Tackling poverty

Poverty rates have been rising across the country – some due to recession and some may be due to inadequate planning and preparation. Most compassionate people attempt to alleviate poverty by giving to the needy. Although such symptomatic treatment sooths the pain, it does not treat the disease. The experiences from other parts of the world where poverty has been persistent show that unless a systematic change is effected - that breaks the cycle - no long term improvement can be made.

To cure poverty, policy-makers have to focus on the causes of it. Lack of education early and inadequate skills preparation later have played a crucial role in the persistence and recent increase in poverty rates. From a policy-perspective, an investment into education and skills development pays handsomely not only to reduce future poverty rates but also to minimize healthcare related expenses. Education, thus, is a strategic way to contain poverty rates.

More tactically, provision of micro-financing and other such vehicles and introducing incentives for entrepreneurship can have a dramatic effect. In many poverty stricken areas of Southern Asia, micro-financing has been successfully applied. In the US, different instruments need to be designed – not just to feed the poor, but rather to help them break the cycle themselves. Policies have to get more creative in solving problems in the long run and not just apply cosmetic veneer on the visible symptoms.