First of all, change the people who are in charge. The neoliberal ideologues who rule the USA and Europe think the solution to every ill is cutting the social safety net in the name of economic growth. Europe may have more personal freedom than the USA, but the prevailing fiscal and monetary policies seriously resemble the American Republikan Party more than they do in the USA! That this policy has been stunting economic growth for most of a decade now falls on deaf ears. First they put a lot on credit cards, and then they decided on austerity for everyone else, not themselves.
Second, development patterns need to be radically reconsidered. If you’re going to have poor people, it’s better they be in cities where they are more likely to have 1–3 children than 5–10. People across the world are of course moving to cities now, but the downside is these cities tend to be developing around the automobile rather than as sustainable metro areas – with suburbs (like this in China) for the middle class and slums for the poor. That needs to be fixed, and said cities also need abundant educational and economic opportunities.
Properly developed cities also encourage cultural and economic interaction between different groups, which at least reduces bigotry.