Poverty Relief Strategies: Problems, Alternatives, and Examples

This essay provides a comprehensive analysis of poverty relief strategies, focusing on the problems associated with entrepreneurialism-based aid projects like inclusive business models. It critiques the practices of International Development Assistance Agencies, highlighting issues such as donor-driven agendas, lack of local participation, and unsustainable project designs. The essay then explores alternative strategies for poverty relief, emphasizing the need for structural measures, macroeconomic stability, and policies that promote equitable distribution of assets and income. It presents sustainable livelihood and good governance with job creation as viable alternatives, detailing their benefits and emphasizing their people-centered approach. Furthermore, the essay offers examples of aid projects that move away from entrepreneurialism, advocating for community-driven initiatives and government support to improve poverty reduction outcomes.

Running head: POVERTY RELIEF STRATEGIES
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Poverty Relief Strategies
Name of the Student
Name of the Institution

POVERTY RELIEF STRATEGIES 2
Poverty Relief Strategies
I. Introduction
The last decade has witnessed a transformation on how financial aids are managed to
impact on the livelihood of the poor people. Initially, financial aids were given in the form of
cash hand outs. However, such a strategy was found to lack any impact on poverty reduction. As
a consequence, a new aid design was created. The design was crafted to assume
entrepreneurialism aid relief projects in the form of inclusive business models, in which the poor
are assisted to establish or improve businesses. The conviction was illumined by the reason that
money is managed better once invested either in the form of physical or human capital (Adepoju,
2014). Inclusive business models are designed to integrate the poor people both as suppliers and
customers at different stages in the value chain. The model thus links the gap between people
with meager income and businesses for reciprocal benefits. Furthermore, this kind of models can
be crafted to utilize readily available environmental resources. As a result, the business becomes
financially sustainable, hence, turning the poor to emerge as entrepreneurs and customers within
the business value chain (De La O, 2015). Such aids projects can thus make poor people have
increased income and productivity, consequently becoming easy for them to meet their basic
needs. The objective of the research, therefore, is to analyze the problems associated with aid
projected which help the poor to establish or improve businesses. The essay will further
investigate some alternative strategies for poverty relief as well as highlight examples of aids
projects that are anti- entrepreneurialism.

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II. Problems with Entrepreneurialism Relief Projects
Entrepreneurialism relief projects like inclusive business models are strategies which
have been designed by the International Development Assistance Agencies such as Local and
International NGOs, Religious Organizations, as well as Development Consulting Firms to
elevate poverty levels in the world. However, most often of these International Development
Assistance Agencies are not inspired by authentic interest to reduce poverty but to monitor and
respond to the political, economic, and religious interests of the donors (Haveman & Wallace,
2015). In most cases, International Development Assistance Agencies operate in developing
countries while their headquarters are based in the developed nations where they battle for
donations from public and private donors. As a consequence of huge budgets and massive
funding, aids projects disallow any attempt to hire the local experts or partnering with local
businesses (Hickey & Du Toit, 2013). The agencies thus initiate entrepreneurialism relief
projects without adequate understanding of the local situation to appeal to the people sentiments
of compassion and solidarity with the poor. Such appeals make them attractive to the public,
therefore, creating an opportunity for them to achieve the priorities of their donors (Randel &
German, 2013).
Additionally, the relief strategies are marked by little or no participation of the poor,
whom they are meant to assist (Katz, 2013). It is rather unfortunate that the International
Development Assistance Agencies do not integrate the opinions of the in developing these
strategies. Participation of the poor into the formulation of these projects is reduced to some
informal meetings characterized by meager consultations and information sharing. As a
consequence, implementation of such strategies is faced with major hindrances because the local

