Causes of poverty | Economic Development

We investigate the various causes of poverty that affect millions worldwide. From inadequate education and healthcare to economic instability and discrimination, we will uncover the underlying issues that lead to persistent poverty.

1. CAUSES OF POVERTY
Economics
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2. What is poverty?
❑It is the lack of enough income and wealth to
meet basic needs.
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3. What is poverty?
❑It is difficult to have a basic standard of living
and characterised by:
▪starvation and malnutrition;
▪high infant mortality rate;
▪poor health leading to death;
▪homelessness and inadequate housing;
▪lack of or limited access to education;
▪absence of safe environment.
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4. What is poverty?
•It is usually measured by income possessed by
an individual.
•There is poverty if income falls below the
minimum level required to meet basic needs,
i.e. the poverty line.
•Poverty line is US$2.15 per day (World Bank).
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5. People living in extreme poverty
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6. Types of poverty: Absolute
Poverty
❑Extreme type of poverty characterised by the
inability to meet basic needs of food, clothing
and shelter.
❑A person lives below income threshold or
poverty line (US$2.15/day-World Bank, 2022).
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7. Absolute poverty
❑It may also be measured by access to services:
▪Food;
▪Potable drinking water;
▪Shelter;
▪Health;
▪Education;
▪Sanitation facilities;
▪Information.
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8. Types of poverty: Relative Poverty
❑ A comparative measure to show that an
individual has a lower standard of living than an
average person in the society.
❑An individual has access to fewer goods and
services than others in the society.
❑If a person’s income is below the average
income in the country.
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9. Causes of poverty
❑Unemployment;
❑Ill health;
❑Old age;
❑Low average income (GDP per capita);
❑ Inadequate healthcare system;
❑Poor educational system;
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10. Causes of poverty
❑Huge public debt;
❑Overreliance on export of primary products;
❑Corruption;
❑Instability;
❑Overpopulation;
❑Lack of social welfare payments, e.g. old age
pension.
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