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Poverty


 
 
Poverty (also called penury) is deprivation of those things that determine the quality of life, including food, clothing, shelter and safe drinking waterDrinking water

Drinking water is water that is intended to be drunk by humans....
, but also "intangibles" such as the opportunity to learn and to enjoy the respect of fellow citizens. Ongoing debates over causes, effects and best ways to measure poverty, directly influence the design and implementation of poverty-reductionPoverty reduction

Poverty reduction is any process which seeks to reduce the level of poverty in a community, or amongst a group of people or ...
 programs and are therefore relevant to the fields of international developmentInternational development

The goal of international development is to alleviate poverty among citizens of developing countries....
 and public administrationPublic administration Summary

Public administration is, broadly speaking, the study and implementation of policy....
.

Although poverty is generally considered to be undesirable due to the pain and suffering it may cause, in certain spiritual contexts "voluntary poverty," involving the renunciation of material goods, is seen by some as virtuous.

Poverty may affect individuals or groups, and is not confined to the developing nations.






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Timeline

960   Edgar the Peaceable crowned King of England. Dunstan became Archbishop of Canterbury and Edgar's chief adviser. He reformed monasteries and enforced the rule of St Benedict: Poverty, Chastity and Obedience for monks. He attempted to impose celibacy on the secular clergy without noticeable success. Dunstan actively encouraged the Danes to integrate with the English.






Quotations


For the first time in our history it is possible to conquer poverty.

Lyndon B. Johnson's Special Message to Congress (March 16, 1964)

The greatest of evils and the worst of crimes is poverty.

Bernard Shaw, Major Barbara (1906), preface





Encyclopedia


Poverty (also called penury) is deprivation of those things that determine the quality of life, including food, clothing, shelter and safe drinking waterDrinking water

Drinking water is water that is intended to be drunk by humans....
, but also "intangibles" such as the opportunity to learn and to enjoy the respect of fellow citizens. Ongoing debates over causes, effects and best ways to measure poverty, directly influence the design and implementation of poverty-reductionPoverty reduction

Poverty reduction is any process which seeks to reduce the level of poverty in a community, or amongst a group of people or ...
 programs and are therefore relevant to the fields of international developmentInternational development

The goal of international development is to alleviate poverty among citizens of developing countries....
 and public administrationPublic administration Summary

Public administration is, broadly speaking, the study and implementation of policy....
.

Although poverty is generally considered to be undesirable due to the pain and suffering it may cause, in certain spiritual contexts "voluntary poverty," involving the renunciation of material goods, is seen by some as virtuous.

Poverty may affect individuals or groups, and is not confined to the developing nations. Poverty in developed countriesFacts About Developed country

A developed country is one that has a high income per capita....
 is manifest in a set of social problems including homelessnessHomelessness

Homelessness or transience is a situation in which a person does not have a long term residence, a stable residence, o...
 and the persistence of "ghettoGhetto

A ghetto is an area where people from a specific racial or ethnic background or united in a given culture or religion live a...
" housing clusters.

Measuring poverty










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The point is, poverty can be measured in terms of absolute or relative poverty. Absolute poverty refers to a set standard which is consistent over time and between countries. An example of an absolute measurement would be the percentage of the population eating less food than is required to sustain the human body (approximately 2000-2500 calorieCalorie

A calorie is a unit of measurement for energy....
s per day for an adult male).

The World BankWorld Bank Group

he World Bank Group is a group of five international organizations responsible for providing finance and advice to countries...
 defines extreme povertyExtreme poverty

Extreme poverty is the most severe state of poverty, where people have minimal or very limited access to basic necessities, ...
as living on less than US$ 1 per day, and moderate poverty as less than $2 a day, estimating that "in 2001, 1.1 billion people had consumption levels below $1 a day and 2.7 billion lived on less than $2 a day." The proportion of the developing world's population living in extreme economic poverty fell from 28 percent in 1990 to 21 percent in 2001. Looking at the period 1981-2001, the percentage of the world's population living on less than $1 per day has halved.

However, most of this improvement has occurred in EastEast Asia

East Asia is a subregion of Asia that can be defined in either geographical or cultural terms....
 and South AsiaSouth Asia

South Asia, also Southern Asia, is a southern geopolitical region of the Asian continent comprising territories on and...
. In East Asia the World Bank reports that "The poverty headcount rate at the $2-a-day level is estimated to have fallen to about 27 percent, down from 29.5 percent in 2006 and 69 percent in 1990."

In Sub-Saharan AfricaSub-Saharan Africa

[Image:Sub-Saharan-Africa.png|thumb|249px|A polical map showing national divisions in relation to the ecological break]]Sub-Sah...
 GDP/capita shrank by 14 percent and extreme poverty increased from 41 percent in 1981 to 46 percent in 2001, increasing the number of people living in poverty from 231 million to 318 million.

Other regions have seen little change. In the early 1990s the transition economies of Eastern EuropeEastern Europe Overview

Eastern Europe is the eastern region of Europe variably defined....
 and Central AsiaCentral Asia

Central Asia is a vast landlocked region of Asia....
 experienced a sharp drop in income. Poverty rates rose to 6 percent at the end of the decade before beginning to recede.

World Bank data shows that the percentage of the population living in households with consumption or income per person below the poverty line has decreased in each region of the world since 1990:

Region 1990 2002 2004
East Asia and Pacific 15.40% 12.33% 9.07%
Europe and Central Asia 3.60% 1.28% 0.95%
Latin America and the Caribbean 9.62% 9.08% 8.64%
Middle East and North Africa 2.08% 1.69% 1.47%
South Asia 35.04% 33.44% 30.84%
Sub-Saharan Africa 46.07% 42.63% 41.09%


There are various criticisms of these measurements. Shaohua Chen and Martin Ravallion note that although "a clear trend decline in the percentage of people who are absolutely poor is evident,
although with uneven progress across regions...the developing world outside China and India has seen little or no sustained
progress in reducing the number of poor". However, since the world's population has increased, if instead looking at the percentage living on less than $1/day, and if excluding China and India, then this percentage has decreased from 31.35% to 20.70% between 1981 and 2004.

