INTRODUCTIONThe growth in the economy of any nation is a clear indication of an improvement in the socioeconomic well-being of its people. The major problem facing developing countries is poverty therefore the aim of essay attempts to conceptualise the economic factors that contribute to the alleviation of poverty in a nation.
Poverty can be defined as a severe lack of physical and mental wellbeing closely associated with inadequate economic resources and consumption (Bratl and Grigsby1971) Poverty is not about shortage. It is about rights and relationships about how people are treated and how they regard themselves about powerlessness, exclusion and loss of dignity. Yet, the lack of an adequate income is at its heart (Oppenheim 1993). As Oppenheim points out that an absolute definition of poverty assumes that it is possible to define a minimum standard of living based on a person’s needs and not on broader social and cultural needs. Absolute poverty is when people fall below this level-when they cannot house cloth or feed themselves. The the conceptualization of human poverty should broadly encompass the lack of basic human capabilities such as illiteracy malnutrition low life expectancy poor maternal health of preventable diseases together with indirect measures such access to the necessary goods services and infrastructures necessary to achieve basic human capacities sanitation clean drinking water and clean environments However different individuals have a different perspective and understanding of what poverty is and for that reason a few definitions and a brief overview of poverty and some of its causes shall be our focus.
A General Description of the term povertyLike the term many other terms poverty is a term which is very hypothetical and can thus distort discussions on any developmental issue a general understanding of poverty shall later aid in narrowing specific dimensions of poverty and how it can be reduced. According to Encyclopaedia Americana (1989) poverty can be seen from two different perspectives firstly money lessens which means both an insufficiency of cash and chronic inadequacy of resources of all types to satisfy basic human needs, such as, nutrition, rest, warmth and body car; The of class shades into the social circumstances of poor people. The idea of ‘social class’ identi?es economic position with socio-economic status, a concept based on the linkage of class with social and occupational roles. The concept of class is used both as a means of conceptualizing the position of the poor in structural terms, and as the basis for empirical research on the distributive implications of policy for example, relating to education or health care. The main description of poor people as a ‘class’ in recent years has been in terms of the ‘underclass’, and in that sense, it has been roundly criticized by many observers who see the term as a condemnation of the poor and secondly powerlessness meaning those who lack the opportunities and choices open to them and whose lives seem to them to be governed by forces and persons outside their control. That is, in positions of authority or by perceived “evil forces” or “hard luck” poverty can be understood as a situation wherein a person faces difficulty in basic functioning because options and freedom are extremely limited. the relationship between poverty and differentiation, or discrimination/social exclusion, based on the belief that “capability” is closely related to the conditions of society and social relationship.
factors that contribute to povertyThere is an important difference between those causes and what we call factors
that maintain conditions of poverty.
the “Big Five Factors” that constantly promote this disease called poverty. The five factors of poverty according to (Phill Bartle2002) are;
Firstly Ignorance, Ignorance means having a lack of information, or lack of knowledge according to the English dictionary Wiktionary many people are not information literate and as such that creates a problem of lack of awareness of what is happening in their society.
secondly Disease When a community has a high disease rate, productivity is low, and less wealth is created. Apart from the misery, discomfort and death that ‘results from. ‘ disease, it is also a major factor in poverty in a community. Being well (well-being) not only helps the individuals who are healthy, it contributes to the eradication of poverty in the community. Here, as elsewhere, prevention’, is better than cure thus the economy is much heathier if the population is health (Bartile 2002). The third factor is Dependency results from being on the receiving end of charity. In the short run, as after a disaster, that charity may be essential for survival. In the long run, that charity can contribute to the possible demise of the recipient, and certainly to ongoing poverty. It is an attitude, a belief, that one is so poor, so helpless, that one cannot help one’s self, that a group cannot help itself, and that it must depend on assistance from outside as the saying goes do not give man fish but teach him how to fish ,dependency normally leads to laziness and unproductivity it is not a certain venture as the helpers one day might not always be there to help .
fourthly Apathy is when people do not care, or when they feel so powerless that they do not try to change things, to right a wrong, to fix a mistake, or to improve conditions. Sometimes apathy is justified by religious precepts
lastly poverty Dishonesty When resources that are intended to be used for community services or facilities, are diverted into the private pockets of someone in a position of power, the amount stolen from the public, that is received and enjoyed by the individual, is far less than the decrease in wealth that was intended for the public.
