Alleviation Of Poverty Essay

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Poverty defines the state of not being able to afford basic needs such as food, clothing and shelter to ensure a sustainable livelihood. (Irish Government,1997) In this essay, we will be addressing the alleviation of Poverty, which is a multidimensional phenomenon with a variety of causes, effects and approaches. Thus, considerations from different aspects are necessary in order for effective alleviation to happen.
Despite more than half of global poverty rates being cut down since 1990, one in five people in developing regions still live on less than $1.25 a day. There are many causes of poverty, and these causes are related, therefore tending to cluster and reinforce each other, making poverty alleviation a very complex endeavor. Different …show more content…

There is a strong correlation between literacy rate and access to finance as could be observed that the states with the lowest literacy rate also has the least access to finance. For instance, Lagos state (Southern) having 181 MFIs with 95% literacy rate, as compared to Katsina state (Northern) having 4 MFIs and 29.6% literacy rate. (MIX Market,2012). South Nigeria has considerably more MFIs than the North. The state having the second most MFIs with 68 is Anambra and it is also located in the South. (Abraham, H and Balogun, I.O. 2012). With a greater number of microfinance institutes, in this case South Nigeria, the accessibility of microfinance increases. Improved access and efficient provision of savings, credit, and insurance facilities can enable the lower income to manage their risks better, build their assets gradually, develop their micro enterprises, enhance their income earning capacity and possibly enjoy an improved quality of life. The accessibility to microcredit and the benefits from its profitable usage also increases the capability of households to spend more on education of children, which will alleviate future poverty.(Aideyan, O, ). Therefore, microfinance operators and clients are mostly concentrated in the southern region of the

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