, which further lead to families in poverty level [52]. Over 29
the effect of schooling exists with rates of return as high 16 million workers or one fourth (24.5%) of the workforce in the
percent per year [43]. United States earns poverty level wages [52]. The poverty level
However, poor countries increase their poverty level due to wages at the market are US$7.36 as compared to US$18.07 for
lack of training skills, productive knowledge and transforms the total workforce [52]. In non-wage related economic
human beings into more valuable human capital [44] and activities like household chores and in activities that may
education. Without proper training for the respective skills and relieve their parents or adult member of the household so that
knowledge in the work force such as read, write, communicate they can participate in wage-related activities. Therefore due to
and be able to choose different alternative choices in more income poverty, very few achieve level of learning or proper
informed way would lead to low earnings and therefore education. In other words, employment alone does not prevent
increase poverty level [45]. For example in the United States entry into poverty if the wages are too low [52].
22.9 percent or 6.4 million people are without a high school
C. Political Instability, Wars, Civil Wars
diploma whereas only 3.6 percent or 2 million people have a
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college degree or higher [46]. Education yields attractive It is arguable that countries which are rich in natural
returns, comparable with alternative rates of return, both to the resources maybe prone to civil wars due to “loot-seeking’
individual and to the society at large [45]. Without education it activities. References [54] and [55] found that countries with
would not broaden the base understanding among people which both dependence upon primary commodity exports and a large
would deter the democratic process which in turn could not diaspora significantly increase the risk of conflict. This has
pave the way to the promotion of sustainable development, been a widespread phenomenon in Africa [56].
through a better understanding of the intimate relation between Although Sudan was officially split into Sudan and the
environment, ecology and sustainable development. Thus, by Republic of South Sudan in 2011, the recent conflict in between
strengthening democratic forces, education would help in the split countries occurred mainly due to ongoing
promoting sustainable human development, making rapid disagreements over how to split lucrative oil revenues [57]. Oil,
social progress, including abolition of containment of the was once thought to bind the two nations together and prevent
elite’s discretionary power [47] and wider social equity. conflict because of oil fields in the South and the refineries in
Education can be a life empowering experience for all and the North. But today, the same oil has become the reason of
what the poor needs most is empowerment. Thus, education fuse between the split territories. Ironically, during civil wars,
serves at the same time both the constitutive and instrumental large amounts of resources are spent on weapons which could
roles of development. While recognizing that the economic have been better used to alleviate poverty. Apparently, both the
importance of education it would increasing incomes, reducing civil wars and poverty exist in an inextricable manner [58].
poverty level, increase development of the country and increase Elbadawi [58] suggested that by their detrimental nature,
unemployment rates [48]. Education has a direct relevance of civil wars lead to poverty mainly due to destruction of capital,
the well-being and freedom of the people, while its indirect role displacement of people and increased insecurity. Civil wars can
is through its influence on social change and economic be disruptive to capital or transactions-intensive activities such
production [49]. as roads, production of manufactures, or financial services [56],
The features of education poverty include non-participation [59]-[61]. They can divert expenditure and the nation’s
or low rates of participation of children in schooling, high rates resources from economic services to the war efforts and they
of drop out and failures, low rates of continuation in schooling, can divert portfolios from domestic investment into capital
low rates of achievement and finally exclusion of the poor from flight.
education. All these aspects of education poverty are closely The civil war and genocide that happened in the 1990-2000
related with income poverty [50]. Individuals without a high period in Rwanda also caused economic impacts on the
school degree in average experience unemployment rates that country’s provinces. The wars resulted in more than 60% of its
are around 3 to 5 times greater than with individual with college 8 million people living below poverty level.
degree [51]. In other words, poverty is predominant among A report by an international group of human rights experts
illiterates and it is almost a non-existent phenomenon among documented the disruption in agricultural production and in the
educated households. lives of northern villagers. Before the war, relative to other
Several studies on educational deprivation have also shown regions in Rwanda, these Northern provinces were areas of
how income poverty causes education poverty [52]. Poverty surplus production providing potatoes to the rest of the country
and economic constraints keep many children from [62].
economically poor families away from school. Income poverty Consequentially, Justino and Verwimp [63] discovered that
may force children to be out of school for various reasons and these previously richer provinces had then experienced lower,

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even negative economic growth compared to the poorer E. Ineffective Governance & Government Policies
western and southern provinces. Also, they found that Most African governments have been undemocratic for
households whose house was destroyed or who lost land much of the post-colonial period. The median African
encountered a greater risk of falling into poverty. government during the 1970s and 1980s was close to
D. Natural and Geographical Characteristics autocracy. The ineffective local governance and government
policies seem to prevent the chronically poor from escaping the
Many countries are inherently poor due to their geographic
poverty trap [67]. A typical pattern is that governments are
characteristics that predispose them to weak economic growth.
