Factors that cause poverty
1. Income inequality
Research shows that when a country grows economically, overall poverty reduces. If the national income is not equally distributed among all communities in the country, there is a risk that poorer communities will end up poorer, and individuals will feel it most.
2. Conflicts and Unrests
About 33% of communities in absolute poverty live in places of conflict. In the past, countries like Rwanda and Sri-Lanka have suffered poverty as a result of years of tribal and civil wars. In recent years, Afghanistan, Iraq and the like are all going through difficult times and poverty is rife in these areas. Unrests result in massive loss of human live, diseases, hunger and violence, destruction of property and infrastructure, economic investments and quality labour. It is also a put-off for foreign investments. Wealth can never be created in such an environment.
3. Location, adverse ecology and location
Location of countries, as well as communities within the country can make people poor. Geographic and ecological factors such as mountains, swamps, deserts and the like have also made life conditions unbearable in many places. This is why some rural areas are poorer than others, even in the same country. For example, poverty in the Andes, Peru is six times higher than communities in the Amazonian region.
In other instances, some communities are cut off from the main economic centers of the country. They find themselves located so far from roads, markets, health services, schools and economic facilities. This makes it just impossible for the locals to access support and assistance, and also makes it discouraging for economic investors to consider investing there. In Bangladesh for example, poverty is severe in areas of physical remoteness, as indicated by the fact that seven rural districts are home to half of the country’s severely stunted children.
4. Natural disasters
Droughts, floods, hurricanes and other...