Poverty: Poverty Is The Lack of
Poverty: Poverty Is The Lack of
Poverty: Poverty Is The Lack of
Contents
[hide]
• 1 Definitions
• 2 Poverty and Rights; The Right of Indigency
• 3 Causes
○ 3.1 Scarcity of basic needs
○ 3.2 Third World Debt
○ 3.3 Barriers to opportunities
• 4 Effects of poverty
○ 4.1 Health
○ 4.2 Education
○ 4.3 Housing
○ 4.4 Violence
○ 4.5 Substance abuse
• 5 Poverty reduction
○ 5.1 Economic liberalization
○ 5.2 Capital, infrastructure and technology
○ 5.3 Aid
○ 5.4 Good institutions
○ 5.5 Empowering women
○ 5.6 A Holistic Approach
• 6 Demographics
○ 6.1 Absolute poverty
○ 6.2 Relative poverty
○ 6.3 Other aspects
○ 6.4 Voluntary poverty
• 7 See also
○ 7.1 Organizations and campaigns
○ 7.2 In documentary photography and film
• 8 References
• 9 Further reading
• 10 External links
[edit] Definitions
Child in a slum in Jakarta, Indonesia.
There many definitions of poverty depending on the context of the situation and the views of the
person giving the definition. These are some from various sources including a well-known
development scholar. Poverty is also often divided into relative poverty and absolute poverty.
Poverty can also be defined as a condition wherein a person cannot satisfy his or her basic needs,
namely, food, shelter, clothing, health and education.
Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes
low incomes and the inability to acquire the basic goods and services necessary for survival with
dignity. Poverty also encompasses low levels of health and education, poor access to clean water
and sanitation, inadequate physical security, lack of voice, and insufficient capacity and
opportunity to better one’s life.
—World Bank[15]
Fundamentally, poverty is a denial of choices and opportunities, a violation of human dignity. It
means lack of basic capacity to participate effectively in society. It means not having enough to
feed and clothe a family, not having a school or clinic to go to, not having the land on which to
grow one’s food or a job to earn one’s living, not having access to credit. It means insecurity,
powerlessness and exclusion of individuals, households and communities. It means susceptibility
to violence, and it often implies living in marginal or fragile environments, without access to
clean water or sanitation.
—United Nations[16]
Percentage of population living on less than $1.25 per day.UN estimates 2000-2006.
Percentage of population suffering from hunger, World Food Programme, 2006
Life expectancy.
Life expectancy has been increasing and converging for most of the world. Sub-Saharan Africa
has recently seen a decline, partly related to the AIDS epidemic. Graph shows the years 1950-
2005.
See also: Poverty by country and Poverty threshold
[edit] Absolute poverty
Poverty is usually measured as either absolute or relative poverty (the latter being actually an
index of income inequality). Absolute poverty refers to a set standard which is consistent over
time and between countries. The World Bank defines extreme poverty as living on less than US
$1.25 (PPP) per day, and moderate poverty as less than $2 a day (but note that a person or family
with access to subsistence resources, e.g. subsistence farmers, may have a low cash income
without a correspondingly low standard of living - they are not living "on" their cash income but
using it as a top up). It estimates that "in 2001, 1.1 billion people had consumption levels below
$1 a day and 2.7 billion lived on less than $2 a day."[138]
Six million children die of hunger every year - 17,000 every day.[139] Selective Primary Health
Care has been shown to be one of the most efficient ways in which absolute poverty can be
eradicated in comparison to Primary Health Care which has a target of treating diseases. Disease
prevention is the focus of Selective Primary Health Care which puts this system on higher
grounds in terms of preventing malnutrition and illness, thus putting an end to Absolute Poverty.
