Poverty and Under Development

8/3/2019 Poverty and Under Development

1/9

Introduction

Up to the early millennium, poverty remains to be the biggest problem of the world. One-sixth ofthe global population or about one billion people live in an extreme poverty. They struggle daily

for survival. They suffered from lack of nutrition, health, water and sanitation, shelter and other

basic needs for survival.

In order to end the poverty, the 191 UN members signed the United Nations Millennium

Development Goals (MDGs) in 2000. The first goal of the MDGs is to eradicate extreme poverty

and hunger. To achieve this goal, a target has been has to be set that is, to reduce by half the

proportion of people living on less than a dollar a day by 2015. If the target can be realized, there

will be an opportunity to end the extreme poverty by 2025 (Sach, 2005: 25). It means that

poverty is the greatest challenge of global society.

The greatest challenge to alleviate poverty can be reflected through the contemporary poverty

situation in Indonesia and India where a huge number of people lives below the poverty line.

Before the economic crisis hit Indonesia in 1997, the number of poor people had significantly

decreased. There was clearly a sharp reduction in both urban and rural poverty from 1984 to

1996. The total poverty rate dropped from 56.7% in 1984 to 17.4% in 1996, a reduction of 39.3

percentage points in a twelve-year period. However, the economic crisis has evidently reversed

the achievement of poverty reduction. Poverty in both urban and rural areas increased again from

1996 to 1999. The total poverty rate in 1999 was 27.0%, while urban and rural poverty rates

were 16.3% and 33.9% respectively (Suryahadi et al., 2006).

Definition of Poverty

There have been different definitions to the concept of poverty but all definitions are of the

opinion that it includes major type of deprivation, whether material or intangible. Martins(1969) defined poverty as existing when the resources of the families or individual are

inadequate to provide a socially acceptable standard of living. Mabogunje (1975), was of theopinion that a poor person is one who either receives no spendable income or receives an amount

too small to cover his current basic needs. He also defined a poor man as someone whose rights

to command scarce resources is limited

Service oriented NGOS that provide different kinds of services to people and no other

organizations. There are the professional NGOS who have different l in e s o f p r o fe s s io n

e.g. Education, health, environment. There are the s NGOS as well as the Network NGOS whodeal with association of other NGOS(DFIDs Consultative Report; 1998).

Non-Governmental Organizations

Non-governmental Organisation(NGOs) can be distinguished by sectors. For example there are

NGOs in sectors like: Agriculture, Community development.,Microcredit/ Enterprise

Institutions, Health /Population., Human Settlement/Environment, Women, Education andDevelopment, Social Development and Youth organisations . Service oriented NGOs are those

that provide different kinds of services to people and to other organizations. There are the

professional NGOs who have different l in e s o f p r o fe s s io n e.g. Education, health and


2/9

environment. There are the s NGOs as well as the Network NGOs who deal with association of

other NGOs (DFIDs Consultative Report; 1998). Many of these NGOs have contributed

substantially in eradicating poverty in Nigeria. The Micro-credit or Micro-finance NGOs aremany in the country and they are mainly established to help the poor people to obtain loans with

little interest, to give education on how to use the loans and on some income generating

activities, and to establish cottage industries for the poor

In the last decade, non-governmental organizations (NGOs) have gained increased attention

among scholars and practitioners of development. They have become increasingly important

agents of the development process in the countries of the South, in all of their main areas of work

such as humanitarian relief, long-term development, policy formation and political advocacy

(Attack 1999).

On the other hand, there is a current view that NGOs constitute a viable alternative to

government as channels of development assistance, particularly in developing countries. Some of

the NGOs functions and advantages, according to Streeten (1997) are (1) they are good at

reaching and mobilizing the poor and remote communities; (2) they help empower poor people

to gain control of their lives, and they work with and strengthen local institutions; (3) they carry

out projects at lower costs and more efficiently than the government agencies and (4) they

promote sustainable development.

