Assignment Example | Topics and Well Written Essays - 500 words - 179

Assignment Example The topic of discussion is poverty. Poverty refers to condition where an individual is deficient of some material possession (Espejo, 2012). It is a situation where individuals cannot meet basic needs, that is, food, shelter and clothing. In general poverty is comprised of two types: Absolute poverty-is where individuals are unable to raise the bare minimum essential for provision of his basic needs in a particular area (Espejo, 2012). It attempts to measure individual’s ability to afford living in a particular area. Those persons who cannot raise the bare minimum required to provide basic needs in a specific region are considered to be living in absolute poverty. Context of the problem is why cutting poverty is good for a country. Millions of adults and children in most countries around the world live in extreme poverty. They face economic hardship. Cutting on overall rate of poverty is thereby a public good that will come as a benefit to citizens of a country at all income level. Reducing nation’s poverty level will save a country economy billion dollars as it saves the government limited resources that would be channeled to poverty related issues such as health care costs and criminal-justice expenditures (Sachs, 2005). The resources saved could be used to invest in areas that promote economic growth. Multinational companies-these companies have a role of addressing pressing social problems such as absolute poverty in host countries. Multinational corporations play a big role in eradicating poverty by providing employment to citizens, participating in community development projects and industrial training programmers to the youths. External development partners –majorly comprise of World Bank and International Monetary Fund (IMF).These institutions work to connect extensively their lending operations to the country strategies and measures for cutting poverty.IMF and World Bank also offer policy advice