What is poverty incidence and what are the factor contributing to poverty?

Question

Poverty in the Philippines

Answer 1

Government policies are the most important factor in determining the poverty level. Many poverty stricken countries have vast amount of resources but fail to utilize them effectively due to war, crime, corruption or poor monetary policies by the government. High poverty levels in many African nations illustrates the need for good governance and economical stability rather then depending on resources alone. In contrast, countries like Singapore and Hong Kong have been able to thrive with few natural resources because of good foresight and pragmatism by their government.

A free marker economy is also helpful in curbing poverty in the long term. This was most noticable when China embraced capitalism and opened its market to the world. As a result, the country's GDP and income per capita has risen greatly over the year. A free market economy encourages competition which leads to higher productivity levels. In the long run more jobs will be create and income will increase as more foreign direct investment will be pumped into the economy. Protectionism is not a solution as it creates a sense of complacency which lowers productivity. It also benefits the producers more than the general population which could have imported goods at a lower price.

Education levels in a country are also interlinked to poverty. In countries where there is insufficient education, it is unlikely that many will be able to break out of the poverty cycle. Unfortunately, education opportunities are also determined by a nations wealth, which is to say it is hardly available to those who need it most.

Answer 2

The biggest factor contributing to poverty is big government. Over regulation and taxation and overall meddling in peoples businesses as well as private lives is a killer for economies worldwide. Wherever you have a free economy like in Hong Kong for example, you have an abundance of wealth.  

Answer 3

Sven B was there, but not fully. Even if an economy is free market, people can still experience poverty, reason being; free-market economies can and do increase the rift between the poor and the rich (some part of africa and south america). Rather, a free-market economy with socialist overtones (take from the rich and give to the poor through tax), works better (most western economies take this stance). To answer your question, i think poverty incidence is the prevalence of poverty in a nation. Some of the factors contributing to poverty are; Market centralisation, illiteracy, manufacturing inefficiency, disease...etc..hope that helps!!