Travel in Begging
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When travelling, you will without a doubt come across people asking for money. In some cases begging is fairly passive activity and in others it can be more aggressive and intimidating. If you feel threatened, walk away quickly and head for a nearby shop or restaurant. Dressing in a understated manner and treating people with respect may help avoid altercations. Try to keep in mind that beggars are all individuals in difficult circumstances (even those who beg by 'choice').
Child beggars
It is not a good idea to give children money as they are often sent out by their parents or other adults. This should not be encouraged.?In less developed countries, orphans or unwanted children may end up forced into begging by mafia-type gangs, who appropriate their takings and give little in return. If you must, it is better to give food instead, which will at least do them some good.
If you are considering giving a small gift such as candy or pens to children, recognize that this can encourage dependence on foreigners and can lead to more aggressive behaviour -- including physical fights over your well-meaning gift. Consider giving gifts to parents to distribute if you feel that they are appropriate.
Religious beggars
In Hindu and Buddhist countries giving alms to monks or nuns is an accepted part of the culture, a religious observance for the giver. In many religions, especially Islam, giving alms to the poor is also a religious obligation. Note that some non-religious people may have co-opted this approach in order to profit from tourist 'donations'.
Alternatives
Consider donating time and/or money to a local or global poverty reduction program insteaded of giving change to individuals. Poverty is a complex social issue and begging is a symptom of a bigger problem.
Also consider making a donation when you visit a church, mosque or temple. This is a sign of respect for the local religion. In most places, religious organisations (whatever their faults) do good work among the poor.