What Is the Relation Between Economic Growth and Poverty Reduction?

The question “What is the relation between economic growth and poverty reduction?” is certainly vital in ending global poverty. Everyone agrees growth is necessary to end poverty; the real debate comes from how much poverty is reduced by improving the well-being of the impoverished versus how much it is reduced by broad-based economic growth. From data and correlations, it seems economic growth is the most important source of poverty reduction.[1] GFA World has efforts in both areas, with programs addressing overall well-being in cooperation with improving economics.

Because economic growth has such a close relationship with reducing poverty, GFA has been distributing income-generating gifts and offering vocational training, which help to lift people above the poverty line. Things like farm animals and sewing machines make a world of difference for someone with nothing.

Subia was a young mother in Asia. She and her husband worked as day laborers—like millions of others in Asia and Africa—but they would often go days without finding any work. Subia worried about how they would manage to feed and clothe their young daughter since no work meant no food. Subia tearfully shared her struggles and fears with a local GFA pastor. The pastor encouraged her and told her that God has a solution to every problem she would face. When the church participated in a GFA gift distribution, Subia received a sewing machine. Costing $100, it had previously been an unaffordable dream. This was a real, practical answer to her prayers. Subia could now earn a real and consistent income by sewing and mending clothes for those around her, and she could be at home with her daughter while doing it.[2]

Subia’s family is just one example of the thousands of families who receive life-changing, income-generating gifts through GFA. GFA missionaries also teach tailoring classes in communities so people like Subia will have the skills to be successful with their new sewing machines.

GFA founder K.P. Yohannan (Metropolitan Yohan) said, “The need is great, but so is the opportunity to rescue one family at a time from poverty through showing them the love of God and giving them the gift of a sewing machine.”[3]

Consider joining us in this, one of our 5 ways to reduce poverty around the world. Help provide sewing machines that can lift families out of the poverty cycle one stitch at a time. People who once had no hope can earn enough to send their children to school and to feed their families, but they can’t afford the machine on their own.[4]

Learn 5 ways to reduce poverty

[1] Pritchett, Lant. “Poverty reduction and economic growth.” Econofact. February 2, 2020. https://econofact.org/poverty-reduction-and-economic-growth.
[2] “GFA World Helps Families ‘Sew Their Way Out of Poverty.’” Patheos. May 24, 2023. https://www.patheos.com/blogs/gospelforasia/2023/05/gfa-world-helps-families-escape-sew-their-way-out-of-poverty/.
[3] Ibid.
[4] Sewing Machine.” GFA World. Accessed June 30, 2023. https://www.gfa.org/donation/items/sewing-machine/.