[140]
The proportion of the developing world's population living in extreme economic poverty fell
from 28 percent in 1990 to 21 percent in 2001.[138] Most of this improvement has occurred in East
and South Asia.[141] In East Asia the World Bank reported that "The poverty headcount rate at the
$2-a-day level is estimated to have fallen to about 27 percent [in 2007], down from 29.5 percent
in 2006 and 69 percent in 1990."[142] In Sub-Saharan Africa extreme poverty went up from 41
percent in 1981 to 46 percent in 2001[citation needed], which combined with growing population
increased the number of people living in extreme poverty from 231 million to 318 million.[143]
In the early 1990s some of the transition economies of Eastern Europe and Central Asia
experienced a sharp drop in income.[144] The collapse of the Soviet Union resulted in large
declines in GDP per capita, of about 30 to 35% between 1990 and the trough year of 1998 (when
it was at its minimum). As a result poverty rates also increased although in subsequent years as
per capita incomes recovered the poverty rate dropped from 31.4% of the population to 19.6%[145]
[146]
The World Bank issued a report predicting that between 2007 and 2027 the populations of
Georgia and Ukraine will decrease by 17% and 24% respectively.[147]
World Bank data shows that the percentage of the population living in households with
consumption or income per person below the poverty line has decreased in each region of the
world since 1990:[148][149]
Region 1990 2002 2004
East Asia and Pacific 15.40% 12.33% 9.07%
Europe and Central Asia 3.60% 1.28% 0.95%
Latin America and the Caribbean 9.62% 9.08% 8.64%
Middle East and North Africa 2.08% 1.69% 1.47%
South Asia 35.04% 33.44% 30.84%
Sub-Saharan Africa 46.07% 42.63% 41.09%
Other human development indicators have also been improving. Life expectancy has greatly
increased in the developing world since WWII and is starting to close the gap to the developed
world.[citation needed]Child mortality has decreased in every developing region of the world.[citation needed]
The proportion of the world's population living in countries where per-capita food supplies are
less than 2,200 calories (9,200 kilojoules) per day decreased from 56% in the mid-1960s to
below 10% by the 1990s. Similar trends can be observed for literacy, access to clean water and
electricity and basic consumer items.[150]
There are various criticisms of these measurements.[151]Shaohua Chen and Martin Ravallion note
that although "a clear trend decline in the percentage of people who are absolutely poor is
evident ... with uneven progress across regions...the developing world outside China and India
has seen little or no sustained progress in reducing the number of poor".
Since the world's population is increasing, a constant number living in poverty would be
associated with a diminishing proportion. Looking at the percentage living on less than $1/day,
and if excluding China and India, then this percentage has decreased from 31.35% to 20.70%
between 1981 and 2004.[152]
The 2007 World Bank report "Global Economic Prospects" predicts that in 2030 the number
living on less than the equivalent of $1 a day will fall by half, to about 550 million. An average
resident of what we used to call the Third World will live about as well as do residents of the
Czech or Slovak republics today. Much of Africa will have difficulty keeping pace with the rest
of the developing world and even if conditions there improve in absolute terms, the report warns,
Africa in 2030 will be home to a larger proportion of the world's poorest people than it is today.
[153]
The reason for the faster economic growth in East Asia and South Asia is a result of their relative
backwardness, in a phenomenon called the convergence hypothesis or the conditional
convergence hypothesis. Because these economies began modernizing later than richer nations,
they could benefit from simply adapting technological advances which enable higher levels of
productivity that had been invented over centuries in richer nations.
[edit] Relative poverty
Relative poverty views poverty as socially defined and dependent on social context, hence
relative poverty is a measure of income inequality. Usually, relative poverty is measured as the
percentage of population with income less than some fixed proportion of median income. There
are several other different income inequality metrics, for example the Gini coefficient or the
Theil Index.
Relative poverty measures are used as official poverty rates in several developed countries. As
such these poverty statistics measure inequality rather than material deprivation or hardship. The
measurements are usually based on a person's yearly income and frequently take no account of
total wealth. The main poverty line used in the OECD and the European Union is based on
"economic distance", a level of income set at 60% of the median household income.[154]
[edit] Other aspects
Slum in Mumbai, India. 60% of Mumbai's more than 18 million inhabitants live in slums.[155]
Economic aspects of poverty focus on material needs, typically including the necessities of daily
living, such as food, clothing, shelter, or safe drinking water. Poverty in this sense may be
understood as a condition in which a person or community is lacking in the basic needs for a
minimum standard of well-being and life, particularly as a result of a persistent lack of income.
