Poverty

An example of extreme poverty in this Slum in Jakarta, Indonesia

Poverty is the lack of basic human needs, such as clean water, nutrition, health care, education, clothing and shelter, because of the inability to afford them. This is also referred to as absolute poverty or destitution. Relative poverty is the condition of having fewer resources or less income than others within a society or country, or compared to worldwide averages. About 1.7 billion people live in absolute poverty; before the industrial revolution, poverty had mostly been the norm. Poverty reduction has historically been a result of economic growth as increased levels of production, such as modern industrial technology, made more wealth available for those who were otherwise too poor to afford them. Also, investments in modernizing agriculture and increasing yields is considered the core of the antipoverty effort, given three-quarters of the world's poor are rural farmers.

Today, continued economic development is constrained by the lack of economic freedoms. Economic liberalization includes extending property rights, especially to land, to the poor, and making financial services, notably savings, accessible. Inefficient institutions, corruption and political instability can also discourage investment. Aid and government support in health, education and infrastructure helps growth by increasing human and physical capital.

(From: Wikipedia, the free encyclopedia)