Poverty has many negative effects and can perpetuate across generations. Children who grow up in poverty often face disadvantages in education and health that make it difficult to escape the cycle of poverty. They are more likely to fall behind in school and have worse educational and career outcomes. This in turn affects their ability to lift themselves and their own children out of poverty. Breaking the intergenerational cycle of poverty requires addressing the root causes and improving access to education, healthcare, and economic opportunity.

1. POVERTY
POVERTY
POVERTY
POVERTY

2. INTRODUCTION
ETYMOLOGY
The word poverty comes from old French Poverte (Modern French:pauvrete),
from Latin paupertas from pauper(poor).
DEFINITION
Poverty is pronounced deprivation in well- being, and comprises many
dimensions.it includes low incomes and the inability to acquire the basic goods
and services necessary for survival with dignity. Poverty also encompasses low
levels of health and education, poor access to clean water and sanitation,
inadequate physical security, lack of voice, and insufficient capacity and
opportunity to better one’s life.
MAJOR TYPES OF POVERTY
There are two major types of poverty:
 ABSOLUTE POVERTY
 RELATIVE POVERTY
Absolute Poverty
Absolute poverty, extreme poverty, or abject poverty is “a condition
characterized by severe deprivation of basic human needs, including food, safe
drinking water, sanitation facilities, health, shelter, education and
information. It depends not only on income but also an access to services.
Figure 1

3. World Bank data shows that the percentage of the population living in the
households with consumption or income per person below the poverty line has
decreased in each region of the world since 1990.
Table 1
REGION $1 per day $1.25 per
day
1990 2002 2004 1981 2008
East Asia
and
Pacific
15.40% 12.33% 9.07% 77.2% 14.3%
Europe
and
central
Asia
3.60% 1.28% 0.95% 1.9% 0.5%
Latin
America
and the
Caribbean
9.62% 9.08% 8.64% 11.9% 6.5%
Middle
East and
north
Africa
2.08% 1.69% 1.47% 9.65 2.7%
South
Asia
35.04% 33.44% 30.84% 61.6% 36%
Sub-
Saharan
Africa
46.07% 42.63% 41.09% 51.5% 47.5%
WORLD 52.2% 22.4%
Graph defined on poverty1
Define by world bank in 2015

4. Figure 2
Relative Poverty
“Relative poverty refers to individuals or groups lack of resources when
compared with that of other members of the society – in other words, their
relative standard of living.”
Figure 3
SOME OTHER TYPES OF POVERTY
There are some other types of poverty:
 General poverty
 Cyclical poverty
 Collective poverty
 Case poverty
 Concentrated collective poverty
General Poverty
General poverty refers to the existence of poverty in almost all the sectors of
economy. As in case of Pakistan 21.0% population is much poor.
$1 $1.08 $1.25
$1.90
1 9 9 0 L IN E 2 0 0 1 L IN E 2 0 0 8 L IN E 2 0 1 5 L IN E
WOR LD BAN K GLOBAL POVERTY LIN E:
THRESHOLD IN DAILY INCOM E PER
PER SON
Series 1 Series 2 Series 3

5. Cyclical Poverty
Cyclical poverty refers to poverty that may be widespread throughout a
population, but its occurrence itself is of limited duration.
Collective Poverty
Collective poverty involves a relatively permanent insufficiency of means to
make safe basic needs of life.
Concentrated Collective Poverty
Cities or regions neglected by industry and in areas where agriculture or
industry is inefficient and cannot complete profitably, there are found victims
of concentrated collective poverty.

6. CAUSES OF POVERTY
 There are many causes of poverty which are as follows:
 INFLATION
 NEPOTISM
 WARFARE
 NATURAL DISASTERS
 BAD CHARACTERS AND MORALS
 LANDIORDISM
 INTERNAL RIOTS AND PROTESTS
 BACKWARD AGRICULTURALSECTOR
 LACK OF EDUCATION
Some of are describe below:
INFLATION:
High rate of inflation is a reason of poverty. Due to inflation much amount of money is not
enough to purchase much amount of goods and services. Rate of inflation is 13.3%.
Figure 4
NEPOTISM:
Nepotism means the murder of talent and abilities. It refers to the employment opportunities
not according to the worth. If population is poor but is talented it remains poor due to
nepotism.
WARFARE:
Millions of people have been displaced due to warfare. They have lost their jobs, their
homes, and even their families and thus now live in poverty.

