Ten Solutions to Poverty

6. Taxing the rich more and the poor less

Redistribution of wealth will be an imperative step in eradicating poverty. The rich get richer while the poor get poorer. Taxing methods need to be tailored to an individual’s financial bracket to ensure that upward social mobility becomes an absolute possibility.

7. Building self-sufficient economies

Creating reduced dependence on oil, external financial aid and imports will help to ensure that alleviation of poverty remains on an upward but permanent curve, as opposed to a temporary revivalist injection in a dying economy. Steps in this area include investment in local infrastructure, transportation and schools that keep the ball of development rolling. Projects to launch new industries and businesses will also need monetary encouragement.

8. Education

As much as poverty is a social condition it is also a mental and psychological cage. With education, impoverished populations are able to visualise their way out of poverty and are able to work towards it in an organised and reliable manner. Education provides training to tomorrow’s workforce and thus fortifies the economy against poverty. Education in rich populations about poverty invokes sentiments of compassion and a sense of responsibility to the misfortunes of the rest of the world. Education also has the power to bring about social changes such as fights against racism and sexism – both conditions that happen to be linked intrinsically with poverty.

9. Involvement of the media

The media has the power to draw the eye of the global conscience to issues of poverty. It becomes too easy to forget the state of the less fortunate when the world is advancing at lightning speed. With effective media coverage of poverty-related catastrophes, the demand for social change rises collectively all over the world.

10. Microfinancing

Microfinancing makes financial services like insurance, savings and loans available to individuals in developing nations who wish to run their own small businesses. These individuals, suffering from lack of employment opportunities and financial backing from governments or banks, are able to create a profitable means of survival through microfinancing. Flourishing small businesses, in turn, create jobs, provide much needed services to their communities and help stimulate the economy for the long run.

The path to fighting poverty is long and chock full of hurdles. There is a lot of work to be done and not a single second to waste.

ARB Team
Arbitrage Magazine
Business News with BITE.

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