Eradication of Poverty in Australia

Eradication of Poverty in Australia 1
Eradication of Poverty in Australia
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Eradication of Poverty in Australia 2
ERADICATION OF POVERTY IN AUSTRALIA
Introduction
The eradication of absolute poverty has for many years been the objective of most
developing countries governments as well as international organizations. Complete elimination
of poverty has positive implications and importance for the wellbeing of the society. The poverty
levels have been recorded to be deteriorating in many countries since the 1980s. Despite the
struggle towards improvement, reports show that in some nations poverty is still at its peak. The
significant reduction has been recorded in the few developing world countries with a high
income in contrast with little or no modification on the same in low-income countries (Anderson,
Cockburn and Martin 2010). Poverty can be viewed in different dimensions of child and
maternal mortality, education as well as gender equality. These are some of the goals in the
Millennium Development Goals which was aimed to achieve a reduction in poverty by 2015
despite the many challenges facing the countries in poverty complete extermination.
Economic growth has been identified as the primary tool for the extermination of poverty
levels and bridging the gaps. Bretton Woods proposed structural adjustments changes used by
many of the developing countries in achieving significant improvement in poverty reduction
(Cantillon 2011). The proposed reforms led to the adoption of exchange policies and
international trade. The plans led to foreign investments thus promoting economic growth.
The research proposal aims at making contributions to the literature on the relationship
between poverty level, economic growth and income inequality in Australia. Studies such as
FOSU shows the impacts of economic growth and poverty among the Australians. The thesis
compares the relations between poverty and economic growth in various regions in the country
and is aimed at giving limelight on how to eradicate poverty utterly. In this paper, empirical

Eradication of Poverty in Australia 3
literature will be discussed concerning the two aspects. Trends in the poverty level and economic
growth, as well as inequality of income distributions among the regions in the country, will also
be outlined (Christiaensen, Demery and Kuhl 2011). The other aspect to be discussed is the
methodology and models used in research of the proposal. Discussion of the findings and
outcomes of the study will be outlined giving various recommendations for further analysis.
Research Questions
• Does the economic growth have the capability of contrasting poverty, income
inequality as well as human poverty?
• To what level has inequality affected economic growth in Australia?
• What is the existing relationship between poverty, economic growth, and income
inequality?
• Is it necessary for a country to be concerned with the inequality of income even
though bias does not affect the economic growth of a nation?
• What are the recommendations of the research which assist in future studies?
Aims of the Research
• To find the relationship between income inequality, poverty, and economic growth.
• To find out if inequality on income has any impacts on the economy.
• To test the relevance of the findings to the country’s economy
• To build knowledge on factors affecting economic growth and various steps to take to
solve the problem.
Background
A research made in Australian regions shows the high levels of poverty. Based on issues
like housing stress such that the affordability of rental housing is a challenge to the Australians.

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Out of 40% of the total income, 30% goes to shelter. Food insecurity is a problem in most
regions which portray hardship in the living standards. In the 2006 report, 18% of the Australians
experience food insecurity. Women have reported being the vulnerable group affected by
poverty due to unemployment and low wages not forgetting their roles to take care of family
needs (Fuentes-Nieva and Galasso 2014). In the recent years, Australian regions have
experienced in economic growth due to the efforts cultivated by the government to lower the
level of distribution of resources and income thus reducing poverty among the citizens especially
to the vulnerable groups like women, the youth, and children. This thesis aims at identifying the
relationship between the economic income, poverty and income inequality and their implications
for human living standards (Riskin, Renwei and Shih 2016).
A Literature Review of the Research
This section reviews the empirical literature on the relationship between poverty levels,
inequality of income and economic growth in developing countries such as Australia. In entirely
understanding the importance of commercial distribution for economic development is relevant
and essential. Kuznets’s (2015) proposal on a hypothesis which focuses on the income
contribution and economic progress has received much attention in many facts finding. The plan
states that in the first phase of economic growth, income inequality worsens, but in the long run
of economic development income inequality achieves some improvement. The relationship
between the two aspects can be represented in the ‘U' pattern known as Kuntz’s inverted ‘U’
hypothesis (Cingano 2014). The theory acknowledges on the less development of the economy in
the initial phases but in the long run especially in the developing countries would experience a
more stable and favorable distribution of income.
Conceptual Framework