Impact of Napep on Poverty in Nigeria

CHAPTER 2.

LITERATURE REVIEW.

2.0 INTRODUCTION.

Theoretically, at the heart of economic development is poverty reduction. Better still theories of economic development have changed focus and have thus been redefined in terms of reduction/elimination of poverty, inequality and unemployment in a growing economy (Todaro, 2003).

The menace of Poverty is so overwhelming, that attacking it has become the challenge of both developed and developing countries with the inclusion of international bodies. For instance, the United Nations has come up with the ‘Millennium Development Goal’ (MDG) which is basically to halve extreme poverty by the year 2015 (UN, 2005).

Countries who have failed to attack poverty squarely have found their economies in a lurch as it has affected successful thriving of businesses, which could have helped contribute to a reduction in unemployment and thus a reduction in inequality in income distribution and finally a reduction in poverty incidence.

This chapter will therefore focus on a review of theories as well as a literature review on the concept, nature and causes of poverty, and approaches to poverty alleviation.

2.1 REVIEW OF THEORIES.

Main economic development theories will be reviewed here since the topic area stems mainly from this field; as well as business/economic theories.

2.1.1 ECONOMIC DEVELOPMENT AND THEORIES.

Development economics emerged after the 2nd world war as a result of the concern for low standard of living existing in certain countries.

Economic development is simply the development of economic wealth of nations for the well-being of their inhabitants, manifesting in the form of increased standards of living, per capita income and better education (Wikipedia, 2005).

In Todaro’s (2003) language, economic development is currently defined in terms of reduction or elimination of poverty, inequality and unemployment in a growing economy.

In the same vein, Todaro (2003) and Wikepedia, (2005) quote...