Institution: Inter American Development Bank (IADB), USA
E-mail: c.lopezm@aol.com
Biosummary:
Presently International Consultant, Inter American Development Bank and World Bank. Previously Minister of Planning, Minister of Agriculture, Minister of the Environment and Minister in charge of National Policies for Women’s Equity, Government of Colombia.
Title: "Some fundamentals needing change to alleviate poverty".
Theme: 1D
Abstract:
At least three new elements have emerged that should change the scenario to understand poverty in the World. First, there is a growing consensus about the need of a more comprehensive definition of development. For many analysts it is definitely not only economic growth. For others, development should be understood as a transformation process of the whole society, being the economic dimension very important but not the only one. (Stiglitz, 1998). Second, poverty is not limited to reduced income or lack of social services. UNDP has developed the concept of "human poverty" meaning a dynamic process in which people do not have access to all types of assets, neither to social and political adequate opportunities. Third, poverty, inequality, exclusion are in the fore of the economic discourse. (Rubi and Lusting, 1999) It seems that finally the trickle down effect is being reconsidered.
The emphasis in economic growth interpreted by economic models, bypass the real needs of the people. Therefore, a more comprehensive and humanistic approach to development finally will allow a real reduction and even the elimination of poverty in the future. The actual reason why economic models have not been successful in social issues is because equity has never been the priority. To put poverty first, is much more than upgrading its position in the old development agenda.
Within this framework, rural poverty plays a key role. Specifically in Latin America, the number of rural poor has not change at all during the nineties, 75million people, and 33% in extreme poverty. Economic growth in the region has been associated with a positive impact in urban poverty, a decrease from 36% to 34%, during the same period. Additionally, the importance of environment in development has brought new interest in rural poverty. It is in the rural sector where a great part of the natural resources are located and in a very simplistic way, it has been stated that the rural poor destroys them. But maybe the most important reason for considering rural poverty again is because of the clear links recognized between urban and rural poor.
The new definition of poverty, as a process and as much more than lower income, is particularly important to understand rural poverty. Even more, exclusion in all its dimensions, have stronger meaning for the rural poor. If the new paradigm is the well being of everyone in the society, this will mean a historical change for this group of people. Policy makers ought to take advantage of this new scenario.