Poverty is a major problem in the world today. While statistics of poverty in the world have been reducing, incidences of extreme poverty in third world countries especially in South Asia and Sub-Saharan Africa have been on the rise. Over a long period of time, global strategy to fight poverty in third world countries have been changing but no strategy has been found effective.
This paper outlines that poverty in global south is contributed by internal and external factors. To tackle poverty in third world, there is need to combine traditional strategies of aid, debt relief, and fair trade with new concept of embracing democracy, free market and free economic policies, adoption of capitalism, and enhancing free and fair trade.