Another cause of poverty according to (obadan1997) the main cause in sub Saharan countries is inadequate access to employment opportunities this shows that most African countries have less access to employment opportunities, and that can cause poverty because if an individual does not have a job to carter for their needs poverty surely kicks in.
Reducing poverty and eradicating extreme poverty are broadly accepted goals of development through economic factors that can be used to alleviate poverty in a nation and the factors are:
To alleviate poverty people must be ready to do something that is to work with their own hands, for instance in Zambia many people have sole proprietorship type of businesses such as marketeers and grocery shop owners and they get their profits as their rewards. china and japan are nations with little or no resources and most citizens do not know how to speak English but these countries have been able to transform their economy through entrepreneur ship .entrepreneurial training is an aspect of education and empowerment that enables an individual to have certain level of skill or knowledge that they in then apply and create their own jobs not only for their own interest but for others as well, individual self-reliance is promoted and efficient instead of waiting for a job to present itself an individual will create their own business and the business will contribute to the economic growth of the nation through tax and interest rates. entrepreneurship transforms people to be job givers instead of job seekers; it turns people into potential managers, creating income for them whilst giving them a means of livelihood (Mathews 2005)
As observed by Edwards (1995) economic growth can reduce poverty through two channels, the first is when there is increase in employment and improvement in the opportunities for productive activities among the poor this could be through equal opportunities for people to be more create and given a a chance to make their own businesses secondly when economic growth is associated to increase in productivity it will improve wages and under most circumstance the poor segments of the society will see an improvement in their living condition. Development of the local economy and support of the self-reliant role of the community by encouraging people to work together in order to learn and manage the community by themselves, creating linkages between the local economy and businesses to access the consumer market, and establishing a centre to coordinate conu1lunity development.
For example, In Zambia however majority of rural and urban households rely on incomes from agriculture and agriculture-related industries or consume domestically produced food. Agriculture and related industries, such as manufacturing, tend to be more labour-intensive and also have strong linkages with the rest of the economy. Growth in these sectors is, therefore, expected to generate jobs and create employment opportunities for households. For these reasons, fostering agricultural growth and rural development is important for rapidly reducing poverty in Zambia, On the outskirts of a large African city, 36-year-old Josephine lives with her three boys, ranging from 6 to 11 years of age. To make a living, she collects empty plastic containers, which she sells to a nearby recycling plant This backbreaking labour earns her less than two dollars a day. In that city, this is hardly enough to feed her family or pay for their schooling. At the end of the day, she returns to what she is forced to call ‘home’. Its walls are made of baked mud bricks and clay held together by twigs. Loose, rusty iron sheets, along with tin and plastic, serve as roof. Pieces of rock, wood, and metal plates are stacked on top to keep the roof in place during strong winds. Her ‘door’ and ‘window’ are torn gunnysacks, which offer no real resistant to bad weather – let alone would be intruders. Even this modest home, though, does not truly belong to her. Josephine and her children live in constant fear of eviction. The land on which their inadequate home stands is to be used for the expansion of a nearby road. Sad to say, similar situations exist in many lands throughout the world. Promoting large-scale commercial farming and fostering increased small-holder participation is vital as both have a strong rural bias. Increasing rural household incomes creates a market for domestic non-agricultural production, thereby providing an important platform for structural transformation. Rural and agricultural development are, therefore, important for accelerating pro-poor growth and for laying the foundation for achieving the country’s long-term growth and development objectives. Zambia has an abundant resource base comprising land, water and labour (International Monetary Fund 2007 ) Entrepreneurial training is an aspect of education, which teaches an individual the techniques of creating jobs not only for himself but also for his immediate families. It teaches an individual how to set up his own business, entrepreneurship is a choice that is addictive rather than absolute it offers upside opportunity and downside protection (Mc Ginnis 2016) education is also another important factor that contributes to the alleviation of poverty, it would be impossible to talk about poverty reduction without mentioning the most vital and crucial aspects which are;
Education and Skill developmentEducation and training are important because they are tools which are used by people to acquire skill knowledge and special qualifications that will help them improve their lives and find a good job. education and training provide skills that drives the economic and social development within the context of both the individual and the global economy moreover providing of capabilities that enable an individual to meet required standards of education.
