Poverty

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Causes and Effects of Poverty
According to World Bank Report on poverty level, it was indicated that 10.7 % of the
global population depend on less than $1.90 per day. Poverty is defined as lack of sufficient
resources or income. There has been a progress since 1990 when poverty level stood at 35%
which was about 1.85 billion people. However, the poverty level has decreased over the years,
but the reduction has not been uniform. The drop in poverty level has been driven by East Asia
and Pacific especially in China and Indonesia where the poor population has reduced by 71
million people and in South Asia where the population of the poor people has reduced by 37
million. Sub-Saharan Africa contributes to more than half of the world’s poorest people,
although the number of the poor reduced by four million, to stand at 389 million poor people in
the region (The World Bank, 2016). In the U.S 13.5 percent of the total population is poor (US
Census Bureau, 2016). This essay seeks to identify the major causes of poverty and discuss some
of the measures that can be implemented to reduce poverty level.
Poverty is attributed to multifaceted forces. One of those forces is inequality in the
distribution of income. In the modern world, economic resources are unevenly distributed, causing
the persistence of poverty (Caranti). Not all poor people are malnourished or extremely deprived,
but they vulnerable to small upsets in their income or an increase in prices of essential goods and
services. If such changes occur, they are likely to be thrown off the balance. If the income of these
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population was summed up, it is less than a third of world’s household income. The top five percent
earners earn about nine times what the bottom quarter earns. Given the numerous resources
available in the world today, poverty could easily be eliminated by increasing the share of low
earners (Caranti). Unfortunately, the trend is going in the opposite direction whereby the rich
continue to amass more wealth while the state of the poor continues to deteriorate.
Corruption is another cause of poverty across. It arises at all levels of the community
including national and local governments, civil society, small and large businesses, and judiciary.
Corruption interferes with development, provision of health services, environment preservation,
democracy, and other factors that improve the standards of living (Caranti). Although all members
of the society are affected by corruption, the poor are the most affected. Ordinary people who are
economically strapped have minimal alternatives on how they can access goods and services.
Where corruption is a serious issue, the poor are more vulnerable and at risk of being exploited.
They will have to pay bribes in order to receive goods and services.
Additionally, poverty is caused agricultural cycles and natural disasters (Korankye).
Families that depend on subsistence farming experience a period of hunger prior to harvesting.
During that period, they lack sufficient resources to meet their nutritional needs. Further, the
occurrence of natural calamities such as drought, earthquakes, floods and hurricane cause
devastating effects. When their farm produce is destroyed and they have to rely on donations to
sustain themselves. If no help is offered, victims of natural calamity may die due to hunger or
diseases resulting from the calamity. Developing countries are affected the most since they have
not developed infrastructure and mechanisms of responding to the natural crisis.
Another cause of poverty is illiteracy and widespread of diseases. Most poor people,
especially in developing countries, live in rural areas and they are illiterate (Korankye). An
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illiterate population cannot take advantage of improved production technology and preventative
health services. An educated workforce is more productive than an illiterate population. Across
the world, there are millions of adults who cannot read or write, thus, struggle to make a living.
Despite the numerous resources and well-developed infrastructure in the US, there are thirty-six
million adults who cannot read any better than a third grader (US Census Bureau, 2016). Illiteracy
affects almost every aspect of life. Those that lack or have a minimal education are likely to be
poor, face health challenges since they cannot read prescriptions or instructions, they do not know
how to protect themselves from preventable diseases, and they are isolated from technological
developments (Korankye). Poor health impacts on the ability to learn to reduce human capital and
impedes entrepreneurial projects which are key to economic development. The major diseases
causing poverty in the world include malaria, HIV/AIDS, and other infectious diseases.
Education is a basic right for every individual and a method of poverty reduction.
Education is applicable and necessary throughout a person’s life. It is potentially good for
generating income as well as developing society (Haskins, 2012). Societies and countries with low
level of poverty have a well-educated population which is able to make proper judgment,
decisions, and take advantage of infrastructure available in their country. Further such a population
is a position to question the government when it does not perform since they know their rights and
they cannot be lied to by government officials. Education goes a long way in inhibiting corruption,
which is a root of poverty in many countries (Haskins, 2012). However, research and experience
show there are many obstacles that stand in the way of education ability to improve the living
conditions of the poor. Although many governments have invested in education, they have failed
to analyze how education will reach the poor thus rendering the efforts fruitless.
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Moreover, poverty can be reduced by creating employment opportunities that value human
capital and remunerate them accordingly. In the developing countries, the unemployment rates are
high even among the educated individuals. A significant number of those who are able to get jobs
are poorly paid. As a result, when they get employment opportunities in other countries, they
migrate depriving off their countries skills necessary for economic growth, which slows down the
process of job creation and affects the potential of country development in the long run (Page, &
Shimeles, 2015). Unemployment and underemployment are a cause of the widespread poverty.
Governments should work towards creating employment opportunities that are sustainable to avoid
migration of skilled human capital and reduce the poverty levels.
In conclusion, poverty is still a problem in many countries, with the highest rates of poverty
being observed in the Sub-Saharan Africa. There are many causes of poverty including illiteracy
and poor health, unequal distribution of wealth, corruption, and natural disaster. However, poverty
is a problem that can be solved if various stakeholders involved are willing to solve it, although it
may take time. Some measures that can be employed to reduce poverty include educating the poor,
providing employment opportunities, enhancing health, and equalizing wealth distribution across
populations.
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References
Caranti, Luigi. "The Causes Of World Poverty: Some Reflections On Thomas Pogge’S
Analysis". Theoria, vol 57, no. 125, 2013, Berghahn Books, doi:10.3167/th.2010.5712503.
Haskins, R. (2012). What Works Is Work: Welfare Reform and Poverty Reduction. Northwestern
Journal of Law & Social Policy, 4(1), 31-60.
Korankye, A. (2014). Causes of Poverty in Africa: A Review of Literature. American International
Journal of Social Science, 3(7), 147-153. Retrieved from
http://www.aijssnet.com/journals/Vol_3_No_7_December_2014/16.pdf
Page, J., & Shimeles, A. (2015). Aid, Employment and Poverty Reduction in Africa. African
Development Review, 27(S1), 17-30. http://dx.doi.org/10.1111/1467-8268.12136
The World Bank, (2016). Poverty Overview. Worldbank.org. Retrieved 28 March 2017, from
http://www.worldbank.org/en/topic/poverty/overview
US Census Bureau, (2016). Income and Poverty in the United States: 2015. Census.gov. Retrieved
28 March 2017, from https://www.census.gov/library/publications/2016/demo/p60-
256.html

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