Causes of Poverty, Meaning, Types

Causes of Poverty: Poverty persists due to a complex interplay of economic, social, and political factors. Economically, it stems from low wages, unemployment, and limited access to resources like land and technology. Socially, discrimination based on gender, ethnicity, or caste hinders opportunities for marginalised groups. Politically, governance failures and ineffective policies exacerbate inequalities. Global economic shifts, environmental degradation, and natural disasters further impact vulnerable populations. Addressing the Causes of Poverty requires comprehensive strategies focusing on economic growth, social inclusion, effective governance, and sustainable development. Providing access to education, healthcare, and employment opportunities is crucial for breaking the cycle of poverty and fostering resilient communities.

What is Poverty?

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Main Causes of Poverty

• Lack of Education : Limited access to quality education can perpetuate poverty by restricting opportunities for economic advancement and higher-paying jobs.
• Unemployment and Underemployment : Inadequate job is the main causes of poverty opportunities, low wages, and high levels of unemployment or underemployment can lead to financial insecurity and poverty.
• Health Issues : Poor health, lack of access to healthcare, and high medical expenses can drain resources and push individuals and families into poverty.
• Economic Instability : Economic factors such as recessions, inflation, and economic policies favouring the wealthy can exacerbate poverty by limiting economic growth and opportunities for the poor.
• Social Factors : Discrimination, social exclusion, and lack of social mobility can create barriers to economic success and perpetuate cycles of poverty.
• Environmental Factors : Natural disasters, environmental degradation, and climate change can devastate livelihoods, particularly in vulnerable communities reliant on agriculture or natural resources.
• Political and Governance Issues : Corruption, weak governance, and lack of infrastructure development can hinder economic growth and perpetuate poverty by limiting public services and opportunities for development.
• Family and Demographic Factors : Large family sizes, early marriage, and lack of access to family planning can strain resources and limit opportunities for economic advancement.

Types of Poverty

1. Absolute Poverty : This type of poverty refers to a condition where individuals or households lack the necessities, such as food, shelter, and clothing. Income levels often measure it below a certain threshold, such as earning less than $1.90 per day (the international poverty line).
2. Relative Poverty : Relative poverty is defined as the economic status of others in society. Individuals or households experiencing relative poverty have significantly lower incomes or resources than their society's average or median income. This type of poverty concerns social inequality and the gap between the rich and poor.
3. Urban Poverty : Urban poverty occurs in cities and towns where people face economic hardship and lack access to basic services such as clean water, sanitation, healthcare, and education. High living costs, unemployment, and informal employment contribute to urban poverty.
4. Rural Poverty : Rural poverty affects people in rural areas and is often associated with limited access to productive resources like land, lack of infrastructure, poor agricultural productivity, and isolation from markets and services.
5. Chronic Poverty : Chronic poverty is a persistent and long-term condition in which individuals or households remain poor over extended periods, often across generations. It is characterised by entrenched social and economic barriers that prevent people from escaping poverty traps.
6. Seasonal Poverty : Seasonal poverty occurs when income and living conditions fluctuate throughout the year due to seasonal variations in economic activities, such as agriculture. People may experience periods of deprivation during lean seasons when income-generating opportunities are limited.
7. Structural Poverty : Structural poverty is rooted in systemic factors such as unequal distribution of resources, social exclusion, discrimination, and lack of access to opportunities. It reflects broader societal inequalities and requires structural changes in policies and institutions.

Burning issues hunger and poverty in India

Causes of Poverty in India

• Population Explosion: India has witnessed a steady rise in its population over the past 45 years, growing at an annual rate of 2.2%, resulting in an average addition of approximately 17 million people annually. This demographic trend significantly amplifies the demand for consumer goods.
• Low Agricultural Productivity: A major cause of poverty in India is low agricultural productivity, attributed to fragmented and subdivided land holdings, lack of capital, limited awareness about modern farming technologies, reliance on traditional cultivation methods, and losses during storage.
• Inefficient Resource Utilization: Underemployment and disguised unemployment in the agriculture sector diminish agricultural output and lower living standards.
• Low Rate of Economic Development: India experienced slow economic development in the first 40 years after independence, improving with economic reforms introduced in 1991.
• Price Rise: Persistent inflation burdens the poor, hindering their ability to meet basic needs despite benefiting some segments of the population.
• Unemployment: High unemployment rates, exacerbated by a growing population, outpace job creation opportunities.
• Lack of Capital and Entrepreneurship: Limited access to capital and entrepreneurship hampers investment and job creation in the economy.
• Social Factors: Inheritance laws, the caste system, and cultural traditions pose barriers to poverty alleviation efforts in India.
• Colonial Exploitation: British colonial rule de-industrialized India by disrupting traditional industries and transforming it into a raw material supplier for European industries.
• Climatic Factors: Natural disasters disproportionately affect impoverished states like Bihar, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, and Jharkhand, causing severe damage to agriculture and livelihoods.

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