New Zealand Aid Tools Sectors, Themes and Issues 

Poverty Analysis Guideline

NZAID Commitment and Rationale

Poverty elimination is the central focus of NZAID’s work. NZAID’s policy statement Towards a Safe and Just World Free of Poverty (LINK) identifies four strategic outcomes for the Agency:

  • Fulfillment of basic needs;
  • Sustainable livelihoods;
  • Sustainable and equitable development; and
  • Building of safe, just and inclusive societies.

These strategic outcomes are mutually reinforcing and all contribute to NZAID’s core focus on poverty elimination.

Key concepts

Concepts of poverty matter because the way we view poverty affects our strategies for reducing poverty. If poverty is viewed as a matter of only raising incomes, then strategies focus solely on economic growth. But as soon as the processes that conspire to keep the poor in poverty are considered, the definition of poverty becomes broader. As well as poor income, poor health, education and access to basic services, such as clean water and sanitation, are seen as important elements in a multidimensional view of poverty.

NZAID defines three different types of poverty: 

Extreme poverty

an inability to meet basic needs

Poverty of opportunity

where opportunities to participate in economic, social, civil and political life are seriously limited

Vulnerability to poverty

where individuals, communities and countries are particularly vulnerable to circumstances likely to damage their:

  • livelihoods
  • ability to meet basic needs
  • ability to participate in economic, social, civil and political life.