More than 3 billion people in the world, almost half of the world's population, live on less than 2.50 dollars a day and more than 1.3 billion of dollars live in extreme poverty, less than $1.25 per day. (UNICEF 2013). A third of annual deaths are due to poverty. An estimated 600 million children live in absolute poverty, every year more than 10 million innocent children die of hunger and preventable diseases, such as diarrhea, pneumonia and malaria, 19 million children in the world are still not vaccinated, even a simple mosquito net would prevent malaria. In 2011, 165 million children under the age of 5 suffered from stunting (reduced growth and development rates) due to chronic malnutrition. 870 million people around the world don't have enough to eat. More than half a million women die each year during pregnancy or childbirth… one death every minute. Why do we have cases of poverty in 2014? “Overcoming poverty is not a task of charity, it is an act of justice. Like slavery and apartheid, poverty is not natural. It is a human creation and can be overcome and eradicated by the actions of human beings.” Mandela (2005). It is heartbreaking that in this day and age, children are dying from hunger and easily preventable diseases. Poverty reduction is one of the most dominant themes in current research, policymaking and international debates on economic development. A sign of its importance is shown by the fact that the very first goal of the Millennium Development Goals (MDGs) is actually to halve by 2015 the number of people living on less than a dollar a day. In relation to this thesis, the role of economic growth in reducing poverty is of great importance. Substantial and lasting reductions, if not complete eradication of poverty have been and will continue to be...... middle of paper ......e when calculating the income elasticity of poverty but According Heltberg, (2002) in In many cases, growth is more important for reducing poverty than reducing inequality, but this does not mean that inequality is unimportant Heltberg (2002). Heltberg and Ravillion (2002) discover that growth does not modify inequality. Inequality can be held constant as the ram does (2006, 2011, 2013) or the Gini coefficient can be added to the regression, as shown in the Adams study (2004) where the elasticity of poverty growth in developing countries is calculated at -2.79. , a decrease in the proportion of a population living in poverty to 2.79% for every 1% of growth, which is based on consumption rather than income. Regression is used when the rate of poverty reduction (p) is regressed on the growth rate of GDP per capita and the rate of income inequality (Gini coefficient).