controlled by the ruling elites, educated, urban resident
For example, most Africans live much inwards from the sea
population who are resistant or indifferent to pro-poor policies
coast or navigable rivers than in other regions and hence face
[69]. These political elites use their poor as hostages to
higher transportation costs for exports. Furthermore, much of
personally benefit from aid resources and debt relief [70].
the population lives in countries which are landlocked. Also,
Besides, most of these governments tend to expand the
these problems of distance are compounded by political
public sector, while imposing wide-ranging controls on private
barriers.
activity [64]. These decisions have been economically costly.
Mainly, the landlocked countries are surrounded by national
For example, in Ghana by the late 1970s the public sector
borders on all sides. This may constitute an irreducible barrier
accounted for three-quarters of formal wage employment [71]
to trade even if they have good relations with their neighbors.
and even in a more market-oriented economy like Kenya, the
Nevertheless, African nations appear to have more ethnic
figure was 50 percent as of 1990 [72]. Essentially, due to the
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diversity than other poor nations of the world, which may make
lack of democracy, neither were they accountable to the
it harder to develop an interconnected economy. Typically,
broader public. As a result, this has lowered the quality of
growth regressions find that being landlocked reduces a
public services despite relatively high public expenditure [73].
nation's annual growth rate by around half of 1 % [61], [64].
Poor service delivery handicapped firms through unreliable
Besides, much of the Africa continent is tropical and the
transport and power, inadequate telecommunications networks,
slow economy growth of this continent is due to "the curse of
and unreliable courts.
the tropics" [65]. Notably, Africa's adverse climate causes poor
For example, manufacturing firms in Zimbabwe need to hold
health. The life expectancy has historically been low. Even
high levels of inventories, despite high interest rates, due to
with the population in a high-fertility, it is equally offset by
unreliable delivery of inputs tied to poor transportation
high infant-mortality [66]. This is partly caused by tropical
infrastructure [74]. A survey of Ugandan firms found that
diseases such as malaria.
shortage of electricity was identified as the single most
The adverse climate also leads to leached soils and unreliable
important constraint upon firm growth; indeed, the provision of
rainfall. Five million to 12 million hectares of land are lost
electricity by firms for their own use was almost as large as the
annually to severe degradation and that soil degradation affects
public supply of electricity [75]. The poor state of African
65 percent of African croplands and 40 percent of Asian
telecommunications was estimated to reduce African growth
croplands, in part because of nitrogen and phosphorus losses
rates by 1 percentage point [76].
[13]. Much of the Africa continent is semi-arid, with rainfall
African commercial courts are more corrupt than those in
subject to long cycles and unpredictable failure. Soils derive
other regions [77]. As a result, firms face greater problems of
disproportionately from a very old type of rock, which is low in
contract enforcement. The problem of contract enforcement
micronutrients and varies considerably between localities.
thus makes markets less competitive and reduces the potential
Since the 1960s, the semi-arid areas of Africa have been in a
gains from trade.
phase of declining rainfall [68]. While there are no estimates of
African governments built various economic control
the output consequences of this decline, it may be significant,
regimes. A few nations, such as Ethiopia, Angola and
since agriculture is typically about one-quarter of GDP in this
Tanzania, had wide-ranging price controls under which private
region. Given the lack of irrigation, the unpredictability of
agents have an incentive to reduce production-at least officially
rainfall implies high risks in agriculture [64]. This has created a
marketed production. More commonly, firms were subject to
hostile condition that restricts agricultural activities.
considerable regulation. For example, for many years
Other than that, country such as Ethiopia suffers from famine
manufacturing firms wishing to set up in Kenya had to acquire
as a consequence of continuous drought throughout the year.
letters of no objection from existing producers, which resulted
According to the World Food Programme, there are at least 14
in a predictably low level of competition [64].
million at risk because drought decreases food production in
In recent decades, African governments adopted exchange
that country. Besides, about one third of the Bangladesh gets
rate and trade policies which were atypically anti-export and
flooded during Monsoon season each year which has seriously
accumulated large foreign debts. On a range of indicators,
hindered the agricultural activities. The country also suffers
Africa has had much higher trade barriers and more misaligned
from natural disaster such as drought and hurricanes which
exchange rates than other regions [78], [79]. Tariffs and export
cause to properties and life losses. Given their geographically
taxes were higher in Africa than in other regions of the world,
unfavorable situations, these countries are in fact standing on a
partly because of the lack of other sources of tax revenue to
disadvantage route to escape from poverty trap.
