7.3 Global poverty and its causes
3 min read•august 16, 2024
Global poverty affects billions worldwide, impacting access to basic needs and opportunities. It's a complex issue with roots in historical, political, and economic factors, including , , and .
Addressing poverty requires multifaceted strategies. These include financial measures like , , and . The provide a framework for tackling poverty's many dimensions globally.
Poverty: Definition and Dimensions
Multidimensional Nature of Poverty
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- Poverty encompasses lack of economic resources, , and limited access to basic necessities
- involves lacking minimum resources for physical survival and basic human needs
- relates to average standard of living in a specific society, highlighting
- Poverty line serves as monetary threshold to determine poverty status
- Varies between countries
- Often adjusted for purchasing power parity
- indices consider non-monetary factors (health, education, living standards)
- Provide more comprehensive measure of deprivation
Gender and Geographic Aspects of Poverty
- describes disproportionate representation of women among world's poor
- Results from systemic gender inequalities
- characterized by overcrowding and lack of sanitation
- often involves isolation and limited access to services
- Geographic disparities in poverty rates (Sub-Saharan Africa, South Asia)
- Slums and informal settlements (favelas in Brazil, townships in South Africa)
Causes of Global Poverty
Historical and Political Factors
- Colonialism and imperialism led to uneven distribution of resources
- Example: exploitation of natural resources in African colonies
- hinders economic growth
- Civil wars (Syrian conflict) disrupt economic activities
- Corruption diverts resources from public services
- Embezzlement of funds
- structures perpetuate cycles of poverty
- Ineffective tax collection systems
Economic and Social Factors
- Unequal trade relationships disadvantage developing nations
- Unfair agricultural subsidies in developed countries
- limit investment in social programs
- imposed by international financial institutions
- Lack of access to education limits economic opportunities
- Illiteracy rates in rural areas of developing countries
- Discrimination excludes certain groups from economic opportunities
- Racial segregation in housing and employment
- creates mixed effects on poverty
- Job creation in manufacturing sectors
- Exploitation of workers in sweatshops
Poverty and Global Issues
Health and Education
- Limited access to healthcare contributes to higher morbidity rates among the poor
- Higher infant mortality rates in low-income countries
- impacts physical and cognitive development
- Stunting in children under five years old
- Poverty limits access to quality education
- Lower school enrollment rates in impoverished areas
- Lack of education perpetuates poverty through reduced economic opportunities
- Lower lifetime earnings for individuals without secondary education
Conflict and Environment
- Poverty increases risk of and violence
- Youth unemployment as a factor in political instability
- Conflict destroys infrastructure and disrupts economic activities
- Destruction of agricultural lands in war-torn regions
- disproportionately affects the poor
- Deforestation leading to soil erosion and reduced crop yields
- Climate change increases vulnerability to natural disasters
- More frequent and severe hurricanes in Caribbean nations
Technology and Gender
- widens gap between poor and rest of society
- Limited internet access in rural areas
- Gender inequality intersects with poverty
- Lower rates of land ownership among women farmers
- Women's limited access to education affects entire communities
- Correlation between maternal education and child health outcomes
Strategies for Reducing Poverty
Financial and Social Protection Measures
- Microfinance initiatives provide small loans to foster entrepreneurship
- Grameen Bank in Bangladesh
- offer monetary assistance
- Bolsa Família program in Brazil
- Social protection systems provide safety nets
- Unemployment benefits
- Pension schemes for elderly
- Foreign aid supports poverty reduction efforts
- Debate over effectiveness due to dependency issues
Education and Sustainable Development
- Education and skills development programs build human capital
- Vocational training programs in India
- ensure equitable compensation for producers
- Fair trade coffee cooperatives in Latin America
- Sustainable Development Goals (SDGs) address poverty comprehensively
- Goal 1: No Poverty
- Goal 2: Zero Hunger
- Emphasize interconnectedness of social, economic, and environmental factors
- Integrating climate action with poverty reduction strategies
Key Terms to Review (27)
Absolute poverty: Absolute poverty refers to a condition where an individual lacks the financial resources to meet basic life necessities such as food, clean water, shelter, and healthcare. This state is often measured against a specific poverty line, typically defined by international standards such as the World Bank's benchmark of living on less than $1.90 a day. It highlights the dire need for fundamental human survival, emphasizing that those living in absolute poverty are unable to secure even the most essential goods and services required for a healthy life.