Other human development indicators are also improving. Life expectancyLife expectancy

Life expectancy is heavily dependent on the criteria used to select the group....
 has greatly increased in the developing world since WWIIFacts About World War II

World War II, or the Second World War, was a worldwide conflict fought between the Allied Powers and the Axis Powers ,...
 and is starting to close the gap to the developed world where the improvement has been smaller. Even in Sub-Saharan Africa, where most Least Developed CountriesLeast Developed Countries

Least Developed Countries are countries which according to the United Nations exhibit the lowest indicators of socioeconomic...
 are to be found, life expectancy increased from 30 years before World War II to a peak of about 50 years, before the HIV pandemic and other diseases started to force it down to the current level of 47 years. Child mortalityChild mortality

Child mortality refers to the death of infants and children under the age of five....
 has decreased in every developing region of the world. The proportion of the world's population living in countries where per-capita food supplies are less than 2,200 calories (9,200 kilojoules) per day decreased from 56% in the mid-1960s to below 10% by the 1990s. Between 1950 and 1999, global literacy increased from 52% to 81% of the world. Women made up much of the gap: Female literacy as a percentage of male literacy has increased from 59% in 1970 to 80% in 2000. The percentage of children not in the labor force has also risen to over 90% in 2000 from 76% in 1960. There are similar trends for electric power, cars, radios, and telephones per capita, as well as the proportion of the population with access to clean water. The book The Improving State of the WorldThe Improving State of the World

The Improving State of the World: Why We're Living Longer, Healthier, More Comfortable Lives On a Cleaner Planet is a 2007 b...
finds that many other indicators have also improved.

Relative poverty views poverty as socially defined and dependent on social context. Income inequality is a relative measure of poverty. A relative measurement would be to compare the total wealth of the poorest one-third of the population with the total wealth of richest 1% of the population. There are several different income inequality metricsIncome inequality metrics

Income inequality metrics or income distribution metrics are techniques used by economists to measure the distribution...
. One example is the Gini coefficientGini coefficient

The Gini coefficient is a measure of inequality of a distribution, defined as the ratio of area between the Lorenz curve of ...
.

Income inequality for the world as a whole is diminishing. A 2002 study by Xavier Sala-i-MartinXavier Sala-i-Martin

Xavier Sala i Martín is a Catalan Spanish professor of economics at Columbia University....
 finds that this is driven mainly, but not fully, by the extraordinary growth rate of the incomes of the 1.2 billion Chinese citizens. However, unless Africa achieves economic growth, then China, India, the OECD and the rest of middle-income and rich countries will increase their relative advantage, and global inequality will rise.

The 2007 World Bank report "Global Economic Prospects" predicts that in 2030 the number living on less than the equivalent of $1 a day will fall by half, to about 550 million. An average resident of what we used to call the Third World will live about as well as do residents of the Czech or Slovak republics today. However, much of Africa will have difficulty keeping pace with the rest of the developing world and even if conditions there improve in absolute terms, the report warns, Africa in 2030 will be home to a larger proportion of the world's poorest people than it is today. However, economic growth has increased rapidly in Africa after the year 2000.

In many developed countries the official definition of poverty used for statistical purposes is based on relative income. As such many critics argue that poverty statistics measure inequality rather than material deprivation or hardship. For instance, according to the U.S. Census Bureau, 46% of those in "poverty" in the U.S. own their own home (with the average poor person's home having three bedrooms, with one and a half baths, and a garage). Furthermore, the measurements are usually based on a person's yearly income and frequently take no account of total wealth. The main poverty line used in the OECD and the European UnionEuropean Union Overview

The European Union is an intergovernmental and supranational union of 25 democratic member states....
 is based on "economic distance", a level of income set at 50% of the median household income. The US poverty line is more arbitrary. It was created in 1963-64 and was based on the dollar costs of the United States Department of AgricultureUnited States Department of Agriculture

The United States Department of Agriculture is a United States Federal Executive Department....
's "economy food plan" multiplied by a factor of three. The multiplier was based on research showing that food costs then accounted for about one third of the total money income. This one-time calculation has since been annually updated for inflation. Others, such as economist Ellen Frank, argue that the poverty measure is too low as families spend much less of their total budget on food than they did when the measure was established. Further, federal poverty statistics do not account for the widely varying regional differences in non-food costs such as housing, transport, and utilities.

Other aspects


Economic aspects of poverty may focus on material needs, typically including the necessities of daily living, such as foodFood Overview

Food is any substance, usually comprised primarily of carbohydrates, fats, vitamins, water and/or proteins, that can be eate...
, clothing, shelter, or safe drinking waterDrinking water

Drinking water is water that is intended to be drunk by humans....
. Poverty in this sense may be understood as a condition in which a person or community is lacking in the basic needsBasic needs

The "basic needs" model in development discourse focuses on the elimination of poverty in the shortest amount of time....
 for a minimum standard of well-being and life, particularly as a result of a persistent lack of income.

Analysis of social aspects of poverty links conditions of scarcity to aspects of the distribution of resources and power in a society and recognizes that poverty may be a function of the diminished "capability" of people to live the kinds of lives they value. The social aspects of poverty may include lack of access to informationInformation access

Thomas Jefferson said that "Information is the currency of democracy." Information access is an area of informatics and libr...
, educationEducation

Education is the process by which an individual is encouraged and enabled to develop fully his or her innate potential; it m...
, health careHealth care

Health care or healthcare is the prevention, treatment, and management of illness and the preservation of mental and p...
, or political powerPolitical power Overview

Political power is a type of power held by a person or group in a society....
. Poverty may also be understood as an aspect of unequal social statusSocial status

Social status is the "standing", the honor or prestige attached to one's position in society....
 and inequitable social relationships, experienced as social exclusion, dependency, and diminished capacity to participate, or to develop meaningful connections with other people in society.

The World Bank's "Voices of the Poor," based on research with over 20,000 poor people in 23 countries, identifies a range of factors which poor people identify as part of poverty. These include:
  • precarious livelihoods
  • excluded locations
  • physical limitations
  • gender relationships
  • problems in social relationships
  • lack of security
  • abuse by those in power
  • disempowering institutions
  • limited capabilities, and
  • weak community organizations.