finance the expansion of the public sector. Exports were

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sharply reduced as a result of export crop taxation. For emerged, with people such as Anna Hazare capturing the
example, Tanzanian cotton exports would have been 50 percent imagination of many [82]. Hazare vowed to fast to death with
higher in the absence of taxation [80]. the aim to tackle corruption [82]. His non-violent civil
disobedience has created a mass of followers. Nepal has also
IV. ERADICATING POVERTY seen mass demonstrations, inspired by Hazare’s protests in
The possible solutions for poverty depend on what is causing India. The people from various backgrounds have held public
it, and this can vary with time and place. Poverty is not easy to fasts against corruption and pressed the new government on
be solved and the long history of anti-poverty measures has post-monarchy reforms. Various organizations from public in
often been of failure, but successful action on poverty reduction African countries have united to protest various African
is possible to cut the large numbers of people who are still governments of setting up off-shore tax havens. Tax-havens are
living in poverty. seen as a tool to hide corruption and undermine democracies.
Inspired by the rise in protests in Spain following the 2008
A. Preventing Corruption global financial crisis, many movements in Brazil have seen the
rise in action against corruption using social networks and
1. Strengthen Democracy’s Transparency Pillar
technology to help organize as mainstream media avenues is
One of the important elements of democracy is transparency. not accessible for most citizens.
Hanlon and Pettifor [81] have suggested few methods to tackle
corruption to promote democratic and transparent procedures B. Education
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between donor nations and their creditors as follows: Literacy programs are needed for the poor. The reducing of
i. Restore justice in which international creditors play the poverty can only be done through actions of education
role of plaintiff, judge and jury, in their own court of development assistance and financial contribution from
international finance. wealthiest countries in education development. The fight
ii. Introduce discipline in sovereign lending and borrowing against poverty and the promotion of an equal education must
activities to prevent future crises. become a priority for all especially the governments.
iii. Introduce accountability to counter corruption in Development initiatives should be in the form of cooperation to
borrowing and lending activities for both creditor and transfer skills to targeted population.
debtor nations. Quality education is most critical solution so that they can
iv. Strengthen local democratic institutions and empowering help themselves to come out from poverty circle. Priority must
them to decide and influence inappropriate policy/rules. be given to children aged 6 and below so that the habit to learn
v. Encourage greater understanding and economic literacy and develop study technique can be instilled, and thus have a
among citizens to challenge and express dissatisfaction greater chance to perform and excel in the elementary, high
those responsible of wrongdoings. school, and college years. What children learn before the age of
6, have long lasting impact in their minds and hearts. This will
2. Improve Government Budget Transparency
help to shape their characters and personalities the most. In
A trusted government is likely to result in a positive political addition to quality basic education, secondary and higher
and economic development for the countries. The International education, vocational training, and skill acquisition throughout
Budget Partnership (IBP) is an organization that looks at public life are indispensable tools to eradicate poverty.
budgets by governments around the world. The reports are In Tanzania, the Tanzania Development Vision 2025, for
produced every 2 years. Transparency and accountability of the example, has identified education as tool to transform a low
budgetary process for a number of countries around the world productivity agricultural economy into a semi-industrialized.
are evaluated and ranked accordingly. The importance of Agriculture needs to be modernized for increased productivity
budget transparency is as follows and profitability, innovation in agro-processing, technology
• Making budgets transparent with adequate checks and innovation, and upgrading the use of technologies for value
balances can enhance the credibility of policy decisions. addition. Apparently, the promotion of education in science
This will avoid corruption and wasteful spending. and technology in Tanzania has promoted growth and the
• Budget transparency is importance to many of the reduction of poverty. Subsequently, with a critical mass of
international development discourses such as climate high-quality educated people at different levels, it can
change mitigation financing, Millennium Development effectively respond to the sustainable development challenges
Goals, accounting for the sale of natural resources and of nations [83].
international aid given to developing countries.
