The causes of poverty and of environmental degradation are inter-related. To approach sustainable development it requires understanding the issues from many angles. Various key issues related to sustainable development are poverty, water quality and availability, cleaner energy, health, good governance, technology, production and consumption, oceans and fisheries, tourism etc. Undoubtedly growth is necessary for reducing poverty. But growth at any cost is not something that entails sustainability. Growth is responsible only if it has environmental sustainability and has aspects of social development. For sustainable development while working on the poverty alleviation programmes we should ensure that the use of resources and the environment today should not damage prospects for use by future generations, rather should work towards the conservation and enhancement of the resource base for future generation to eliminate poverty permanently.

Sustainable development should include development of human capital, social capital, financial capital, physical capital and essentially natural capital. Policy-makers are increasingly using Cluster Development Approach to promote artisanal and industrial clusters to address poverty and livelihood issues. Direct linkages have been proved between the three viz. Poverty reduction, Sustainable development and Cluster Development Approach. Development of clusters can provide employment to poor families engaged in labour intensive work, can increase wage level ultimately reducing poverty. Cluster development programmes should include poverty alleviation sustainable development and should try to meet global standards relating to environmental, labour and social concerns.