Poverty as an obstacle to economic development. The World Bank experience and potential instruments to eradicate poverty though intervening in its causes.

Mark: 2:1

Poverty is subject to a variety of definitions especially within the depths of absolute and relative poverty. Poverty became the number one concern for the World Bank in the early 1990′s due to the proven detriments it has on the development of economic and social development. This essay seeks to explain the various definitions of poverty and how that may transcend into a trapped state of affairs though the use of the Basu-Van model. Moreover, there is a discussion of the various definitions of poverty which are largely self reported, and some of which correlate higher with other definitions representing the fact that some definitions are more robust that others. Using the example of Ontario, Canada there are clear remedy, generational and opportunity costs at play that represent a true hindrance on economic and social development. The extent to which the initial distribution of resources has a factor to play in following levels of poverty are highlighted through the World Bank’s experience. Finally there is a discussion of the various instruments to help eradicate poverty ranging from redistributive policies, uses of pro-poor methods of economic development as well as arguments for government intervention and the necessity of a stable economy.