Search Results (72)

This study examines the impact of financial inclusion (FI) on reducing poverty and income inequality in Latin America and the Caribbean (LAC), using panel data from 15 countries for the period 2004–2021. System GMM with robust errors was used to address endogeneity issues, and FI was assessed in terms of access to and use of the financial system. The results indicate that increased FI contributes to reducing poverty and income inequality in LAC. While access to financial services plays a crucial role in poverty reduction, the utilization of financial services has a more profound impact on combating income inequality. These results underscore the importance of policies designed to improve financial access and promote the use of financial products and services. It is recommended to expand the banking infrastructure, facilitate the provision of low-cost accounts, and strengthen financial education programs. Full article

Understanding the complex and multidimensional nature of poverty is essential for designing effective and targeted policy interventions in rural Ethiopia. This study examined the determinants of multidimensional poverty in Bilate River Basin in South Ethiopia, employing cross-sectional household survey data collected in 2024. A total of 359 households were selected using a multistage sampling technique, ensuring representation across agro-ecological and socio-economic zones. The analysis applied the Generalized Ordered Logit (GOLOGIT) model to categorize households into four mutually exclusive poverty statuses: non-poor, vulnerable, poor, and extremely poor. The results reveal that age, dependency ratio, education level, livestock and ox ownership, access to information and credit, health status, and grazing land access significantly influence poverty status. Higher dependency ratios and poor health substantially increase the likelihood of extreme poverty, while livestock ownership and access to grazing land reduce it. Notably, credit use and access to information typically considered poverty reducing were associated with increased extreme poverty risks, likely due to poor financial literacy and exposure to misinformation. These findings underscored the multidimensional and dynamic nature of poverty, driven by both structural and behavioral factors. Policy implications point to the importance of integrated interventions that promote education, health, financial literacy, and access to productive assets to ensure sustainable poverty reduction and improved rural livelihoods in Ethiopia. Full article

To promote global sustainable development, this paper focuses on the identification of relative poverty. On the one hand, based on the sustainable livelihoods framework, a multi-dimensional relative poverty identification index system is constructed, covering six dimensions—human capital, financial capital, natural capital, physical capital, social capital, and livelihood environment—with a total of 18 indexes. On the other hand, addressing the limitations of traditional relative poverty identification methods in handling dynamic three-dimensional data, the multiway Mahalanobis–Taguchi system (MMTS) is proposed to identify dynamic relative poverty. This method first unfolds dynamic three-dimensional data into two-dimensional data along the sample direction through multiway statistical analysis techniques, then constructs multiway Mahalanobis distances to measure sample differences, and finally uses a Taguchi orthogonal experimental design for dimensionality reduction and noise reduction to optimize the model. Experiments using tracking survey data from 2020 to 2024 in three poverty-stricken counties in China’s Dabie Mountain area show that MMTS performs better than the Two-Way Fixed Effects (Two-way FE) model and Dynamic LSTM. MMTS shows a higher specificity, stronger noise resistance, smaller result fluctuations, better G-means performance, and a better balance between sensitivity and specificity. This proves its scientific validity and practical applicability. Full article

Rural areas exhibit a high prevalence of poverty. As significant progress in poverty reduction has been achieved, research on rural livelihoods has transitioned from a focus on poverty eradication to preventing poverty recurrence and fostering development. Development resilience, which has emerged as a pivotal research area in poverty governance, is a crucial metric for assessing rural households’ long-term capacity to avoid falling back into poverty, considering the multi-dimensional aspects of poverty and welfare dynamics. Utilizing data from the Academy of Agricultural Sciences, this study investigates the impact of land inflow on rural household’s development resilience (RHDR). Findings reveal that land inflow significantly enhances RHDR, a conclusion that holds after extensive robustness checks. Mechanism analysis shows that while land inflow initially imposes a financial burden, it eventually acts as an exogenous driver and causes labor force return and economies of scale, boosting RHDR over time. This effect is more pronounced among non-vulnerable households, those with abundant water resources and strong collective awareness. Therefore, it is recommended to refine land inflow systems, reduce barriers to land resource flow, and implement targeted support for vulnerable groups during the initial stages of land inflow to effectively promote rural revitalization through land transfer. Full article

