Top 10 causes of Poverty in a State

Top 10 causes of Poverty in the State 

These write up try to inquiry into the causes of poverty, by poverty we mean a circumstance of serious deprivation where a person lacks one or more basic need as opposed to a condition of inequality. The question we wish to try to answer is this: Why do some people find themselves in a circumstance of serious deprivation and, more importantly, why are some able to escape poverty fairly easily while others endure persistent, long-term poverty. 

Read here <<< Definition, Types and Effects of Poverty  >>>

Bellow is Top 10 Causes of Poverty in a State 

1.       Political Instability 

Political instability is the propensity of a government collapse either because of conflicts or rampant competition between various political parties. Also, the occurrence of a government change increases the likelihood of subsequent changes. Political instability tends to be persistent. Economic growth and political stability are deeply interconnected. On the one hand, the uncertainty associated with an unstable political environment may reduce investment and the pace of economic development. On the other hand, poor economic performance may lead to government collapse and political unrest which leads to high level of poverty in the country. However, other aspects of the society might suffer because of complacency, lack of competition, and opacity. The economy eventually suffers because of these. Consequently, stable governments do not necessarily lead to higher economic growth.  Such a state will experience high level of poverty.

 2.       Lack of   Educational / Technological Skills 


State where people have a below-average level of common knowledge about basic things that they would urgently need in their daily life. For instance, this could include basic knowledge, economic planning, new technological development and skills. Especially in poor developing countries, educational inequality is quite prevalent.


Lack of education and technological skills can have severe adverse effects and such is poverty. Not every person without an education is living in extreme poverty. But most of the extremely poor lack education. But education is often leads to as the great equalizer, because it can open the door to jobs and other resources and skills that a family needs to not just survive, but thrive. Education could lift out extreme poverty and could also end poverty in a country.

3.       Lack of Jobs or Livelihoods

Lack of job opportunities is also called unemployment which is a state of joblessness. Joblessness and livelihood results in the following consequences: poor health, illiteracy, frustration, and depression among youth, lack of peace in the families. Consequences also include discrimination, loss of skills, loss of self-esteem and poverty. In some of the underdeveloped countries for example, most of the population lives in rural communities where natural resources have been plundered over centuries of colonial rule while conflict over land has forced people away from their source of income and food. Now, more than half of the country lives in extreme poverty. 

4.       Lack of Reserves

Reserves are often used to purchase fixed assets to repay debts; or to fund expansions, bonuses, and dividend repayments. Although the IFRS Standards sometimes call provisions.  A reserve, are not the same thing as a provision is an upcoming liability without a confirmed date or cost. All of the above peril factors from conflict to climate change or even a family illness can be weathered if a family or community has reserves in place. Money savings and loans can offset joblessness due to conflict or sickness. Proper food storage systems can help if a drought or natural disaster ruins a harvest.  Citizens living in extreme poverty usually don’t have these means available. For communities constantly facing climate extremes or prolonged conflict, the repeated shocks can send a family reeling into extreme poverty and prevent them from ever recovering.

5.       Ineffective Governments

Cash support derived from grants or appropriations, by other agencies or divisions of federal, state, regional or local governments, or a proportionate share of such grants or appropriations allocation.  Not every government of a country can provide this type of help to its citizens and without that safety net, there’s nothing to stop vulnerable families from backsliding further into extreme poverty. Ineffective governments also contribute to several of the other causes of extreme poverty mentioned above, as they are unable to provide necessary infrastructure or healthcare, or ensure the safety and security of their citizens in the event of conflict.


6.       Climate Change

Climate Change, also called global warming, refers to the rise in average surface temperatures on earth. An overwhelming scientific consensus maintains that climate change is due primarily to the human use of fossil fuels, which releases carbon dioxide and other greenhouse gases into the air. The gases trap heat within the atmosphere, which can have a range of effects on ecosystems, including rising sea levels, severe weather events, and droughts that render landscapes more susceptible to wildfires. Climate Change leads to famine , whether through too little water or too much, and its lead to extreme  poverty in several other ways including disproportionately affecting citizens , creating refugees, and even influencing conflict.

A lot of of the world’s poorest populations depend at time solely on oil, farming or hunting and gathering to eat and earn a living.  For example, some underdeveloped countries are 80% agrarian. They often have only just enough food and assets to last through the next season, and not enough reserves to fall back on in the event of a poor harvest. So when climate change or natural disasters) leave millions of people without food, it pushes them further into poverty, and can make recovery even more difficult.

8.       Discrimination and Marginalization

Discrimination against minority groups and deprivation of rights led to genocide and Marginalization also leading to abolishing of human rights, exploitation, forcing people to migrate or displacing them and ultimately leading to the barbaric extermination of human. Inequality is an easy, but sometimes misleading term used to describe the systemic barriers leaving groups of people without a voice or representation within their communities. For a population to escape poverty, all groups must be involved in the administrative process, especially when it comes to having a say in the things that determine your place in society. Some of these may be obvious, but in other situations, it can be subtle. 

Gender discrimination, caste systems, marginalization based on race or tribal affiliations are all economic and social inequalities that mean the same thing: Little to no access to the resources needed to live a full, productive life. When combined with different combinations of vulnerability and hazards which comprise the rest of this list a marginalized community may become even more vulnerable to the cycle of poverty. 

9.       Conflict

Conflict is one of the most universal forms of threat driving poverty nowadays. Large-scale, protracted violence that we have seen in areas like Syria can grind society to a halt, destroying infrastructure and causing people to flee (often with nothing but the clothes on their backs). In its tenth year of conflict, Syria’s middle class has been all but destroyed, and over 80% of the population now lives below the poverty line.  But even small bouts of violence can have huge impacts on communities that are already struggling. For example, if farmers are worried about their crops being stolen, they won’t invest in planting.  During periods of violence, female-headed households become very common. And because women often have difficulty getting well-paying work and are typically excluded from community decision-making, their families are particularly vulnerable. 

10.     Behavioral or Cultural Causes

Without dismissing the fact that our structures, institutions, and systems might help explain poverty, especially the enabling of poverty, there are other researchers who emphasize culture, behavior, and personal differences as the source of much of the poverty that we observe in modern societies. Their argument is that there is a poverty culture or a set of attitudes  and behaviors that tends to get passed along from parents to children, nation to nation and tends to perpetuate bad, self-defeating decisions, and hence poverty.


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