POVERTY

Poverty is a state or condition in which a person or community lacks the financial resources
and essentials for a minimum standard of living. Poverty means that the income level from
employment is so low that basic human needs can't be met.
According to World Bank, Poverty is pronounced deprivation in well-being, and
comprises many dimensions. It includes low incomes and the inability to acquire the basic
goods and services necessary for survival with dignity. Poverty also encompasses low levels of
health and education, poor access to clean water and sanitation, inadequate physical security,
lack of voice, and insufficient capacity and opportunity to better one's life. In India, 21.9% of
the population lives below the national poverty line in 2011.

Types of Poverty: There are two main classifications of poverty:

Absolute Poverty: A condition where household income is below a necessary level to maintain
basic living standards (food, shelter, housing). This condition makes it possible to compare
between different countries and also over time. It was first introduced in 1990, the “dollar a
day” poverty line measured absolute poverty by the standards of the world's poorest countries.
In October 2015, the World Bank reset it to $1.90 a day.
Relative Poverty: It is defined from the social perspective that is living standard compared to
the economic standards of population living in surroundings. Hence it is a measure of income
inequality. Usually, relative poverty is measured as the percentage of the population with
income less than some fixed proportion of median income.

Causes of Poverty:
Poverty is one of the most complex and enduring issues faced by societies around the world. It
is not only a lack of financial resources but also a condition that encompasses a lack of access
to basic human needs such as education, healthcare, sanitation, and safe living conditions.
Poverty, both in its absolute and relative forms, has multifaceted causes that range from
individual and social factors to historical, economic, and political contexts. The following
sections explore the causes of poverty in a comprehensive manner.
1. Economic Inequality
Economic inequality is one of the primary drivers of poverty. Disparities in wealth distribution,
both within and between nations, mean that some groups of people have access to significant
resources while others live in deprivation. In both developed and developing countries, the rich
often control a disproportionate share of economic resources, while the poor are excluded from
wealth-generating opportunities. Economic inequality can manifest through factors such as
income inequality, wealth distribution, and lack of economic mobility.
In many countries, this inequality is reinforced by systems that favour those who already have
capital or assets. For example, large multinational corporations may dominate local economies,
extracting resources while contributing little to the development of the local workforce. In
many developing countries, foreign investments in industries like mining or agriculture extract

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resources without creating sustainable employment or improving living conditions for the local
population.

