Dear Aleta, interesting question. I assume you mean economic poverty? I think in some of the economically 'developed' country we are poor in other things, but that's a whole other discussion.
When we talk about AIDS Competence, we don't think it should be an 'AIDS-free community' with no cases of HIV or AIDS. Instead, we see that the community can effectively deal with the challenge of HIV that it faces. It discusses the issue together, it includes those infected, there is a high level of care within the community and everybody can live out its full potential. It doesn't mean there is no HIV present.
I think the same counts for Community Life Competence. Somehow the community is competent to deal with its challenges and have people live out their full potential. I don't think we can 'end' poverty (although Jeffrey Sachs might not agree with this given the title of his earlier book....). However, we can stimulate communities in such a way that they themselves can deal with everyday challenges they face in a sustainable way. Whatever these issues may entail. They are competent and the members can live out their full potential.