David Moore, in his book The World Bank, argues that some analyses of poverty reflect pejorative, sometimes racial, stereotypes of impoverished people as powerless victims and passive recipients of aid programs.

Causes of poverty



Many different factors have been cited to explain why poverty occurs. However, no single explanation has gained universal acceptance.

Possible factors include:

Environmental Factors

  • ErosionErosion

    Erosion is the displacement of solids by the agents of wind, water or ice, by downward or down-slope movement in response t...
    . Intensive farming often leads to a vicious cycle of exhaustion of soil fertility and decline of agricultural yields and hence, increased poverty.
  • DesertificationDesertification

    Desertification is the degradation of land in arid, semi arid and dry sub-humid areas resulting from various factors includi...
     and overgrazingOvergrazing

    In ecology and agriculture, overgrazing occurs when plants are exposed to grazing for too long, or without sufficient recove...
    . Approximately 40% of the world's agricultural land is seriously degraded. In AfricaAfrica

    Africa is one of the greatest sized continents of the Earth....
    , if current trends of soil degradation continue, the continent might be able to feed just 25% of its population by 2025, according to UNUUnited Nations University

    The United Nations University is a university established on December 6, 1973 by adoption of resolution 3081 by the United ...
    's Ghana-based Institute for Natural Resources in Africa.
  • DeforestationDeforestation

    The conversion of forested areas to non-forest....
     as exemplified by the widespread rural poverty in China that began in the early 20th century and is attributed to non-sustainable tree harvesting.
  • Natural factors such as climate changeClimate change Overview

    Climate change refers to the variation in the Earth's global climate or in regional climates over time....
    . or environmentEnvironmental science

    Environmental science is the study of the interactions among the physical, chemical and biological components of the enviro...
  • GeographicGeography

    Geography is the study of the Earth's features and of the distribution of life on the earth, including human life and the e...
     factors, for example access to fertile land, fresh water, minerals, energy, and other natural resources. Presence or absence of natural features helping or limiting communication, such as mountains, deserts, navigable rivers, or coastline. Historically, geography has prevented or slowed the spread of new technology to areas such as the Americas and Sub-Saharan Africa. The climate also limits what crops and farm animals may be used on similarly fertile lands.
  • On the other hand, research on the resource curseResource curse

    The resource curse refers to the paradox that countries with an abundance of natural resources have less economic growth tha...
     has found that countries with an abundance of natural resourceNatural resource

    Natural resources are naturally occurring substances that are considered valuable in their relatively unmodified form....
    s creating quick wealth from exports tend to have less long-term prosperity than countries with less of these natural resources.
  • DroughtDrought

    A drought is an abnormally dry period when there is not enough water to support agricultural, urban or environmental water n...
     and water crisisWater crisis

    Water crisis is the status of the worlds water resources relative to human demand as of the 1970s and to the current timeRon...
    .

Economics

  • UnemploymentUnemployment

    In economics, a person willing to work at a prevailing wage rate yet is unable to find a paying job is considered to be unemplo...
    .
  • As of late 2007, increased farming for use in biofuelBiofuel

    Biofuel is any fuel that is derived from biomass recently living organisms or their metabolic byproducts, such as manure fr...
    s, along with world oil prices at nearly $100 a barrel, has pushed up the price of grain. Food riot2007–2008 world food price crisis

    The years 2007?2008 saw dramatic world food price rises, bringing a state of global crisis and causing political...
    s have recently taken place in many countries across the world.
  • Capital flightCapital flight Overview

    Capital flight, in economics, occurs when assets and/or money rapidly flow out of a country, due to an economic event that d...
     by which the wealthy in a society shift their assets to off-shore tax havens deprives nations of revenue needed to break the vicious cycle of poverty.
  • Weakly entrenched formal systems of title to private property are seen by writers such as Hernando de Soto as a limit to economic growth and therefore a cause of poverty.
  • Communists see the institution of property rights itself as a cause of poverty.
  • Unfair terms of trade, in particular, the very high subsidies to and protective tariffTariff Summary

    A tariff is a tax on imported goods....
    s for agricultureAgriculture

    Farming redirects here. For Farming in computer games, see Farmer ....
     in the developed world. This drains the taxed money and increases the prices for the consumers in developed world; decreases competition and efficiency; prevents exports by more competitive agricultural and other sectors in the developed world due to retaliatory trade barrierTrade barrier

    A trade barrier is a general term that describes any government policy or regulation that restricts international trade, the...
    s; and undermines the very type of industry in which the developing countries do have comparative advantageComparative advantage

    In economics, the theory of comparative advantage explains why it can be beneficial for two parties to trade, even though o...
    s.
  • Tax havens which tax their own citizens and companies but not those from other nations and refuse to disclose information necessary for foreign taxation. This enables large scale political corruption, tax evasion, and organized crimeOrganized crime

    Organized crime is crime carried out systematically by formal criminal organizations....
     in the foreign nations.
  • Unequal distribution of land. Land reformLand reform

    Land reform is an often-controversial type of government-initiated or government-backed real estate property redistribution,...
     is one solution.

Health Care


  • Poor access to affordable health care makes individuals less resilient to economic hardship and more vulnerable to poverty.


  • Inadequate nutrition in childhood, itself an effect of poverty, undermines the ability of individuals to develop their full human capabilities and thus makes them more vulnerable to poverty. Lack of essential minerals such as iodineIodine

    Iodine , is a chemical element in the periodic table that has the symbol I and atomic number 53....
     and ironIron

    Iron is a chemical element with the symbol Fe and atomic number 26....
     can impair brain developmentNeural development

    The study of neural development draws on both neuroscience and developmental biology to describe the cellular and molecular ...
    . It is estimated that 2 billion people (one-third of the total global population) are affected by iodine deficiencyIodine deficiency

    Iodine is an essential trace element; the thyroid hormones thyroxine and triiodotyronine contain iodine....
    , including 285 million 6- to 12-year-old children. In developing countries, it is estimated that 40% of children aged 4 and under suffer from anemia because of insufficient iron in their diets. See also Health and intelligenceHealth and intelligence

    Health and intelligence are two closely-related aspects of human well-being....
    .
  • DiseaseInfectious disease

    In medicine, infectious disease or communicable disease is disease caused by a biological agent such as by a virus, ba...
    , specifically diseases of povertyDiseases of poverty

