A color photograph of a mother and son in a car. Both are holding dogs on their laps and a third dog lays his head over the passenger seat.

Why Poverty Persists in America

A Pulitzer Prize-winning sociologist offers a new explanation for an intractable problem.

A mother and son living in a Walmart parking lot in North Dakota in 2012. Credit... Eugene Richards

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By Matthew Desmond

  • Published March 9, 2023 Updated April 3, 2023

In the past 50 years, scientists have mapped the entire human genome and eradicated smallpox. Here in the United States, infant-mortality rates and deaths from heart disease have fallen by roughly 70 percent, and the average American has gained almost a decade of life. Climate change was recognized as an existential threat. The internet was invented.

On the problem of poverty, though, there has been no real improvement — just a long stasis. As estimated by the federal government’s poverty line, 12.6 percent of the U.S. population was poor in 1970; two decades later, it was 13.5 percent; in 2010, it was 15.1 percent; and in 2019, it was 10.5 percent. To graph the share of Americans living in poverty over the past half-century amounts to drawing a line that resembles gently rolling hills. The line curves slightly up, then slightly down, then back up again over the years, staying steady through Democratic and Republican administrations, rising in recessions and falling in boom years.

What accounts for this lack of progress? It cannot be chalked up to how the poor are counted: Different measures spit out the same embarrassing result. When the government began reporting the Supplemental Poverty Measure in 2011, designed to overcome many of the flaws of the Official Poverty Measure, including not accounting for regional differences in costs of living and government benefits, the United States officially gained three million more poor people. Possible reductions in poverty from counting aid like food stamps and tax benefits were more than offset by recognizing how low-income people were burdened by rising housing and health care costs.

The American poor have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most.

Any fair assessment of poverty must confront the breathtaking march of material progress. But the fact that standards of living have risen across the board doesn’t mean that poverty itself has fallen. Forty years ago, only the rich could afford cellphones. But cellphones have become more affordable over the past few decades, and now most Americans have one, including many poor people. This has led observers like Ron Haskins and Isabel Sawhill, senior fellows at the Brookings Institution, to assert that “access to certain consumer goods,” like TVs, microwave ovens and cellphones, shows that “the poor are not quite so poor after all.”

No, it doesn’t. You can’t eat a cellphone. A cellphone doesn’t grant you stable housing, affordable medical and dental care or adequate child care. In fact, as things like cellphones have become cheaper, the cost of the most necessary of life’s necessities, like health care and rent, has increased. From 2000 to 2022 in the average American city, the cost of fuel and utilities increased by 115 percent. The American poor, living as they do in the center of global capitalism, have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most. As Michael Harrington put it 60 years ago: “It is much easier in the United States to be decently dressed than it is to be decently housed, fed or doctored.”

Why, then, when it comes to poverty reduction, have we had 50 years of nothing? When I first started looking into this depressing state of affairs, I assumed America’s efforts to reduce poverty had stalled because we stopped trying to solve the problem. I bought into the idea, popular among progressives, that the election of President Ronald Reagan (as well as that of Prime Minister Margaret Thatcher in the United Kingdom) marked the ascendancy of market fundamentalism, or “neoliberalism,” a time when governments cut aid to the poor, lowered taxes and slashed regulations. If American poverty persisted, I thought, it was because we had reduced our spending on the poor. But I was wrong.

A black-and-white photograph of a family in a car. The mother is laying down in the front looking up despondently. Two children are crouched in the back. A boy looks out from under pieces of furniture looking directly into the camera from the shadows.

Reagan expanded corporate power, deeply cut taxes on the rich and rolled back spending on some antipoverty initiatives, especially in housing. But he was unable to make large-scale, long-term cuts to many of the programs that make up the American welfare state. Throughout Reagan’s eight years as president, antipoverty spending grew, and it continued to grow after he left office. Spending on the nation’s 13 largest means-tested programs — aid reserved for Americans who fall below a certain income level — went from $1,015 a person the year Reagan was elected president to $3,419 a person one year into Donald Trump’s administration, a 237 percent increase.

Most of this increase was due to health care spending, and Medicaid in particular. But even if we exclude Medicaid from the calculation, we find that federal investments in means-tested programs increased by 130 percent from 1980 to 2018, from $630 to $1,448 per person.

“Neoliberalism” is now part of the left’s lexicon, but I looked in vain to find it in the plain print of federal budgets, at least as far as aid to the poor was concerned. There is no evidence that the United States has become stingier over time. The opposite is true.