Lack of education has also been identified as one of the causes of poverty. In general poverty is more prevalent among those lacking in education that are then forced to seek accommodation with poverty. Nobbs (1984) .World In reality, a large percentage of the poor are uneducated. This is because education provides the means for securing a job either in the public or private sector. The vast majority of the middle – class and those at the upper echelons were those who had access to education. Education thus provide To completely capture education, youth literacy rate and primary enrolment will be used. Youth literacy rate is defined as the percent of people aged 15-24 who can both read and write a simple paragraph Primary enrolment is the total enrolment in primary education, regardless of student age, expressed as a percentage of population of officially primary education age. When primary enrolment exceeds 100%, this means that over-age and under-age students have been included because of early or late school entrance and grade repetition. opportunities for people to escape from poverty(Worldbank2014)
For example according to the ( International Monetary Fund 2007 ) Recently the government has been increasing and improving the quality of education and developing new infrastructure with the focus on completion of schools under construction and rehabilitations of class rooms focusing on the implementation of the system which offers leaners the opportunity to follow an academic and vocational pathway in Zambia.
The Bursaries Committee administers government bursaries, grants, scholarships and fellowships for study at universities both in-country and abroad. Close to 70 percent of students are entitled to bursaries, which cover 75 percent of tuition fees for most beneficiaries, and up to 100 percent for vulnerable groups (such as double orphans).
As defined by the World Bank (2014) human capital is the knowledge, skills and experience of people that make them economically productive. Ways to increase human capital includes increasing investment in education, health care, and job training. Human capital can be broken up into four subcategories: schooling, literacy, technology and health and fertility.
Health. is also another factor that increases or reduces the economic status of a nation Health and development are inter-related Economic development improves the health status of the general population but at the same time, better health contributes to economic development by increasing worker productivity and lengthening the expected working life of human beings. Better child health and nutrition promote future productivity growth by helping children develop into healthier and more productive adults. Better health can also reduce the amount of money spent on curative care thereby freeing up resources for alternative investments. In this regard, economic investments should, to a large extent, include investments in human capital through improved health and education as a way of maintaining the nation’s human capital base for sustained economic growth.
What is heath? Heath can be defined by a lay man’s point of view as a state of being free from illness or injury. health is a state in which an individual can carry out day to day activities with no apparent symptoms of disease. World health organization (1948) defines health as a state of complete physical mental and social wellbeing not merely the absence of disease or infirmity including the ability to lead a socially and economically productive life. this definition is holistic and defines health in all aspects of life in order for poverty to be reduced people need access to good medical facilities and healthcare.in 1990 more that 10 million children under the age of fived died in developing countries according to( Fredrich 2007) the vast majority of them from preventable causes such as poor nutrition diarrhoea associated with unsafe drinking water these problems have had particularly devasting effect on the welfare of households and economies in developed countries.
The country Malaysia was able to reduce income poverty from 29 percent in 1980 to 13 percent in 1995 and lowered its Gini-coefficient from 0.49 in 1980 to 0.46 in 2002. The income of the poorest 20 percent has increased from $431 in 1970 to $14275 in 2010. By 2004, 88 percent and 99 percent of the population have access to health care services and clean water respectively. Infant mortality rate dropped from 16 per 1000 live birth in 1990 to 10 per 1000 live birth in 2006. Life expectancy at birth rose from 70 years in 1990 to 74 years in 2006 (World Bank 1997)People with poor health have difficulty exerting their full potential. More than that, if a family member becomes seriously ill, the family will often fall into even severer poverty because of medical expenses and a drop in that family’s income. For people in poverty, it is especially difficult to maintain good health because, among other reasons, the environment for health maintenance is underdeveloped for them.
