Fighting Inequality to Beat Poverty in Developing Countries

Poverty and inequality are certainly among the main concerns in developing countries. This study examines the empirical relationship between economic inequality and poverty through the channels of taxes. The main purpose of this study is to understand how fighting inequality can be used to tackle poverty may be influenced or constrained by high levels of inequality. The 2030 Agenda for Sustainable Development seeks to eradicate poverty, increase access to basic services, protect and preserve the environment, foster economic growth, and development, and ensure peace and stability in all countries through comprehensive and integrated actions. The objectives addressed are the determination of inequalities and poverty levels in developing countries. Reducing inequalities is an important goal in its own right. But it has other benefits. It can also be a catalyst for economic growth, poverty reduction and ensuring no-one is left behind. The findings are backed by statistical data from surveys, research, and reports. With reference to the analytical insights studied, the paper arrives at conclusive findings point to significant gaps in that developing countries there has been tremendous progress in the measurement of inequality and poverty in the developing countries, although serious problems of consistency and comparability still remain. A successful strategy of poverty reduction must have at its core measures to promote rapid and sustained economic growth. The challenge for policy is to combine growth promoting policies with policies that allow the poor to participate fully in the opportunities unleashed and so contribute to that growth. This includes policies to make labor markets work better, remove gender inequalities and increase financial inclusion.