This makes the country’s stalled progress on poverty even more baffling. Decade after decade, the poverty rate has remained flat even as federal relief has surged.

If we have more than doubled government spending on poverty and achieved so little, one reason is that the American welfare state is a leaky bucket. Take welfare, for example: When it was administered through the Aid to Families With Dependent Children program, almost all of its funds were used to provide single-parent families with cash assistance. But when President Bill Clinton reformed welfare in 1996, replacing the old model with Temporary Assistance for Needy Families (TANF), he transformed the program into a block grant that gives states considerable leeway in deciding how to distribute the money. As a result, states have come up with rather creative ways to spend TANF dollars. Arizona has used welfare money to pay for abstinence-only sex education. Pennsylvania diverted TANF funds to anti-abortion crisis-pregnancy centers. Maine used the money to support a Christian summer camp. Nationwide, for every dollar budgeted for TANF in 2020, poor families directly received just 22 cents.

We’ve approached the poverty question by pointing to poor people themselves, when we should have been focusing on exploitation.

A fair amount of government aid earmarked for the poor never reaches them. But this does not fully solve the puzzle of why poverty has been so stubbornly persistent, because many of the country’s largest social-welfare programs distribute funds directly to people. Roughly 85 percent of the Supplemental Nutrition Assistance Program budget is dedicated to funding food stamps themselves, and almost 93 percent of Medicaid dollars flow directly to beneficiaries.

There are, it would seem, deeper structural forces at play, ones that have to do with the way the American poor are routinely taken advantage of. The primary reason for our stalled progress on poverty reduction has to do with the fact that we have not confronted the unrelenting exploitation of the poor in the labor, housing and financial markets.

As a theory of poverty, “exploitation” elicits a muddled response, causing us to think of course and but, no in the same instant. The word carries a moral charge, but social scientists have a fairly coolheaded way to measure exploitation: When we are underpaid relative to the value of what we produce, we experience labor exploitation; when we are overcharged relative to the value of something we purchase, we experience consumer exploitation. For example, if a family paid $1,000 a month to rent an apartment with a market value of $20,000, that family would experience a higher level of renter exploitation than a family who paid the same amount for an apartment with a market valuation of $100,000. When we don’t own property or can’t access credit, we become dependent on people who do and can, which in turn invites exploitation, because a bad deal for you is a good deal for me.

Our vulnerability to exploitation grows as our liberty shrinks. Because labor laws often fail to protect undocumented workers in practice, more than a third are paid below minimum wage, and nearly 85 percent are not paid overtime. Many of us who are U.S. citizens, or who crossed borders through official checkpoints, would not work for these wages. We don’t have to. If they migrate here as adults, those undocumented workers choose the terms of their arrangement. But just because desperate people accept and even seek out exploitative conditions doesn’t make those conditions any less exploitative. Sometimes exploitation is simply the best bad option.

Consider how many employers now get one over on American workers. The United States offers some of the lowest wages in the industrialized world. A larger share of workers in the United States make “low pay” — earning less than two-thirds of median wages — than in any other country belonging to the Organization for Economic Cooperation and Development. According to the group, nearly 23 percent of American workers labor in low-paying jobs, compared with roughly 17 percent in Britain, 11 percent in Japan and 5 percent in Italy. Poverty wages have swollen the ranks of the American working poor, most of whom are 35 or older.

One popular theory for the loss of good jobs is deindustrialization, which caused the shuttering of factories and the hollowing out of communities that had sprung up around them. Such a passive word, “deindustrialization” — leaving the impression that it just happened somehow, as if the country got deindustrialization the way a forest gets infested by bark beetles. But economic forces framed as inexorable, like deindustrialization and the acceleration of global trade, are often helped along by policy decisions like the 1994 North American Free Trade Agreement, which made it easier for companies to move their factories to Mexico and contributed to the loss of hundreds of thousands of American jobs. The world has changed, but it has changed for other economies as well. Yet Belgium and Canada and many other countries haven’t experienced the kind of wage stagnation and surge in income inequality that the United States has.

Those countries managed to keep their unions. We didn’t. Throughout the 1950s and 1960s, nearly a third of all U.S. workers carried union cards. These were the days of the United Automobile Workers, led by Walter Reuther, once savagely beaten by Ford’s brass-knuckle boys, and of the mighty American Federation of Labor and Congress of Industrial Organizations that together represented around 15 million workers, more than the population of California at the time.