Digital inclusive finance (DIF) is regarded as a key instrument in poverty alleviation efforts. However, existing research reveals significant gaps in understanding its poverty-reduction impact: the debate on its inclusivity remains unresolved, its mechanisms of action are unclear, and the psychological empowerment dimension has been largely overlooked. Using micro-level data from seven waves of the China Family Panel Studies (CFPS) from 2010 to 2022, this study employs fixed-effect models, quantile regression models, and mechanism analysis to explore the differentiated impact of digital inclusive finance on rural multidimensional relative poverty and the mechanisms at play. The empirical findings reveal that DIF significantly mitigates multidimensional relative poverty, with more pronounced marginal effects among the poorest households, confirming its pro-poor characteristics. Heterogeneity analysis reveals that, at the regional level, DIF has greater impacts in western regions and remote rural areas farther from county centers; at the individual level, it is particularly effective for women, those with lower education, and individuals with limited digital literacy. Mechanism analysis shows that DIF operates through three channels: promoting employment, encouraging entrepreneurship, and enhancing financial accessibility. Moreover, extended analysis demonstrates that DIF also fosters the endogenous motivation of rural households to escape poverty, as reflected in heightened confidence about the future, increased belief in social mobility and returns of work, and reduced perceived barriers to employment. These findings provide new micro-level evidence to unpack the poverty-alleviation potential of DIF. Full article

This study investigates how borrowing influences household consumption patterns in low-income and formerly impoverished regions of China, with implications for sustainable development goals (SDGs) such as poverty reduction (SDG 1), inclusive economic growth (SDG 8), and reducing inequalities (SDG 10). Using four rounds of 7516 households of balanced panel data from the China Family Panel Studies (CFPS), a fixed-effects model was employed to analyze the impact of borrowing on total and categorized household consumption. Instrumental variable and treatment-effects models were applied to address endogeneity issues. Results reveal that a 1% increase in borrowing boosts total household consumption by 0.026%, with stronger effects on developmental and investment-oriented consumption, particularly among low-income households. Formerly impoverished areas experienced greater consumption growth, especially in education and training, indicating higher domestic demand potential and faster human capital accumulation. The study concludes that improving financial markets, aligning credit with specific needs, and leveraging local resources are essential for upgrading consumption structures and alleviating relative poverty. Full article

Many countries around the world have rolled out energy efficiency programs and incentives to encourage the adoption of energy-efficient technologies, including heat pumps. Currently, the academic investigation of heat pump technology implementation in Australia, particularly within the social housing sector, is quite sparse. This knowledge gap is particularly evident in the realm of comprehending user acceptance related to comfort, operating and capital costs, and the ability to operate and the extent to which occupants in social housing embrace and adapt to this technological advancement. This paper aims to systematically review studies that have surveyed users and other stakeholders involved in the heat pump ecosystem within the social housing setting. The key objective is to investigate the impact of heat pump installation in social housing on tenant well-being, focusing on the reduction of energy costs, improvements in indoor comfort, and tenant perceptions of financial and social barriers. By analysing 69 studies, this paper identifies the critical challenges and opportunities in integrating heat pump systems into social housing. The key findings emphasise that tenant education, effective communication, and engagement are essential for maximising the benefits of heat pumps. Furthermore, the financial feasibility of heat pumps depends on government incentives and careful system design to avoid excessive upfront and operational costs. This review offers a comprehensive guide for future research and policy development, aiming to facilitate the integration of heat pumps in social housing, with a focus on improving tenant well-being and reducing energy poverty. Full article

The Eastern Cape Province of South Africa is largely rural, with agriculture as the main livelihood for many households. However, the province has a semi-arid climate and reliance on rain-fed agriculture, which makes the region highly vulnerable to climate-related risks, particularly droughts. Smallholder farmers, who play a crucial role in food production and local economies, face significant challenges due to limited access to resources like irrigation, modern technology, and financial support, exacerbating their vulnerability to climate variability. These droughts cause severe losses in agricultural productivity, threatening food security, increasing poverty, and driving rural migration. Despite the potential benefits of adaptation strategies, many farmers lack the tools and knowledge to effectively cope with the increasing frequency and severity of droughts. This study examines how smallholder farmers in South Africa’s Eastern Cape Province perceive, experience, and cope with drought risk and its food and nutrition security implications. Using structured questionnaires, the authors collected data from 160 smallholder farmers and employed statistical analysis techniques, including a multinomial logit model. The study found that smallholder farmers understand drought risk but continue to face high vulnerability to adverse effects such as water scarcity, crop failure, increased disease incidence, and rising temperatures. Socioeconomic and institutional factors significantly influenced the adaptation strategies chosen by smallholder farmers. This study suggests that a combination of localized and modern adaptation approaches, supported by various institutional, policy, and technological interventions, is essential to enhance the resilience of these farmers. Specifically, localized strategies such as using traditional water management systems and crop diversification were effective in addressing region-specific climate challenges. At the same time, modern approaches like climate-resilient crop varieties and early-warning systems provided broader, more scalable solutions. Institutional support measures, such as access to climate information and extension services, policy interventions promoting sustainable practices, and technological advancements in irrigation and seed technologies, were key factors in improving adaptive capacity and reducing vulnerability. There is an urgent need to provide comprehensive support and empower farmers to adapt effectively, protect their livelihoods, and contribute to broader food security and poverty reduction efforts. This study highlights the importance of understanding and addressing the perceptions and experiences of smallholder farmers facing drought risk to ensure sustainable food production, income generation, and poverty alleviation. Full article