7. NATURAL DISASTERS:
The main cause of poverty is natural disasters. Haiti Earthquake (2010). It led to over
200,000 deaths, 2 million homeless and 3 million people in need of emergency aid.
Figure 5
BAD CHARACTERS AND MORALS:
Bad character that breeds poverty is especially rooted in laziness, misuse of money and
resources, misuse of loss and opportunities. Evil tendencies, habitual practice of bad habits,
bribery, robbery and other forms of crime, will always hinder progress and promote poverty.
LANDIORDISM:
Ignorant but landlords control our whole economy. They have no sense of social welfares.
In government they take those actions that are in their personal interests.
INTERNAL RIOTS AND PROTESTS:
There are countries where lack of proper law and order contributes to poverty. This is
because there cannot be proper environment for business or work in places of no law and
order. Many countries in Africa. Middle east, suffer from poverty due to communal
violence, terrorism etc.
BACKWARD AGRICULTURAL SECTOR:
In agriculture sector people have adopted just subsistence farming styles. They are not
farming according to the commercial patterns. Sometimes due to natural calamities and use

8. of backward techniques of production, there is reduction in production and it decreases the
income of poor farmers.
LACK OF EDUCATION:
Lack of education is also a cause of poverty. Education is one which has enabled many
people to overcome poverty. Government should provide scholarships to those who belong to
poor families.
Figure 6
PHYSICAL DISABILITY:
Many people get disabled due to accidents and some of them get it from birth. They cannot
perform well in the job or even make a better business man. So those with physical disability
would be unable to generate income and may become poor.
ILL HEALTH:
If one develops ill health, then it would be difficult to perform their jobs. So, one needs to
take care of health to live better and perform well.
POOR ENVIRONMENT:
We are unconsciously frozen in your poor prison. Nothing motivates or challenges you to
make progress in such a place. Several nice, good, and innovative things do not fit into the
degraded surroundings.
100 students enter school
40 make it through the final year
28 pass and matriculate
4 students enter higher
education
1 graduate

9. DISCRIMINATION:
In India, as in many other part of the world, groups of people suffer discrimination because
of their age, race, religion and gender.
Figure 7
POOR GOVERNANCE:
Instable government and instability in the policies of government is another cause of
poverty. Every government remains fail to establish such policy that leads to reduce poverty.
Figure 8
why people
are poor?
because they
lack choices
why do they
lack choices?
because they
lack freedom
and
capabilities
why do they
lack
capabilities?
weak
governance
and weak
institutions
sole parents
26%
couple with
children
15%
single aged
persons
7%
single without
children
24%
couple without
children
9%
aged couples
5%
all households
14%
PROPORTIONS OF PEOPLE FROM EACH
HOUSEHOLD TYPE LIVING IN POVERTY

10. EFFECTS OF POVERTY
The effects of poverty are serious…..not only are these poor infants are more likely to be
irritable or sickly, they are also more likely to die before their first birthday. Children raised in
poverty tend to loss school more often because of illness.
There are many effects but some of these are written below:
EDUCATION
According to Donald Hirsch, advisor to the joseph Rowntree:
“Only 14 percent of the variation in a child’s performance can be
attribute to school quality. “This means that a child/s background
has a very important effect on their performance in school. It is
very difficult to perform well in the school for the children who
come from low income families. According to department for
education statistics by the end of primary school meals are
estimated to be almost three terms behind their more affluent
peers.
child grows up in
poverty
is significantly
disadvantaged
in education
and skills
struggles to
get job
Fail to
escape the
poverty
cycle
family in
poverty

11. EFFECT OF POVERTY ON CHILDREN
Family income appears to be more strongly related to children ability and achievements than
to their emotional outcomes. Children who live in extreme poverty suffer the worst outcomes.
Chances of mal-nutrition
Due to poverty, there is a lack of proper
parenting. Even parents cannot afford for
healthy diet for their children. Hence in
countries with poverty, we can notice
children with mal-nutrition and related
diseases.
Life threatening diseases
Many diseases can be prevented by
vaccination during the childhood. These
vaccinations are quite expensive. So poor
parents cannot afford them, hence their child trend to suffer those diseases.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
less than hs higher school some colleges colleges
Chart Title
black hispanic white
Figure 9