2. Unemployment and Underemployment

Unemployment and underemployment are crucial factors that contribute to poverty. Lack of
job opportunities and the inability to find work can force individuals into poverty. While full
employment can be a crucial driver of poverty reduction, the availability of jobs in many
regions is often insufficient. Additionally, even when jobs are available, they may not be of a
high quality. Many individuals face underemployment, meaning they are working fewer hours
than they desire or are employed in low-wage jobs that do not provide enough to meet their
basic needs.
Underemployment can be particularly severe in countries with a large informal economy,
where individuals engage in temporary, unregulated work. This work often comes without job
security, benefits, or opportunities for upward mobility. Furthermore, technological changes,
such as automation, have led to job displacement in some industries, contributing to both
unemployment and underemployment.
3. Education and Lack of Skills
Education plays a critical role in breaking the cycle of poverty. Lack of access to quality
education is both a cause and a consequence of poverty. In many impoverished areas, children
may not have access to schools, or the schools they attend may be underfunded and lacking in
basic resources. As a result, children from poor families often do not receive an education that
equips them with the skills necessary to succeed in the modern job market. This leads to
intergenerational poverty, where children born into poor families are more likely to remain
poor due to limited educational opportunities.
In many developing countries, education is hindered by a variety of factors, including
inadequate infrastructure, lack of trained teachers, and societal barriers such as gender
discrimination. Even in wealthier nations, education systems may perpetuate inequality,
particularly if certain groups (e.g., ethnic minorities or immigrants) have less access to quality
education. Additionally, the skills mismatch is a growing issue in many economies, where rapid
technological change creates a gap between the skills possessed by the workforce and those
demanded by employers.
4. Health Issues and Lack of Access to Healthcare
Health is both a cause and a consequence of poverty. Poor health often leads to poverty because
individuals who are sick or disabled may be unable to work, reducing their income and
economic opportunities. Health problems can also result in high medical costs, which further
drain resources. In low-income countries, high rates of infectious diseases such as malaria,
HIV/AIDS, and tuberculosis, as well as malnutrition, often trap families in a cycle of poverty.
Moreover, lack of access to healthcare exacerbates the problem. Many poor individuals cannot
afford medical treatment, and healthcare systems in impoverished regions are often
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underdeveloped or overwhelmed. The absence of basic health services, such as maternal and
child healthcare, vaccination programs, and sanitation infrastructure, leads to high mortality
rates and prevents many from escaping poverty.
5. Political Instability and Corruption
Political instability, including conflict, war, and poor governance, is a significant driver of
poverty. In countries affected by political instability, resources that could otherwise be used to
improve social infrastructure or create economic opportunities are often diverted to support
conflict or maintain power. War, for example, can lead to the destruction of vital infrastructure,
displacement of communities, and loss of livelihoods.
Corruption also plays a significant role in perpetuating poverty. When public officials embezzle
resources or misuse public funds, the poor are often the ones who suffer the most. In many
cases, corruption diverts money that could be used to improve education, healthcare, or other
public services. The lack of transparency and accountability in government can also hinder the
development of effective policies aimed at poverty reduction.
6. Social Exclusion and Discrimination
Social exclusion and discrimination based on factors such as ethnicity, gender, religion,
disability, and social status can trap individuals in poverty. Discriminatory practices may limit
access to education, employment, and social services for marginalized groups. For example,
women in many parts of the world face gender-based discrimination that limits their
opportunities for economic participation, education, and healthcare. In many developing
countries, women and girls are often excluded from decision-making processes, leading to a
lack of representation in political and economic systems.
Similarly, racial or ethnic discrimination can also contribute to poverty. Minority ethnic groups
may have limited access to opportunities or may be marginalized in employment, healthcare,
and housing. This exclusion can prevent individuals from reaching their potential and
perpetuate the poverty of entire communities.
7. Environmental Factors and Natural Disasters
Environmental factors, including natural disasters, climate change, and resource depletion, also
play a critical role in driving poverty. Poor communities are often the most vulnerable to
environmental shocks, such as floods, droughts, and hurricanes, which can destroy homes,
crops, and infrastructure. In many parts of the world, natural disasters are becoming more
frequent and severe due to the effects of climate change.
Additionally, environmental degradation, such as deforestation, soil erosion, and water
pollution, can limit the availability of natural resources upon which poor communities depend.
In rural areas, where agriculture is often the primary means of livelihood, the destruction of
arable land or the depletion of water resources can lead to food insecurity and increased
poverty.
8. Globalization and Trade Policies

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Globalization has had both positive and negative effects on poverty. On the one hand, it has
opened up opportunities for economic growth and access to markets for developing countries.
On the other hand, it has often led to increased inequality, exploitation of labor, and
environmental degradation. Global trade policies, such as those that favor large multinational
corporations or restrict market access for poorer countries, can exacerbate poverty in
developing regions.
For example, in many developing countries, farmers are unable to compete with subsidized
agricultural products from wealthier nations, resulting in the collapse of local agricultural
industries and increasing poverty. Trade policies that focus on free-market principles without
regard for the social or environmental costs often hurt the most vulnerable populations, leaving
them further marginalized and impoverished.
9. Historical and Colonial Legacies
The historical legacies of colonialism have left lasting impacts on poverty, particularly in
Africa, Asia, and Latin America. Colonizers often extracted resources from their colonies,
leaving these nations economically dependent and underdeveloped. The arbitrary borders
drawn during colonial rule frequently resulted in the fragmentation of indigenous groups,
causing political instability and conflict that continue to affect poverty levels in these regions.
Post-colonial governments have struggled to overcome these challenges, and many of the
issues related to poverty in these regions can be traced back to the exploitation and
mismanagement of resources during colonial times. The lack of infrastructure, weak
institutions, and social divisions created during this period have perpetuated poverty in many
former colonies.
10. Family Dynamics and Intergenerational Poverty
Family structure and dynamics also play a significant role in the perpetuation of poverty.
Single-parent households, especially those led by women, are more likely to experience
poverty due to limited income and support. Families trapped in poverty often face challenges
such as inadequate housing, poor nutrition, and limited access to education, which can affect
the opportunities and outcomes for future generations. Intergenerational poverty, where
children born into poor families are more likely to remain poor as adults, is a significant
challenge.
Conclusion
The causes of poverty are complex and interconnected, ranging from economic and political
factors to social, environmental, and historical influences. Addressing poverty requires a multi-
dimensional approach that considers the specific needs of different regions and populations. It
involves addressing economic inequality, improving access to education and healthcare,
fostering political stability and good governance, reducing discrimination, and creating
sustainable economic opportunities for all. Tackling poverty is not only a matter of increasing

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income but also ensuring that all individuals have the necessary resources and opportunities to
lead healthy, fulfilling lives.