NGOs are professionally-staffed organizations aiming at contributing to the reduction of human

suffering and to the development of poor countries (Streeten 1997). They do this in various

ways, e.g. by funding projects, engaging in service provision and capacity building, contri-buting

to awareness, and promoting the self-organization of various groups (Baccaro 2001). Meanwhile,

Desai (2005) has mentioned that NGOs have an important role to play in supporting women,

men and households, and expected that they can meet the welfare. She accounted some role and

functions for NGOs, such as counseling and support service, awareness raising and advocacy,

legal aid and microfinance. These ser-vices help the people to achieve their ability, skill and

knowledge, and take control over their own lives and finally become empowered. On the other

hand, Stromquist (2002) has noted three major functions for NGOs such as (1) service delivery

(e.g. relief, welfare, basic skills); (2) educational provision (e.g. basic skills and often critical

analysis of social environments); and (3) public policy advocacy.


3/9

Through the following NGOs have been a channel for ending absolute poverty and under

development;

Microfinance and Sustainable Community Development

During the 1990s, scholars have increasingly referred to microfinance as an effective means of

poverty reduction (Rekha 1995; Cerven and Ghazanfar 1999; Pankhurst and Johnston 1999).

Oxaal and Baden (1997). Mayoux (2000) and Cheston and Khan (2002) have pointed out the

importance of microfinance in empowerment, particularly women empowerment. Microfinance

is defined as efforts to improve the access to loans and to saving services for poor people

(Shreiner 2001). It is currently being promoted as a key development strategy for promoting

poverty eradication and economic empowerment. It has the potential to effectively address

material poverty, the physical deprivation of goods and services and the income to attain them by

granting financial services to households who are not supported by the formal banking sector

(Sheraton 2004). Microcredit programs provide small loans and savings opportunities to those

who have traditionally been excluded from commercial financial services. As a development

inclusion strategy, microfinance programs emphasize womens economic contribution as a way

to increase overall financial efficiency within national economies.

According to Cheston and Khan (2002) In order to gain economic sustainability, NGOs through

microfinance help the communities to reduce poverty, create jobs, and promote income

generation. In the developing countries, sustainability is linked more closely to issues of poverty

and the gross inequalities of power and resources (Hamnett and Hassan 2003). This is due to the

fact that in the Third World countries, the ecological system sometimes conflicts with the socio-

economic needs of local people who depend on a local ecosystem for their survival

Capacity Building and Sustainable Community Development

As mentioned earlier, capacity building is another NGOs strategy that helps to bring about

sustainable community development. Capacity building is an approach to development that

builds independence. It can be: i. A means to an end, where the purpose is for others to take on

programs. ii. An end in itself, where the intent is to enable others, from individuals through to

government departments, to have greater capacity to work together to solve problems


4/9

iii. A process, where capacity building strategies are routinely incorporated as an important

element of effective practice (NSW Health 2001).

Before beginning to build capacity within programs, practitioners need to identify pre-existing

capacities such as skills, structures, partnerships and resources. Frankish (2003) has counted a

number of dimensions for community capacity including financial capacity (resources,

opportunities and knowledge), human resources (skills, motivations, confidence, and relational

abilities and trust) and social resources (networks, participation structures, shared trust and

bonding). UNDP (1997) has introduced capacity building as the process by which individuals,

groups, and organizations increase their abilities to (1) perform core functions, solve problems,

define and achieve objectives; and (2) understand and deal with their development needs in a

broad context and in a sustainable manner. Furthermore, in terms of NGOs functions, Langran

(2002) has defined capacity building as the ability of one group

(NGOs) to strengthen the development abilities of another group (local communities) through

education, skill training and organi-zational support

Self-reliance and Sustainable Community Development

According to Kelly (1992), self-reliance means that the people rely on their own resources and

are independent of funds sourced outside the community. Self-reliant strategy relies on the

willingness and ability of the local people to depend on their own available resources and

technology which they can control and manage.

A self-reliant strategy requires the optional use of all available human, natural and technological

resources (Agere 1982).

Motivating and mobilizing people to be selfreliant and to participate in development activities

become an important objective of the NGOs. According to Korten (1990), the second strategy of

the NGOs focuses on developing the capacities of the people to better meet their own needs

through self-reliant local action. In the second generation strategy, Korten (1990), mentioned that

the local inertia is the heart of problem in a village or community. There is a potential energy in a

community but remains inactive because of the inertia of tradition, isolation and lack of

education.