12. Lack of education
Children from poor families are often discourage to get education. Instead their parents push
them to do some job to increase the expenses. So the children can be deprived to proper
education.
Orphanage
Many parents take devose due to poverty. Hence the children become orphan as neither of the
parent wish to care them.
Pessimistic
Wealth is a type of strength and can be act as a morale booster. Hence we can see the children
who face poverty are more pessimist.
Child devilment
Children living in poverty usually have poor health behavior and are more sensitive to mental
illness as they grow older. Children living in constant poverty also show the worse cognitive
development, less ability to solve a problem and acquire less intelligence, compared to children
from higher socio/economic backgrounds .children who are poor are often unable to
participate in social ,leisure and celebratory activities, which can negatively effect their self -
esteem and friendship. They may feel less able to take less advantage of learning opportunities
in school, which can eventually hurt their future employment prospects.
CRIME
The .Edinburgh study of youth transitions and crime found that poverty had a significant and
direct effect on people/s likelihood to engage in violence at age 15. Young people living in a
family where the head of the household was unemployed were also more likely to participate
in criminal behavior. Even poor individuals with low- risk backgrounds were more likely to
POVERTY
FAMILY
CHILD
Figure 10

13. engage in violence. This means that for certain types of young people, living in a poor
household increase their risk of engaging in violence beyond what one would expect.
LOW SOCIAL MOBILITY
Children born in poverty are also more likely to grow up to be poor. For example, poor
teenagers in Britain in the 1970’s are twice as likely to be poor as adults, while poor teenagers
in the 1980/s are four times as a likely to remain poor. When parents cannot find suitable
work, they are unable to provide their children with necessary attention and resources. They
ultimately make it more difficult for them to build a better life for their children in the future.
EXTRA SOCIAL SPENDING
When adults are unable to meet their full potential in society, they contribute less productively
to the economy. They often receive payment benefits and reduced text revenues, which
necessitates extra social spending. The joseph Rowntree foundation estimates that child
poverty costs the United Kingdom at least £25 billion a year. This includes £12 billion a year
on public spending on services that alleviate the immediate effects of poverty. The remaining
£13 billion accounts for the annual costs of below average employment rates.
CORRUPTION
Poverty encourage corruption. People try to make money in all the illegal means to become
rich in doing so those in power or official jobs can engaged in corruption.

14. Figure 11
LACK OF HAPPINESS
A society happiness directly linked with wealth. So we can expect that the ia fro, poor society is
less happier than the families from rich society.

15. Interventions on poverty
(National/ International)
Intervention:
Intervention comes from the Latin word meaning to come between “or” interrupt.
Intervention is the process of interference by a state in another’s affairs.
The process of interference of country in reducing the poverty affairs of another country is
termed as poverty intervention .
National Intervention:
The interventions which are takes on a country level are called national interventions. the national
intervention taken by Pakistan and China are explained below:
A review of income, poverty, macroeconomic and political conditions in Pakistan
and China
Rural poverty trends:
Poverty data for china and Pakistan are presented in table 1. As noted earlier, around one-third on
the total rural population of china was living in 1978, below the poverty line. The corresponding
rural population, living below the poverty line, in Pakistan, was also approximately 33%.In 1978
rural poor in china 250 million. In 1978, was more than three times the total rural population of
Pakistan and 13 times of its poor population. Rural poverty in the late 1970s could be much lower
in Pakistan then in China, if one threshold level is used for the two countries.
Urban poverty trends:
Table 1 also presents data on urban poverty, for both china and Pakistan. Urban poverty, in china,
didn’t draw much attention prior to the 1990s. The rate of urban poverty, measure by income level
was around 2% before 1990s the rate increase up to 7% in 1999. It was declined in 2002 up to 3%.
However, the situation in urban Pakistan is different. In 1978, urban poverty in Pakistan was as