There are often insufficiencies in terms of medical facilities, pharmaceuticals and medical professionals. And even when there are systems and facilities in place, there are virtually no medical services accessible for the poor because of high costs. In addition, the poor may not have the basic knowledge or skills necessary to maintain their own health. Furthermore, Poverty is described by measuring a number of individual and household level resources children need and have a right to in order to grow and develop (UNICEF 2010)
On the macro level, it is necessary to establish reliable health indicators and statistics in order to grasp the reality of the health condition of the poor, and to understand their health-related needs before formulating comprehensive health policies. Introduction and development of a nationwide mechanism to insure people’s (world bank 2014) health, such as national health insurance, vaccination, and antenatal and infant clinics, will serve as a safety net for the poor, who have difficulty affording the cost. However, in reality, the governments of developing countries face financial difficulties and are unable to provide sufficient health service. Therefore, approaches such as health reforms, cooperation with private sectors, and the introduction of a beneficiary liability system for health services are currently being taken in ma ny countries including in Zambia.
Another factor that contributes to the economic growth of a nation is the investment in human resource and natural resources such as agriculture. In Zambia for example Agriculture in Zambia has great potential for enhancing economic growth and reducing poverty. A well performing agricultural sector translates into significant improvements in the country’s gross domestic product contributes to employment generation and broadens the country’s tax base. To the extent that the livelihood of the majority of Zambians depends on agriculture-related activities, the sector, when well developed, should contribute significantly to welfare improvement the agricultural sector as one of the driving engines for the anticipated economic growth that is required to reduce poverty. The sector’s multiplier effects on the economy are particularly noteworthy, and the restoration of its growth should guarantee a significant reduction in poverty levels currently being faced by Zambia. (International Monetary Fund 2007)
These indicators are the nation’s Gross Domestic Product (GDP)and the nation’s per capita, income the welfare of the citizens and the availability of social services and accessibility of the people to these services. Gross Domestic Product refers to the total output of final goods and services produced in a country during any given period of time by residence of a country irrespective of their nationality. When the gross domestic product rises a lot of employment opportunities rise companies generate a lot of profit and productivity is enhanced in a nation. Information communication technology also plays avital role in social economic development in a nation. According to Todaro (1977) to determine the growth of any country’s economy the above indicators are usually taken into consideration.
Information is avital aspect for alleviating poverty earlier in the text a discussion on some factors that lead to poverty emphasised on the factor called ignorance as lack of information, proving that information is important, a well-informed country will produce productivity. As some poverty reduction mechanism higher technological capabilities will permit greater amount of output from any given level of input, while the increase in output permitted by improve technology will go a long way to increase standard of living of the people and thereby reduce poverty, Atoloye (1997).
Many developed countries successfully embrace technology, innovations and research development which are a key tenet in defining economic growth in their nations. because of evolution the world has changed from how it used to be in the olden days people used to do things manually but now with the introduction of information technology everything has been made easier, possibly the greatest effect of ICT on individuals is the access to the information and services that has accompanied the growth of the internet. Some of the positive as aspects of this increased access are better and often cheaper communications such as email and instant messaging instead of nominal telephone, it has brought about the creation of a well informed and knowledgeable society and the creation of boarder platform in terms of information sharing and communication.
In addition the use of ICT in businesses has brought great profit to the economy of a nation because of the access to larger even worldwide markets, websites can be seen from all parts of the world and orders can be taken whenever there is a compatible banking system to process payments.in Zambia the ICT sector also has contributed to the economy the Zambia information and technology authority ZICTA has provided a platform for economic development in areas such as money cash transfers of local business dealers in the country and as such it has played the role of supporting private investments in the country which is undoubtedly a pillar of sustainable economic development.(Partners guide magazine 2017).