POVERTY RELIEF STRATEGIES 4
poor people lack the sense of ownership of such projects. Such exclusion in decision making
confirms that the agencies intention is not to alleviate poverty but to appease their donors. This
conclusion is guided by the fact that, if they are guided by a genuine fight against poverty then
the poor should be their primary client or principals and not the donors. The fear of being
accountable is another reason why they object to such mind set. In fact, they argue that the poor
lack skills, knowledge and education to evaluate and assess strategies imposed on them.
Other problems associated with relief strategies include urgency and limited resources
which make the projects unsustainable. Led by the desire to make the donors feel they assisted
some poor people International Development Assistance Agencies hastily start new projects to
ensure a constant flow of funding. It is thus outright that their annual reports and brochures only
include the presumed achievements in poverty elevation but not failures. Most of the aids
projects are evaluated within the funding period o they can appear successful. Another reason
why aids strategies are unsustainable is because International Development Assistance Agencies
prefer to initiate new projects than improving or continuing with the old projects. Such thinking
is adopted because donors respond so readily to new visible changes more than the maintenance
of old existing projects. Such mentality, therefore, halts aid projects once the funding ceases.
III. Alternatives Strategies for Poverty Reliefs
The problem of poverty is multifaceted. It extends outside economics to entail other
issues such as cultural, social, and political concerns. As a consequence, poverty relief strategies
should not be founded solely on economic policies. In actuality, they demand a comprehensive
and well-coordinated set of measures. In reality, such a foundation forms the reasoning behind
any well-thought poverty relief strategy. The key to poverty elevation is in the structural

POVERTY RELIEF STRATEGIES 5
measures the poverty relief strategy seeks to enforce. Some of the measures include improved
governance, regulatory reforms, trade liberalization, civil service reform, banking sector reform,
and privatization of parastatals (Hout, 2016). An alternative strategy to the poverty relief
strategies, therefore, must enhance policies that favor easy distribution of assets and income
within a society. The policies must address fundamental issues like measure to maximize
opportunities for the poor to access loans from financial institutions at a friendly rate, land tenure
reform, and pro-poor public expenditure. Only such vital elements will constitute an alternative
strategy for poverty relief.
Although poverty is a multifaceted phenomenon, it is influenced by a single significant
factor which is economic growth. Therefore, macroeconomic stability is a necessity in the
realization of high and sustainable economic growth rate. As such, macroeconomic stability is a
core component of any alternative strategy for poverty relief. Alternative strategies must have
structures which ensure government budgets are sustainably financed. Moreover, the strategy
must entail articulated policies and specified objectives which are well costed and funded in a
comprehensive government budget. In case a government foresees the inability to fund the
alternative strategies by the use of the available resources such a government should seek
assistance from International Monetary Fund and World Bank. Nonetheless, in circumstances
where the funding is still insufficient government should revise the priorities of the strategy.
Though, the intent of macroeconomic stability must always be upheld. The conclusion is inspired
by the fact that macroeconomic stability is the foundation stone of any sustainable economic
growth and increased private sector development. It is indisputable that macroeconomic
instability drives both domestic and foreign investors away, thus, diverting resources elsewhere.

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Alternative strategies acknowledge poverty issue is a complex reality and can only be
solved through diversified strategies. Hence, such a strategy must prioritize the fundamentals that
affected society feels are the appropriate remedies to poverty issue affecting them. Some
examples of alternative strategies for relief strategies include (Panican, & Johansson, 2016);
a) Sustainable livelihood
b) Good governance and Job creation
c) Education of both boys and girls
d) Increased remuneration
e) Gender equality
f) Encouraging Micro-financing
g) Transparency in government spending
h) Cancellation of debts
i) Access to sanitation and drinking water
j) Access to Health care
k) Proper nutrition to pregnant mother and infants
A). Sustainable Livelihood Strategy
Sustainable livelihood is a unique strategy which is people-centered and not donor-
centered. It emphasizes securing the livelihood of the poor people as well as empowering them.
The strategy is, therefore, founded on three pillars which include;
I. Those underprivileged/poor people particularly in rural set up control massive
resources and activities which can sustain them.

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II. The poorest are excessively dependent on the public or common asset for their
survival. Government resources are such as forests, fisheries, and public grazing
land.
III. That successful poverty reduction strategy goes beyond the public budget to
include assets and services like equitable justice systems, markets, and financial
services.
The strategy thus approaches the issue of poverty from a realistic, holistic, and manageable point
of view. Such a broad approach aid the strategy to take into consideration the available
opportunities for development and their impact on the lives of the people in question.
Furthermore, the strategy positions the people and the priorities they hold dear at the core of its
analysis (Krantz, 2012).
The strategy encourages the use of resource/vulnerability method while analyzing the
livelihood of the people in the narrative. It further underlines the significance of understanding
the institutional and organizational environment as well as the vulnerability context in which the
poor people draw resources of various kinds to execute a livelihood strategy. The strategy offers
an explicit definition of five kinds of assets: natural capital, physical capital, social capital,
financial capital and the human capital. The main strength of the strategy is its goal to include a
range of resources and activities which are familiar with people in its project implementation.
The strategy, therefore, offers a framework which addresses comprehensive policies which touch
on the lives of the poor people. It does not only advocate for easier access to education and
health but also smooth access to personal security, markets, and finance. Fundamentally, this
strategy advocate sustainability, participatory approach, need to change the prevailing
circumstances, and the need for people to at the center of any project implemented. Such

