A Comprehensive Analysis of Global Poverty: Measurement and Solutions

This essay provides a comprehensive overview of global poverty, beginning with a definition and its correlation to welfare and prosperity. It highlights the significant reduction in extreme poverty over the last two centuries due to industrial development and increased production. The essay discusses how poverty is measured, emphasizing the challenges in comparing price levels across different countries and the limitations of economic growth alone in eradicating poverty. It explores the role of education in poverty reduction, including increased employment opportunities and higher family incomes. Furthermore, it presents various facts about poverty, such as the number of people living on less than $2.50 a day and the lack of access to clean water and electricity. The essay also touches on population control measures, like China's one-child policy, and the importance of microfinance for women entrepreneurs. Finally, it outlines strategies to combat poverty, including community support, employment generation, and effective resource utilization, referencing the World Bank Group's efforts and the remaining challenges in regions like Africa. Desklib offers similar essays and study resources for students.

POVERTY IN THE WORLD
The word poverty means lack of sufficient money to satisfy the basic needs. The World Bank
defines International Poverty Line and provides the related information. If per day someone lives
on not much than 1.90 international dollars (int.-$), reflects high degree of poor (Roser &
Ospina). Essentially the concept of poverty is correlated to welfare and bringing prosperity. In
the time span of last two centuries, due to expansion of industrial development and increased
production, the segment of extreme poor societies are getting shrink. This could be countable as
an outstanding attainments of humankind. It is also related with the health and education.
Previously very lesser people had exclusive living environments. In 1981 consistent poverty rate
was 52 % but in progressive way in 2005, only 25 % of world’s population were remain poorest
countries (Chen & Ravallion, 2010).
What do poor people think about poverty? In last two centuries all over the world is
measured that the level of consumption of poor people, is very low but love and enjoy their lives
as compared to the people have much upper consumption levels. Across the world Gallup
Organization requested people to tell about their living standard and income level. As a result it
found that people existing in poorer countries tend to be not much satisfied with their living
standards.
How poverty is measured? Poverty measurement relay on the monetary value of a
person's consumption but difficulty in measuring global poverty is that price levels are very
different in diverse countries. Extremely complicated causes are the main problem with poverty.
For the ending of poverty economic growth is not just enough. Developed and established
nations who have strong economies still have large number of individuals, struggling to survive.
For everybody the state of poverty is not the same. It differs by converting the consumption level
of individual in diverse country by the market exchange rate because cross countries have their
own different purchasing power. A person earns $3 in a single day but their financial capability
still needs to be compared to the rest of the population (The World Count). Which simply means,
a poor person in the US has a different poverty level than a poor person in Sub-Saharan Africa.
How education can reduction poverty?
 Educated people can get and generate employment easily.
 More educated family members are able to earn more income.
 Low investment in private sectors.
 Government initiative for development.
 Promoting industrialization, financial services, merger and acquisitions.

 Establishment of NGO’s and other community development organizations.
 Expansion of production, trade and transportation.
 Political stability for better results.
Some Facts about poverty –
 More than three billion people lives on less than $2.50 in a day (DoSomething.org).
 More than 1.3 billion people lives on less than $1.25, a day, which comes under extreme
poverty.
 Across the globe 1 billion children living in poverty.
 UNICEF says, poverty is the reason every day 22,000 children dies (UNICEF).
 805 million people cannot afford enough food to eat so now food banks are there to help
them.
 More than 750 million people do not have access to clean drinking water which causes
diarrhea and affect more than 842,000 people every year.
 Due to diarrhea and pneumonia which are preventable disease approximately 2 million
children die in a year because they are unable to afford the price of treatment.
 As of 2013, globally 21.8 million children of less then one year had not received the
mandatory vaccination of diphtheria, tetanus and pertussis.
 Approximately 1.6 billion people have no access to electricity.
 World’s 80 % population lives on less than $10 a day.
 According to Oxfam, annually $60 billion are required to end the extreme poverty at
global level. Which is ¼ income of the top 100 richest billionaires.
 In the world hunger is killing people more than HIV/AIDS, malaria, and tuberculosis
combined.
Population Control – After 1970, reduction in poverty rates become so sheer that total
number of people living in high degree of poverty began decreasing as well. If a country’s GDP
raises constantly and population is growing even faster then even after average civilian will not
get any advantage or profit.
Just few years back China was the largest populated country in the world. In 1979, Chinese
Government announced “One-child policy”. Over following two decades the fertility rate
dropped from 2.7 births per woman to 1.4. This one-child policy intensified a preference for
boys over girls which became cause of toss out of baby girls and affected gender inequality
(Ramirez).