In the last decade china has achieved sustained economic growth through the use of technology and innovations and the most rapid large-scale poverty reduction in human history according to worlds bank dollar per day income measures nearly 400 million people were lifted out of poverty in 1981-2001(world bank2006) therefore the lack of market information works adversely to the product trade of the poor. Therefore, it is also important to aid in establishing a system wherein the poor can easily obtain such information as market price and production/consumption amounts at a low cost, utilizing IT measures such as mobile phones, satellite phones and the Internet. Microfinance that can be used by those who do not have assets to be used as collateral.
Tourism is another important component in a countries development because it is the most important source of foreign exchange, earnings and job creation in many countries. Tourism comprises of activities that of a person travelling staying in places, an act of travelling or sightseeing particularly away from one’s home for not more than a one consecutive year for leisure business and other purposes (World tourism organisation2002)
Tourism is one of the most important form of trade that has become famously popular in many developing countries and it is growing rapidly it is one of the major foreign exchange earner for many industrialised countries including among others Zambia Thailand and Mexico tourism is one of the five leading sources of revenue of export revenue for 69 developing countries and in28 of those tourism was found to be the leading source of foreign exchange according to (World bank 1993).A good example of a great tourism site is right in the mother land of Zambia .tourism is one of the major sectors in Zambia that plays a major role in the stimulation of national economic development and economic growth ,tourism lies in its diversity whose features include the famous Victoria falls ,vast wild life ,resources good weathers activities national heritage and friendly people.
One of the ways tourism contributes to poverty alleviation is through the creation of employment and job creation existing employment where pro poor employment strategies are pursued tourism provides direct employment to individuals because it is labour intensive and can employ people in hotels or tour companies tourism can create jobs which benefit the poor(Goodwin H2002) Tourism can provide an important diversification for other sectors of the local economy and create new ones, offering additional community livelihood opportunities. If local communities and businesses participate in the development of tourism, local economic benefits and ownership are likely to be greater. Increasingly governments are adopting policies, to encourage and facilitate participation by the local communities and the poor in the development of tourism projects, resulting in increasing employment and growth of complementary products (Word tourism organisation2002)
In the essay a number of multiple approaches to alleviate poverty have already been discussed but the question is are these the only economic factors that contribute to poverty reduction? The answer to this is rather easy there are still many other factors that are a major contributor to poverty of which are social protection, come and the population however there is no limitation on the couple of factors as they are many more other factors that alleviate poverty.
is another economic factor that has been put in place in order to reduce poverty, according to the world bank (world bank 2000) at the turn of the twenty first century the poverty problem is how to get four million people of this world to live better lives but most of them now live on less than two dollars a day and those living on less than a dollar a day number more than 1.3billion.seen from this perspective it can be seen that population increase has a great impact on the income of a country.
The impact of over population increases the poverty levels of a nation hence development economists developed strategies in and rationed the poverty problem into two parts which are population and income the solutions that followed were to control the population growth and secondly raise the poor country’s per capital income (journal of macro marketing 2006) Contraceptives and family planning programs are important in that they promote responsible parenthood and reduces the number of unplanned pregnancies and large families ,therefore the united nations fund for population activities (UNPFA 2005) reported that family planning programs in developing countries especially in Asia have succeeded in reducing population growth during the past decades (UNDP2003) and concluded that during the past three decades many countries succeeded in reducing poverty.
Enahoro and Ikpefan(2005) identify causes of poverty as large family size, from a cultural perspective large families are as a result of cultural norms and beliefs for example a family is not complete without having a male child, so most rural folk have that belief system and hence leads them to having multiple of children until the day they have male children, however this had am economic impact on their lifestyles because of large families their economic status is affected where a family of seven ,for example if both the guardian’s of that family are unemployed, problems will arise in terms of income and their nutrition status where a family of seven only have one meal a day. Also their health status may be altered because of lack of proper diet they will suffer from disease’s like kwashiorkor and marasmus and other health complications according to (World bank 2000)
estimates a large number of people who are struggling to survive on less than US $370 a year or a dollar a day. As at today, more than a one billion people in the developing world continue to live in poverty. Poverty is highly visible in most African countries. On the dollar-a-day measure, about 210 million people in sub-Saharan Africa are in poverty, and their numbers continue to grow. In south Asia the share of the population in poverty is about 500 million people. (World Bank, 1995)To better the lives of citizens of a nation it important to put in place such measures such as family planning policies in order to reduce population increase and help people reduce on the number of children they would want to have.
