Dynamics of Poverty in Developing Countries: Review of Poverty Reduction Approaches

Abstract

The term poverty has been described in different ways throughout the world due to its multidimensional nature. Whereas some countries and geographical regions view poverty as deprivation, others are concerned with social exclusion and inequality in resource distribution. Despite the differences in poverty interpretations, many countries in the developing world have adopted universal poverty reduction approaches over the years. This paper analyzes the conceptual underpinnings of poverty focusing on its evolution, the multidimensional definitions, and poverty reduction efforts implemented over the past 50 years. Using secondary data analysis, the paper reveals the universal approaches to poverty reduction have yielded few successes, and recommends that poverty should be viewed as a global phenomenon but tackled at the local level using local indicators. To achieve sustainable development, developing countries should focus on meeting the basic needs of their inhabitants and be committed to ensuring stable political and economic environment.