Concept of poverty eradication is not new in Fiji. Fiji was a signatory to the Millennium Development Goals （MDGs） and now the Sustainable Development Goals （SDGs）. It has also been a party to the Monterrey Consensus, and the World Summit on Sustainable Development, both of which promote the eradication of poverty.In fact, the concept of poverty eradication has occupied center stage in development issues in Fiji since independence.How do we measure poverty?Income poverty: Basic needs poverty line （BNPL）• Food poverty• Multidimensional povertyAlthough Fiji has experienced a steady rise in the Human Development Index （HDI）, poverty has increased at the same time. I call this the “poverty paradox.” Rate of poverty at independence in 1970 was 7 %. Now it stands around 28.1%. It was estimated to be 35% in 2003, 31% in 2009 and 28% in 2014.Between 2003 and 2009, rural poverty decreased from 43% to 37% while urban poverty has increased from 18% to 20%.There are four divisions in Fiji; Western, Northern, Central and Easter. There has been a decline in poverty in Western Division by 12%. However, poverty in other 3 divisions has gone up.Nature and characteristics of poverty （2008/2009 survey）:• Shares of household income:○ 44% came from permanent wages.○ 10% from casual wages.○ 5% came through subsistence.○ 4% from remittances from abroad.• Distribution of household income by quantiles:○ Top 20% of the households received 59% of all income from permanent wages. Bottom 20% - 2%.○ Top 20% of the households received 67% of all remittances from abroad. Bottom 20% - 4%.• What are the main sources of incomes for the bottom 20% of households?○ Casual wages （9%）○ Agricultural business （17%）○ Subsistence （20%）○ Local remittances （8%）• Incidence of poverty by industry （% of poor in LaborForce）:○ Agriculture （60%）○ Manufacturing （12%）○ Hotel and Retail （14%）• Gender incidence of poverty by laborforce status:○ Family workers: Females = 37% Males = 28%○ Self-employed: Females = 22% Males = 30%○ Wages: Females = 20% Males = 23%• Incidence of poverty by level of education （% in Labor Force）:○ No schooling = 67%○ Primary schooling = 56%○ Secondary schooling = 39%○ Degree = 5%It is beyond doubt that poverty is a cost Fiji cannot afford.Cost involves extra spending on benefits and services to deal with the consequences of poverty, lost tax revenue and lost earnings to individuals. Moreover, there are social implications of poverty: it also affects personal lives and relationships.Successfully and sustainably reduce poverty requires a clear understanding of what poverty is, who has a part to play in addressing it, and solutions based on evidence.Conventional approaches to poverty reduction have relied heavily on the tax and benefit system and the role of the state. Both will always have an important part to play, but they cannot succeed alone. There is no one single response that will succeed on its own.Strategy must also recognize the following:• Where do people live?• Are individuals able to fulfill their potential? Why not?• What are the choices they make and incentives available? Are there perverse incentives?• What is the nature of jobs at the bottom end of the labor market?• What is the cost of essential goods and services?• Is the tax and benefit system working well?• How is the functioning of public services?Emerging evidence suggest these are more powerful than the traditional tax and benefit system.New evidence shows people are in poverty in working households. It is not just the result of low wages – low work intensity （such as part time or irregular work） contributes too – but low pay is a significant factor.Further, wealth does matter: it does matter whether you grew up in a family that has assets: the children of such families are likely to do better in health, education and economic opportunities and wellbeing.