Economic growth is typically recognized as the effective tool in eradicating of poverty. Unfortunately, many countries enjoy their national prosperity with no improvement in citizen's living standard. The purpose of this study is to investigate the new tool aimed at reducing poverty through log‐linear model and to estimate the impact of exogenous macroeconomic shock occurred in every sector on poverty through SAM multiplier. The result reveals that poverty is not sensitive to economic growth changes while it is definitely elastic to economic development. Growth is no longer an effective tool. Additionally, Latin America needs to export  the commodities from meat, heavy manufacturing, and textile sector to help getting people out of poverty.

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