Solutions to Poverty: What Works and What Doesn't

Poverty is a state that exists when there is a lack of means by which to meet basic needs (Shildrick, & Rucell, 2015). The definition of the term requires that what constitutes basic needs be determined before people are identified as poor, as needs may vary across groups or populations. 

Variables and Determinants 

Tackling the roots of poverty requires a comprehensive explanation of the origin of the social problem. The variables and determinants of poverty may be classified into three main characteristics: those particular to regions, those at the community level, and those at the individual or household levels. 

At the regional level, some of the main factors include adverse climatic conditions, inadequate rainfall, lack of sufficient resources, and geographical isolation (Krishna, 2004). Floods or typhoons may destroy capital stock and disrupt economic activities in climatically vulnerable regions. Geographical remoteness of farmers lower prices at which they can sell their produce and raise their buying prices because of the high costs of transport. Other regional determinants of poverty include governance, political, economic and market stability, environmental policies, public services, and communication infrastructure (Krishna, 2004). 

At the community level, infrastructure has been identified as the major poverty determinant (Krishna, 2004). It involves proximity to usable roads, sizeable markets, and administrative centers, as well as the availability of education and health facilities and services. Other community level characteristic indicators include the level of human resource development, accessibility of and/or to employment, distribution of natural resources like land, representation, and social mobility (Krishna, 2004). Where humans have the necessary skills and expertise, they are able to take up jobs which would alleviate poverty. That is only workable if there are available and accessible employment opportunities. Natural resources would contribute to job creation. 

At the individual and household levels, the variables and determinant factors of poverty include education levels of members, the gender of the head of the household, the household’s age structure, and the labor force participation levels (Krishna, 2004). Recently, other factors have been included in this category. They include domestic violence and discrimination on the basis of gender (Krishna, 2004). Domestic violence may hinder engagement in economic activities. Where women are restricted, they are not able to contribute economically to their household, which would otherwise reduce poverty at the household level. 

Attempted Solutions 

Foreign aid has been viewed as a viable avenue for eradicating poverty in the third world. The common arguments for foreign financial support have been the following (Dedu, Staicu, & Niţescu, 2011): it is an economic development instrument; it reduces poverty; it is an international income distribution tool; it acknowledges past mistakes and compensates for them; it serves the interests of the developed world; and, it helps control population growth. The reasons appear geared toward poverty eradication. 

However, foreign aid has failed to live up to expectations. In an eight-year period since 1980, Sub-Saharan countries received about $83 billion in foreign aid (Dedu, Staicu, & Niţescu, 2011). The region experienced economic growth and prosperity, but, according to Dedu, Staicu, and Niţescu (2011), the region’s living standards constantly decreased annually by 1.2%. The Harvard Professor, Nicholas Eberstadt was once quoted as saying that financial aid from the West may be compromising Africa’s economic progress and decelerating it human capital development aid (Dedu, Staicu, & Niţescu, 2011). The failure has been attributed to mismanagement of aid funds by governments, as well as the poor allocation of the aid funds in cases where they are spent on the development of the countries (Dedu, Staicu, & Niţescu, 2011). 

The case of Chile in the late 1980’s was an instance of a successful eradication of poverty. The eradication was the result of a political consensus around tax and tariffs. The perception of the inequity of the country's previous model of free market prompted political support for raising taxes (Foxley, 2004). In 1991, the government unilaterally reduced external tariffs, which the private sector construed as an indicator of the commitment of the government to free trade and an open market economy (Foxley, 2004). The two measures turn out to be best practices, as they led to a significant eradication of poverty in Chile. 

The private sector supported tax increase for two main reasons (Foxley, 2004): (1) businesses valued stability and permanence of the model of open market; and, (2) the government explicitly guaranteed businesses owners that the tax increase implemented once at the new Administration’s start and that rules would be established. The later reduction of tariffs fostered credibility of the government's word and commitment to it. Private investment increased, and, as a result, an 8% economic growth, which was sustained until 1997 (Foxley, 2004). 

Approach: Perspectives on and Stereotypes about Poverty 

There are various perspectives on poverty. Some sociologists refer to dependency culture, or people’s fecklessness and moral failings (Shildrick, & Rucell, 2015). The view may dissuade willingness to help poverty eradication by non-poor people/institutions. Some sociologists view it in terms of unequal distribution of opportunities and resources across the society (Shildrick, & Rucell, 2015). The view may encourage redistribution of income through taxation of the rich for welfare for the poor. Some sociologists believe that shame and stigma are important in understanding poverty experience (Shildrick, & Rucell, 2015). The view may explain why people may be reluctant to seek benefits from institutions set up to alleviate the impacts of poverty on their lives, which may serve to perpetuate poverty. Some sociologists think that institutions like welfare or public delivery services stereotype poverty negatively (Shildrick, & Rucell, 2015). The stereotyping contributes to stigmatization and disadvantaging of poor people. 

I personally have biases about poverty. I believe that poverty started with an unfair distribution of resources. However, disadvantaged people cannot be poor forever. There have been people who have worked hard enough to eradicate poverty from their lives. That makes me think that people living in poverty are just not trying hard enough. I also think that welfare benefits are discouraging people from working, as it enables them to live comfortably by their standards. That hampers the need to work hard to eradicate poverty. 

Sociology Theory: How One Would Avoid Bias 

It is difficult to get rid of all bias sources while conducting research. One, therefore, needs to be aware of potential bias pitfalls in order to avoid them. Data collection should be random, and not at the convenience of the researcher. One should adhere to what data indicates, and not try to manipulate or skew it in favor of his/her stand. Questionnaires should be prepared objectively, with validation from non-respondents who have different views about the subject of research. It should be edited accordingly in case of a need to do so. Measures should be taken to avoid factors that may compromise data collection. Such information is available in the literature regarding the subject, while other factors may be identified by the researcher or by any other person. Lastly, researchers should rely on a variety of sources, rather than just one or closely related ones. 

References 

Dedu, V., Staicu, G., & Niţescu, D. C. (2011). A critical examination of foreign aid policy. Why 

it fails to eradicate poverty?.  Theoretical & Applied Economics ,  18 (4). 

Foxley, A. (2004, May). Successes and failures in poverty eradication: Chile. In  Scaling up 

Poverty Reduction: A Global Learning Process and Conference, Shanghai, May   

(pp. 25-27). 

Krishna, A. (2004). Escaping poverty and becoming poor: who gains, who loses, and why?.  

World development ,  32 (1), 121-136. 

Shildrick, T., & Rucell, J. (2015). Sociological perspectives on poverty.  York: Joseph Rowntree 

Foundation . Retrieved from https://www.jrf.org.uk/report/sociological-perspectives-poverty