Poverty, together with economic and human security factors, plays an important role in development agendas.

There is a widespread assumption that poverty is a source of violence, despite there being no direct causal relationship between the two. Although today most violent conflicts take place in poor countries, they do not necessarily occur in the poorest of them, nor are all poor countries involved in conflict. Research has shown that poverty and particularly extreme inequalities between rich and poor become sources of conflict where they are linked to the real or perceived oppression of certain groups (eg social, religious, ethnic).

The state can be an instrument of discrimination and private enrichment in the hands of a powerful elite and its followers, or it can mediate between different interest groups through inclusive political processes and the redistribution of resources. External factors such as world market prices, indebtedness and aid conditionality affect the state’s ability to fulfil this role as much as internal political dynamics. Civil society can complement, but should not by-pass and weaken the state in its function as mediator.

Addressing unequal and discriminatory root causes of poverty both horizontally (across social, religious and ethnic groups) and vertically (grassroots, civil society and government) is vital to ensuring both development goals and conflict sensitivity.