Reducing Urban Poverty; Some Lessons from Experience

Effective poverty reduction demands a multi-dimensional view of poverty

This paper draws on seven case studies of poverty reduction initiatives in Pakistan, Guatemala, Colombia, Argentine, Nicaragua, South Africa, and India. The author highlights that while increasing incomes are needed for longer-term poverty reduction, there are many additional means to poverty reduction.

From the case studies, the author concludes:

that poverty reduction will happen most effectively through local coalitions that adopt and address a multi-dimensional view of poverty
that local institutions have considerable potential to reduce poverty even with only modest external funding
that the scale and scope of poverty reduction interventions should be related to local circumstances and local capacities
that one of the critical determinants in successful poverty reduction is the quality of the relationship between “the poor” and the organizations or agencies that have resources or powers to address poverty
that local NGOs must work to strengthen the bargaining power of low-income or otherwise disadvantaged groups and their capacity for organization and action
that local groups must address the broader constraints inhibiting local action

The author suggests that these finding have several implications for donors, including:

that there must be new models for donor support
that there must be new donor funding channels
that donors must resolve potential conflicts between supporting local processes and their own institutional structures
that donors must channel funds outside of governments

The report concludes with an in-depth discussion of each local case study.

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Reducing Urban Poverty; Some Lessons from Experience