Background: SDG1 and the Reality of Poverty
The United Nations’ Sustainable Development Goal 1 (SDG1) sets an ambitious target to “end poverty in all its forms everywhere” by 2030. This goal underscores the urgent need to address the harsh realities faced by millions worldwide who struggle to meet their basic needs. Poverty is more than just a lack of financial resources; it is a multifaceted issue that robs individuals of their fundamental rights and opportunities.
According to the latest estimates, as of the end of 2022, approximately 8.4% of the global population, or around 670 million people, were still living in extreme poverty, defined as living on less than $1.90 per day. This staggering figure highlights the scale and persistence of the poverty challenge, which hinders access to education, healthcare, and other essential services, perpetuating a cycle of disadvantage.
The Potential Disasters of Poverty
The consequences of poverty extend far beyond the individual; they can have devastating impacts on entire communities and societies. Poverty can lead to a lack of access to quality education, which in turn limits opportunities for social mobility and perpetuates the cycle of disadvantage. It can also contribute to poor health outcomes, malnutrition, and the spread of preventable diseases, further exacerbating the challenges faced by those living in poverty.
Moreover, poverty can fuel social unrest, conflict, and instability, as individuals and communities struggle to meet their basic needs. This, in turn, can have far-reaching implications for regional and global security, hindering economic development and undermining efforts to achieve sustainable progress.
Innovative Approaches to Poverty Alleviation
Addressing the complex challenge of poverty requires a multifaceted and collaborative approach, involving the governments, international organizations, civil societies, and the private sectors. There are many successful international schemes aimed to alleviate the poverty issue in those least developed regions. For example, the Global Partnership for Education (GPE) is an international cooperation scheme focused on poverty alleviation through education. Established in 2002, GPE brings together developing country governments, donor countries, international organizations, and other stakeholders…. Key aspects of GPE’s approach include financing, technical assistance, coordination of donor support, and advocacy for increased education funding globally. Through this collaborative effort, GPE has mobilized over $7 billion in education funding, benefiting millions of children and contributing to poverty reduction efforts worldwide. As a prominent example of international cooperation for poverty alleviation, GPE demonstrates the power of multi-stakeholder partnerships to drive progress in education and sustainable development.
Innovative strategies and interventions have also emerged as powerful tools in the fight against poverty. One such approach is the use of microfinance and microcredit programs, which provide small loans and financial services to individuals and communities, empowering them to start or expand their own businesses. The Grameen Bank in Bangladesh, for example, has been a pioneer in this field, demonstrating the transformative potential of these initiatives. Grameen Bank is a microfinance specialized community development bank founded in Bangladesh. It provides small loans, known as microcredit or “grameencredit”, to the impoverished without requiring collateral. The bank also launched research projects to study how to design a credit delivery system to provide banking services and low-cost housing to the rural poor in the 1990s. Due to the outstanding performance in poverty alleviation in Bangladesh, the bank and its founder, Muhammad Yunus, were jointly awarded the Nobel Peace Prize in 2006. As of today, the total borrowers of the bank number of around 10 million, and over 95% of those are women. Another innovative approach is the leveraging of technology to bridge the digital divide and improve access to essential services. Mobile banking and digital payment systems have enabled millions of people in developing countries to access financial services, facilitating economic growth and reducing poverty.
The Importance of Education in Poverty Elimination
As we have mentioned in the previous part, education is a fundamental driver of poverty alleviation, as it empowers individuals with the knowledge, skills, and opportunities to break the cycle of disadvantage. Research has shown that if all adults completed secondary education, global poverty would be more than halved.
Initiatives like the Malala Fund, founded by Pakistani activist Malala Yousafzai, have championed the cause of girls’ education, recognizing its transformative power in uplifting individuals and communities. By investing in quality education, particularly for marginalized groups, we can unlock the potential of the next generation to become agents of change in the fight against poverty.
China’s Remarkable Poverty Alleviation Journey
One prominent success story in the fight against poverty is China’s remarkable achievement in lifting hundreds of millions of its citizens out of destitution. Through a strategic combination of economic growth, targeted policies, and substantial investments in infrastructure, education, and healthcare, China has managed to significantly reduce its poverty rate from over 70% in the late 1970s to less than 1% in 2021.
One outstanding innovative reform is the micro-finance programme promoted in the poor rural areas that many of the poor are capable of repaying loans at relatively high interest rates. Drawing from the “White Paper on China’s Poverty Reduction Practices,” two notable innovations that underscore the microfinance program in rural poverty-stricken areas are: Firstly, the targeted poverty alleviation strategy includes providing poverty relief microcredit to precisely identified households, enabling direct financial support to those genuinely in need. This approach, coupled with low-threshold, low-cost loans, fosters self-reliance and boosts income generation. Secondly, these microcredit programs integrate with local specialty industries, such as e-commerce, solar energy, and tourism, empowering beneficiaries to engage in economically viable enterprises. This dual strategy of precision targeting and industry integration enhances borrowers’ repayment capabilities even at higher interest rates, fostering a virtuous cycle of growth and poverty eradication.
China’s success in poverty alleviation has not only transformed its own society but has also had a global impact. The country has actively shared its knowledge, expertise, and resources with other developing nations, providing technical assistance and financial support to countries in Africa, Asia, and Latin America. Through initiatives like the Belt and Road Initiative, China has invested in infrastructure projects, industrial parks, and agricultural development in partner countries, helping to create jobs, boost economic growth, and reduce poverty levels. For instance, China has funded the construction of a hydroelectric power plant in Pakistan, which has provided electricity to millions of households and businesses, stimulating economic growth and reducing poverty. This global outreach demonstrates China’s commitment to sharing its success and contributing to the global effort to eradicate poverty.
The Interconnection of SDG1 with Other SDGs
SDG1, “No Poverty,” is intrinsically linked to and interdependent with several other Sustainable Development Goals. The main causes of poverty (unemployment, social exclusion and major vulnerability for certain population segments to natural disaster and disease) drive inequality and heighten malnutrition, lack of access to education, discrimination and exclusion. Altogether, this hinders the progress in areas like health, education, and equality, exacerbates crises, increases political and social tension and leads to all kinds of conflict. Besides, as poverty often forces people to exploit natural resources unsustainably, we can promote more sustainable environmental practices by reducing poverty. Achieving progress in areas such as quality education (SDG4), gender equality (SDG5), and access to clean water and sanitation (SDG6) can have a direct and positive impact on reducing poverty and improving the overall well-being of individuals and communities.
This interconnectedness underscores the need for a holistic and integrated approach to development, where efforts to address poverty are closely coordinated with initiatives targeting other critical areas. By working towards these interconnected goals, we can create a more equitable and prosperous world for all.
Conclusion
The fight against poverty is a global imperative that requires the collective efforts of governments, international organizations, civil society, and individuals. By harnessing the power of innovative approaches, investing in education, and fostering international cooperation, we can make significant strides towards the realization of SDG1 and the creation of a world without the shadows of poverty. As we move forward, let us be inspired by the success stories and empowered by the knowledge that every action, no matter how small, can contribute to the creation of a more just and equitable future for all.
Contributed by
Ricky LAM and Steven LEE