Civil unrest: Civil unrest refers to a situation where a group of people expresses their dissatisfaction with the government or society through protests, demonstrations, or other forms of collective action. This discontent often arises from social, economic, or political grievances and can manifest in various ways, including riots or strikes. In many cases, civil unrest is closely linked to issues like global poverty, as marginalized communities may resort to unrest when their needs and rights are overlooked.
Colonialism: Colonialism is a practice where a country establishes control over a foreign territory and its people, often for economic exploitation and political dominance. This process not only reshapes the economic and social structures of the colonized regions but also leads to cultural exchanges and sometimes, cultural erasure. The impacts of colonialism continue to resonate in contemporary global relationships, social inequalities, poverty levels, and economic disparities.
Conditional cash transfer programs: Conditional cash transfer programs are social assistance initiatives that provide monetary payments to low-income families on the condition that they meet specific requirements, such as ensuring their children attend school or receive regular health check-ups. These programs aim to reduce poverty and promote human capital development by incentivizing behaviors that contribute to long-term well-being and economic stability. By tying financial support to beneficial actions, these programs address both immediate financial needs and encourage investments in education and health.
Corruption: Corruption refers to the abuse of power for personal gain, often involving bribery, fraud, or misappropriation of funds. It undermines trust in institutions and can severely hinder economic and social development, contributing significantly to global poverty and its underlying causes. When public officials prioritize their interests over the needs of citizens, it perpetuates cycles of inequality and deprives communities of essential resources.
Debt burdens: Debt burdens refer to the financial obligation that individuals, communities, or nations face when they owe money, often leading to economic strain. This concept is crucial in understanding global poverty as high levels of debt can inhibit economic growth, limit access to resources, and exacerbate social inequalities. When countries are unable to manage their debt effectively, they may face challenges in providing essential services, leading to a cycle of poverty and financial instability.
Digital divide: The digital divide refers to the gap between individuals, households, and communities that have access to modern information and communication technology and those that do not. This divide affects cross-cultural communication, economic development, and social participation, significantly impacting global citizenship and technological advancements.
Economic inequality: Economic inequality refers to the unequal distribution of income and opportunity among different groups in society. It manifests through disparities in wealth, resources, and access to education and healthcare, creating significant gaps between the rich and the poor. Understanding economic inequality is crucial to addressing global poverty and its underlying causes, as it often perpetuates cycles of disadvantage and limits social mobility.
Education initiatives: Education initiatives are programs and policies aimed at improving access to quality education and enhancing learning outcomes for individuals, particularly in low-income or marginalized communities. These initiatives often focus on addressing barriers to education such as poverty, inequality, and lack of resources, with the goal of empowering individuals through knowledge and skills.
Environmental Degradation: Environmental degradation refers to the deterioration of the environment through the depletion of natural resources, the destruction of ecosystems, and pollution. It encompasses various processes such as deforestation, soil erosion, loss of biodiversity, and climate change, all of which can result from human activities. Understanding this term is crucial as it connects to physical landscapes, human interactions with the environment, population pressures, and the challenges faced by communities in poverty, highlighting the interdependence of ecological health and human well-being.
Fair trade initiatives: Fair trade initiatives are programs designed to promote equitable trading conditions for producers in developing countries, ensuring they receive fair prices for their goods and work under safe conditions. These initiatives aim to empower marginalized communities by supporting sustainable practices, fostering economic development, and creating awareness about the injustices in global trade systems. The focus is on building direct relationships between producers and consumers, which enhances global awareness and contributes to reducing poverty.
Feminization of poverty: The feminization of poverty refers to the increasing proportion of women among the global poor, highlighting how poverty disproportionately affects women due to various systemic inequalities. This phenomenon is tied to factors such as gender discrimination, lack of access to education, and insufficient economic opportunities that limit women's financial independence. The feminization of poverty reveals deeper social issues related to gender inequality, which contribute to the persistence of poverty in many societies.
Foreign aid: Foreign aid refers to the financial or material support provided by one country to another, typically aimed at promoting economic development and welfare in the recipient nation. It is a crucial tool used by governments and international organizations to address global poverty, respond to humanitarian crises, and promote stability and development in low-income countries. This assistance can take various forms, including grants, loans, technical assistance, and in-kind donations, and plays a vital role in efforts to combat the root causes of poverty.
Globalization: Globalization is the process by which businesses, cultures, and economies develop international influence or operate on an international scale. It connects various aspects of life across the globe, influencing cultural exchange, economic policies, and political dynamics while impacting social inequalities and global poverty.