16. high as 26%, it declined to 15% by 1989, but, like rural poverty there was a surge in urban poverty
in the 1990s, and it reached the level of about 25% in 1994. In 2006 urban poverty declined to
13%. At present it could be even higher the number of urban poor’s in Pakistan around 8 to 10
millions.
Incidence of Rural and Urban Poverty in China and Pakistan, 1978-2005
China Pakistan
Rural Poverty Urban Poverty Rural Poverty Urban Poverty
1978 32.9 NA 32.5 25.9
1980 27.1 NA NA NA
1981 24.3 NA NA NA
1982 17.5 NA NA NA
1983 15.2 NA NA NA
1984 11.1 NA NA NA
1985 11.9 NA 25.9 21.2
1986 12.0 2.0 NA NA
1987 11.1 2.2 NA NA
1988 10.4 2.4 18.3 15.0
Source: For China , China Statistical Yearbook (Beijing: China Statistical Publishing House, Various
year): for Pakistan, Economic Survey of Pakistan (1997-98 to 2006-07).
UNDERSTANDING CHINA’S PROGRESS AGAINST POVERTY
Poverty Reforms:-
During the first phase of rural reforms (1978-1985), the household responsivity system (HRS) was
introduced,in which equitable land was allocated to millions of individual farmers, with remuneration linked to output.
Because of the opening of Chinese market, and the sharp increase in prices agricultural products.Consequently,rural
poor population declined from 33% to 11% in 1984.
Table 2
Per Capital Income and Incidence of Rural Poverty in China
Year Per Capital Income Poverty Rate Gini-coefficient
1978 220 32.9 0.21
1984 522 11.1 0.26
1989 674 12.4 0.30
1995 846 7.6 0.34
2000 1,169 3.7 -
2005* 2.5
Source: China Statistical Yearbook (Various Issues).
* Number taken from CDRF (2007)
Around the 1980s rural dwellers were allowed to move to small towns only. Township and village Enterprises
(TVEs) were encouraged,and they became initial drivers of china’s economic growth. This form of labor mobility
called leave the land, but not the village”[Fei(1989)].
Table 3
Composition of Rural Income in China by Productive Activities (%)
Year Primary Sector Secondary Sector Tertiary Sector Other Incomes
1980 78.2 10.1 0 11.7

17. 1990 74.4 10.3 11 4.2
1995 63.2 18.2 12.4 6.2
2001 49.2 22.5 22.6 5.7
Source: National Bureau of Statistics of China, 2003.
However the tenurial status of rural farm households has markedly changed during the last three decades.
The proportion of owner-operated farms increased from 55 percent in 1980 to 78 percent in 2000.whereas the
proportion of farms operated by tenants declined over time. Today a large rural population no access to land and
cultivates a small piece of land.
Table 4
Distribution of Landownership in Pakistan
1972 1980 1990 2000
Gini-coefficient 0.66 0.65 0.66 0.66
%of Landless Households -- 63.0 62.0 63.3
% Share of Holdings < 5 Acres
(a) Households
(b) Land
47.3
5.4
NA
NA
54.4
11.4
61.2
14.8
% Share of Holding 50 + Acres
(a) Households
(b) Land
3.3
22.4
NA
NA
2.8
34.0
2.0
29.7
Source: World Bank (2007).
Table 5
Percentage Distribution of Farms by Size and Type of Tenure
Owner Owner-cum-tenant Tenant
Size of Farm (acres) 1980 1990 2000 1980 1990 2000 1980 1990 2000
<5 70.7 78.8 83.0 8.9 5.8 4.1 20.4 17.0 12.9
5 to < 12.5 45.1 59.0 70.1 22.0 15.8 12.4 32.9 25.2 17.5
12.5 < 25 46.0 58.7 67.6 28.0 22.3 18.6 26.0 18.9 13.8
25 to < 50 50.0 62.9 73.2 32.0 23.8 17.9 18.0 13.3 8.9
50 and more 62.7 72.7 78.7 28.4 20.5 15.4 8.9 6.8 5.9
All Farm 55.0 68.8 77.6 19.0 12.4 8.4 26.0 18.8 14.0
Source: Malik(2005).

