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The following article was published in our article directory on August 1, 2013.
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Economic Development: A Remedy to Poverty

Article Category: Wellness, Fitness and Diet

Author Name: El Omaliko

Money has become an asset to one's daily living, and on a global scale it is responsible for running businesses and providing basic necessities. Economic empowerment refers to the development of resources for earning and spending money and promotion of independence among impoverished societies. It is divided into two categories, namely, agricultural development and financial services.

Agricultural development promotes efficiency in planting, harvesting, and processing crops. In the rural regions, agricultural sales have become the ultimate source of livelihood for farmers. A large number of families living in poor regions depend on agricultural products for their daily nourishment. Unfortunately, bad soil conditions, inadequate seed supply, fertilizers shortages and bad irrigation systems often occur and diminish the amount of income earned.

Another key component of agricultural development is transportation. In some areas, problems with infrastructure like a broken road may cause trouble for agricultural items to be transferred to the marketplace. Good communication is also important for farmers to be familiar with the type of crops they need in order to make profit and to know the market prices for these crops.

Economic empowerment aims to provide aggressive funding programs for agricultural development that are necessary to improve harvesting conditions. There are countless foundations that obtain large sums of capital for farming improvements. Advanced farming technology increase bumper crop and assists farmers in harvesting more crops.

Financial services are provided through microfinance. It refers to fiscal management of small accumulation. It includes microsavings which are small deposit accounts provided to poor families as incentives, microcredits which are small loans offered to individuals or groups, and microinsurances which are insurance items that provide protection to individuals with minimal savings.

According to Poor Economics, a review regarding experiments for poverty alleviation, microfinancing has positive effects on the lives of consumers, but the challenge here is the ability to lend money to larger farms so that small businesses could grow into feasible enterprises.

There are programs that concentrate on distribution of cell phones, laptops, and other products that are valuable for work productivity. There are some conditions to consider such as the economic environment occupation. There's the question of whether or not these items would be able to enhance productivity. As opposed to charity work in which these organizations are in charge, cash transfers may be provided to individuals directly so they may purchase their essentials.

When economic empowerment charities are being evaluated, the program is expected to achieve a combined effort to create wealth and to transfer capital to low-income households. Creating wealth is more than just donating cash to families. It comes in various forms. Charities may offer education and irrigation products to improve productivity and provide small businesses with capital and facilities so they could start earning as soon as possible. The business venture may begin with the support of charity donations until it reaches a point where it could sustain itself.

Another approach of economic empowerment to improve people's revenue is to offer them wealth directly, but the danger in this particular method is the high probability of exploitation by the low-income households towards those with higher pay. Therefore, it's important to carefully assess each family's background to ensure that they truly are in need. Documentation should be provided along with a contract that would clearly state the boundaries and exceptions of the transaction.

Keywords: empowerment, self empowerment, self help, female empowerment, women empowerment, youth empowerment, economic empowerment, social empowerment

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