In their heyday, unions put up a fight. In 1970 alone, 2.4 million union members participated in work stoppages, wildcat strikes and tense standoffs with company heads. The labor movement fought for better pay and safer working conditions and supported antipoverty policies. Their efforts paid off for both unionized and nonunionized workers, as companies like Eastman Kodak were compelled to provide generous compensation and benefits to their workers to prevent them from organizing. By one estimate, the wages of nonunionized men without a college degree would be 8 percent higher today if union strength remained what it was in the late 1970s, a time when worker pay climbed, chief-executive compensation was reined in and the country experienced the most economically equitable period in modern history.

It is important to note that Old Labor was often a white man’s refuge. In the 1930s, many unions outwardly discriminated against Black workers or segregated them into Jim Crow local chapters. In the 1960s, unions like the Brotherhood of Railway and Steamship Clerks and the United Brotherhood of Carpenters and Joiners of America enforced segregation within their ranks. Unions harmed themselves through their self-defeating racism and were further weakened by a changing economy. But organized labor was also attacked by political adversaries. As unions flagged, business interests sensed an opportunity. Corporate lobbyists made deep inroads in both political parties, beginning a public-relations campaign that pressured policymakers to roll back worker protections.

A national litmus test arrived in 1981, when 13,000 unionized air traffic controllers left their posts after contract negotiations with the Federal Aviation Administration broke down. When the workers refused to return, Reagan fired all of them. The public’s response was muted, and corporate America learned that it could crush unions with minimal blowback. And so it went, in one industry after another.

Today almost all private-sector employees (94 percent) are without a union, though roughly half of nonunion workers say they would organize if given the chance. They rarely are. Employers have at their disposal an arsenal of tactics designed to prevent collective bargaining, from hiring union-busting firms to telling employees that they could lose their jobs if they vote yes. Those strategies are legal, but companies also make illegal moves to block unions, like disciplining workers for trying to organize or threatening to close facilities. In 2016 and 2017, the National Labor Relations Board charged 42 percent of employers with violating federal law during union campaigns. In nearly a third of cases, this involved illegally firing workers for organizing.

Corporate lobbyists told us that organized labor was a drag on the economy — that once the companies had cleared out all these fusty, lumbering unions, the economy would rev up, raising everyone’s fortunes. But that didn’t come to pass. The negative effects of unions have been wildly overstated, and there is now evidence that unions play a role in increasing company productivity, for example by reducing turnover. The U.S. Bureau of Labor Statistics measures productivity as how efficiently companies turn inputs (like materials and labor) into outputs (like goods and services). Historically, productivity, wages and profits rise and fall in lock step. But the American economy is less productive today than it was in the post-World War II period, when unions were at peak strength. The economies of other rich countries have slowed as well, including those with more highly unionized work forces, but it is clear that diluting labor power in America did not unleash economic growth or deliver prosperity to more people. “We were promised economic dynamism in exchange for inequality,” Eric Posner and Glen Weyl write in their book “Radical Markets.” “We got the inequality, but dynamism is actually declining.”

As workers lost power, their jobs got worse. For several decades after World War II, ordinary workers’ inflation-adjusted wages (known as “real wages”) increased by 2 percent each year. But since 1979, real wages have grown by only 0.3 percent a year. Astonishingly, workers with a high school diploma made 2.7 percent less in 2017 than they would have in 1979, adjusting for inflation. Workers without a diploma made nearly 10 percent less.

Lousy, underpaid work is not an indispensable, if regrettable, byproduct of capitalism, as some business defenders claim today. (This notion would have scandalized capitalism’s earliest defenders. John Stuart Mill, arch advocate of free people and free markets, once said that if widespread scarcity was a hallmark of capitalism, he would become a communist.) But capitalism is inherently about owners trying to give as little, and workers trying to get as much, as possible. With unions largely out of the picture, corporations have chipped away at the conventional midcentury work arrangement, which involved steady employment, opportunities for advancement and raises and decent pay with some benefits.

As the sociologist Gerald Davis has put it: Our grandparents had careers. Our parents had jobs. We complete tasks. Or at least that has been the story of the American working class and working poor.

Poor Americans aren’t just exploited in the labor market. They face consumer exploitation in the housing and financial markets as well.

