Alleviating Poverty Through Incentive Based Aid Programs

ty is an issue affecting countries in approximately twoand life expectancy. In these areas
thirds of the world we live in, and with increasedVenezuela’s progress stops, their infant
globalization it is a problem that has ramifications nevermortality rate is below the regional average decreasing
felt before in the Western world. The question of how17 percent since Chavez’s election, illiteracy is
to alleviate poverty and suffering in our world is onehigher, as well as underweight births. The downfall of
that has plagued the minds of people for years; theChavez’s program to eliminate poverty is that
simple answer provided by many is simply to increaseaid is not given off the basis of need, and is not used
money, however does this increase really help alleviateas an incentive to better educate people but instead is
poverty or does it have the potential to make thea response to political loyalty. An effective way of
problem even worse?improving the well being of the poor in other countries
An article which appeared August 21, 2007 in thehas been to link economic aid with useful actions such
International Herald Tribune entitled Managingas attending school or going to the doctor. Venezuela
Globalization: To reduce poverty, money isn’trewards those who are loyal to Chavez.
everything by Daniel Altman addresses this issue byIn contrast to Venezuela, Brazil’s success has
examining two South American countries Brazil andbeen wide spread. The country has attracted foreign
Venezuela. Incomes in both countries are rising butinvestment, lowered illiteracy, and increased life
poverty is only actually being alleviated in Brazil despiteexpectancy. Brazil has geared its monetary benefits
Hugo Chavez’s socialist platform and agendafor families and is linked to “actions such as
of equality for all. Incomes in Venezuela have beenattendance in school, prenatal care, and childhood
rising due to the high price of oil of which they have anvaccinations”. Brazil’s incentive based aid
abundant supply whereas Brazil’s economysystem not only help with immediate aid to the poor
has been rising due to “relatively firm economicbut is contingent on the poor taking steps to better
policies” and “confidence in its businessthemselves so they will be better equipped to improve
prospects among both locals and foreigners”their situation.
(Managing Globalization by Altman). The poverty rateBy looking at these two countries it becomes apparent
in Venezuela has been fluctuating sincethat in order for economic aid to be useful it must be
Chavez’s election from 50 percent whengeared in such a way that it promotes the betterment
elected in 1999 to 60 percent in 2003 back down toof the people it is meant to help. The aid must not only
40 percent in 2005. The figures follow the level ofmeet the immediate need but should be contingent
economic growth more closely than the level ofupon helping the people receiving it improve them
investment by Chavez’s government.selves. Only through well thought out aid programs that
Furthermore many experts (UN Human Developmentencourage people to improve there own conditions
Index) measure poverty not just by purchasing powercan we hope to make a significant dent in the poverty
but by other factors such as literacy, infant mortality,crisis affecting our world.