How to get people out of poverty

Leandro Ruiz
Liberal Reform
Published in
4 min readNov 2, 2018

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For about 200 years ago that poverty is falling to levels never seen before in the history of mankind. But there is still a lot of work to be done.

These are some proposals that if implemented optimally can help many people improve their situation:

1. Giving training to adults and schooling for children.

The problem of poverty often has its origin in the lack of learning. When a person does not have the opportunity to learn and train to be able to get out of their situation, it is a fact that they will remain in poverty.

Authorities should ensure that children attend school and that adults obtain the tools to support their family without state assistance.

2. Facilitate access to credit for homes and businesses.

Starting public housing projects for people with precarious homes (or homeless) allows the standard of living to rise a lot. Therefore governments of different levels must unite to be able to give a solution to the housing problem and facilitate access to credit so that these people can pay their homes in a period of 25 or 30 years.

In the same way, we must allow people who have a business idea to have the opportunity to undertake and in that way help themselves and their community with quality goods and services.

3. Carry the same services as in other neighborhoods (and thus collect more taxes).

Many times public services such as electricity or transportation come with many irregularities to these neighborhoods. Normalizing the situation so that the final service is of quality will allow companies and the state to collect the money that would otherwise never be paid.

In this way, resources will be optimized and everyone wins.

4. Tax facilities for workers and merchants according to their level of income.

Some taxes have a great impact on the finances of people, and more on the portion of the population with less income. Therefore, to discourage tax evasion or unregistered workers, tax agencies could charge only a percentage based on the income level of the persons, and why not the number of children also have an impact on that discount.

The good thing about this policy is that if the first point is successfully carried out then fewer and fewer people will have to resort to the tax discount because their jobs will be better and better remunerated.

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5. Interconnect the neighborhood with the surroundings to end marginalization.

One of the biggest problems with the neighborhoods where low-income people live is that they lock themselves up more and more.

Allowing anyone to travel through these streets is necessary so that there can be communication between the different communities within a city.

To achieve this, local governments must encourage people to leave their neighborhood, not put everything they need (schools, hospitals, government offices, etc.) into their space because otherwise there will be less and less reason to leave.

6. In cases of extreme poverty, subsidies for basic needs (housing, food, education, and healthcare).

There are situations where people do not need help, but a rescue. In these particular cases is when the state must provide all the necessary facilities to meet the basic needs of people in extreme poverty.

A good way to cover these needs is through vouchers. The great advantage of this system is that the state makes sure that the money destined for a certain purpose can not end up in another place.

7. The most important thing: transparent institutions

Governments can implement dozens of policies and deliver lots of money, but if these tasks are not audited in a transparent manner, they will not help. It is essential that the state not cut funds to get people out of poverty, and not allow these funds to fall into the wrong hands.

At the end of the day, there are always malicious people who try to take advantage of the people most in need.

Conclusion

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As I explained at the beginning, for more or less 200 years poverty has been going down (curiously since the beginning of the first industrial revolution). Which is a huge achievement, but there is still 10% of the world population that suffers the consequences of living with less than $ 1.90 per day.

The only task of governments is to give a little push to the development of these people, capitalism will do the rest.

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Leandro Ruiz
Liberal Reform

Data Scientist & Creative Guy. I write about Self Development, Knowledge, Personal Finances and life in general.