There is a long history of slum exploitation in America. Money made slums because slums made money. Rent has more than doubled over the past two decades, rising much faster than renters’ incomes. Median rent rose from $483 in 2000 to $1,216 in 2021. Why have rents shot up so fast? Experts tend to offer the same rote answers to this question. There’s not enough housing supply, they say, and too much demand. Landlords must charge more just to earn a decent rate of return. Must they? How do we know?

We need more housing; no one can deny that. But rents have jumped even in cities with plenty of apartments to go around. At the end of 2021, almost 19 percent of rental units in Birmingham, Ala., sat vacant, as did 12 percent of those in Syracuse, N.Y. Yet rent in those areas increased by roughly 14 percent and 8 percent, respectively, over the previous two years. National data also show that rental revenues have far outpaced property owners’ expenses in recent years, especially for multifamily properties in poor neighborhoods. Rising rents are not simply a reflection of rising operating costs. There’s another dynamic at work, one that has to do with the fact that poor people — and particularly poor Black families — don’t have much choice when it comes to where they can live. Because of that, landlords can overcharge them, and they do.

A study I published with Nathan Wilmers found that after accounting for all costs, landlords operating in poor neighborhoods typically take in profits that are double those of landlords operating in affluent communities. If down-market landlords make more, it’s because their regular expenses (especially their mortgages and property-tax bills) are considerably lower than those in upscale neighborhoods. But in many cities with average or below-average housing costs — think Buffalo, not Boston — rents in the poorest neighborhoods are not drastically lower than rents in the middle-class sections of town. From 2015 to 2019, median monthly rent for a two-bedroom apartment in the Indianapolis metropolitan area was $991; it was $816 in neighborhoods with poverty rates above 40 percent, just around 17 percent less. Rents are lower in extremely poor neighborhoods, but not by as much as you would think.

Yet where else can poor families live? They are shut out of homeownership because banks are disinclined to issue small-dollar mortgages, and they are also shut out of public housing, which now has waiting lists that stretch on for years and even decades. Struggling families looking for a safe, affordable place to live in America usually have but one choice: to rent from private landlords and fork over at least half their income to rent and utilities. If millions of poor renters accept this state of affairs, it’s not because they can’t afford better alternatives; it’s because they often aren’t offered any.

You can read injunctions against usury in the Vedic texts of ancient India, in the sutras of Buddhism and in the Torah. Aristotle and Aquinas both rebuked it. Dante sent moneylenders to the seventh circle of hell. None of these efforts did much to stem the practice, but they do reveal that the unprincipled act of trapping the poor in a cycle of debt has existed at least as long as the written word. It might be the oldest form of exploitation after slavery. Many writers have depicted America’s poor as unseen, shadowed and forgotten people: as “other” or “invisible.” But markets have never failed to notice the poor, and this has been particularly true of the market for money itself.

The deregulation of the banking system in the 1980s heightened competition among banks. Many responded by raising fees and requiring customers to carry minimum balances. In 1977, over a third of banks offered accounts with no service charge. By the early 1990s, only 5 percent did. Big banks grew bigger as community banks shuttered, and in 2021, the largest banks in America charged customers almost $11 billion in overdraft fees. Previous research showed that just 9 percent of account holders paid 84 percent of these fees. Who were the unlucky 9 percent? Customers who carried an average balance of less than $350. The poor were made to pay for their poverty.

In 2021, the average fee for overdrawing your account was $33.58. Because banks often issue multiple charges a day, it’s not uncommon to overdraw your account by $20 and end up paying $200 for it. Banks could (and do) deny accounts to people who have a history of overextending their money, but those customers also provide a steady revenue stream for some of the most powerful financial institutions in the world.

Every year: almost $11 billion in overdraft fees, $1.6 billion in check-cashing fees and up to $8.2 billion in payday-loan fees.

According to the F.D.I.C., one in 19 U.S. households had no bank account in 2019, amounting to more than seven million families. Compared with white families, Black and Hispanic families were nearly five times as likely to lack a bank account. Where there is exclusion, there is exploitation. Unbanked Americans have created a market, and thousands of check-cashing outlets now serve that market. Check-cashing stores generally charge from 1 to 10 percent of the total, depending on the type of check. That means that a worker who is paid $10 an hour and takes a $1,000 check to a check-cashing outlet will pay $10 to $100 just to receive the money he has earned, effectively losing one to 10 hours of work. (For many, this is preferable to the less-predictable exploitation by traditional banks, with their automatic overdraft fees. It’s the devil you know.) In 2020, Americans spent $1.6 billion just to cash checks. If the poor had a costless way to access their own money, over a billion dollars would have remained in their pockets during the pandemic-induced recession.

