Question

What led to the substantial decline in poverty in China and Southeast Asian countries?

Answer 1

Hint: Poverty is described as a state or situation in which an individual or a community lacks the financial resources and necessities for a basic standard of living. Poverty is described as a situation in which one's earnings from work are insufficient to meet basic human needs.

Complete answer:
1. The high economic growth in China and Southeast Asia was the explanation for a significant reduction in poverty in these countries.
2. They were able to achieve such strong economic growth because they pursued an export-oriented industrialization strategy.
3. The company focused on mass-manufacturing a variety of goods that were then shipped to different countries.
As a result, these countries' GDP and per capita income increased, and poverty levels decreased.

Additional Information:
- The start of the Industrial Revolution ushered in a period of rapid economic development, eradicating widespread poverty in what is now known as the developed world. During the twentieth century, the global GDP per human quintupled.
- The lack of economic freedoms today is limiting future economic growth. Economic liberalisation necessitates the extension of property rights to the poor, especially in the case of land.

Note: Poverty reduction is primarily a function of overall economic development. Aid and government funding in the areas of health, education, and infrastructure aid growth by growing human and physical resources. Poverty reduction also entails enhancing the living standards of those who are already poor.