    Diseases of poverty are diseases that overwhelmingly affect the poor; in many cases poverty is the leading risk factor for i...
    : AIDSAIDS

    Acquired Immunodeficiency Syndrome or Acquired Immune Deficiency Syndrome is a collection of symptoms and infections i...
    , malariaMalaria

    Malaria is an infectious disease that is widespread in many tropical and subtropical regions....
    , and tuberculosisTuberculosis

    Tuberculosis is an infectious disease caused by the bacterium Mycobacterium tuberculosis, which most commonly affects t...
     and others overwhelmingly afflict developing nations, which perpetuate poverty by diverting individual, community, and national health and economic resources from investment and productivity. Further, many tropical nations are affected by parasites like malaria, schistosomiasisSchistosomiasis Summary

    Schistosomiasis or bilharzia is a disease affecting many people in developing countries....
    , and trypanosomiasisTrypanosomiasis

    Trypanosomiasis is the name of the diseases caused by parasitic protozoan trypanosomes of the genus trypanosoma in vertebrat...
     that are not present in temperate climates. The Tsetse flyTsetse fly

    Tsetse are large biting flies from Africa which live by feeding on the blood of vertebrate animals....
     makes it very difficult to use many animals in agriculture in afflicted regions.
  • Clinical depressionClinical depression

    Clinical depression is a state of sadness, melancholia or despair that has advanced to the point of being disruptive to an i...
     undermines the resilience of individuals and when not properly treated makes them vulnerable to poverty.
  • Similarly substance abuseSubstance abuse

    Substance abuse refers to the overindulgence in and dependence on a psychoactive leading to effects that are detrimental to ...
    , including for example alcoholismAlcoholism

    Alcoholism is the consumption of, or preoccupation with, alcoholic beverages to the extent that this behavior interferes wit...
     and drug abuseDrug abuse

    Drug abuse has a wide range of definitions, all of them relating either to the misuse or overuse of a psychoactive drug or p...
     when not properly treated undermines resilience and can consign people to vicious poverty cycles.

Governance

  • Lacking democracyDemocracy

    Democracy is a form of government for a nation state, or for an organization in which the citizens have a vote or voice in ...
     in poor countries: "The records when we look at social dimensions of development—access to drinking water, girls' literacy, health care—are even more starkly divergent. For example, in terms of life expectancy, poor democracies typically enjoy life expectancies that are nine years longer than poor autocracies. Opportunities of finishing secondary school are 40 percent higher. Infant mortality rates are 25 percent lower. Agricultural yields are about 25 percent higher, on average, in poor democracies than in poor autocracies—an important fact, given that 70 percent of the population in poor countries is often rural-based.""poor democracies don't spend any more on their health and education sectors as a percentage of GDP than do poor autocracies, nor do they get higher levels of foreign assistance. They don't run up higher levels of budget deficits. They simply manage the resources that they have more effectively."
  • The governance effectiveness of governments has a major impact on the delivery of socioeconomic outcomes for poor populations
  • Weak rule of lawRule of law

    The rule of law is the principle that governmental authority is legitimately exercised only in accordance with written, publ...
     can discourage investment and thus perpetuate poverty.
  • Poor management of resource revenues can mean that rather than lifting countries out of poverty, revenues from such activities as oil production or gold mining actually leads to a resource curseResource curse

    The resource curse refers to the paradox that countries with an abundance of natural resources have less economic growth tha...
    .
  • Failure by governments to provide essential infrastructureInfrastructure

    Infrastructure, most generally, is a set of interconnected structural elements that provide the framework supporting an enti...
     worsens poverty..
  • Poor access to affordable educationEducation

    Education is the process by which an individual is encouraged and enabled to develop fully his or her innate potential; it m...
     traps individuals and countries in cycles of poverty.
  • High levels of corruptionPolitical corruption

    In broad terms, political corruption is the misuse by government officials of their governmental powers for illegitimate, us...
     undermine efforts to make a sustainable impact on poverty. In NigeriaNigeria

    Nigeria, officially the Federal Republic of Nigeria, is a country in West Africa and the most populous country on the ...
    , for example, more than $400 billion was stolen from the treasury by Nigeria's leaders between 1960 and 1999.

Demographics and Social Factors

  • OverpopulationFacts About Overpopulation

    Overpopulation is the condition of any organism's numbers exceeding the carrying capacity of its ecological niche....
     and lack of access to birth controlBirth control

    Birth control is a regimen of one or more actions, devices, or medications followed in order to deliberately prevent or redu...
     methods. Note that population growthPopulation growth

    Population growth is change in population over time, and can be quantified as the change in the number of individuals in a p...
     slows or even become negative as poverty is reduced due to the demographic transitionDemographic transition

    In demography, the term demographic transition is a theory describing a possible transition from high birth rates and death ...
    .
  • CrimeCrime

    A crime in a nontechnical sense is an act that violates a political or moral rule....
    , both white-collar crimeWhite-collar crime

    In criminology, white-collar crime was defined by Edwin Sutherland "...as a crime committed by a person of respectability an...
     and blue-collar crimeBlue-collar crime

    In criminology, blue-collar crime is any crime committed by an individual from a lower social class as opposed to white-coll...
    , including violent gangGang

    A gang is a group of individuals who share a common identity and, in current usage, engage in illegal activities....
    s and drug cartelDrug cartel

    Drug cartels are criminal organizations developed with the primary purpose of promoting and controlling drug trafficking ope...
    s.
  • HistoricalHIStory

    HIStory: Past, Present and Future Book I is a double-disc album by Michael Jackson released in 1995 by the Epic Records...
     factors, for example imperialismImperialism

    Imperialism is a policy of extending control or authority over foreign entities as a means of acquisition and/or maintenance...
    , colonialismColonialism

    See colony and colonisation for examples of colonialism which do not refer to Western colonialism....
     and Post-CommunismPost-Communism

    Post-Communism is a name sometimes given to the period of political and economic transition in former communist states locat...
     (at least 50 million children in Eastern EuropeEastern bloc

    During the Cold War, the term Eastern Bloc was used to refer to the Soviet Union and its allies in Central and Eastern Europ...
     and the former Soviet UnionSoviet Union

    The Union of Soviet Socialist Republics , more commonly known as the Soviet Union, was a Communist state that existed...
     live in poverty).


