Some say that economic development is the solution to poverty; others say it is the cause of poverty. Do you agree or disagree with the statement? Give your own opinion. (Academic IELTS essay question November 2011 Canada)

There is a widely held view given current circumstances throughout world that economic progress is the answer to address poverty. There is a counter argument which contends that economic upward movement is behind the poverty. From my perspective, I’m incline towards the former view and I agree wholeheartedly that this is the case.


To begin with, it is immediately apparent that economic growth benefits almost all citizens of country, even if not equally and therefore reduces poverty. For example, in rural areas where most of the poor are engaged in agriculture, when such a area or country grows through agriculture products export, it creates significant jobs and places for work for. This is largely due to industries start looking for more workers to meet demand. This eventually causes a rise in wages that further reduces poverty.


At the other end of spectrum, economic progress leads inequality between the rich and the poor. However, results have proved that such imbalance is short lived and everyone has benefited over long run. It is because of the high initial inequality that it appears as if economic growth is leading to poverty.


In my own experience, I have seen considerable reduction in poverty in countries like india and china. Because of large scale economic uplift in information technology and other industries, within short time span, millions of poor people are now living quality life. They have ample job opportunities and increased purchasing power.


The state of affairs relating to this matter in my country, Australia, is quite typical at the way things are elsewhere in world.

To put it in a nutshell, I pen down saying that economic development definitely reduces poverty. If there is no development in country’s economic conditions then there will  huge increase in number of poor people and there will be no solution to solve persistent problem of poverty.

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