What is the relationship between economic growth and poverty?

The perceived relationship between economic growth and the reduction of poverty has led governments to monitor economic growth to increase the standard of living of the population. Experience suggests that economic growth results in a reduction in the level of poverty, but this effect may vary very differently depending on other economic factors, such as the division and ownership of assets. Concentrations only on economic growth only to solve the problem of poverty without paying attention to the type of growth strategy, sometimes led to extensive infrastructure projects that did not benefit most people. This negative experience has evoked for poor growth strategies to increase revenue in the poorest parts of society. They include these strategies such as rural industry diversification or cash transfers to poor, depending on their participation in health and education projects.

Conventional measures to promote economic growth that in the past prefer institutions such as METhe Zvádod currency fund included industry deregulation, privatization of trade liberalization and trade. This type of strategy, often established by governments as a condition for obtaining relevant means, could lead to problems for inefficient local companies and increasing the gap between rich and poor. The strongest companies and people survived economically and the weakest were expelled from the business of national and international competitions. The relationship between economic growth and poverty depends on the social and economic situation of the country at the beginning of the growth strategy and how economic power is distributed. Where most of the country's assets are concentrated in several hands and can compete with only a small number of businesses at the international level, economic growth can improve revenue for the economic elite without distinguishing between those close to the poverty line.

The relationship between economic growth and poverty leads to difficult problems in rural areas where most of the population can live. In rural areas inDE pressure in the population often to the unemployment of the countryside and to reduce revenue because the land occupies a large number of people. Economic growth strategy may be more efficient in removing poverty if they seek to diversify industry in rural areas and increase productivity by increasing the level of education and improving rural infrastructure. This strategy can increase revenue in rural areas and stop a drift of people from the landscape to cities, which often leads to high urban poverty. The growth strategy for the poor must actively control the relationship between economic growth and poverty, which seizes the poor and allows them to obtain the necessary level of health, training and skills.