  • Brain drainBrain drain

    A brain drain or human capital flight is an emigration of trained and talented individuals to other nations or jurisdi...
  • Matthew effectMatthew effect

    The Matthew effect may refer to related ideas depending on context:...
    : the phenomenon, widely observed across advanced welfare states, that the middle classes tend to be the main beneficiaries of social benefits and services, even if these are primarily targeted at the poor.
  • Cultural causes, which attribute poverty to common patterns of life, learned or shared within a communityCommunity

    A community usually refers to a group of people who interact and share certain things as a group, but it can refer to variou...
    . For example, Max WeberMax Weber

    Maximilian Weber was a German political economist and sociologist who is considered one of the founders of the modern stud...
     argued that the Protestant work ethicProtestant work ethic

    The Protestant work ethic - less commonly the Puritan work ethic - is a Calvinist value emphasizing the necessity of c...
     contributed to economic growth during the industrial revolutionIndustrial Revolution

    The Industrial Revolution was the major technological, socioeconomic and cultural change in the late 18th and early 19th cen...
    .
  • WarWar

    War is a conflict involving the organized use of weapons and physical force by states or other large-scale groups....
    , including civil warCivil war Overview

    A civil war is a war in which parties within the same culture, society or nationality fight for political power or control o...
    , genocideGenocide

    Convention on the Prevention and Punishment of the Crime of Genocide Article 2 as "any of the following acts committed with inten...
    , and democideDemocide

    Democide is a term created by political scientist R....
    .
  • Discrimination of various kinds, such as age discrimination, stereotyping, gender discriminationGender discrimination

    Gender discriminaton is discrimination based on gender....
    , racial discrimination, caste discriminationCaste

    Caste systems are traditional, hereditary systems of social stratification, such as clans, gentes, or the Indian caste syste...
    .
  • Individual beliefs, actions and choices.

Effects of poverty

The effects of poverty may also be causes, as listed above, thus creating a "poverty cycle" operating across multiple levels, individual, local, national and global.

Those living in poverty and lacking access to essential health services, suffering hungerHunger

Hunger is a feeling experienced by animals when the glycogen level of the liver falls below a certain point, usually followe...
 or even starvationStarvation

Symptoms Starved individuals lose substantial fat and muscle mass as the body breaks down these tissues for energy....
, experience mental and physical health problems which make it harder for them to improve their situation.
One third of deaths - some 18 million people a year or 50,000 per day - are due to poverty-related causes: in total 270 million people, most of them women and children, have died as a result of poverty since 1990. Those living in poverty suffer lower life expectancyLife expectancy

Life expectancy is heavily dependent on the criteria used to select the group....
. Every year nearly 11 million children living in poverty die before their fifth birthday. Those living in poverty often suffer from hunger. 800 million people go to bed hungry every night. Poverty increases the risk of homelessnessHomelessness Overview

Homelessness or transience is a situation in which a person does not have a long term residence, a stable residence, o...
. There are over 100 million street childrenStreet children

Street children, street kids or street urchins are homeless children who live on the street – in particula...
 worldwide. Increased risk of drug abuseDrug abuse Overview

Drug abuse has a wide range of definitions, all of them relating either to the misuse or overuse of a psychoactive drug or p...
 may also be associated with poverty.

Diseases of povertyDiseases of poverty

Diseases of poverty are diseases that overwhelmingly affect the poor; in many cases poverty is the leading risk factor for i...
 reflect the dynamic relationship between poverty and poor health; while such infectious diseasesInfectious disease

In medicine, infectious disease or communicable disease is disease caused by a biological agent such as by a virus, ba...
 result directly from poverty, they also perpetuate and deepen impoverishment by sapping personal and national health and financial resources. For example, malariaMalaria

Malaria is an infectious disease that is widespread in many tropical and subtropical regions....
 decreases GDP growth by up to 1.3% in some developing nations, and by killing tens of millions in sub-Saharan Africa, AIDSAIDS

Acquired Immunodeficiency Syndrome or Acquired Immune Deficiency Syndrome is a collection of symptoms and infections i...
 alone threatens “the economies, social structures, and political stability of entire societies”.

Those living in poverty in the developed world may suffer social isolationSocial isolation

Social isolation can be defined as the inability to interact normally with others....
. Rates of suicideSuicide

Suicide is the act of willfully ending one's own life....
 may increase in conditions of poverty. Death of a breadwinner may decrease a household's resilience to poverty conditions and cause a dramatic worsening in their situation. Low income levels and poor employment opportunities for adults in turn create the conditions where households can depend on the income of child members. An estimated 218 million children aged 5 to 17 are in child laborChild labor

Child labor or labour is the percieved exploitation of children for their labor, with little compensation or consider...
 worldwide, excluding child domestic labor. Lacking viable employment opportunities those living in poverty may also engage in the informal economy, or in criminal activity, both of which may on a larger scale discourage investment in the economy, further perpetuating conditions of poverty.

Low income and wealth levels undermine the ability of governments to levy taxes for public service provision, adding to the 'vicious circle' connecting the causes and effects of poverty. Lack of essential infrastructure, poor education and health services, and poor sanitation contribute to the perpetuation of poverty. Poor access to affordable public education can lead to low levels of literacy, further entrenching poverty. Weak public service provision and high levels of poverty can increase states' vulnerability to natural disasterNatural disaster

A natural disaster is the consequence of the combination of a natural hazard and human activities....
s and make states more vulnerable to shocks in the international economy, such as those associated with rising fuel prices, or declining commodity prices.

Areas strongly affected by poverty tend to be more violent. In one survey, 67% of children from disadvantaged inner citiesInner city

An inner city is the central area of a major city....
 said they had witnessed a serious assault, and 33% reported witnessing a homicide. 51% of fifth graders from New Orleans (median income for a household: $27,133) have been found to be victims of violence, compared to 32% in Washington, DC (mean income for a household: $40,127).

