Poverty Reduction Issues

Publication | November 2000

The prerequisite to designing a good poverty reduction program is a sound understanding of the nature, sources and causes of poverty. There are many ways to define poverty.

However, the most complete definition takes a holistic view that considers the state of deprivation of the basic entitlements of an individual, his/her capabilities for maintaining a minimum standard of living, the lack of protection to his/her vulnerability as well as his/her social exclusion. The complex linkage between growth and poverty reductions best explained not entirely by the aggregate rate of growth but by the nature and sources of growth in an economy. Analysis of rates and patterns of sectoral growth sheds further light on what kind of growth is conducive to poverty reduction in a particular country. Empirical evidence shows that because of relatively high return to labor, agriculture development-based and export-led growth from labor-intensive industries contribute significantly to reducing poverty in poor countries.

Additional Details

  • Agriculture and natural resources
  • Poverty
  • Philippines

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