Poverty is deprivation, a denial of access to those things which a person believes necessary for his life to be worth living: not only food, clothing, shelter and safe drinking water, but also education. Poverty is the lack of an opportunity to live with dignity.
Poverty is not just restricted to developing nations but also includes developed nations where a host of social problems still exist, for ex. Homelessness and living in slums.
Causes of Poverty
Environmental factors
Intensive farming leading to loss of soil fertility
Deforestation
Natural factors – climate / environment that challenges human life.
Accessibility to natural resources- fertile land, fresh water, minerals, energy etc.
Natural features limiting communication and travel ex. : mountains, deserts, rivers or coastlines.
Economic factors
Unemployment
Capital transfer of rich individuals to off-shore tax havens.
Lack of clear cut right to property
Opposite to point(3) is held by communists i.e. property rights itself leads to poverty because of unfair terms of trade.
Health Care
Poor health makes people less resilient to economic hardships
Inadequate nutrition leads to physical and mental impairment
Disease, also called diseases poverty eg. Aids, malaria, tuberculosis are a big factor. Resources are directed away from development. i.e. for treatment and health care.
Psychology depression undermines people’s desire to work
Alcoholism and drug abuse when not treated
Governance
Lack of democracy in poor countries
Weak rule of law discourages investment
Poor management of resources revenues
Failure to provide essential infrastructure needed for economic growth.
Poor access to education
High level of corruption
Demographics and social
Over population and lack of access to birth control methods
Crime – both white and blue collar
Brain drain
Middle class benefiting from welfare schemes and not the targeted poor.
War – civil . war
Discrimination - gender, racial and caste
Individuals beliefs, actions and choices
Effects of poverty
Poverty leading to poverty- poverty cycle. Effects of poverty themselves as causes poverty. Poverty remaining
Consider
270 million people have died due to poverty since 1990
11 million a year die before their 5th birthday
800 million go hungry every night
Homelessness and drug abuse
Social isolation and suicide.
218 million forced into child labour
Criminal activity
Low tax revenues
Vulnerable to natural disasters.
Poor people vulnerable to extremist ideologies – political violence
Emigration of skilled professions.
Aid
Directed aid
By government and private charity
Development aid
Developed nations helping the poor nations by giving development aid.
