Exercises · Q4
Q.How can the creation of income-earning assets address the problem of poverty?
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Start your 14-day free trial to unlock the full solution →Productive assets give the poor a lasting income source, reduce dependence on casual labour and moneylenders, and build self-reliance — which is why self-employment programmes focus on asset creation.
The creation of income-earning assets addresses poverty in the following ways:
- A durable source of income. Ownership of a productive asset — land, livestock, tools, a small industry or a shop — yields income repeatedly, unlike a one-time relief payment or insecure daily-wage work.
- Reduced vulnerability. With their own asset, the poor depend less on casual, intermittent labour and less on moneylenders who charge exploitative interest, helping break the cycle of indebtedness. …
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