Financial Inclusion, and Marxian/Radical Theory of Poverty in the Fourth Industrial Revolution

Considering the Fourth Industrial Revolution developments, this chapter sought to analyze the effects of financial inclusion on poverty from the perspective of the Marxian/Radical theory of poverty. The chapter made clear that Marxian thinkers hold that markets are inherently dysfunctional and do not operate as they should, leading capitalists to keep wages low and keep people in poverty. The markets are fraught with multiple dangers of unemployment, which is the other problem. It was also emphasized that strict market regulation, such as setting minimum wages, may eliminate poverty in a capitalist economy. Many proponents of this school of thought think that stratified labour markets, racism, and corruption are examples of structural issues that contribute to poverty. Government regulation of the labour market is strongly advised because the labour market cannot function correctly. According to Marxian philosophy, government regulation should be focused on enhancing employees’ working conditions and encouraging better pay for them. The policy message of this school of thought is, in essence, to implement anti-discrimination laws and labour market changes. These changes are required to remove structural obstacles that serve as impediments to work and ultimately lead to poverty. The chapter is closed with a discussion of how the Fourth Industrial Revolution and financial inclusion affect poverty.