Malnutrition: Malnutrition refers to the condition that occurs when a person's diet does not provide adequate nutrients or the right balance of nutrients necessary for optimal health. It encompasses both undernutrition, where there is insufficient intake of calories and essential nutrients, and overnutrition, where excessive intake leads to health issues like obesity. This condition is closely linked to global poverty, as individuals in impoverished areas often lack access to sufficient and nutritious food, which directly impacts their overall well-being and productivity.
Microfinance: Microfinance refers to the provision of financial services, including small loans, savings, and insurance, to individuals or small businesses who lack access to traditional banking services. It aims to empower low-income populations, helping them to invest in their businesses, improve their living conditions, and ultimately lift themselves out of poverty. Microfinance is often viewed as a tool for economic development and addressing inequalities within communities.
Multidimensional poverty: Multidimensional poverty refers to a complex measure of poverty that goes beyond just income, capturing various deprivations that individuals and families face in their daily lives. This includes lack of access to education, health services, clean water, adequate nutrition, and living standards. By considering multiple factors, this approach highlights the different ways in which poverty can affect people and helps in understanding its root causes.
Political instability: Political instability refers to the frequent changes in government, political unrest, and lack of consistent governance that can lead to violence, civil conflict, or social upheaval. It can manifest as protests, coups, or riots and often results in an uncertain environment for citizens and investors alike. Political instability is a key factor influencing how major world regions function and also plays a significant role in contributing to global poverty and its underlying causes.
Relative poverty: Relative poverty refers to a condition where individuals or groups lack the minimum income needed to maintain an average standard of living within a specific society or community. This concept emphasizes the social context of poverty, highlighting how individuals are deprived in comparison to others in their society, leading to exclusion and a lack of participation in social activities.
Rural poverty: Rural poverty refers to the state of deprivation experienced by individuals and communities in rural areas, where economic opportunities and resources are limited. This type of poverty is often characterized by insufficient access to basic needs such as food, clean water, education, and healthcare, and it highlights the unique challenges faced by those living outside urban centers. Rural poverty is deeply intertwined with factors like agricultural dependency, lack of infrastructure, and social exclusion, making it a complex issue within the broader context of global poverty and its causes.
Social exclusion: Social exclusion is the process by which certain individuals or groups are systematically marginalized and denied access to resources, rights, and opportunities that are available to others in society. This often leads to a cycle of poverty, discrimination, and poor health outcomes, creating significant barriers for those affected. Social exclusion can manifest in various forms, including economic, social, and political dimensions, affecting the well-being and quality of life of marginalized populations.
Social protection systems: Social protection systems are frameworks established by governments to provide support and assistance to individuals and families in need, aimed at reducing poverty and inequality. These systems include various programs such as social insurance, social assistance, and labor market interventions, which collectively work to enhance the well-being of vulnerable populations. They play a crucial role in alleviating the impacts of economic shocks and ensuring access to essential services.
Structural Adjustment Policies: Structural adjustment policies (SAPs) are economic reforms that countries are required to implement in order to receive loans from international financial institutions like the International Monetary Fund (IMF) and the World Bank. These policies often involve austerity measures, deregulation, and privatization aimed at stabilizing economies, but they can also lead to increased poverty and social inequality, particularly in developing nations.
Sustainable development goals: Sustainable Development Goals (SDGs) are a universal call to action established by the United Nations in 2015, aimed at addressing global challenges such as poverty, inequality, climate change, environmental degradation, peace, and justice. These 17 interconnected goals serve as a framework for countries to create policies that promote sustainable development while ensuring that no one is left behind. The SDGs reflect the global commitment to improve living standards and protect the planet, emphasizing collaboration among nations and stakeholders.
Unequal trade relationships: Unequal trade relationships refer to economic exchanges between countries where the benefits are disproportionately distributed, often favoring one party over the other. This imbalance can lead to a cycle of poverty and economic dependence for less developed countries, as they may export raw materials and import finished goods, which keeps them at a disadvantage in the global economy.
Urban poverty: Urban poverty refers to the state of being poor within a city or urban area, where individuals and families struggle to meet basic needs such as food, shelter, and healthcare. This type of poverty is often exacerbated by factors like high living costs, inadequate infrastructure, and limited access to services, which can lead to social exclusion and marginalization. Urban poverty is closely linked to rapid urbanization and the growth of megacities, where the influx of people often outpaces the availability of resources and job opportunities.
Weak governance: Weak governance refers to a situation where state institutions are unable to effectively implement policies, enforce laws, and provide essential services to the population. This lack of capacity can lead to instability, corruption, and a failure to address the needs of citizens, contributing significantly to global poverty. In regions where weak governance prevails, the absence of strong legal frameworks and accountability mechanisms exacerbates inequality and hinders economic development.