povertyreduction

Poverty reduction refers to policies and programs aimed at decreasing the proportion of people living in poverty and reducing the depth of poverty. In development discourse, poverty is commonly measured using income-based thresholds such as international poverty lines, as well as multidimensional indicators that capture nutrition, education, health, living standards, and vulnerability. The goal is to achieve sustained improvements in well-being for individuals and households.

Strategies include promoting economic growth that creates productive employment, expanding access to essential services (health, education, water and sanitation, housing), and providing social protection through cash or in-kind transfers. Effective poverty reduction often combines growth with redistribution, supports for human capital development, and investments in infrastructure. Public policy may use universal programs or targeted transfers, depending on context, with attention to efficiency and inclusion.

Key tools include cash transfers, subsidies, public works programs, minimum wage policies, and progressive taxation. Investments in health and education raise earnings mobility, while social protection cushions shocks. Progress is tracked using indicators such as the headcount ratio, poverty gap, and the multidimensional poverty index, alongside SDG indicators. Data quality and measurement challenges affect assessment and policy design.

Poverty reduction remains a central aim of international development, reflected in SDG 1 and related goals. It is pursued through national plans and international cooperation, but implementation is shaped by macroeconomic conditions, governance, and volatility from climate change and other shocks.