What kinds of policies are required to reduce the magnitude and extent of absolute poverty in a country?

 The following kinds of policies are required to reduce the magnitude and extent of absolute poverty in a country:-

1. A policy or set of policies designed to correct factor price distortions (underpricing capital or overpricing modern-sector skilled wages) to ensure that market or institutionally established prices provide accurate signals and incentives to both producers and resource suppliers. Correcting distorted prices should contribute to greater productive efficiency, more employment, and less poverty. The promotion of indigenous technological research and the development of efficient, labor-intensive methods of production may also be valuable.
2. A policy or set of policies designed to bring about far-reaching structural changes in the distribution of assets, power, and access to education and associated income-earning (employment) opportunities. Such policies go beyond the realm of markets and touch on the whole social, institutional, cultural, and political fabric of the developing world. But such fundamental structural changes and substantive asset redistributions, whether immediately achieved (e.g ., through public-sector interventions) or gradually introduced over time (through redistribution from growth), will increase the chances of improving the living conditions of the masses of rural and urban poor significantly.
3. A policy or set of policies designed to modify the size distribution of income at the upper levels through the enforcement of legislated progressive taxation on gains and wealth; and at the same time, providing the poor with direct transfer payments and the expanded provision of publicly provided consumption goods and services, including workfare programs. The net effect is to create a social "safety net" for people who may be bypassed by the development process.
4. A set of targeted policies to directly improve the well-being of the poor and their communities, which goes beyond safety net schemes, to offer programs that build capabilities and human and social capital of the poor, such as microfinance, health, education, agricultural development, environmental sustainability, and community development and empowerment programs, as described throughout this text. These can be carried out either by the government or by nongovernmental organizations through local and international support.