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  • Essay / Poverty reduction is an essential development goal

    Poverty reduction is considered one of the most essential development goals for developing and developed countries (United Nations, 2000). However, poverty outcomes vary considerably between countries depending on the particular success of their development strategies. Research that compares the experiences of a wide range of developing countries consistently finds that rapid, sustainable growth is the most effective way to reduce poverty. A typical estimate from these cross-national studies is that a 10 percent increase in a country's average income will reduce the poverty rate by 20 to 30 percent (Adams, R, 2002). Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayInitial levels of income inequality are important in determining the powerful impact of growth on reducing poverty. For example, it has been estimated that a 1 percent increase in income levels could lead to a fall in poverty of 4.3 percent in countries with very low inequality, or a fall in poverty of as little as 0.6 percent in widely disparate countries (Ravallion 2007). .Such calculations should be interpreted with caution, given the multitude of variables involved. Even if inequality increases alongside growth, the poor will not necessarily benefit from growth, just that they will benefit less from growth than other households. But contrary to widespread belief, growth does not necessarily lead to an increase in inequality. Even if some theoretical research suggests a causal relationship between growth and inequality (and vice versa), the most recent empirical research agrees that there is no consistent relationship between inequality and changes in income. The experiences of developing countries in the 1980s and 1990s suggest that there is a roughly equal chance that growth will be accompanied by an increase or a decrease in inequality (Ravallion 2001). In many developing countries, inequality rates are similar to or lower than those in developed countries. A series of studies using international data all suggest that growth has neither a positive nor a negative effect on inequality (Chen and Ravallion, 1997). Keep in mind: this is just a sample. Get a personalized article from our expert writers now. This is not to say that increased growth has not led to increased inequality in some countries. China and India saw inequality widen as their growth rates accelerated during the 1990s. Bangladesh and Uganda would have experienced higher rates of poverty reduction if growth did not had not widened income distribution between 1992 and 2002. For example, one study suggests that the proportion of people living in poverty in Uganda at the end of this period would have been 30% instead of 38% if the poor had benefited proportionally from growth (Besley and Cord 2007). Works Cited: American Psychological Association. (2010). Publication manual of the American Psychological Association (6th ed.). Miller, A. (1953). The Crucible: A play in four acts. Viking Press. National Institute of Mental Health. (2021). Schizophrenia. https://www.nimh.nih.gov/health/topics/schizophrenia/index.shtmlNational Institute of Mental Health. (2021). Psychosis. https://www.nimh.nih.gov/health/topics/schizophrenia/index.shtml Nolen-Hoeksema, S. (2014). Abnormal psychology. McGraw-Hill Education. Singer, I..