18. International Interventions:
Interventions taken on international levels such as by UNESCO,IMF and WB are called
international interventions.
The Effect of Monetary Fund and World Bank on Poverty
World Bank
Structural adjustment, as measured by the number of adjustment loans from IMF and World Bank , reduces the
growth elasticity of poverty reduction. The poor benefit less from output expansion in countries with many
adjustment loans than in countries with few adjustment loans.
Structure.
 When the international monetary fund (IMF) and World Bank arrive in southern, corporate
profits go up, but so do poverty and suffering. Decades of promises that just a little more short-
terms pain will bring long-term can have exposed the IMF and world Bank as falls profits
whose mission is to protect those who already control to much wealth and power
 A report published today by the world development Movement(WDM) shows that the
international monetary fund`s (IMF) new poverty reduction strategies are acting as barriers to
policies benefiting the world’s poorest people
 Many developing countries suffered… sustained increases in prosperity, accompanied by
dramatic increases in inequality and child poverty…Underthe auspices underthe auspices the
IMF and world Bank adjustment programs.
 In country after country, structural adjustment programs(SAPs) have reversed the development
success of the 1960s and 1970s with millions sliding into poverty every year. Even the world
Bank had to accept that (SAPs) have failed the poor, with a special burden falling on women
and children. Yet togetherwith the IMF it still demands that developing country persist with
SAPs
They report data on 155 spells for 65 developing countries.The spells are quite short, and so I interpret them more as
cyclical fluctuation in mean consumption and poverty rather than as long run tendencies in growth and poverty
reduction. Table 1 gives the descriptive statistics for all the data:
Table 6
Descriptive Statistics on Variable Used
Change in Mean Initial Initial Adjustment
Poverty Consumption Gini Poverty Loans per
Growth Rate year
Mean 6.0% -1.1% 39.5 41.2 0.62
Median -0.1% 0.0% 39.5 36.3 0.50
Std. Dev. 31.5% 11.1% 11.1 29.6 0.60
Observations 149 155 155 154 150
Results on Adjustment Leading and Poverty Reduction

19. If there are no adjustment loans and inequality is very low, then poverty is extremely elastic with respect to growth.
China 1990-92 is an extreme a highly unequal country receiving adjustment loans sees no effect of growth or
contraction on poverty. Colombia in 1995-96 is an example of a country that roughly fit in this cell.
Table 7
Poverty elasticities with respect to growth for different Gini coefficients and
adjustments loan intensity
Average number of adjustment loans per year
during survey spell
GINI coefficient 0 0.5 1
30 -3.8 -2.7 -1.7
45 -2.9 -1.9 -0.9
60 -2.1 -1.0 0.0
We can understand Mexico’s poverty-growth elasticity as reflecting its high inequality and its receipt of adjustment
loans. Thailand’s near zero poverty-growth elasticity could be rationalized as a consequence of its high adjustment
intensity and its relatively average rate of inequality. Indonesia fits the story with a slightly below average elasticity
associated with low inequality but relatively less adjustment lending. Russia is an outlier, with a high elasticity despite
an extraordinary high number of adjustment loans per year.
Table 8
Growth, poverty, and adjustment lending in currency crises
Country Spell Mean
Growth
Rate of Change of
Poverty
Poverty with
growth
elasticity
Indonesia 96-99 -4.3% 7.5% -1.73
Mexico 89-95 -1.9% 1.5% -0.81
Russia 96-98 -0.6% 1.3% -0.16
Thailand 96-98 -1.8% -0.2% 0.10
While there are many problems with the comparability and accuracy of such statistics,seems to consistently be that
the urban informal sector is large. It seems likely that the rural informal sector would be even larger.
Table 9
Estimates of size of urban informal sector as percent of urban employment in
developing countries
Country Year Percent
Argentina 1995 46
Bennie 1992 48
Bolivia 1995 58

20. Botswana 1996 19
Brazil 1995 48
Cameroon 1993 57
Chile 1995 45
Colombia 1995 52
Costa Rica 1955 40
Ways of Reducing Poverty
Poverty reduction, or poverty alleviation, is a set of measures, both economic and humanitarian,
that are intended to permanently lift people out of poverty. Many economists have made
strategies to reduce poverty, time to time.
In the Modern Era, there are still 780 million people who can’t even fulfill the basic needs of
their life. Following are some ways through which we can reduce poverty at a great level:
(Global Partnership for Education, 2016)How can education
reduce poverty?
Investing in education yields significant development benefits;
Education reduces poverty, boosts economic growth and increases income. It increases a person's
chances of having a healthy life, reduces maternal deaths, and combats diseases such as HIV and
AIDS. Education can promote gender equality, reduce child marriage, and promote peace. In
sum, education is one of the most important investments a country can make in its people and its
future.
Educational Ways through which we can reduce poverty
There are many educational ways through which poverty can be reduced by an effective
rate.Some of them are following ;
Education reduces poverty
 171 million people could be lifted out of extreme poverty if all children left
school with basic reading skills. That’s equivalent to a 12% drop in the world
total.
 Absolute poverty could be reduced by
30% from learning improvements
outlined by the Education Commission.