Poverty can mean missed payments, which can ruin your credit. But just as troublesome as bad credit is having no credit score at all, which is the case for 26 million adults in the United States. Another 19 million possess a credit history too thin or outdated to be scored. Having no credit (or bad credit) can prevent you from securing an apartment, buying insurance and even landing a job, as employers are increasingly relying on credit checks during the hiring process. And when the inevitable happens — when you lose hours at work or when the car refuses to start — the payday-loan industry steps in.

For most of American history, regulators prohibited lending institutions from charging exorbitant interest on loans. Because of these limits, banks kept interest rates between 6 and 12 percent and didn’t do much business with the poor, who in a pinch took their valuables to the pawnbroker or the loan shark. But the deregulation of the banking sector in the 1980s ushered the money changers back into the temple by removing strict usury limits. Interest rates soon reached 300 percent, then 500 percent, then 700 percent. Suddenly, some people were very interested in starting businesses that lent to the poor. In recent years, 17 states have brought back strong usury limits, capping interest rates and effectively prohibiting payday lending. But the trade thrives in most places. The annual percentage rate for a two-week $300 loan can reach 460 percent in California, 516 percent in Wisconsin and 664 percent in Texas.

Roughly a third of all payday loans are now issued online, and almost half of borrowers who have taken out online loans have had lenders overdraw their bank accounts. The average borrower stays indebted for five months, paying $520 in fees to borrow $375. Keeping people indebted is, of course, the ideal outcome for the payday lender. It’s how they turn a $15 profit into a $150 one. Payday lenders do not charge high fees because lending to the poor is risky — even after multiple extensions, most borrowers pay up. Lenders extort because they can.

Every year: almost $11 billion in overdraft fees, $1.6 billion in check-cashing fees and up to $8.2 billion in payday-loan fees. That’s more than $55 million in fees collected predominantly from low-income Americans each day — not even counting the annual revenue collected by pawnshops and title loan services and rent-to-own schemes. When James Baldwin remarked in 1961 how “extremely expensive it is to be poor,” he couldn’t have imagined these receipts.

“Predatory inclusion” is what the historian Keeanga-Yamahtta Taylor calls it in her book “Race for Profit,” describing the longstanding American tradition of incorporating marginalized people into housing and financial schemes through bad deals when they are denied good ones. The exclusion of poor people from traditional banking and credit systems has forced them to find alternative ways to cash checks and secure loans, which has led to a normalization of their exploitation. This is all perfectly legal, after all, and subsidized by the nation’s richest commercial banks. The fringe banking sector would not exist without lines of credit extended by the conventional one. Wells Fargo and JPMorgan Chase bankroll payday lenders like Advance America and Cash America. Everybody gets a cut.

Poverty isn’t simply the condition of not having enough money. It’s the condition of not having enough choice and being taken advantage of because of that. When we ignore the role that exploitation plays in trapping people in poverty, we end up designing policy that is weak at best and ineffective at worst. For example, when legislation lifts incomes at the bottom without addressing the housing crisis, those gains are often realized instead by landlords, not wholly by the families the legislation was intended to help. A 2019 study conducted by the Federal Reserve Bank of Philadelphia found that when states raised minimum wages, families initially found it easier to pay rent. But landlords quickly responded to the wage bumps by increasing rents, which diluted the effect of the policy. This happened after the pandemic rescue packages, too: When wages began to rise in 2021 after worker shortages, rents rose as well, and soon people found themselves back where they started or worse.

Antipoverty programs work. Each year, millions of families are spared the indignities and hardships of severe deprivation because of these government investments. But our current antipoverty programs cannot abolish poverty by themselves. The Johnson administration started the War on Poverty and the Great Society in 1964. These initiatives constituted a bundle of domestic programs that included the Food Stamp Act, which made food aid permanent; the Economic Opportunity Act, which created Job Corps and Head Start; and the Social Security Amendments of 1965, which founded Medicare and Medicaid and expanded Social Security benefits. Nearly 200 pieces of legislation were signed into law in President Lyndon B. Johnson’s first five years in office, a breathtaking level of activity. And the result? Ten years after the first of these programs were rolled out in 1964, the share of Americans living in poverty was half what it was in 1960.