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inclusive strategy, therefore, can work at various levels from local to national in conjunction with
both private and public sector (Serrat, 2017).
B). Good Governance and Job Creation
Global poverty levels are on the increase despite the constant relief projects to elevate
poverty concentrations in the world. The increase in global poverty is thus a clear indication that
the solution to this problem is not founded on the relief projects but good governance and job
creation to the affected population. Good governance entails of the processes of creating and
executing decisions. The essence of good governance, therefore, is good decision creation
processes (Ayre & Callway, 2013). It is characterized by such qualities such as; transparency,
accountability, the rule of law, inclusivity, equitability, participation, and efficiency. The strategy
to utilize good governance as an alternative to relief projects ensures job creation and their
sustainability. Guaranteeing education opportunities for all, availability of employment and
access to health care as well as drinking water are some of the indicators of reduced poverty.
However, such achievements are not possible in a country which is characterized by poor
governance. Weak development model features poor governance and depending on the external
aids instead of creating internal policies which will transform and enhance economic growth (De
la Croix, & Delavallade, 2013).
Good governance is proactive, that is, it is responsive. As such it development plan
inspires its financial regulation policies, macroeconomic policies, the development agenda of the
private sector, the tariffs and taxation policies as well as public debt management policies
(Biermann & Kabiri, 2014). Unfortunately, many governments and especially in the developing
countries fail to prioritize such critical policies to ensure relief projects are constantly in their

POVERTY RELIEF STRATEGIES 9
countries. Similarly, good involves taking responsibility for the decisions implemented. Equality,
the government should be ready to offer answers to the questions the people represented may
have. Good governance encourages local solutions to the local problems that perpetuate poverty
thus increasing investment opportunities (Bott, Gigler & Young, 2014). For example,
improvement in the infrastructures such as energy, communication, and transport present
immense opportunities due to reduced cost of trade, thus enhancing investments.
Underdevelopment, poverty and poor governance are different faces of the same coin. Therefore,
good governance is the most effective alternative strategy to relief projects and aids (Kwon &
Kim, 2014).
IV. Examples of Aid Projects moving away from Entrepreneurism
Funding of community projects is sourced from various sources which include; private
sector participation, aids from external sources in the form of subsidized loans or grants, users of
the project, tax through government budget. However, sourcing money from an external source
is not always sustainable because of donor and development agencies fund projects for a limited
duration. As a consequence, many aid projects that are detached from entrepreneurism collapse
shortly after funding ceases. Some of the aid projects that have moved away from
entrepreneurism include;
A. Nutritional Improvement Projects
In these kinds of aids project donor and the development, agencies collaborate with both
the private and the public sector to address the challenge of malnutrition among the poor people.
Therefore, most projects initiated within this mind set are agriculturally based meant to offer
nutrition remedies (Ortuño, & Vitoriano, 2013). There are numerous projects which are funded
by the U.S. Agency for International Development (USAID) to solve nutritional challenges.

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Examples of these projects are like; Global Alliance for Improved Nutrition (GAIN) and
Strengthening Partnership, Results, and Innovation on Nutrition Globally (SPRING). Such
programs are thus aimed at improving food security policies for nutrition. Hence, they do not
fund agricultural projects with the intention of encouraging the community to embrace
agribusiness but for dietary purposes.
V. Conclusion
In conclusion, it is indisputable that the quality of aid projects is in most cases deficient;
hence, the need to carefully evaluate the effectiveness of such projects. It is also important for
the donor and the international agencies to encourage the local to actively participate in the
projects they intend to initiate for them. Such inclusivity will ensure continuity of such even after
the donor funding ceases. Besides, it has emerged that the most effective strategy to deal with the
poverty question is good governance. Although some countries are in need dire need of aid
projects, it is worth understanding that relief projects are not the solution to the increasing global
poverty; therefore, the need for the world to appreciate and promote the available alternative
strategies.

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