21. Education increases individual earnings
 Education increases earnings by roughly 10% per each additional year of schooling.
 For each $1 invested in an additional year of schooling earnings increase by $5 in
low-income countries and $2.5 in lower-middle income countries.
Education reduces economic inequalities
 If workers from poor and rich backgrounds received the same education, disparity
between the two in working poverty could decrease by 39%
Education promotes economic growth
 Educational attainment explains about half of the difference in growth rates between
East Asia and Sub-Saharan Africa between 1965 and 2010.
 In 2050, GDP per capita in low-income countries would be almost 70% lower than it
would be if all children were learning.
 Increasing tertiary attainment by one year on average would increase sub-Saharan
Africa’s long-term GDP by 16%.
Education helps save the planet*
*What does that have to do with poverty? Hear us out…
 Overall climate change and the resulting increased frequency of natural disasters and
reduced agricultural output could cast as many as 122 million people into poverty by
2030.
 The creation of green industries will rely on high-skilled, educated workers.
 Agriculture contributes 1/3 of all greenhouse gas emissions. Primary and secondary
education can provide future farmers with critical knowledge about sustainability
challenges in agriculture.
People of an Educated Society

22. Control Population
“Population trends and dynamics can have an enormous effect on prospects for poverty reduction
and sustainable development. Poverty is influenced by – and influences – population dynamics,
including population growth, age structure, and rural-urban distribution. All of this has a critical
impact on a country’s development prospects and prospects for raising living standards for the
poor. Investments in better health, including reproductive health, are essential for individual
security and for reducing mortality and morbidity, which in turn improve a country’s
productivity and development prospects.”i
Ways of Reducing Population
Following are some ways through which we can reduce population;
ii
Example of Country with Uncontrolled Population ; India
The problem of increasing population in India has become a matter of deep concern. India is one
of the most populous countries of the world, in which over 17 % of the total population of the
world resides.
The present population of India is over 1.22 billion. Though the population of India is second
largest in the world, it is still increasing at a rapid speed. Studies suggest that India will become
WOMEN
EMPOWERMENT SPREAD AWARENESSEducation
PROVIDING
INCENTIVESLEGISLATIVE ACTIONS Eradicate
poverty
MEDICAL
FACILITIES DELAYED MARRIAGESDevelopment

23. the country with largest population within few
decades. The constant surge in population can
be seen by analyzing the data of past 3-4
decades.
i 2014
Author: UNFPA
ii 10 Effective Ways to ControlPopulation by CSS Forum.
Developed Country with Controlled Population; China
One Child Policy (1978-2014)
The most significant population planning system in the world was China's one-child policy, in
which, with various exceptions, having more than one child was discouraged. Unauthorized
births were punished by fines, although there were also allegations of illegal forced abortions and
forced sterilization. As part of China's planned birth policy, (work) unit supervisors monitored
the fertility of married women and may decide whose turn it is to have a baby.
Two Child Era (2014-present)
In November 2014, the Chinese government allowed its people to conceive a second child under
the supervision of government regulation.
On October 29, 2015, the ruling Chinese Communist Party announced that all one-child policies
would be scrapped, allowing all couples to have two children. The change was needed to allow

