3 steps to eradicate poverty

Wealth distribution can play an important part in eradicating poverty and an equity-based wealth distribution model is a solution.

It is always a challenge for nations to eradicate poverty. However, by studying the past and modern wealth distribution system we can conclude that poverty eradication is possible by way of dividing the nation resources into three equal parts and use them rationally to uplift the nation.

Knowledge and Guidance are like torrential rain on the earth.

One good portion of the earth absorbs it and dry grass therein changes into green one and new grass and plantation sprouts.

Another piece of land retains and collects the water, which can be used by masses for their needs.

And lastly, this rainwater, in excess, reaches such a hard tract of land which neither absorbs nor retains this rainwater.

Relationship of rainfall with wealth distribution

At the ground stage, the minimum requirements of every member of the society, present, or future are meant to be fulfilled. Meaning to nourish the dry land to turn into green so that they can start contributing towards society. Therefore every human being's basic fundamentals need to be fulfilled.

The land which collects the water represents the availability of resources, which every individual in the society should have liberty and equal opportunity to benefit from it, according to his/her effort, skills, and capacity.

And lastly, the land which does not absorb the water represents those resources which are in excess of one's needs and should be diverted to underprivileged and less resourceful people of the society. This means that there shall be a real transfer of financial and other resources from the rich to the poor.

Isn't inspiring that understanding the water distribution by rainfall can help us to formulate a wealth distribution strategy to eradicate poverty.

Distribute wealth into three parts to eradicate poverty

A healthy, wise, and knowledgable society always leads the world. To become economically sustainable, society must possess these qualities, at all times.

Based on my years of research, I discovered that equity is based on three things, which is similar to rainfall on earth and its distribution.

Therefore the human development in a society is based upon three parts of the Nation's resources:

  1. The first part-33% of the nation's resources to be spent on the public especially the poorest and underprivileged masses to uplift them, resulting in healthy and educated masses. This part also includes spending resources on housing, infrastructure, paying local and foreign debts, etc. (Management)
  2. Second part- 33% of the nation's resources to be spent on the people who generate the income in order to sustain their capacity to generate revenues. (Labour), It means that the Government spends such resources to bear the expenses of its state institutions and day to day activities.
  3. Third part 33%-Collected by the Government to further invest in existing and new state-owned companies to create wealth. (Capital). This also includes creating an environment for private investors and businesses to invest in the country to create new wealth and increase productivity.

Therefore, it is the responsibility of the government to collect the taxes and enough revenues from its state institutions & other resources to finance the above three parts.

Each part has its own significance, the government should build an infrastructure to collect taxes and can be spent on parts one and two as mentioned above. For the third part, the government shall re-invest the profits earned from various state-owned companies which will create new wealth for the nation.

If the government fails to collect enough taxes and earn profits then gradually, it will stumble and will not able to run the economy, forcing the government to take further loans and reduce its spending resulting in the contraction of the economy.

The essence of this model is to create wealth for the nation, managed by the government, to not only sustain but increase the productivity within the Nation, hence, increasing the gross domestic product and eradicate poverty.

It is also noticeable that those countries which have savings to GDP ratio and Tax to GDP ratio are approximately 33% or above are more likely to a developed country with happy and contented masses.

  1. Tax to GDP ratio
  2. Savings to GDP ratio
Human Development Index
Human Development Index

Nature is the best example to learn from

Based on the above-mentioned rainfall example, I found that we have already developed a tool to measure the performance of the nation's development.

United Nations Development Program "UNDP" uses a statistical tool, Human Development index "HDI" which was developed by Pakistani economist Mahbub ul Haq in 1990.

HDI is based upon three dimensions

  1. Long and healthy life
  2. Knowledge
  3. Standard of living

Investing adequate resources on underprivileged masses may help the country to eradicate poverty and increases the life expectancy of the masses. Such investment leads to the generation of labour who will later contribute towards society.

The government uses tax money to invest in projects to raise the standard of living. This includes electricity, sanitation, availability of drinking water, housing, power & energy, and infrastructure.

Our legacy teaches 3 ways to distribute wealth

Sun Temple (Aditiya)-Revenues collected by way of donations made by the believers visiting the temple was spent on:

  1. 1/3rd to City and Temple Guardians
  2. 1/3rd to Maintenance of the temple
  3. 1/3rd to Paid to the government in the form of taxes

Shiva represents as Labour (Symbol of Strength), Brahman represents knowledge (Management), Vishnu represents Sustainable production of wealth and capital.

Christan trinity: Father represents management, mother represents capital/field and Son represents worker/labourer

Islam: Qurban, Sacrifice of a halal animal and the distribution of its meat into three parts equally, Poor (33%), Friends/relatives (33%) and family (33%).

Conclusion

The benefits are clear, equal distribution of resources increases liquidity and productivity and eradicate poverty.

This universe and everything within it is working and functioning on the principles of equity. The opposite of equity is injustice. We have to learn from what our Creator and nature has taught us. Our policies should be based on departing equity in each and every walk of life.

This article is based on the studies made by Mr. Mohammed Saeed Alrai who is the retired government officer from FIA-Pakistan.

Photo by Chris Barbalis on Unsplash

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