But the War on Poverty and the Great Society were started during a time when organized labor was strong, incomes were climbing, rents were modest and the fringe banking industry as we know it today didn’t exist. Today multiple forms of exploitation have turned antipoverty programs into something like dialysis, a treatment designed to make poverty less lethal, not to make it disappear.

This means we don’t just need deeper antipoverty investments. We need different ones, policies that refuse to partner with poverty, policies that threaten its very survival. We need to ensure that aid directed at poor people stays in their pockets, instead of being captured by companies whose low wages are subsidized by government benefits, or by landlords who raise the rents as their tenants’ wages rise, or by banks and payday-loan outlets who issue exorbitant fines and fees. Unless we confront the many forms of exploitation that poor families face, we risk increasing government spending only to experience another 50 years of sclerosis in the fight against poverty.

The best way to address labor exploitation is to empower workers. A renewed contract with American workers should make organizing easy. As things currently stand, unionizing a workplace is incredibly difficult. Under current labor law, workers who want to organize must do so one Amazon warehouse or one Starbucks location at a time. We have little chance of empowering the nation’s warehouse workers and baristas this way. This is why many new labor movements are trying to organize entire sectors. The Fight for $15 campaign, led by the Service Employees International Union, doesn’t focus on a single franchise (a specific McDonald’s store) or even a single company (McDonald’s) but brings together workers from several fast-food chains. It’s a new kind of labor power, and one that could be expanded: If enough workers in a specific economic sector — retail, hotel services, nursing — voted for the measure, the secretary of labor could establish a bargaining panel made up of representatives elected by the workers. The panel could negotiate with companies to secure the best terms for workers across the industry. This is a way to organize all Amazon warehouses and all Starbucks locations in a single go.

Sectoral bargaining, as it’s called, would affect tens of millions of Americans who have never benefited from a union of their own, just as it has improved the lives of workers in Europe and Latin America. The idea has been criticized by members of the business community, like the U.S. Chamber of Commerce, which has raised concerns about the inflexibility and even the constitutionality of sectoral bargaining, as well as by labor advocates, who fear that industrywide policies could nullify gains that existing unions have made or could be achieved only if workers make other sacrifices. Proponents of the idea counter that sectoral bargaining could even the playing field, not only between workers and bosses, but also between companies in the same sector that would no longer be locked into a race to the bottom, with an incentive to shortchange their work force to gain a competitive edge. Instead, the companies would be forced to compete over the quality of the goods and services they offer. Maybe we would finally reap the benefits of all that economic productivity we were promised.

We must also expand the housing options for low-income families. There isn’t a single right way to do this, but there is clearly a wrong way: the way we’re doing it now. One straightforward approach is to strengthen our commitment to the housing programs we already have. Public housing provides affordable homes to millions of Americans, but it’s drastically underfunded relative to the need. When the wealthy township of Cherry Hill, N.J., opened applications for 29 affordable apartments in 2021, 9,309 people applied. The sky-high demand should tell us something, though: that affordable housing is a life changer, and families are desperate for it.

We could also pave the way for more Americans to become homeowners, an initiative that could benefit poor, working-class and middle-class families alike — as well as scores of young people. Banks generally avoid issuing small-dollar mortgages, not because they’re riskier — these mortgages have the same delinquency rates as larger mortgages — but because they’re less profitable. Over the life of a mortgage, interest on $1 million brings in a lot more money than interest on $75,000. This is where the federal government could step in, providing extra financing to build on-ramps to first-time homeownership. In fact, it already does so in rural America through the 502 Direct Loan Program, which has moved more than two million families into their own homes. These loans, fully guaranteed and serviced by the Department of Agriculture, come with low interest rates and, for very poor families, cover the entire cost of the mortgage, nullifying the need for a down payment. Last year, the average 502 Direct Loan was for $222,300 but cost the government only $10,370 per loan, chump change for such a durable intervention. Expanding a program like this into urban communities would provide even more low- and moderate-income families with homes of their own.

We should also ensure fair access to capital. Banks should stop robbing the poor and near-poor of billions of dollars each year, immediately ending exorbitant overdraft fees. As the legal scholar Mehrsa Baradaran has pointed out, when someone overdraws an account, banks could simply freeze the transaction or could clear a check with insufficient funds, providing customers a kind of short-term loan with a low interest rate of, say, 1 percent a day.