Social protection is also another factor that has an incredible impact in alleviating poverty among the many factors that have already been highlighted.in any country the government has a mandate to protect the citizens of its country socially financially physically and make sure inequalities in the nation according to( Stiglitz2002)states that the growing inequality is responsible more than any factor for moving poverty segment of any developed countries population through the three stages he terms as apathy and then unwillingness to participate and finally anger that culminates in violence ,many of these factors arise when the government does not protect its citizens rights and welfare needs and don’t address many factors of unjustness so the importance of social protection is to protect the weaker sections in the society by ensuring justice is served, poverty is a process. Its essential root causes are embedded in inequality, insecurity, vulnerability, discrimination and exclusion. Thus the ways to attack poverty are related to more equal opportunities, decent work, economic and social security, non-discrimination, empowerment and making social and economic institutions more fair and accountable ( Central Intelligence Agency2014)
Social protection as a factor of poverty alleviation is very important in every aspect of poverty reduction according to the international food policy research institute social protection are programs that are not only aimed at reducing the impact of shocks and coping with aftermaths, but interventions designed to prevent shocks and destruction in the first place(Adato and lund2005)social protection therefor in terms of services take specific forms such as social assistance in terms of disability benefits for people who have disabilities and that disability makes them handicapped to do what other people in society are able to do such as work and find an income, social pensions for the elderly this is the type of benefit elderly people get for all the years they have worked in a certain organisation and also carterfor single paren6 allowances ,social equity services such as protection of human rights an example can be that of Zambia, has these services such as anti-corruption commission and gender based violence programs to help victims of gender based violence.
Social protection includes all public and private initiatives and incentives that provide better living conditions, better income and consumption to the poor. protection of the vulnerable against livelihood risks to enhance their social status and rights with the overall objective of reducing the economic and social vulnerabilities and marginalized groups(mpagi2002) It is now clear social protection is a necessity but not a sufficient condition for it to be an effective strategy, it has to be accompanied by a deliberate provision of enabling and Reducing poverty because eradicating extreme poverty are broadly accepted goals of development.
CONCLUSIONIn conclusion, this essay has shown the various economic factors that are significant in alleviating poverty in a nation how a nation can tackle the issues of poverty by considering and focusing on the economic factors such as employment ,health, tourism and education in order to place mechanism that could eradicate poverty It is hoped that this essay will add to the already existing literature on the study of poverty and provide a new perspective on the topic.
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world Bank .2006, “World Development Report on Equity and Development”, Word Bank Oxford University Press.DECLARATION
1.I Grace Simataa know that plagiarism is to use another’s work and present it as my own, and this is a criminal offence
2.Each significant contribution to and quotation this essay from the works of the other people has been attributed and gas been cited as such.
3.This assignment is my own work.
4.I have not allowed and will not allow anyone to copy my work with the intention of passing it off as their own work.
Signature gsimataa Date……9th september2018
Table of Contents
TOC o “1-3” h z u INTRODUCTION PAGEREF _Toc525122812 h 1A General Description of the term poverty PAGEREF _Toc525122813 h 1factors that contribute to poverty PAGEREF _Toc525122814 h 2Entrepreneurship PAGEREF _Toc525122815 h 2Education and Skill development PAGEREF _Toc525122816 h 4CONCLUSION PAGEREF _Toc525122817 h 10REFERENCES PAGEREF _Toc525122818 h 11APPENDIX PAGEREF _Toc525122819 h 14