Analysis of social aspects of poverty links conditions of scarcity to aspects of the distribution of
resources and power in a society and recognizes that poverty may be a function of the diminished
"capability" of people to live the kinds of lives they value.[156]The social aspects of poverty may
include lack of access to information, education, health care, or political power.[157][158]
Poverty may also be understood as an aspect of unequal social status and inequitable social
relationships, experienced as social exclusion, dependency, and diminished capacity to
participate, or to develop meaningful connections with other people in society.[159][160][161] Such
social exclusion can be minimized through strengthened connections with the mainstream, such
as through the provision of relational care to those who are experiencing poverty.
Harlem, New York, USA. In 2006 the poverty rate for minors in the United States was the
highest in the industrialized world, with 21.9% of all minors and 30% of African American
minors living below the poverty threshold.[162]
The World Bank's "Voices of the Poor," based on research with over 20,000 poor people in 23
countries, identifies a range of factors which poor people identify as part of poverty.[163]These
include:
• Precarious livelihoods
• Excluded locations
• Physical limitations
• Gender relationships
• Problems in social relationships
• Lack of security
• Abuse by those in power
• Dis-empowering institutions
• Limited capabilities
• Weak community organizations
David Moore, in his book The World Bank, argues that some analysis of poverty reflect
pejorative, sometimes racial, stereotypes of impoverished people as powerless victims and
passive recipients of aid programs.[164]
Camden, New Jersey is one of the poorest cities in the United States.
Ultra-poverty, a term apparently coined by Michael Lipton,[165] connotes being amongst poorest
of the poor in low-income countries. Lipton defined ultra-poverty as receiving less than 80
percent of minimum caloric intake whilst spending more than 80% of income on food.
Alternatively a 2007 report issued by International Food Policy Research Institute defined ultra-
poverty as living on less than 54 cents per day.[166]BRAC (NGO) has pioneered a program called
Targeting the Ultra-Poor to redress ultra-poverty by working with individual ultra-poor women.
[167]
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122.^Grasmuck, Sherri and Espinal, Rosario. 2000. Market Success or Female Autonomy?
Income, Ideology, and Empowerment among Microentrepreneurs in the Dominican
Republic. Gender and Society 14 (2):231-255.
123.^"Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and
Bilateral Aid". Abcnews.go.com. 2006-05-12. http://abcnews.go.com/2020/story?
id=1955664&page=1. Retrieved 2010-10-24.
124.^ ab"MYTH: More Foreign Aid Will End Global Poverty". Abcnews.go.com. 2006-05-
12. http://abcnews.go.com/2020/story?id=1955664&page=1. Retrieved 2010-10-24.
125.^ abhttp://ipsnews.net/interna.asp?idnews=24509 Tied aid strangling nations, says UN
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127.^HIPC Debt Initiative for Heavily Indebted Poor Countries
128.^ Walker, Andrew (2005-06-11). "African debt relief". BBC News.
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129.^"Zambia overwhelmed by free health care". BBC News. 2006-04-07.
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130.^ Evans, Peter, and James E. Rauch. 1999. "Bureaucracy and Growth: A Cross-National
Analysis of the Effects of 'Weberian' State Structures on Economic Growth." American
Sociological Review, 64:748-765.
131.^ Kaufmann, D.; Kraay, A; Zoido-Lobaton, P.. "Governance Matters.". World Bank
Policy Research Working Paper no. 2196. Washington DC.
132.^ United Nations Development Report. 2000. Overcoming Human Poverty: UNDP
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133.^Leading article: Africa has to spend carefully. The Independent. July 13, 2006.
134.^ Data refer to 2008. $26,341 GDP for Korea, $1513 for Ghana. World Economic
Outlook and Database-October 2008, International Monetary Fund. Retrieved February
14, 2009.
135.^ "Does Population Growth Impact Climate Change?.Scientific American. July 29,
2009.
136.^ World Bank. 2001. Engendering Development--Through Gender Equality in Right,
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137.^The True Definition Of Poverty
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139.^"U.N. chief: Hunger kills 17,000 kids daily - CNN.com". CNN. November 17, 2009.
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22, 2010.
