How Poor Families Rely on Money Transfer

Poverty reduction and elimination are one of the major global issues. There are many underlined causes but governments are somehow failing to develop an ideal solution to cope up with it. However, due to the fact that the government is responsible for poor people of their country, there are many poverty reducing mechanisms that are been followed by different countries.

Among these, money transfers are known to be one of the effective mechanisms helping poor people to achieve a minimal living standard. Many international agencies and governments around the world invest a large amount of money in poverty reduction programs in an effort to improve outcomes for both households and local economies.

Money transfers for poverty reduction can be done through foreign funds, government subsidies, remittances, etc. The two important kinds of money transfer programs, which help poor families, are conditional and unconditional money transfer programs. Both play a huge role in providing basic necessities like food, health, shelter and education in order to provide a safety net to the poor.

Most people are aware that the poor often receive welfare from the government. But other security assistance programs i.e. unemployment fund programs, initiated by the federal state, and local government also affect the well-being of the poor and may actually have a huge impact on poverty than welfare.