Employment opportunity is a core to reduce poverty


[dropcap font=”0″][/dropcap]Job creation can lead to poverty reduction. The largest contributions for poverty alleviation include labour-intensive sectors such as agriculture, construction, and manufacturing sectors. And there is also evidence that higher levels of entrepreneurial activity correlate positively with poverty reduction.
Actually, an effective and accountable governance framework, in the form of operational institution, is a necessary precondition for sustainable poverty reduction. Global countries are now attracting foreign investments with their own advantages. While some countries emphasize on tax incentives, some others with high-techs and workforces. Some Asian countries continue to reduce corporate income tax rates and introduce various tax incentives to attract and keep global investments.
As poverty reduction schemes cannot be carried out by local business firms only, more foreign investment are required in this matter. There are also some arguments that tax incentives are not necessary for attracting investments as investors will generally consider other factors that improve a country’s investment climate as more important. They need better market potential, access to finance, reliable electricity supply and good infrastructure. For them, these are more crucial than extensive tax incentives.
Major challenges for this group include corruption in some government institutions and lack of cooperation between policy makers and administrators at the national and regional levels.
Unemployment and underemployment are underlying reasons for poverty. For the poor, job is often the only asset they can use to improve their well-being. Therefore, poverty reduction and sustainable economic and social development should be tackled with the creation of productive employment opportunities.
Nepotism or monopoly is a sort of bias that hurdles decent job opportunities to secure income and empowerment for the poor, with serious impacts on women and younger people.

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