5/9


6/9

Often, the presence of NGOs improves access to health care through construction of NGO health

units and stocking these with drugs. Some NGOs have further enhanced physical access through

the construction or repair of roads, as one citizen said:

We appreciate because the services have been brought nearer to us the community. Instead of

going to far Hospital in the city, we are saved the expense of transporting ourselves.

For example patients receive treatment at subsidized rates, have credit facilities exits and they no

longer have to travel all the way to city Hospital for simple ailments. Some respondents further

observed that there were now fewer patients attending the clinic, which was attributed to a

reduction of preventable disease episodes following health education activities by NGO staff.

Water and Sanitation Activities

There were two main forms of assistance for water and sanitation construction and health

education. In Mubende, Action AID Buwekula is assisting communities with spring protection.

The NGO is providing external resources (corrugated iron sheets and money), while

communities provide other locally available resources, such as sand, bricks and labor. In Mbale,

Water AID has worked with Bubulo on community water improvements by providing water

storage tanks, water pumps and pipes. Members of the communities then provide labor to set up

these tanks. MADZI, another Mbale NGO, has constructed a gravity water scheme and some

VIP latrines at health centres that are used for demonstration purposes.

As an example of health education, the Ntungamo Womens Club in Mubende is involved in

sanitation and hygiene education to mothers, e.g., boiling drinking water and domestic hygiene.

Economic Activities

Although the sampled NGOs were chosen principally for their work in health, many of them

were involved in various activities to assist communities with improving their economic status.

Some economic benefits have been direct, for example, Salem Brotherhood has provided

employment to community members (clinical officers, nurses, teachers and watchmen are

employed at the NGOs health units and schools).


7/9

Another relatively common approach favored by NGOs and communities is the use of small loan

schemes. Community members, especially women, are sensitized on possible income generating

ventures, provided with information on costing and savings, and then given small loans. NGOs

are promoting venture involvement in handicrafts, poultry and livestock farming and running of

retail shops. Some women have been involved in planting and selling agricultural products

including timber after receiving loans through NGOs (FOCCAS and Salem Brotherhood). There

are women in Masaka who have received heifers under the Uganda Women Concern Ministry

(UWCM) and Christian Children Fund (CCF).

OTHER WAYS OF OVERCOMING UNDER DEVELOPMENT AND ABSOLUTE

POVERTY

The following measures can be taken for the eradication of poverty

Control of Population Growth:

Any number of employment programme cannot provide work for all if our population grows at

an alarming rate of 1.9% per year. Six Million persons are added to the labour force every year.The family planning programme has not been very effective in rural areas for reasons

unavoidable. Growth of national income is approximately 3.7% per year. Per capital income

grows around 1% per year unless population growth is reduced to around 1%, we cannot makeany significant dent on poverty. Hence population growth is to be controlled lock stock and

barrel. Immediate check on rapid growth of population is absolutely essential for economic

progress in India. Economic planning without family planning will not bear fruit. If man does notcheck population, population growth will check man's progress. If population is not checked, ourprogress would be like writing on sand with waves of population growth washing away all that

we have written.

Higher Economic Growth:

Higher economic growth is a necessary condition for poverty alleviation. Population growthremaining constant, higher economic growth will lead to higher per capita income. This will lead

to higher standard of living. Hence production has to be increased and economic growth has to

be maximized. Adam Smith pointed out the importance of productivity as the key element of

economic growth. Hence the pace of economic development must be speeded up. Higher rate ofgrowth necessarily involves fuller and more productive employment of the working force. Hence

employment creation is one aspect of the antipoverty policy.