The capacity of the state is further undermined by the problem that people living in poverty may be more vulnerable to extremist political persuasion, and may feel less loyalty to a state unable to deliver basic services. For these reasons conditions of poverty may increase the risk of political violence, terrorismTerrorism

Terrorism is the systematic use, or threatened use, of violence to intimidate a population or government and thereby effect ...
, warWar

War is a conflict involving the organized use of weapons and physical force by states or other large-scale groups....
 and genocideGenocide

Convention on the Prevention and Punishment of the Crime of Genocide Article 2 as "any of the following acts committed with inten...
, and may make those living in poverty vulnerable to human trafficking, internal displacement and exile as refugeeRefugee

A refugee is a person seeking asylum in a foreign country in order to escape persecution, war, terrorism, extreme poverty, f...
s. Countries suffering widespread poverty may experience loss of population, particularly in high-skilled professions, through emigration, which may further undermine their ability to improve their situation.

Poverty reduction


In politicsPolitics

Politics is the process by which groups make decisions....
, the fight against poverty is usually regarded as a social goal and many governments have institutions or departments dedicated to tackling poverty. One of the main debates in the field of poverty reduction is around the question of how actively the state should manage the economy and provide public services to tackle the problem of poverty. In the nineties, international development policies focused on a package of measures known and criticized as the "Washington ConsensusWashington Consensus

The Washington Consensus is a phrase initially coined in the early 1990s to describe a relatively specific set of ten econom...
" which involved reducing the scope of state activities, and reducing state intervention in the economy, reducing trade barriers and opening economies to foreign investment. Vigorous debate over these issues continues however, and most poverty reduction programs attempt to increase both the competitiveness of the economy and the viability of the state.

Economic growth


The anti-poverty strategy of the World BankWorld Bank

World Bank is an internationally supported bank that provides financial and technical assistance to developing countries fo...
 depends heavily on reducing poverty through the promotion of economic growthEconomic growth

Economic growth is the increase in value of the goods and services produced by an economy....
.. The World Bank argues that an overview of many studies shows that:
  • Growth is fundamental for poverty reduction, and in principle growth as such does not affect inequality.
  • Growth accompanied by progressive distributional change is better than growth alone.
  • High initial income inequality is a brake on poverty reduction.
  • Poverty itself is also likely to be a barrier for poverty reduction; and wealth inequality seems to predict lower future growth rates.

Free market

What could broadly be called free marketFree market

A free market is a market where price is determined by unregulated supply and demand; the opposite is a controlled market'...
 reforms represent one strategy for reducing poverty. For example, noted reductions in poverty in the 20th century have been in IndiaFacts About India

India , officially the Republic of India, is a country in South Asia....
 and ChinaFacts About China

China is a cultural region and ancient civilization in East Asia....
, where hundreds of millions of people in the two countries grew out of poverty, mostly as a result of the abandonment of collective farmingCollective farming

Collective farming is an organizational unit in agriculture in which peasants are not paid wages, but rather receive a share...
 in China and the cutting of government red tape in India. This was critical in fostering their dramatic economic growth. However, UN economists argue that for the market reforms to work, good infrastructure is needed. China is thus willing to invest in railways, roads, ports and rural telephony in various African countries as part of its winning formula for economic development, which was something that was considered too risky by many of Africa's traditional Western partners.

Developing countries face a range of obstacles to trading competitively on international markets. Almost half of the budget of the European UnionEuropean Union

The European Union is an intergovernmental and supranational union of 25 democratic member states....
 for example is directed to agricultural subsidiesAgricultural subsidy

An agricultural subsidy is a governmental subsidy paid to farmers to supplement their income, help manage the supply of agri...
, which primarily benefit large multinational agribusinesses who form a powerful lobby. Japan gave 47 billion dollars in 2005 in subsidies to its agricultural sector, nearly four times the amount it gave in total foreign aid. The US gives 3.9 billion dollars each year in subsidies to its cotton sector, including 25,000 growers, three times more in subsidies than the entire USAID budget for Africa, although America contributes a sum far larger than the 3.9 billion dollars through other agencies. Critics argue that agricultural subsidies in the developed world drain taxation revenue, increase the end-prices paid by consumers, and discourage efficiency improvements, while retaliatory trade barrierTrade barrier

A trade barrier is a general term that describes any government policy or regulation that restricts international trade, the...
s unfairly undermine the competitiveness of agricultural and other exports in those industries in which developing countries would otherwise have a significant comparative advantageComparative advantage

In economics, the theory of comparative advantage explains why it can be beneficial for two parties to trade, even though o...
s.

Bringing the market to remote, rural areas can bring farmerFarmer

A farmer is a person who is engaged in agrarian business by using land....
s the information to produce more profitably. For example, in EthiopiaEthiopia Summary

Ethiopia, officially the Federal Democratic Republic of Ethiopia, is a country situated in the Horn of Africa....
, remote farmers, who do not have this information, produce crops that may not bring the best profits. When they sell their products to a local trader, who then sells to another trader, and another, the cost of the food rises before it finally reaches the consumer in large cities. Economist Gabre-Madhin proposes warehouses where farmers could have constant updates of the latest market prices, making the farmer think nationally, not locally. Each warehouse would have an independent neutral party that would test and grade the farmer's harvest, allowing traders in Addis AbabaAddis Ababa

Addis Ababa is the capital city of Ethiopia and the African Union, as well as its predecessor, the OAU....
, and potentially outside Ethiopia, to place bids on food, even if it is unseen. Thus, if the farmer gets five cents in one place he would get three times the price by selling it in another part of the country where there may be a droughtDrought

A drought is an abnormally dry period when there is not enough water to support agricultural, urban or environmental water n...
.

The Global Competitiveness ReportGlobal Competitiveness Report

Global Competitiveness Report is an annual report on the competitiveness of economic entities in the world released by t...
, the Ease of Doing Business IndexEase of Doing Business Index Summary

The Ease of Doing Business Index is an index created by the World Bank....
, and the Index of Economic FreedomIndex of Economic Freedom

The Index of Economic Freedom is a series of 10 economic measurements created by the Wall Street Journal and The Heritage Fo...
 are annual reports, often used in academic research, ranking the worlds nations on factors argued to increase economic growth and reduce poverty.

