The Causes Of Poverty
Economics notes
The Causes Of Poverty
➡️ Structural factors: These include unequal access to resources, lack of economic opportunities, and inadequate infrastructure. These factors can lead to a lack of access to basic needs such as food, water, and healthcare, which can lead to poverty.
➡️ Social factors: These include discrimination, lack of education, and lack of access to social services. These can lead to a lack of job opportunities, which can lead to poverty.
➡️ Economic factors: These include low wages, high unemployment, and inflation. These can lead to a lack of purchasing power, which can lead to poverty.
What are the main causes of poverty in developing countries?
The main causes of poverty in developing countries include lack of access to education, healthcare, and basic infrastructure, such as clean water and sanitation. Additionally, political instability, corruption, and economic policies that favor the wealthy can exacerbate poverty.
How does income inequality contribute to poverty?
Income inequality can contribute to poverty by limiting access to resources and opportunities for those at the bottom of the income distribution. When a small percentage of the population holds a disproportionate amount of wealth, it can lead to a lack of investment in public goods and services, such as education and healthcare, which are essential for reducing poverty.
What role do global economic policies play in perpetuating poverty?
Global economic policies, such as trade agreements and debt relief programs, can have a significant impact on poverty in developing countries. Policies that prioritize the interests of wealthy nations and multinational corporations can lead to exploitation of resources and labor in poorer countries, exacerbating poverty. Additionally, conditions attached to loans and aid can limit the ability of developing countries to invest in their own economies and reduce poverty.