Income Redistribution:

Increase in national income cannot merely alleviate poverty. The gap between the rich and thepoor has widened despite fifty years of planning. The fruits of economic development has


8/9

reached nearly 20% of our people. The rich have become richer and the poor have become

poorer: According to the world Bank, the total 20% of the house holds share 50% of the national

income in India whereas the bottom 20% share only 7% of the national income, This impliesheavy concentration of income in the hands of a microscopic minority. The glaring inequality

must be reduced if poverty is to be removed. All possible steps should be taken to see that

inequality is kept to the minimum. Inequalities are ethically undesirable, morally ignoble sociallyundependable, economically wasteful, unjust and inefficient and politically explosive. A two

pronged attack on inequality is indispensable i.e. leveling down the economic position of the rich

and leveling up the economic position of the poor. This will pave the way for removal of poverty

INCREASING PUBLIC ATTENTION/AWARENESS ON POVERTY

Increase public attention on poverty and effects and causes of poverty;

Conduct public campaigns to ensure governments address the issue of poverty and speed

up the implementation of MDGS.

Focus on developing and updating information on the extent and effects of poverty in

selected countries and Africa as a whole. Through original research, compilation of data from publicly available sources, and

special projects, generate useful information on poverty.Additionally, endeavor to bring exposure to critical issues on poverty, including the

impacts of poverty on people's lives.

ENGAGE IN RESOURCE MOBILIZATION TO COMBAT HIV/AIDS

The fight against Aids remains the great challenge of our age. HIV/Aids is expanding atan accelerating rate and prevention and treatment efforts are nowhere enough.

International Center for Alleviation of poverty recognizes that there are strong linkages

between poverty and HIV/AIDS Pandemic. Therefore, in order to combat the pandemicthere is need to generate more resources to developing countries. Poverty is a major

impediment to the war against HIV/Aids scourge in Africa. If the war against the scourge

is to be won, there must be an increase in resources and funding

Latest research shows that the goal of containing the world Aids epidemic by 2015 willnot be achieved without a quantum leap in funding and education.

The more we delay making a proper investment in the AIDS fight, the more the eventual

costs will escalate. ICAP is engaging in mobilizing resources to fight the pandemic,including obtaining affordable drugs and testing kits and partnering with other existing

organizations fighting the pandemic.

WOMEN EMPOWERMENT:

Women are increasingly the ones that suffer the most poverty. In most African countrieswomen disproportionately bear the burden of poverty. ICAP believes that in order to

alleviate poverty and change the poverty landscape we must empower women.

Women comprise more than half of the world's population. Women do two thirds of the

world's work, receive ten percent of the world's income and own one percent of themeans of production.


9/9

Although women weld little economic or political power, women remain the dynamo

behind the wheels of society. Investment in women offers multiple rewards that can

accelerate social and economic progress, with a lasting impact.

Women are the primary guardians of future generations. Women play a pivotal role not

only in the reproduction but also in rural economies especially in food production.

Invariably, women tend to reinvest any gains in the welfare of their children and families,multiplying their contributions to national development Women are the backbone of the

rural community, the initiators of social change and the hub around which the spokes of

society turn. However numerous obstacles have ensured that women continue to lagbehind. ICAP will be undertaking innovative programs that will empower and improve

the status of the women.

GOOD GOVERNANCE, TRANSPARENCY & ACCOUNTABILITY:

Good Governance, transparency and accountability are key components towards effortsto alleviate poverty. Poverty is often a result of poor government policies. Corruption and

poor management of the economy is also a major factor in promoting poverty. To

eradicate poverty from its roots there is need to fight against corruption, improve

governance and ensure transparent use of funds. ICAP will engage in programs and activities that promote Good Governance.

Support initiatives that fight culture of corruption and promote transparency and

accountability.

REFERNCES

Finger M 1994. NGOs and Transformation: Beyond Social Movement Theory. In: Princen T,Finger M (Eds.):Environmental NGOs in World Politics: Linking theLocal and the Global.

London: Routledge, pp. 48-66.

Rural Poverty in Developing CountriesImplications for Public Policy BY Mahmood Hasan

Khan

UNDP 1994,Human Development Report, 1994, Oxford: Oxford University Press forUNDP, New York.

UNDP. 1997. Maldives Country Co-operation Framework. www.mv.undp.org
http://www.mv.undp.org/http://www.mv.undp.org/

Poverty and Under Development

Documents

Transcript of Poverty and Under Development