Our 5 Ways to Reduce Poverty

Poverty is a complex issue that requires social, economic and cultural solutions. There are 5 ways to reduce poverty that are proven to help families live healthier lives that enrich communities as a whole. To design and implement effective solutions, it is crucial to explore the question, “What is poverty reduction?” and gain a helpful understanding of the dynamics at work in places where poverty prevails.

Why is poverty reduction important? Poverty not only devastates individuals and families, it can also cripple entire communities and societies. People cannot joyfully enter into life and society, contributing their gifts and productivity, if every part of their lives is defined by lack.

According to the American Psychological Association (APA),

“Those who are poor face challenges beyond a lack of resources. They also experience mental and physical issues at a much higher rate than those living above the poverty line.” The APA points out that children born into poverty have higher instances of chronic diseases and low birth weight, both of which contribute to ongoing health issues that likely cannot be addressed because there is simply no money to pay for treatment.[1]

With the myriad of issues and challenges present right from birth, individuals may never be able to think about education or thriving in a community. What resources they do have are entirely wrapped up in daily survival. Children who never move from survival to thriving cannot develop the skills and physical strength necessary to be contributing members of society.

That’s why it’s important to ask, “What is the relation between economic growth and poverty reduction?” Working adults contribute to the economy in significant ways. Not only are they providing for their families, but they are helping to build strong economies.

Economics Online tells us,

“Poverty creates many economic costs in terms of the opportunity cost of lost output, the cost of welfare provision, and the private and external costs associated with exclusion from normal economic activity. These costs include the costs of unemployment, crime, and poor health. In addition, the poor have little disposable income, and so cannot spend and generate income for firms and jobs for other individuals.”[2]

An economy cannot grow without skilled workers coming to their jobs each day and fulfilling the needs of a company that is trying to build or produce something. The community as a whole suffers without services or products. Communities without thriving businesses cannot provide enough jobs to keep families from suffering the effects of never having enough.


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