How to Make a Dent in Global Poverty

In my opinion, poverty is structural inefficiencies and an approach to poverty alleviation that all too often advocates a sort of trickle-down economic approach. In states where authority figures rely on a series of kickbacks to supplement their salaries, it is impractical to trust governments with outside capital. Instead, loans must be given with strings attached and private investment must be made directly into private enterprises within the impoverished states.
Loans from the IMF and World Bank must focus on building the infrastructure of the third world nation, because it is a lack of basic necessities which stifle business and urban development. Roads, electricity, railroads; these are a few of public goods that enable development from an economy that is predominately raw materials based to a manufacturing economy that can be exported for greater profit. In order for the factories to ship their goods, they need a means of transportation to ports and a steady supply of power to ensure continuous production of goods to encourage investment. If states wish for continued loans from international organizations, they must follow guidelines (to a certain extent) set by these organizations. This enables a state to invest in its future while guarding against corruption in a way that public goods in time gradually become available to the populace.
Additionally, direct outside investment in entrepreneurs is the quickest way to alleviating poverty. Microcredit loans through private means (I’ve already discussed www.kiva.org in previous posts) have extremely low default rates, and are increasingly being seen as sound investments. These small loans enable average citizens to directly help business abroad and make a small profit. Third world business owners in turn can begin or expand their businesses through startup capital that would otherwise be unavailable to them. Investment must be made in these individuals without political connections, as these people have few other means to liquid capital. Land is another resource that is vital to agrarian communities. Organizations such as Rural Development Institute (RDI) provide land to people in agricultural areas in India, and through private outside investment, I see the alleviation of poverty by circumventing the structural inefficiencies of third world states.