Poverty reduction is the primary goal of the United Nations 2030 Agenda for Sustainable Development. Enhancing the purchase rate of health insurance is essential for alleviating poverty caused by health shocks, as it serves as a crucial risk management tool for addressing health-related risks. In this paper, we investigate the impact of digital inclusive finance on household participation in terms of health insurance and financial vulnerability, utilizing the Digital Inclusive Finance Index developed by Peking University and survey data from the China Household Finance Survey. Our findings indicate that the advancement of digital inclusive finance can significantly reduce the risk of household financial vulnerability by increasing household health insurance enrollment rate. The findings are robust across various digital inclusive finance indices, different metrics for financial vulnerability, alternative econometric models, and additional control variables. Furthermore, the effects of digital inclusive finance on health insurance enrollments and household financial vulnerability are particularly pronounced among urban households and those led by younger and more risk-averse household heads. Our findings advocate for further development of digital inclusive finance, mainly targeted at rural households and those with elderly heads, to enhance health insurance participation and mitigate the risk of illness-related poverty. Full article

The rise in obesity and related chronic noncommunicable diseases (NCDs) during recent decades in Brazil has been associated with increases in the financial burden and risk of impoverishment due to out-of-pocket (OOP) health expenditure. Thus, this study investigated trends and predictors associated with impoverishment due to health expenditure, in the population of São Paulo city, Brazil, between 2003 and 2015. Household data from the São Paulo Health Survey (n = 5475) were used to estimate impoverishment linked to OOP health expenses, using the three thresholds of International Poverty Lines (IPLs) defined by the World Bank at 1.90, 3.20, and 5.50 dollars per capita per day purchasing power parity (PPP) in 2011. The results indicated a high incidence of impoverishment due to OOP disbursements for health care throughout the period, predominantly concentrated among low-income individuals. Lifestyle choices referring to leisure-time physical activity (OR = 0.766 at $3.20 IPL, and OR = 0.789 at $5.50 IPL) were linked to reduction in the risk for impoverishment due to OOP health expenditures whilst there were increases in the probability of impoverishment due to cardiometabolic risk factors referring to obesity (OR = 1.588 at $3.20 IPL, and OR = 1.633 at $5.50 IPL), and diagnosis of cardiovascular diseases (OR = 2.268 at $1.90 IPL, OR = 1.967 at $3.20 IPL, and OR = 1.936 at $5.50 IPL). Diagnosis of type 2 diabetes mellitus was associated with an increase in the probability of impoverishment at only the $1.90 IPL (OR = 2.506), whilst coefficients for high blood pressure presented lack of significance in the models. Health policies should focus on interventions for prevention of obesity to ensure the financial protection of the population in São Paulo city, Brazil, especially targeting modifiable lifestyle choices like promotion of physical activity and reduction of tobacco use. Full article

This study investigates the impact of disasters on sustainability, resilience, and poverty, using data from the “Sustainable Development Report” and the Emergency Events Database (EM-DAT) from 2000 to 2023. Regression models assessed the effects of disasters, deaths, injuries, affected individuals, and economic damage on normalized values of the dependent variables with lag periods of one, two, and three years of independent variables. The results reveal that disasters consistently negatively impact sustainability and resilience, highlighting the need for robust disaster risk reduction strategies and resilient infrastructure. Higher mortality rates significantly hindered development, emphasizing the importance of improving early warning systems, emergency preparedness, and healthcare infrastructure. While injuries and the number of affected individuals did not show significant associations, economic damage was positively associated with resilience, suggesting that financial losses might drive recovery investments. Additionally, disasters were found to exacerbate poverty levels over time with significant associations in the two and three-year lag models. This study also uncovered significant regional disparities with lower resilience, sustainability, and higher poverty levels in certain regions compared to others. Higher-income groups demonstrated better resilience and lower poverty levels. These findings underscore the necessity for targeted, region-specific strategies to enhance resilience, reduce poverty, and support sustainable development, leveraging post-disaster recovery phases for long-term improvement. Full article

The increasing wave of protectionism in various corners of the world with the use of seemingly attractive but economically misleading slogans (shortening supply chains, onshoring, reshoring, nearshoring, friend-shoring, reindustrialization, and ending/correcting ‘hyperglobalization’, etc.) creates a serious challenge to the global trading system and global economic development. Trade and financial transactions have also become victims of the increasing number of geopolitical conflicts and tensions, both ‘hot’ and ‘cold’. Before it becomes too late, i.e., before the current trade tensions go too far and create the hardly reversible spiral of trade and financial wars, retaliations, etc., it is desirable to reflect on what can be lost due to protectionism. This essay analyzes four areas that have benefited from global economic integration since the 1980s (economic growth, poverty eradication, reduction in global economic inequalities, and disinflation) and may suffer from its reversal. It also discusses potential remedies that may help stop a protectionist drift. Full article

