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Many of the most effective types of rural poverty reduction involve some form of investment by an outside party. This can include loans, education, and the donation of goods and services. The primary goal is to provide an underserved population with the tools necessary to lift itself out of poverty.
Loans are a common type of rural poverty reduction. Their amount and the people to whom they are distributed can vary widely, depending on their purpose. In some cases, loans can be made to encourage a particular industry to which the region may be suited due to natural resources, geographical location, available skill sets, or other relevant characteristics. They may also focus on building things that a certain area needs to flourish, such as certain structures or facilities for medical care or clean water.
Rural poverty reduction can also consist of distributing loans to the people who are most likely to maximize the funds. For example, a program may give microloans to female entrepreneurs due to statistics which reveal that women in the region are more likely to use money for the good of their families than their husbands. Loans may also be distributed to people who are more likely to understand how to use the funds for maximum benefit.
Education is another effective method of rural poverty reduction. This can be general instruction such as reading, writing, and mathematics or specific training. In the interest of creating an industry that can lift the region out of poverty, it can be beneficial to train a workforce with skills specifically targeted to promote its success. This kind of support can have long-lasting benefits, as a generation that is trained in and works successfully in a thriving industry will often pass this knowledge down to future generations.
Providing training in industries that can help to sustain life, such as agriculture, can also help with rural poverty reduction. A population that can provide for itself will be more likely to thrive than one that is dependent on external sources to survive. It will also have a stronger structure, as the population has greater control of its economy
Improving the local civic structure can also help with rural poverty reduction. This can include services such as constructing roads, buildings, and waste management systems. These improvements can help to elevate the quality of life and thus improve the health and general productivity of the population.