It is easy to lose track of the improvements that have occurred over time in the lives of poor people in many developing countries. And, without a clear track record, it is hard to see which antipoverty efforts have worked best and to learn from our mistakes. The goals are included in the recent United Nations Millennium Declaration by Heads of Government. They have thus gained acceptance as measures of the success or failure of development programs. It is not possible to answer with absolute certainty, but certain trends are beginning to emerge.
Poverty reduction requires economic growth.
It is vital that developing and transition economies achieve sustained increases in real per capita incomes. Further, growth must generate income-earning opportunities for the poor, including women, and give the poor greater access to assets. For this to occur, economic policies must be sound, well balanced, and sustainable. Poverty reduction also requires investment in basic social services, especially for the poor. And they must increase their domestic saving rates and spend scarce resources wisely, on productive programs.