Poverty can be found anywhere in the world even in the richest and most industrialized nations. Its wide existence around the globe represents many problematic factors that exist within social and economic issues. Widespread poverty is the product of a wide variety of social and economic factors that an economically driven society creates. In order to reduce significant levels of poverty, it is necessary to fix these factors to create a more accessible distribution of resources, wealth and opportunities.
Social analysts and activists who work against the reduction and elimination of poverty agree that economic liberation is the most effective solution to take people out of poverty. People generally define economic liberation as having a greater income or a better standard of living, but the precise definition is the liberation in doing economic activities that produce income and a better quality of life.
Economic liberation represents the ease of doing business, setting up a business, buying and selling products or services, and earning profits from business activities as well as from employment.
Almost all industrialized nations have flexible restrictions and rules when it comes to business ownership. Market economies within a free enterprise system characterize themselves with this benefit where business activities, employment and other essential economic activities are highly encouraged for the benefit of all society. An example would be the contrast of extremely bureaucratic processes and fees to start up a business in different countries such as Canada and Sierra Leone. An aspiring entrepreneur has to pay under $300 in fees and wait less than one week to register and create a company in Canada. Unlike Canada, in Sierra Leone the fees can rack up to $3,000 or more and the bureaucratic process takes more than 90 days.
Apart from the necessity of economic liberation in impoverished countries around the world, it is also necessary to provide more rights to the poor and access to more opportunities. Wealthy families and individuals are usually those that have open access to high quality education, social services, sanitation and other essentials that secure a superb standard of living. Poor individuals face unaffordable prices for these essentials, and they are secluded from these advancement opportunities in their lives.
These harsh scenarios represent the need for governments, market economies and organizations to work cooperatively in order to provide equitable rights to the poor and more economic liberation, where the need of money, social class or family surname is not something necessary to be successful. Once these opportunities and rights are applied, it is then crucial to value these individuals based on their specific merits, talents, skills, knowledge and other positive factors that will allow them to succeed with given opportunities for advancement.
Reducing poverty is directly associated with investments in capital. Just like with the creation of infrastructure in order to prevent poverty, it is also necessary to encourage investments in capital. Capital refers to the means of production from natural resources all the way to a finalized product. Machinery, computers, systems, transportation solutions and other forms of capital equipment facilitate production of goods and services, which creates more economic demand for jobs and lowered levels of production.
On the other hand, investments in human capital are more valuable than investments in capital equipment. People need to feel secure, confident and must be knowledgeable of what they are doing. Companies must invest human capital in their operations to produce optimized results in the long run. Workers are the main producers of economic activity and investments in human capital must be a top priority for all kinds of enterprises around the world.
In terms of education, governments can reduce poverty levels when imposing mandatory schooling for all children. Impoverished nations possess educational infrastructures that remain at inadequate levels in terms of development. It is necessary for children to grow up and learn in a well-developed educational system to produce demanding results during their professional lives. Mandatory schooling laws that protect children from exploitation, abuse, child labor and poverty are a great way to inculcate the importance of education from an early age.
High school curriculum and the overall educational infrastructure must adapt to constant changes in society and advancements. One leading cause of poverty and struggling financial circumstances in the United States are due to the inadequate administration of income and expenses. High schools and parents must teach children the importance of saving, appropriate administration of income, registration of expenses and other essential personal finance topics to avoid debt and poverty during adulthood.
An average of 65% of Americans in the United States has some form of debt which they are unable to pay. This leaves a 35% of the adult population that has no debt. A direct negative correlation between debt and education attainment is also represented within the 28% of the population that holds a bachelor’s degree or higher. We can conclude based on inferences from these statistics that personal finance education early in life is a terrific way to manifest the reduction of debt, financial struggles and poverty in the long run.
International organizations, charity foundations and development projects that aid key problematic areas in impoverished nations are also imperative to the reduction of poverty. An impoverished nation cannot sustain itself for all of its problems and development issues within its own population, resources and infrastructure. These nations need economic aid in the form of foreign investments, charitable organizations and development projects that private negotiations can finance throughout a sustained period of time.
These solutions encompass a direct form of aid provided from citizens and organizations of first world nations to the citizens of impoverished nations. Once these solutions are applied, and citizens start to take these opportunities, the country will start to flourish in terms of human development and in the desired reduction of poverty with an increasing level of economic growth that must surpass the 10% threshold for the majority of poor countries around the world and 5% to 10% in the rest of medium sized economies.
Emotional health and the change of attitudes are also another remarkable aspect that organizations and charitable foundations must practice in order to diminish poverty. Impoverished communities and individuals often have a high degree of negativity in their minds, the perception of enduring challenges and constant attitudes that keep them from succeeding in life. Individuals must accept the fact of self-responsibility and know how to manage their reactions toward different events and circumstances.
The process of natural selection imposes its theory within the reduction of poverty, where the strongest individuals who are able to entirely change their lives and adapt to change are the ones that are the most successful in the long run. Teaching the poor how to accept and adapt to change can be a rewarding lesson to continue the enduring battle of achieving a better standard of living in the future.
Reducing poverty is a continuous task that takes a vast amount of time to find optimal solutions. Among the mentioned factors and strategies mentioned, economic liberation and investments in human capital are among the most pertinent to diminish poverty in an effective way. Aid from organizations, charities and giving more rights and opportunities to the poor are among the complementary portions of what can truly reduce poverty to minimal levels. Cooperation, tolerance, comprehension and patience are the key attitudes that are expected to be applied from numerous individuals in order to reduce poverty around the world.