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Poverty and Underdevelopment in Low Income Countries May 2, 2015

Posted by OromianEconomist in Africa, Economics, Economics: Development Theory and Policy applications, The extents and dimensions of poverty in Ethiopia.
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Poverty can be an outcome of inefficient use of common resources and a result of exclusive mechanisms. Weak policy environment, inadequate infrastructures, weak access to technology and credits can cause poverty. Poverty can also result from the use of mechanisms by some groups in a society or community to exclude others from participating in democratic and economic development process (Ajakaiye and Adeyeye, 2002). This is defined by Hazell and Haddad ( 2001) as social deprivation…From the different reasons mentioned above in relation to poverty in developing countries, it is clear that strategies to alleviate poverty and help poor people must aim at improving the productivity and the living conditions of smallholder farmers and landless agriculture workers who constitute the majority of poor people. Furthermore, agriculture is seen as central to rural development. It is the major economic driver, the hub of rural activities, and permanent estate (IRG, 2002). The improvement in agriculture productivity is based on agricultural research and improved technologies. In many developing counties government must play an important role in this domain. However poor people may benefit from agriculture productivity only if favorable macroeconomic and trade policies good infrastructure and access to credit, land, and markets is in place.

As far as land is concerned, government in many developing countries must undertake land reform program not only for a better distribution of land but also to create mechanism capable to define and enforce property right. Land reform can promote smallholder entry into the market, reduce inequalities in land distribution, increase efficiency and thus boost output.

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poverty1

The ubiquitous problem of poverty continues to confound development practitioners, politicians and researchers alike. In spite of countless efforts to eliminate poverty over the past decade, 2.5 billion people live on less than $2 a day and 880 million people still live on less than $1. Most of these depend on agriculture for their livelihoods (World Development Report, 2008). While some progress has been made in some countries, the ambitious goal of halving poverty by the year 2015 appears like it will not be achieved. The objective of this paper is to characterize the problem of poverty and attempt to proffer possible insights on pathways that may jettison the rural poor out of misery into prosperous economic agents with a brighter hope for the future.

An Anatomy of Poverty

Poverty is a multifaceted concept. It affects many aspects of the human conditions, including physical, moral and psychological. povertyAccording to Sen…

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