C. Political Instability, Wars, Civil Wars
3. Public Awareness
Low national income per capita increases the risk of civil
In India, few high profile corruption cases, such as the illegal war [84]. Low income per capita also tends to prolong existing
award of contracts for the 2010 Commonwealth Games have conflicts, and that a decline in per capita income can make more
flooded the mainstream press. This form of publicity/awareness countries vulnerable to civil conflict. Because civil war impairs
has resulted in citizens being more critical of government economic performance, exacerbating poverty, poor countries
actions. A strong growing anti-corruption movement has also

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that experience conflict are at risk of getting stuck in a conflict reduce or eliminate the poverty. Important policy introduction
trap [84]. The overall and crucial policy recommendation to in the developing countries such as debt relief, increased
reduce conflict risk is needed to spur economic development market accessibility, improved incentives for private sector
and reduce poverty in developing countries, especially in the development, increased foreign direct investment, sustained
poor states. Policies that increase per capita income in the support for civil society especially underprivileged, free press,
poorest countries will reduce their conflict risk. Ultimately this women’s rights etc., are needed to prevent and eventually will
will reduce poverty level of the involving country. help towards eliminating the poverty.
D. Natural and Geographical Characteristics 1. Creating a Framework for Economic Growth and
Drought is one of the main contribution factors why millions Transformation
of Africans are hungry [85]. As a result, almost 30% of the The government must be committed to providing economic
Malawi's citizens need donated food to fend off malnutrition. In policy incentive for promoting private sector investment and
Zimbabwe, at least four million need emergency food aid. increase foreign direct investment to reduce poverty such as,
Zambia's government has requested an urgent appeal for food, containing inflation rates to single digits, controlling public
as 1.7 million are hungry; 850,000 need food in Mozambique, expenditure within available financial resources and
500,000 in Lesotho and at least 300,000 in Swaziland [85]. maintaining a fair foreign exchange market. The government
In reducing the impact from natural and geographical factor, must also commit to public expenditure and ensure that money
the World Food Program for example, plays an important role spent is targeted at improving the welfare of the poor [87].
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to feed most of the needy population. The World Food Program

2. Ensuring Good Governance and Security
has asked the developed world for $400 million as fund to feed
the needy population. The United States as main contributor The government must ensure that the issues of conflict
has bought corn from American farmers and supply to the resolution, human rights and security of life and property are
World Food Program. protected [87]. Specific attention must also be given to
International or foreign aids, scientists and policymakers accountability and democracy as necessary facets of good
also need to help smallholder farmers increase their governance and security.
productivity, adapting and mitigate climate change. An 3. Increasing the Ability of the Poor to Raise Their Incomes
innovative approach of water resource management in Syria, The government must also be committed to ensure that the
for example, has been introduced and expected to benefit public has easy access to market information, accessibility and
18,000 people hit by a long drought. Beginning in 2009, the infrastructure. The construction and maintenance of a good
Government of Syria, Spanish Development Agency and road network is required for market accessibility of agriculture
UNDP began rehabilitation of Roman and Arab built wells that from rural and remote areas.
were constructed some 2000 years ago. Ninety-five wells were The process of building the country’s infrastructure also
surveyed and at least 35 have been upgraded. In addition to contributes to poverty reduction by creating employment in the
that, well rehabilitation involves cleaning and pumping out rural areas. The government needs to promote secure access
stagnant water, widening and deepening wells to increase water and rights to land, credit markets and promotion of
capacity and analyzing water quality also have been done to improvements to land [87]. Subsequently this will increase
address the problems. productivity and transform the agriculture development.
Innovation of agricultural system for adaptation such as
farmer production practices, market approaches, technological V. CONCLUSION
and policy innovations is also important to adapt to the natural
Poverty has resulted in individuals not having choices and
and geographical factor [85]. New crop varieties that can better
opportunities to get fundamental needs for survival including
withstand drought, water-logging, increased crop diseases and
food, shelter and clothing. Subsequently, they are unable to
pests are also needed. Agricultural integrated value chain such
participate effectively in society towards development of a
as easy accessibility to finance, weather crop insurance, crop
strong community as they lack these basic capacities. It leads to
storage and accessibility to local and regional markets are also
insecurity, powerlessness and exclusion of individuals,
needed to improve or increase the income of the population.
households and communities. The main causes of poverty are
Most of the farmer farms the land continuously, resulting in
corruption; education; political instability and wars; natural and
fertile farmlands are decreasing. The individual farmers have
geographical characteristics; and ineffective local governance
limited knowledge and accessibility to use fertilizer to sustain
and government policies. The fact that poverty is quite
plant growth. Therefore, technical and financial assistance
multi-dimensional and varies from place to place and from
must be given such as, appropriate tools and support, skills and
society to society, it is important to identify the causes of
knowledge, so that productivity of the land could be increased
poverty. The most appropriate solving method perhaps is to
and sustained [85].
examine the dimensions highlighted by the poor from
E. Ineffective Governance & Government Policies respective location. The root causes of poverty faced by the
Responsible governance of developing countries is needed to community need to be identified, so that the efforts to eradicate

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