140.^ Walsh, Julia A., and Kenneth S. Warren. 1980. Selective primary health care: An
interim strategy for disease control in developing countries. Social Science & Medicine.
Part C: Medical Economics 14 (2):145-163.
141.^Shaohua Chen and Martin Ravallion, 2007, "How Have the World's Poorest Fared
Since the Early 1980s?" Table 3, p. 28. [1]
142.^ World Bank, 14 November 2007, 'East Asia Remains Robust Despite US Slow Down'
[2]
143.^ The Independent, 'Birth rates must be curbed to win war on global poverty', 31
January 2007 [3]
144.^"Worldbank.org reference". Web.worldbank.org. 2005-04-19.
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145.^"World Bank, Data and Statistics, WDI, GDF, & ADI Online Databases". World
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.html. Retrieved 2010-10-24.
146.^ "Study Finds Poverty Deepening in Former Communist Countries". The New York
Times. October 12, 2000.
147.^"East: 'If Countries Don't Act Now, It's Going To Be Too Late'".
RadioFreeEurope/RadioLiberty. 2007.
http://www.rferl.org/featuresarticle/2007/6/0E4DF063-3807-420D-B551-
B3D07F7AA84C.html. Retrieved 2007-12-22.
148.^"World Bank, 2007, Povcalnet Poverty Data". World Bank.
http://iresearch.worldbank.org/PovcalNet/jsp/index.jsp. Retrieved 2010-10-24.
149.^ The data can be replicated using World Bank 2007 Human Development Indicator
regional tables, and using the default poverty line of $32.74 per month at 1993 PPP.
150.^"World Development Volume 33, Issue 1 , January 2005, Pages 1-19, Why Are We
Worried About Income? Nearly Everything that Matters is Converging".
Sciencedirect.com. http://www.sciencedirect.com/science?
_ob=ArticleURL&_udi=B6VC6-4F02KWN-
8&_user=10&_coverDate=01%2F01%2F2005&_rdoc=1&_fmt=summary&_orig=brows
e&_sort=d&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md
5=3c12cc79f8121ee4e000396b0273a1eb. Retrieved 2010-10-24.
151.^"Institute of Social Analysis". Socialanalysis.org. http://socialanalysis.org/. Retrieved
2010-10-24.
152.^Shaohua Chen and Martin Ravallion, 2007, "How Have the World's Poorest Fared
Since the Early 1980s?"[4]
153.^World Bank has Good News About Future[dead link], by Andrew Cassel, The Philadelphia
Inquirer. December 30, 2006
154.^ Michael Blastland (2009-07-31). "Just what is poor?". BBC NEWS.
http://news.bbc.co.uk/1/hi/magazine/8177864.stm. Retrieved 2008-09-25.
155.^Slums, Stocks, Stars and the New India. Spiegel Online. February 28, 2007.
156.^AmartyaSen, 1985, Commodities and Capabilities, Amsterdam, New Holland, cited in
SiddiqurRahmanOsmani, 2004, Evolving Views on Poverty: Concept, Assessment, and
Strategy, ADB.org
157.^A Glossary for Social Epidemiology Nancy Krieger, PhD, Harvard School of Public
Health
158.^"Journal of Poverty". Journal of Poverty.
http://www.journalofpoverty.org/JOPPURP/JOPPURP.HTM. Retrieved 2010-10-24.
159.^ H Silver, 1994, social exclusion and social solidarity, in International Labour Review,
133 5-6
160.^ G Simmel, The poor, Social Problems 1965 13
161.^ P Townsend, 1979, Poverty in the UK, Penguin
162.^ "U.S. Government Does Relatively Little to Lessen Child Poverty Rates". Economic
Policy Institute.
163.^Voices of the Poor
164.^ Chapter on Voices of the Poor in David Moore's edited book The World Bank:
Development, Poverty, Hegemony (University of KwaZulu-Natal Press, 2007)
165.^ Lipton, Michael (1986), 'Seasonality and ultra-poverty', Sussex, IDS Bulletin 17.3
166.^ International Food Policy Research Institute, The World's Most Deprived.
