ABSTRACT
Understanding the social dynamics of poverty requires the identification of the systemic forces that feed and condition the production and reproduction of poverty. In this regard, the chapter articulates a theoretical model that shows how states and markets condition poverty production and indicates where there is potential to change poverty dynamics. It argues that historical forms of the state can be seen as part of the problem, but also as part of the solution to poverty. States are defined as structures with the capacity to deal with social problems emerging from either local or global levels by creating the right incentives via policies, laws, and regulations. Progressive taxes, elimination of capital flight, pro-poor regulations (including the neutralisation of regulation capture) and laws, social policies providing social protection for all, budget laws (at both national and subnational levels) allocating sufficient resources to produce pro-poor growth and distribution consistent with Sustainable Development Goal (SDG) 1 (end poverty) are examples of components of a consistent strategy and plan to achieve the goals of the 2030 Agenda for sustainable development.
