Rural poverty reduction: reasons and remedies.

Byline: AMIR MUSTAFA AND JAVERIA SIDDIQUI

Poverty alleviation is one of the preeminent concern of developing world and one of the major factors in sustainable development goals (as per SDG 1) set by United Nations. Since recent decades, the world has witnessed the extreme poverty in rural areas. As per United Nations' report, five of every six people earn below $1.90 and lies under the international income poverty line, belongs to the rural areas of developing countries. Rural areas account for 80% of people living in poverty and 18% of rural residents are living in extreme poverty.

During the previous few decades, however, considerable progress has been made for reducing rural poverty, partially as a result of effective initiatives encouraging rural poor economic prospects and expanding social security in rural areas.

This advancement has not been distributed evenly. Rural development among other economic processes that reduce poverty, can also create inequality. Moreover, in the last few years, COVID-19 crisis is the major factor which is increasing poverty, especially in the middle income countries.

Inadequate access to public services, infrastructure and social protection made the situation of rural poor worse. The COVID-19 outbreak has compounded their already precarious situation by limiting food security, mobility and reducing their incomes. According to a recent data analysis, the rate of rural poverty reduction in developing countries has been larger than the pace of urban poverty reduction. However, eliminating the inequalities and reaching the poorest in rural areas remains a challenge. During the last three decades, developing countries have made little headway in boosting the level of consumption of the poorest, they have been left behind.

Rural poverty reductions have not always resulted in decreases in rural inequalities or between the rural and urban inequalities. According to the latest statistics, prior initiatives to reduce rural poverty did not always coincide with efforts to reduce inequality. Between the 2000s and the 2010s, rural inequality increased or remained stable in China, India, and Indonesia, while rural poverty decreased significantly. Regional and historical tendencies show that inequality declines are not a consistent result of growth and development. The same economic dynamics that allow poverty to decline, can also cause inequality to develop within rural areas and between urban and rural areas...