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167.^Matin, Imran, et al,, "Crafting a Graduation Pathway for the Ultra-poor: Lessons and
Evidence from a BRAC Programme," Research and Evaluation Division Working Paper,
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168.^ World Peace Day Address 2009[5]
169.^"Campaign to Reduce Poverty in America". Catholiccharitiesusa.org.
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170.^"transforming slums". Homeless International. http://www.homeless-international.org.
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171.^"The ONE Campaign". One.org. http://www.one.org. Retrieved 2010-10-24.
172.^"United Nations Millennium Campaign". Endpoverty2015.org.
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[edit] Further reading
• Adato, Michelle &Meinzen-Dick, Ruth, eds. Agricultural Research, Livelihoods, and
Poverty: Studies of Economic and Social Impacts in Six Countries (2007),Johns Hopkins
University Press, [http://www.ifpri.org/publication/agricultural-research-livelihoods-and-
poverty International Food Policy Research Institute
• Anzia, Lys "Educate a Woman, You Educate a Nation" - South Africa Aims to Improve
its Education for Girls WNN - Women News Network. Aug. 28, 2007.
• Atkinson, Anthony. Poverty in Europe 1998
• Babb, Sarah (2009). Behind the Development Banks: Washington Politics, World
Poverty, and the Wealth of Nations. University of Chicago Press. ISBN 9780226033655.
• Bergmann, Barbara. "Deciding Who's Poor", Dollars & Sense, March/April 2000
• Betson, David M. &Warlick, Jennifer L. "Alternative Historical Trends in Poverty."
American Economic Review 88:348-51. 1998. in JSTOR
• Brady, David "Rethinking the Sociological Measurement of Poverty" Social Forces 81#3
2003, pp. 715–751 Online in Project Muse. Abstract: Reviews shortcomings of the official U.S.
measure; examines several theoretical and methodological advances in poverty measurement. Argues that
ideal measures of poverty should: (1) measure comparative historical variation effectively; (2) be relative
rather than absolute; (3) conceptualize poverty as social exclusion; (4) assess the impact of taxes, transfers,
and state benefits; and (5) integrate the depth of poverty and the inequality among the poor. Next, this
article evaluates sociological studies published since 1990 for their consideration of these criteria. This
article advocates for three alternative poverty indices: the interval measure, the ordinal measure, and the
sum of ordinals measure. Finally, using the Luxembourg Income Study, it examines the empirical patterns
with these three measures, across advanced capitalist democracies from 1967 to 1997. Estimates of these
poverty indices are made available.
• Buhmann, Brigitte, et al. 1988. "Equivalence Scales, Well-Being, Inequality, and
Poverty: Sensitivity Estimates Across Ten Countries Using the Luxembourg Income
Study (LIS) Database." Review of Income and Wealth 34:115-42.
• Cox, W. Michael &Alm, Richard. Myths of Rich and Poor 1999
• Danziger, Sheldon H. & Weinberg, Daniel H. "The Historical Record: Trends in Family
Income, Inequality, and Poverty." Pp. 18–50 in Confronting Poverty: Prescriptions for
Change, edited by Sheldon H. Danziger, Gary D. Sandefur, and Daniel. H. Weinberg.
Russell Sage Foundation. 1994.
• Firebaugh, Glenn. "Empirics of World Income Inequality." American Journal of
Sociology (2000) 104:1597-1630. in JSTOR
• Frank, Ellen, Dr. Dollar: How Is Poverty Defined in Government Statistics?Dollars &
Sense, January/February 2006
• Gans, Herbert J., "The Uses of Poverty: The Poor Pay All", Social Policy, July/August
1971: pp. 20–24
• George, Abraham, Wharton Business School Publications - Why the Fight Against
Poverty is Failing: a contrarian view
• Gordon, David M. Theories of Poverty and Underemployment: Orthodox, Radical, and
Dual Labor Market Perspectives. 1972.
• Haveman, Robert H. Poverty Policy and Poverty Research. Madison: University of
Wisconsin Press 1987 ISBN 0299111504
• Iceland, John Poverty in America: a handbook University of California Press, 2003
• McEwan, Joanne, and Pamela Sharpe, eds. Accommodating Poverty: The Housing and
Living Arrangements of the English Poor, c. 1600-1850 (Palgrave Macmillan; 2010) 292
pages; scholarly studies of rural and urban poor, as well as vagrants, unmarried mothers,
and almshouse dwellers.
