Poverty

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Fighting Poverty in Developing Countries

The governments of most developing countries provide limited assistance to prevent some poverty. Most have at least minimal social security programs, which provide benefits during periods of unemployment, illness, or disability; at retirement; and to the families of deceased workers. These programs usually provide support only for people who are employed full-time—a very small percentage of the population in most developing countries. Some countries, such as Bangladesh and Nepal, provide mandatory full support only to government employees. A variety of organizations support antipoverty programs in developing countries. They include (1) international government organizations, such as the UN, (2) aid agencies run by developed countries, (3) nongovernmental (mostly nonprofit) organizations, and (4) private development banks.

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International Government Organizations

Many international governmental organizations have antipoverty programs. These include many regional organizations, such as the Organization of American States and the European Union, as well as the UN, which encompasses countries around the world. The UN operates many of the largest antipoverty programs through its branch agencies. The UN Development Program runs a variety of programs in developing countries to increase literacy rates, create jobs, share technologies from developed countries with developing countries, protect the environment and natural resources, and ensure women’s rights. Other UN agencies involved in alleviating poverty in the developing world include the United Nations Children’s Fund, which provides food, medicine, and education programs for children worldwide, and the United Nations Food and Agriculture Organization, which supports increased agricultural productivity and improved food distribution and nutrition.

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Government Aid Agencies

The governments of all developed nations have agencies devoted to international economic assistance. These agencies lend or grant money to developing countries and also operate antipoverty programs in those countries. The United States Agency for International Development (USAID), an arm of the State Department, sponsors many efforts similar to those run by the UNDP. Economic and other kinds of assistance given to one nation by another, known as bilateral aid, have humanitarian as well as political and economic aims. For instance, AID designs many of its programs to reduce human suffering from poverty; the same programs may also aim to decrease the power of unfriendly and undemocratic governments and to increase free trade, which are politically and economically beneficial goals for the United States. Multilateral aid, such as that provided jointly by the many countries belonging to the UN, has more directly humanitarian aims. For instance, the UN and its member countries support democratic governments based essentially on the belief that democracy improves people’s well-being.

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Nongovernmental Organizations

Nongovernmental organizations (NGOs) operate with support from private citizens and foundations, volunteer workers, and government grants. Developing countries themselves run some NGOs. Other NGOs operate out of developed countries and are often associated with large church organizations. International NGOs that work to alleviate poverty in the developing world include Cooperative for Assistance and Relief Everywhere, Inc. (CARE), Oxfam International, and Catholic Relief Services, all of which sponsor programs that provide health services, food, education, and economic support. Doctors Without Borders and the Red Cross both provide medical assistance in poor countries, especially during crises such as famines, wars, and disease epidemics.

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Private Development Banks

Private development banks provide loans on favorable terms to governments or citizens of developing countries. They do not give grants or charitable donations. Like NGOs, some of these banks operate within developing countries. Bangladesh’s Grameen Bank, one of the best-known small private development banks, has made small loans to thousands of citizens experiencing hardship, including women who would otherwise have difficulty accessing funds because of their social status.

The World Bank (see International Bank for Reconstruction and Development), the best-known large private development bank, operates internationally and has its headquarters in the United States. The World Bank makes large loans to governments of developing countries to finance projects intended to strengthen the economies of these nations. World Bank-financed projects have included building roads, dams for power generation, and industries.