Credit for poverty Reduction – There are lots of women microentrepreneurs in the
Middle East, Sub – Saharan Africa, South Asia and Latin America. They are attempting their
small business to work but they facing a common problem which is lack of funds or working
capital. Lack of finance means that they are unable to give sale/discount offers, purchasing whole
sale in bulk and attract customer attention due to less variety. Many diligent women are in
working capital poverty trap. Even after working so hard they are not getting the appropriate
praise. They are trying to help their families in best possible way. So, now – Micro finance
institutions are also coming forward to help them.
Financial Serve for poor – In 2000, at Millennium Summit, the world community said that
poverty is the 8th Millennium Development Goal. They make sure to reduce poverty and promote
sustainable development.
Some strategies to fight from poverty – Fighting from poverty is not an easy task, it
takes time. Poverty is a big challenge in this world and required lots of efforts at both individual
and group level.
 There should be a structured group to help people within the community.
 Generate more and more employment options.
 Make a proper and effective use of already available resources across the globe.
 Giving ownership stake to the poor people.
 Linking up the villages with the urban areas.
 To creates more and more awareness program.
 Keeping an eye on our spending and expenses.
 Conduct fund raise, donate money and built other charitable trusts.
 Promote paid leaves like sick leave.
 Expansion of Medicaid.
The World Bank Group is also dedicated to fighting from poverty in all the extends. This is also
helping the government to making policies for every poor country and increasing the living
standard (The World Bank Group).

The worthy update is that global poverty will fall and remain strong in 2017 but still unluckily
Africa is not moving towards right direction so African region is the biggest challenge in front of
everyone.
Referencing Websites
1. Roser, M. & Ospina, E. (2017). Global Extreme Poverty. Retrieved from: (
https://ourworldindata.org/extreme-poverty )
2. The Word Counts. (2014). What’s it like to be really poor?. Retrieved from: (
http://www.theworldcounts.com/stories/Poverty-in-the-World-Today )
3. Do Something. (2018). 11 Facts About Global Poverty. Retrieved from: (
https://www.dosomething.org/us/facts/11-facts-about-global-poverty )
4. Ramirez, Vanessa. (2018). World Poverty Has Plummeted- But Will It Ever Disappear?.
Retrieved from: ( https://singularityhub.com/2018/01/02/will-the-world-ever-be-free-of-
extreme-poverty/#sm.001o2bcn815ljdq9xdy2h658r7oo4 )
5. The World Bank. (2018). Poverty. Retrieved from: (
http://www.worldbank.org/en/topic/poverty/overview )
6. Kharas, Homi. & Fengler, W. (2017). Global poverty is declining but not fast enough.
Retrieved from: (
https://www.brookings.edu/blog/future-development/2017/11/07/global-poverty-is-
declining-but-not-fast-enough/ )
Referencing Books
1. Cosgrove S. & Curtis B. (2017). Understanding Global Poverty: Causes, Capabilities
and Human Development. Oxon: Taylor & Francis.

2. Smith S. (2015). Ending Global Poverty: A Guide to What Works. Bangladesh: St.
Martin's Press.
Referencing Journals
1. Chen S. & Ravallion M. (2010). The Developing World is Poorer than We Thought, But
No Less Successful in The Fight Against Poverty. Quarterly Journal Of Economics. 4(1),
1577-1625
2. Schramm M., Pogge T. & Klasen S. (2013). Levels and Trends in Absolute Poverty in the
World: What We Know and What We Don’t. Absolute Poverty and Global Justice. 16-
302