The chapter delves into the themes of poverty, welfare and development, proposing a major shift in how poverty alleviation is understood and applied. Rather than viewing poverty solely as a lack of resources, it is redefined as a condition shaped by both capability deprivation and societal exclusion. The focus is placed on expanding individual agency and designing comprehensive welfare strategies aimed at long-term human development. By adopting competence-based and initiative-driven approaches, such strategies can empower individuals with a stronger sense of autonomy, motivation and self-worth. The link between welfare policies and human development goals is highlighted as a vital area for further exploration and reform, with the potential to bring transformative change to those living in poverty.