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Practical Mechanisms for Poverty Reduction

image of Practical Mechanisms for Poverty Reduction

This study on Practical Mechanisms for Poverty Reduction was commissioned by the Commonwealth Secretariat with the view: (i) to identify major examples of practical mechanisms of poverty reduction, review the conditions associated with their success and assess their potential replicability; (ii) to identify donor agencies which finance these practical mechanisms and examine the conditions that apply to such assistance; and (iii) to review the role the Secretariat could play in assisting member countries to promote poverty reduction.

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Focus on Poverty Reduction Mechanisms in the Commonwealth

It is estimated that 1.1 billion people were below the poverty line as defined in Table A.1 in 1990. Asia has the highest share of these, some 633 million (of which 371 million are in India and China alone), followed by 204 million in sub-Saharan Africa, about 76 million in Latin America and the Caribbean and the balance in the Near East and North Africa. In percentage terms, the proportion of the rural population whose income and consumption fell below nationally defined poverty lines was estimated at 31 per cent in Asia (46 per cent if China and India were excluded), 60 per cent in sub-Saharan Africa, 61 per cent in Latin America and the Caribbean, and 26 per cent in the Near East and North Africa.

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