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TEXT G
First read the question.
33. The three approaches mentioned in the passage aim at ____.
A. restructuring economy
B. improving the tax system
C. improving the living conditions
D. reducing poverty
Now go through TEXT G quickly to answer question 33.
As a rule, it is essential that the poor's productive capabilities be mobilized and the conditions for developing these human resources be improved. In this connection, German development policy has developed the following three approaches:
Structural reform: Structural reform is the preferred approach for reducing poverty because it eliminates the causes of poverty rather than just its symptoms. It is vital that economic, political and social conditions which can alleviate poverty be established at national and international levels. Efforts at international level focus on fair conditions for international trade and competition.
At national level, the poor must be helped through structural reform such as the introduction of democratic government, options for independent private enterprise, decentralization and agricultural reform. Development policy tools for realizing such reforms include political dialogue, political advisory services, structural adjustment measures and personnel and material support for reform efforts in the government, business and administrative sectors.
Direct measures: Projects of this category are aimed at directly helping the poor and improving their living conditions or increasing their job options and earning potential. Of special importance are those projects which provide help for self-help in reducing poverty. The material support and advisory services offered by these projects reinforce the poor's will to help themselves and help eable them to lead self-sufficient lives. Typical direct aid projects include the construction of simple housing by self-help groups, the creation of a savings and loan system for the poorer segments of society and support for women's self-help organizations.
Indirect measures: A project's beneficiaries - its target group - are not only often difficult to identify clearly, they are also not necessarily all poor people. In these cases, the project in question must be integrated into one of the partner nation's overall or sector?specific policies that aim at reducing poverty. A good illustration of this type of project is the use of advisory services to improve the tax system. Advising and upgrading the qualifications of personnel working in the fiscal system can lead to increased tax revenues which could be allocated for anti-poverty measures. In keeping with this focus, German development assistance concentrates on the poorest nations and on projects to reduce poverty. In 1993, some 10 percent of the commitments Germany made for bilateral financial and technical assistance went to self-help projects aimed at reducing poverty. Basic needs projects comprised 48 percent of all projects and almost 30 percent of the commitments made for financial and technical assistance were allocated for the world's least developed countries (LDCs).
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