A now defunct theory for reducing poverty suggests that raising tariffs and import substitution leads to greater wealth by protecting the country from free trade. This theory was practiced highly between the 1950s and 1970s when it appeared to fail to develop wealth. The theory assumes a lack of trade barriers on incoming (often highly subsidized) goods from wealthier countries is also considered by some economists a driver of poverty. Most countries have some history of import substitutionImport substitution

Import substitution industrialization is a trade and economic policy based on the premise that a developing country should a...
 and direct government protectionProtectionism

Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported ...
 of and investment in local industries. The theory claims that reducing tariffTariff

A tariff is a tax on imported goods....
 receipts can lower a major source of government revenue & spending, while raising tariffs may improve the terms of tradeTerms of trade Overview

In international economics and international trade, terms of trade are the ratio of the price of an export commodity/-ies to...
 for the poor. However, practice has shown that high tariffs lead to a stagnation of economic growth and development and the costs of the tariffs are borne most heavily on the poor.

Fair trade


Another approach to alleviating poverty is to implement Fair TradeFair trade

Fair Trade is an organised social movement which promotes equitable standards for international labour, environmentalism, an...
 which advocates the payment of a fair price as well as social and environmental standards in areas related to the production of goods.

Direct aid

  • The government can directly help those in need through cash transfers as a short term expedient. This has been applied with mixed results in most Western societiesFacts About Western world

    The term Western World or "the West" can have multiple meanings depending on its context....
     during the 20th century in what became known as the welfare stateWelfare State

    The Welfare State of the United Kingdom was the result of the William Beveridge Report in 1942, which identified five "Giant...
    . Especially for those most at risk, such as the elderly and people with disabilities.
  • Private charityCharity (practice)

    Sorry, no overview for this topic
    . Systems to encourage direct transfers to the poor by citizens organized into voluntary or not-for-profit groupings are often encouraged by the state through charitable trustCharitable trust

    A charitable trust is a trust established for charitable purposes....
    s and tax deduction arrangements.

Development aid

Most developed nations give development aidDevelopment aid

Development aid is aid given by developed countries to support the economic, sociological and political development of devel...
 to developing countries. The UN target for development aid is 0.7% of GDP; currently only a few nations achieve this. Some think tanks and NGOs have argued, however, that Western monetary aid often only serves to increase poverty and social inequality, either because it is conditioned with the implementation of harmful economic policies in the recipient countries , or because it's tied with the importing of products from the donor country over cheaper alternatives, or because foreign aid is seen to be serving the interests of the donor more than the recipient. Critics also argue that some of the foreign aid is stolen by corrupt governments and officials, and that higher aid levels erode the quality of governance. Policy becomes much more oriented toward what will get more aid money than it does towards meeting the needs of the people. Victor Bout, one of the worlds most notorious arms dealers, told the New York Times how he saw firsthand in AngolaAngola

Angola is a country in south-west Africa bordering Namibia, the Democratic Republic of the Congo, and Zambia, and with a wes...
, CongoRepublic of the Congo Overview

The Republic of the Congo, also known as Congo-Brazzaville, and Congo, is a former French colony of west-centra...
 and elsewhere "how Western donations to impoverished countries lead to the destruction of social and ecological balance, mutual resentment and eventually war." "Once countries give money, they control you." he says.

Supporters argue that these problems may be solved with better auditAudit

An audit is an evaluation of an organization, system, process, project or product....
ing of how the aid is used. Aid from non-governmental organizationNon-governmental organization

The term non-governmental organization is used in a variety of ways all over the world and, depending on the context in whi...
s may be more effective than governmental aid; this may be because it is better at reaching the poor and better controlled at the grassroots level. As a point of comparison, the annual world military spending is over $1 trillion.

Improving the environment and access of the poor

Numerous methods have been adduced to upgrade the situation of those in poverty, some contradictory to each other. Some of these mechanisms are:

  • Subsidized housingSubsidized housing

    Subsidized housing is government supported accommodation for people with low to moderate incomes....
     development.
  • Education, especially that directed at assisting the poor to produce food in underdeveloped countries.
  • Family planning to limit the numbers born into poverty and allow family incomes to better cover the existing family.
  • Subsidized health care.
  • Assistance in finding employment.
  • Subsidized employment (see also WorkfareWorkfare

    Workfare is an alternative model to conventional social welfare systems....
    ).
  • Encouragement of political participation and community organizingCommunity organizing

    Community organizing is a process by which people are brought together to act in common self-interest....
    .
  • Implementation of fair property rights laws.
  • Reduction of regulatory burden and bureaucratic oversight.
  • Reduction of taxation on income and capital.
  • Reduction of government spending, including a reduction in borrowing and printing money.

Millennium Development Goals

Eradication of extreme poverty and hungerHunger

Hunger is a feeling experienced by animals when the glycogen level of the liver falls below a certain point, usually followe...
 by 2015 is the first Millennium Development GoalMillennium Development Goals

The Millennium Development Goals are eight goals that all 191 United Nations member states have agreed to try to achieve by ...
. In addition to broader approaches, the SachsJeffrey Sachs

Jeffrey David Sachs is an American economist known for his work as an economic advisor to governments in Latin America, East...
 Report (for the UN Millennium Project) proposes a series of "quick wins", approaches identified by development experts which would cost relatively little but could have a major constructive effect on world poverty. The quick wins are:

  • Directly assisting local entrepreneurs to grow their businesses and create jobs.
  • Access to information on sexual and reproductive healthSexually transmitted disease Summary

    Sexually transmitted diseases also known as sexually transmissible diseases, sexually transmitted infections ...
    .
  • Action against domestic violenceDomestic violence

    Domestic violence occurs when a family member, partner or ex-partner attempts to physically or psychologically dominate or h...
    .
  • Appointing government scientific advisors in every country.
  • Deworming school children in affected areas.
  • Drugs for AIDSAIDS

    Acquired Immunodeficiency Syndrome or Acquired Immune Deficiency Syndrome is a collection of symptoms and infections i...
    , tuberculosisTuberculosis

    Tuberculosis is an infectious disease caused by the bacterium Mycobacterium tuberculosis, which most commonly affects t...
    , and malariaMalaria

    Malaria is an infectious disease that is widespread in many tropical and subtropical regions....
    .
  • Eliminating school feesTuition

    Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learn...
    .
  • Ending user feesFee-for-service

    Fee-for-service is health care coverage in which doctors and other health care providers receive a fee for each service such...
     for basic health care in developing countries.
  • Free school mealFree school meal

    The term free school meal refers to a sum of money provided for individual pupils in schools throughout the United Kingdom t...
    s for schoolchildren.
  • Legislation for women’s rights, including rights to property.
  • Planting trees.
  • Providing soil nutrientsFertilizer

    Fertilizers or fertilisers are compounds given to plants with the intention of promoting growth; they are usually app...
     to farmers in sub-Saharan AfricaSub-Saharan Africa Summary

    [Image:Sub-Saharan-Africa.png|thumb|249px|A polical map showing national divisions in relation to the ecological break]]Sub-Sah...
    .
  • Providing mosquito netMosquito net Overview

    A mosquito net offers protection against mosquitos, flies, and other insects, and thus against diseases such as malaria....
    s.
  • Access to electricityRural electrification

    Rural electrification is the process of bringing electrical power to rural and remote areas....
    , waterWater

    Water is a tasteless, odorless substance that is essential to all known forms of life and is known as the universal solve...
     and sanitationSanitation

    Sanitation is a term for the hygienic disposal or recycling of waste materials, particularly human excrement and urine....
    .
  • Supporting breast-feeding.
  • Training programs for community healthCommunity health

    Community health is a discipline that concerns itself with the study and betterment of the health characteristics of communi...
     in rural areas.
  • Upgrading slums, and providing land for public housing.

Other approaches

The Copenhagen ConsensusCopenhagen Consensus

Copenhagen Consensus is a project that seeks to establish priorities for advancing global welfare using methodologies based ...
 was an attempt to rank global welfare improvement programs in terms of their urgency and cost-effectiveness; Direct Aid to combat HIVHIV

Human immunodeficiency virus or HIV is a retrovirus that causes Acquired Immunodeficiency Syndrome , a condition i...
 infection was determined to be the top priority.

Some argue for a radical change of the economic system. There are several proposals for a fundamental restructuring of existing economic relations, and many of their supporters argue that their ideas would reduce or even eliminate poverty entirely if they were implemented. Such proposals have been put forward by both left-wing and right-wing groups: socialismSocialism

Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which propert...
, communismCommunism

Communism is an ideology that seeks to establish a future classless, stateless social organization, based upon common owners...
, anarchismAnarchism

Anarchism is the name of a political philosophy or a group of doctrines and attitudes that are centered on rejection of gove...
, libertarianismLibertarianism

||-||}Libertarianism is a political philosophy advocating that individuals should be free to do whatever they wish with ...
, binary economicsBinary Economics

Binary economics is a new, highly modern, economics which, uniquely, combines efficiency with a specific social and economic justi...
 and participatory economicsParticipatory economics

Participatory economics, often abbreviated parecon, is a proposed economic system that uses participatory decision mak...
, among others.

Proponents of such taxes argue that absolute or relative poverty can be reduced by progressive taxation, a wealth taxWealth tax

Because of the broad term "wealth", property tax, capital transfer taxes, endowment tax and capital gains taxes are sometimes refe...
, and an inheritance taxInheritance tax

Inheritance tax, estate tax and death duty are the names given to various taxes which arise on the death of an i...
.

The IMF and member countries have produced Poverty Reduction Strategy papers or PRSPs.

In his book The End of Poverty (ISBN 1594200459), a prominent economist named Jeffrey SachsJeffrey Sachs

Jeffrey David Sachs is an American economist known for his work as an economic advisor to governments in Latin America, East...
 laid out a plan to eradicate global poverty by the year 2025. Following his recommendations, international organizations are working to help eradicate poverty worldwide with intervention in the areas of housing, food, education, basic health, agricultural inputs, safe drinking water, transportation and communications.

Voluntary poverty




Among some individuals, such as asceticsAsceticism Summary

Asceticism describes a life characterized by abstaining from worldly pleasures....
, poverty is considered a necessary or desirable condition, which must be embraced in order to reach certain spiritual, moral, or intellectual states. Poverty is often understood to be an essential element of renunciationNekkhamma

Nekkhamma is one of the ten paramis or perfections that a bodhisattva must develop in order to become a Buddha....
 in religions such as BuddhismBuddhism

Buddhism is a dharmic, non-theistic religion, a way of life, a practical philosophy, and arguably a form of psychology....
 and JainismJainism

Jainism , traditionally known as Jain Dharma , is a religion and philosophy originating in ancient India....
, whilst in Roman Catholicism it is one of the evangelical counselsEvangelical counsels

The evangelical counsels or counsels of perfection are poverty, chastity, and obedience....
. Certain religious orderReligious order

A religious order is an organization of people who live to achieve a common purpose through a form of promised or vowed life...
s also take a vowVow

A vow is a transaction between a person and his/her/its deity whereby the former undertakes in the future to render some ser...
 of poverty. For example, the FranciscanFranciscan

The term Franciscan is used to refer to the Roman Catholic orders which follow the monastic rule of St....
 orders have traditionally forgone all individual and corporate forms of ownership. However, while individual ownership of goods and wealth is forbidden for Benedictines, following the Rule of St. Benedict, the monasteryMonastery

Monastery, a term derived from the Greek word ??ast????? monasterion, denotes the habitation-and-workplace of a communit...
 itself may possess both goods and money, and throughout history some monasteries have become very rich indeed.

In this context of religious vows, poverty may be understood as a means of self-denial in order to place oneself at the service of others; Pope Honorius III wrote in 1217 that the DominicansDominican Order

The Order of Preachers , more commonly known as the Dominican Order, or Dominicans is a Catholic religious order...
 "lived a life of voluntary poverty, exposing themselves to innumerable dangers and sufferings, for the salvation of others". However, following JesusJesus

Jesus,Some of the historians and Biblical scholars who place the birth and death of Jesus within this range include D....
' warning that riches can be like thorns that choke up the good seed of the word, voluntary poverty is often understood by Christians as of benefit to the individual - a form of self-discipline by which one distances oneself from distractions from GodGod

God is the deity believed by monotheists to be the supreme reality....
.

Etym