24. a better balance of male and female children, and to grow the young population to ease the
problem of paying for the aging population.
More Philanthropic Work
EVERY MUSLIM MUST GIVE IN CHARITY
The Prophet Muhammad (peace be upon him) said: "Every Muslim has to give in charity." The
people then asked: "(But what) if someone has nothing to give, what should he do?" The Prophet
replied: "He should work with his hands and benefit himself and also give in charity (from what
he earns)." The people further asked: "If he cannot find even that?" He replied: "He should help
the needy who appeal for help." Then the people asked: "If he cannot do (even) that?" The
Prophet said finally: "Then he should perform good deeds and keep away from evil deeds, and
that will be regarded as charitable deeds." - Sahih Al-Bukhari, Volume 2, Hadith 524
Charity in Islam
Zakat, the giving of alms to the poor and needy, is one of the five pillars of Islam (the others are
declaration of faith, prayer, fasting in Ramadan and Hajj). It is obligatory upon every adult
Muslim of sound mind and means.
The individual must own a specific amount of wealth or savings (after living costs, expenses
etc). This is referred to as Nisaab and is the threshold at which Zakat becomes payable. The
amount of Zakat to be paid is 2.5% of Nisaab .
36
34
22
24
22
18
17
15
13
12 12
0
5
10
15
20
25
30
35
40
1952 1970 1981 1985 1989 1993 1997 2001 2005 2009 2013
Births per 1000 people

25. Bill & Melinda Gates Foundation,A great Charitable Organization
Bill & Melinda Gates Foundation (BMGF), also known as the Gates Foundation, is a private
foundation founded by Bill and Melinda Gates. It was launched in 2000 and is said to be the
largest private foundation in the US, holding $38 billion in assets [4]. The primary aims of the
foundation are, globally, to enhance healthcare and reduce extreme poverty, and in America, to
expand educational opportunities and access to information technology. The foundation, based in
Seattle, Washington, is controlled by its three trustees: Bill and Melinda Gates, and Warren
Buffett. Other principal officers include Co-Chair William H. Gates, Sr. and Chief Executive
Officer Susan Desmond-Hellmann.
To Leave Behind Your Personal Greed
For the reduction of poverty, we must focus on leaving behind our personal greed.Islam has also
prohibited us from having any kind of greed in our mind as well as our heart.
Muhammad (P.B.U.H) once said;
On the authority of Ibn ‘Abbâs, peace and blessing of Allah be upon him , said: I heard the
Messenger of Allah (SAW) saying, “If a son of Adam had a valley full of gold, he would desire
to have two. Nothing can fill his mouth except the dust (of his grave). Allah turns with mercy to
him who turns to Him in repentance.” [al-Bukhari (6437) and Muslim (1049)]
Funding from1994 to Presesnt
Non Program Grants United States Global Development Global Health

26. THE ROLE OF YOUNG PEOPLE IN REDUCING POVERTY
“Poverty reduction is not only about meeting our basic needs, it’s also about participation,
influence and power.” Hanna Hallin, President of LSU 2007–2009.
More than 500,000,000 young people live in poverty. World Youth Report 2005.
“The number of people worldwide aged 12–24 years has reached 1.3 billion, the largest in
history. It is also the healthiest and best educated – a strong base to build on in a world that
demands more than basic skills.” Paul Wolfowitz; President World Bank Group 2005–2007
(World development report 2007)
Even though many poverty reduction strategies mention the needs of young people, they are
limited in their analysis of the situation of youth and lack consideration of differences in young
people’s realities. Unicef – The United Nations Children’s Fund (Youth participation in Poverty
Reduction Strategies and National Development Plans)
"If all young people can access work, we can help eradicate poverty," says Rafael, 19. Living in
Argentina, he is a participant in the Walmart Social Retail Training initiative, a NEO-associated
project carried out in partnership with the Walmart Foundation.
Self-employment also offers young people opportunities to effect positive change within their
communities. In Jordan, 24-year-old social entrepreneur Mariam says, "I was from a household
that made no income. I started very small, and now my project, Ibda’a, trains women from my
community and disabled people, helping them generate income independently." Mariam is a
2012 Fellow of BADIR, a YouthActionNet® national partner and an initiative of IYF, Starbucks,
and M.H. Alshaya, Co.
𝐸𝑑𝑢𝑐𝑎𝑡𝑒𝑑 𝑌𝑜𝑢𝑛𝑔 𝑃𝑒𝑜𝑝𝑙𝑒′
𝑠 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 + 𝑁𝑜 𝑃𝑒𝑟𝑠𝑜𝑛𝑎𝑙 𝐺𝑟𝑒𝑒𝑑 = 𝑁𝑜 𝑃𝑜𝑣𝑒𝑟𝑡𝑦