More than one billion people live in extreme poverty – it is one of the greatest problems facing the world today. Combating poverty and bringing about better living conditions worldwide is one of the most important policy challenges both internationally and for Germany.
Concerted action against poverty: the Millennium Goals
Poverty concerns us all. In our highly interdependent world, its impacts can equally be felt in our own countries, putting our future in jeopardy too. The global community has recognised that a united front is required to win the battle against poverty. On the basis of the Millennium Declaration, the nations of the world set themselves eight development goals to be achieved by 2015. Foremost among these is the goal of halving the proportion of people who live in extreme poverty.
The United Nations monitors the implementation of the Millennium Declaration. Every September, the Secretary-General delivers an annual report to the General Assembly on progress made towards the goals.
Germany's engagement against poverty
The reduction of poverty is an overarching concern of German development cooperation. All measures supported by the Federal Ministry for Economic Cooperation and Development contribute – directly or indirectly – towards achieving this objective.
The following section presents selected examples of Germany's varied activities in the field of poverty reduction.
Economy
An effective economy that creates jobs is the most important prerequisite for the reduction of poverty in developing countries. Work generates incomes and gives people the opportunity to free themselves from poverty. Germany's economic cooperation with its partner countries concentrates on supporting strategies for broad-scale, job-creating growth which offers the poor a way out of income poverty (pro-poor growth).
Besides strengthening the private sector in the partner countries, the German government also seeks to engage in close cooperation with Germany's own private sector, for example through development partnerships (public-private partnerships – PPPs).
Trade
The industrialised countries exert a decisive influence over the global economy. Consequently, they bear a great responsibility for the equitable conduct of global trade. To ensure that developing countries are also able to reap the benefits of globalisation and reduce their poverty, more attention must be given to their interests within the world trade system. Germany is therefore working for the abolition of agricultural subsidies and other trade-distorting support measures applied by the industrialised countries.
Food and rural development
Poverty is indivisibly linked to hunger and malnutrition. In 2009, more than one billion people were undernourished – more than ever before. Germany supports its partner countries in developing strategies for food security, and vigorously engages in relevant international projects and programmes, for example the World Food Programme. In order to mobilise and increase the self-help capacities of the developing countries, Germany also works to strengthen agriculture and rural development in its partner countries.
Debt relief
The burden of debt upon the poorest developing countries is a key factor in poverty. When interest and debt repayments leave the state no further scope for investment or the provision of services, development ceases to be possible. Germany therefore supports international debt relief efforts through the Heavily Indebted Poor Countries (HIPC) initiative and the Multilateral Debt Relief Initiative (MDRI). The prerequisites for debt cancellation are transparent budgetary administration and efforts to combat corruption and mismanagement.
Social security and social policy
Around 80 per cent of the world's population lack adequate protection against social risks such as sickness, unemployment, crop failure or poverty in old age. Social security systems such as health and pensions insurance, microinsurance schemes or social transfer programmes for people in extreme poverty, are important instruments for structural poverty reduction. They create the basic conditions for broad-scale growth and are key to achieving the Millennium Development Goals.
Basic social services
Basic social services such as health care and primary education can bring about lasting improvement in poor people's living conditions. They are important elements for poverty reduction.
Protecting the environment and natural resources
The increasing destruction of natural resources undermines the basis of poor people's livelihoods. At the same time, hardship often forces the poor to overexploit natural resources themselves. Conservation of the environment and natural resources makes an important contribution to poverty reduction. Germany works internationally and nationally for environmental protection. It supports the implementation of international conventions which are binding in international law: to combat desertification, to abate greenhouse gases, to promote renewable energies and to conserve forests and species diversity. Germany also participates in measures to protect against natural disasters.
Human rights
Respect for human rights is an essential basis for poverty reduction. Only if basic rights are respected can people live self-determined lives, making decisions for themselves in political and economic freedom in accordance with their opportunities. This applies especially to women. Women play a key role within their families when it comes to bringing about change. Germany promotes the legal, social and political equality of women.
Good governance
Poorly functioning administrations, arbitrary legal systems and corruption are impediments to development and hence to successful poverty reduction. Furthermore, poor people are largely excluded from the decisions that affect them. Germany is assisting its partner countries to develop stable democratic and rule-of-law structures. Enabling poor and disadvantaged sections of the population to benefit from development processes is a particular focus of attention.
Peace
Poverty, injustice, economic and political discrimination are breeding grounds for violent conflicts and ethnic, religious and regional hostilities. Conflicts and the associated military spending hold back development and create new poverty at the same time. Poverty reduction is therefore an element of security policy. Germany supports programmes on crisis prevention, reconciliation work, mine clearance, disarmament and reduction of military expenditure. However, the measures also tackle the structural causes of conflict, including political or social imbalances.
Strengthening civil society
Development must come from within society. The German government has therefore set itself the goal of strengthening civil society engagement and utilising it more effectively in the interests of development – both in the partner countries and in Germany.
Improving the quality and impact of development cooperation
In order to contribute as efficiently and effectively as possible to poverty reduction, the German government continuously improves its range of development policy instruments and actively engages in relevant international initiatives, working jointly with other donors and with representatives of its partner countries.
The aim is to strengthen ownership by the partner countries. In order to increase the effectiveness of development cooperation, donors should closely coordinate their programmes and align them with the partner countries' strategies and processes. Within the context of international cooperation, Germany works for clear structures and, on that basis, a division of labour.
Documents and links
Here you will find a selection of links to documents and websites in German which provide further information on poverty reduction.
