Extreme Poverty is Widespread. Over 1 billion people subsist on less than $1 per day About 2.8 billion - nearly half the world’s population - lives on less than $2 per day Nearly 20 countries in Sub-Saharan Africa are poorer today than they were a generation ago
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Poverty becomes a trap when a vicious cycle undermines the efforts of the poor, in which conditions of poverty feed on themselves and create further conditions of poverty.
The 8 keys are basic capabilities the poor often lack, that facilitate escape from a range of poverty traps.
Table 1: Some of the relationships between the keys and the poverty traps they can help unlock.
Poverty Traps the key helps address
1. Health and nutrition for adults to work and children to grow to their potential.
h Undernutrition traps.
i High Fertility Traps.
2. Basic education to build the foundations for self-reliance.
a Child labor traps.
b Illiteracy traps
3. Basic insurance, and credit for working capital, family emergencies, and other needs.
d Working capital traps.
e Debt bondage traps.
f Uninsurable risk traps.
4. Access to functioning markets, with opportunities to acquire productive resources.
e Debt bondage traps
g Information traps.
j Subsistence traps.
5. Access to the benefits of new technologies for higher productivity.
c Low skill traps
g Information traps
6. A non-degraded and stable environment.
k Farm erosion traps
l Common Property Traps
m Collective action traps
7. Personal empowerment: Freedom from coercive exploitation and torment.
o Poverty Entrapment
e Debt bondage traps.
8. Full participation as a member of an empowered community.
g Information traps
m Collective action traps.
n Powerlessness traps.
Typology of Goods within the Two Dimensions
Of Rivalry and Excludability
Type IV GoodsType I Goods
Club Goods, IdeasPrivate Goods
Type III Type II GoodsGoods Common
Public Goods Property Resources
Type of Trap
Areas of NGO Comparative Advantage
Specific NGO Programmatic Activities
Child labor traps
Designing school programs to reach child laborers; advocating improved work conditions and regulations
BRAC- NFPE, STC CHANCE; Peru STC school for street children; ILO affiliate programs
Designing effective literacy programs for the very poor
Pratham accelerated learning, India
Low skill traps
Club goods, Knowledge
Develop training programs targeted to low skill marginalized groups
SEWA, Mother Child Day Care Center Services
Working capital traps
Microfinance, alone or with training, services such as health, solidarity etc
Grameen, FINCA, BRAC, FFH
Debt bondage traps
Advocacy; Innovation; Flexibility
Raising awareness, lobbying; Identifying bonded laborers and groups, developing alternative work
Affiliates of Anti-Slavery International; Sankalp, India; Kamaiya FMMC, Nepal
Uninsurable risk traps
Innovation, Club goods
Innovating targeted microinsurance for farmers
Providing information about alternative livelihoods, and training
Grameen phone ladies program, BRAC TUP, Africare, ICS
Undernutrition and poor health traps
Targeted food supplements; advocacy for affected areas
Playpumps, BRAC, IRC, CRS
High Fertility traps
Community mobilization and family planning ‘cultural transformation’
CARE, ICRW, various family planning and population NGOs
Knowledge, club goods
Helping villages identify and market alternative crops
Africare, Africa Now, BRAC, Technoserve, Heifer
Farm Erosion traps
Providing targeted packages of credit, training, and inputs
TechnoServe and partners
Common Property Mismanagement traps
Common property resource
Community organizational development and training
Suledo, Tanzania; Gram Vikas, India
Trust, flexibility, innovation
Self-esteem building, legal and comprehensive training
ADEW-Egypt, Child Helpline-India, World Vision