Successful strategies that can contribute to poverty reduction and improve the livelihoods of the poor, particularly in Sub-Saharan Africa (SSA), are critically needed to address the technology adoption constraints. The objectives of this study were to assess the adoption level of improved technologies and management practices and to identify the key factors influencing their adoption in the major wheat-producing areas in the irrigated, arid, and heat-prone environments of Sudan. A farm survey was conducted in 2021 using a structured questionnaire that included almost all recommended technological options for optimum and sustainable wheat production. A total of 300 farmers, 93, 101, and 106 from Northern (NS), Kassala (KS), and Gezira (GS) states, respectively, were selected and interviewed. Besides descriptive statistics, a binary logistic model was used to identify the socioeconomic and production factors affecting farmers’ perceptions of improved and recommended technological options. The study found a wide range of adoption rates depending on the specific technology practice and the area surveyed. The lowest adoption rate was observed for land preparation (6.5%) in NS. Adoption rates ranging from 26–100% were observed for technologies such as the sowing date, the seed rate, seed treatment, the awareness of released varieties, nitrogen and phosphorus fertilizer application, and chemical weed control. The difference in the productivity of technological option adopters was significant (p = 0.015) compared to non-adopters. The binary logistic regression results showed that five out of seven explanatory variables hypothesized to influence wheat farmers’ perceptions on the decision to adopt improved and recommended technologies significantly influenced farmers’ decision to adopt the technologies. In particular, access to quality seeds, financial credit, and extension services were found to be the most critical determinants of adopting improved technologies. Approaches that bring together all stakeholders along the crop value chain, including policymakers, to jointly analyze, identify, and prioritize challenges and develop and apply solutions and work plans using feedback and learning mechanisms are expected to increase farmer awareness and adoption of improved technologies, ultimately leading to sustainable wheat production. Full article

Greenflation or inflation for green energy transition in Europe becomes a structural problem of new scarcity and poverty, under Austrian Economics analysis. The current European public agenda on the Green Deal and its fiscal and monetary policies are closer to coercive central planning, against the markets, economic calculus, and Mises’ theorem. In this paper, attention is paid to the green financial bubble and the European greenflation paradox: in order to achieve greater future social welfare, due to a looming climate risk, present wellbeing and wealth is being reduced, causing a real and ongoing risk of social impoverishment (to promote the SGD 13 on climate action, it is violated by SGD 1–3 on poverty and hunger and 7–12 on affordable energy, economic growth, sustainable communities, and production). According to the European Union data, the relations are explained between green transition and public policies (emissions, tax, debt, credit boom, etc.), GDP variations (real–nominal), and the increase of inflation and poverty. As many emissions are reduced, there is a decrease of GDP (once deflated) and GDP per capita, evidencing social deflation, which in turn means more widespread poverty and a reduction of the middle-class. Also, there is a risk of a green-bubble, as in the Great Recession of 2008 (but this time supported by the European Union) and possible stagflation (close to the 1970s). To analyze this problem generated by mainstream economics (econometric and normative interventionism), this research offers theoretical and methodological frameworks of mainline economics (positive explanations based on principles and empirical illustrations for complex social phenomena), especially the Austrian Economics and the New-Institutional Schools (Law and Economics, Public Choice, and Comparative Constitutional Economics). Full article

This article analyzes the implementation of the National Financial Inclusion Strategy (NFIS) and its alignment with Sustainable Development Goal (SDG) I: Eradicate poverty. Despite the progress achieved, structural gaps persist and substantially limit the NFIS’s contribution to poverty reduction, especially among rural, indigenous, extreme poverty, and other vulnerable groups. The article employs a mixed methods approach combining qualitative and quantitative techniques. On the qualitative side, a hermeneutic documentary analysis of the NFIS and related regulations was carried out, with a critical textual interpretation supported by specialized software. Quantitatively, descriptive statistical techniques were applied to analyze official financial inclusion indicators—methodological integration was achieved through analytical triangulation under a concurrent mixed methods approach. The progress of initiatives under the NFIS was evaluated, identifying limitations such as the digital divide in rural areas, limited financing for Micro and Small Enterprises, gaps in financial education, and growing exposure to digital fraud. Although the NFIS promotes greater access to financial services, it does not explicitly focus on the poorest and most excluded populations. Therefore, it is recommended that the objectives and indicators of the NFIS be reformulated to focus on universal access and effective use of financial services by the population in extreme poverty and chronic exclusion. In addition, a strategic articulation with social protection policies is necessary, as well as promoting culturally relevant microfinance and inclusive finance models, strengthening consumer protection, and consolidating public–private alliances in high-poverty areas. Finally, strong monitoring and accountability are also key. Full article