• O'Connor, Alice "Poverty Research and Policy for the Post-Welfare Era" Annual Review
of Sociology, 2000
• Osberg, Lars &Xu, Kuan. "International Comparisons of Poverty Intensity: index
decomposition and bootstrap inference." The Journal of Human Resources 2000. 35:51-
81.
• Paugam, Serge. "Poverty and Social Exclusion: a sociological view." Pp. 41–62 in The
Future of European Welfare, edited by Martin Rhodes and Yves Meny, 1998.
• Philippou, Lambros (2010) "Public Space, Enlarged Mentality and Being-In-Poverty",
Philosophical Inquiry, Vol. 32, No. 1-2 pp. 103–115.
• Pressman, Steven, Poverty in America: an annotated bibliography. Metuchen, N.J.:
Scarecrow Press, 1994 ISBN 0810828332
• Rothman, David J., (editor). The Almshouse Experience (Poverty U.S.A.: the Historical
Record). New York: Arno Press, 1971. ISBN 0-405-03092-4Reprint of Report of the
committee appointed by the Board of Guardians of the Poor of the City and Districts of Philadelphia to visit
the cities of Baltimore, New York, Providence, Boston, and Salem (published in Philadelphia, 1827);
Report of the Massachusetts General Court's Committee on Pauper Laws (published in [Boston?], 1821);
and the 1824 Report of the New York Secretary of State on the relief and settlement of the poor (from the
24th annual report of the New York State Board of Charities, 1901).
• Sen, AmartyaPoverty and Famines: an essay on entitlement and deprivation. Oxford:
Clarendon Press, 1981
• Sen, Amartya. Development as Freedom. New York: Knopf, 1999
• Smeeding, Timothy M., O'Higgins, Michael & Rainwater, Lee. Poverty, Inequality and
Income Distribution in Comparative Perspective. Urban Institute Press 1990.
• Smith, Stephen C., Ending Global Poverty: a guide to what works, New York: Palgrave
Macmillan, 2005
• Triest, Robert K. "Has Poverty Gotten Worse?" Journal of Economic Perspectives 1998.
12:97-114.
• Wilson, Richard & Pickett, Kate. The Spirit Level, London: Allen Lane, 2009
• World Bank: "Can South Asia End Poverty in a Generation?"
• World Bank, "World Development Report 2004: Making Services Work For Poor
People", 2004.
[edit] External links
Wikimedia Commons has media related to: Poverty
• Disease control priorities project Studies the cost effectiveness of health care
interventions
• Human Rights Watch Tracks the abuse of people in less developed countries around the
world.
• Luxembourg Income Study Contains a wealth of data on income inequality and poverty,
and hundreds of its sponsored research papers using this data.
• Multinational Monitor Contains reports of corporate misbehavior around the world.
• Organization for Economic Cooperation and Development Contains reports on economic
development as well as relations between rich and poor nations.
• Transparency International Tracks issues of government and corporate corruption around
the world.
• United NationsHundres of free reports related to economic development and standards of
living in countries around the world, such as the annual Human Development Report.
• U.S. Agency for International Development USAID is the primary U.S. government
agency with the mission for aid to developing countries.
• World Congress of Muslim Philanthropists Association that helps Islamic donors
organize contributions.
• World Bank Contains hundreds of reports which can be downloaded for free, such as the
annual World Development Report.
• World Food Program Associated with the United Nations, the World Food Program
compiles hundreds of reports on hunger and food security around the world.
• Islamic Development Bank
• Islamic relief Largest Muslim relief organization.
• The PulseraProject A US based non-profit Organization alleviating poverty in Nicaragua,
Central America's second poorest nation.
• Is Life Getting Better : What is Poverty? Pamphlet describing the basic idea of poverty
and how to measure it, from OECD's Measuring Progress project.
• PovertyVision.org ("the first daily poverty newspaper in the world")
• OPHIOxford Poverty & Human Development Initiative (OPHI)] Research to advance the
human development approach to poverty reduction.
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