States should rein in payday-lending institutions and insist that lenders make it clear to potential borrowers what a loan is ultimately likely to cost them. Just as fast-food restaurants must now publish calorie counts next to their burgers and shakes, payday-loan stores should publish the average overall cost of different loans. When Texas adopted disclosure rules, residents took out considerably fewer bad loans. If Texas can do this, why not California or Wisconsin? Yet to stop financial exploitation, we need to expand, not limit, low-income Americans’ access to credit. Some have suggested that the government get involved by having the U.S. Postal Service or the Federal Reserve issue small-dollar loans. Others have argued that we should revise government regulations to entice commercial banks to pitch in. Whatever our approach, solutions should offer low-income Americans more choice, a way to end their reliance on predatory lending institutions that can get away with robbery because they are the only option available.

In Tommy Orange’s novel, “There There,” a man trying to describe the problem of suicides on Native American reservations says: “Kids are jumping out the windows of burning buildings, falling to their deaths. And we think the problem is that they’re jumping.” The poverty debate has suffered from a similar kind of myopia. For the past half-century, we’ve approached the poverty question by pointing to poor people themselves — posing questions about their work ethic, say, or their welfare benefits — when we should have been focusing on the fire. The question that should serve as a looping incantation, the one we should ask every time we drive past a tent encampment, those tarped American slums smelling of asphalt and bodies, or every time we see someone asleep on the bus, slumped over in work clothes, is simply: Who benefits? Not: Why don’t you find a better job? Or: Why don’t you move? Or: Why don’t you stop taking out payday loans? But: Who is feeding off this?

Those who have amassed the most power and capital bear the most responsibility for America’s vast poverty: political elites who have utterly failed low-income Americans over the past half-century; corporate bosses who have spent and schemed to prioritize profits over families; lobbyists blocking the will of the American people with their self-serving interests; property owners who have exiled the poor from entire cities and fueled the affordable-housing crisis. Acknowledging this is both crucial and deliciously absolving; it directs our attention upward and distracts us from all the ways (many unintentional) that we — we the secure, the insured, the housed, the college-educated, the protected, the lucky — also contribute to the problem.

Corporations benefit from worker exploitation, sure, but so do consumers, who buy the cheap goods and services the working poor produce, and so do those of us directly or indirectly invested in the stock market. Landlords are not the only ones who benefit from housing exploitation; many homeowners do, too, their property values propped up by the collective effort to make housing scarce and expensive. The banking and payday-lending industries profit from the financial exploitation of the poor, but so do those of us with free checking accounts, as those accounts are subsidized by billions of dollars in overdraft fees.

Living our daily lives in ways that express solidarity with the poor could mean we pay more; anti-exploitative investing could dampen our stock portfolios. By acknowledging those costs, we acknowledge our complicity. Unwinding ourselves from our neighbors’ deprivation and refusing to live as enemies of the poor will require us to pay a price. It’s the price of our restored humanity and renewed country.

Matthew Desmond is a professor of sociology at Princeton University and a contributing writer for the magazine. His latest book, “Poverty, by America,” from which this article is adapted, is being published on March 21 by Crown.

An earlier version of this article referred incorrectly to the legal protections for undocumented workers. They are afforded rights under U.S. labor laws, though in practice those laws often fail to protect them.

An earlier version of this article implied an incorrect date for a statistic about overdraft fees. The research was conducted between 2005 and 2012, not in 2021.

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7 Essays About Poverty: Example Essays and Prompts

Essays about poverty give valuable insight into the economic situation that we share globally. Read our guide with poverty essay examples and prompts for your paper.

In the US, the official poverty rate in 2022 was 11.5 percent, with 37.9 million people living below the poverty line. With a global pandemic, cost of living crisis, and climate change on the rise, we’ve seen poverty increase due to various factors. As many of us face adversity daily, we can look to essays about poverty from some of the world’s greatest speakers for inspiration and guidance.

There is nothing but a lack of social vision to prevent us from paying an adequate wage to every American citizen whether he be a hospital worker, laundry worker, maid or day laborer. There is nothing except shortsightedness to prevent us from guaranteeing an annual minimum—and livable—income for every American family. Martin Luther King Jr., Where Do We Go from Here: Chaos or Community?

Writing a poverty essay can be challenging due to the many factors contributing to poverty and the knock-on effects of living below the poverty line . For example, homelessness among low-income individuals stems from many different causes.

It’s important to note that poverty exists beyond the US, with many developing countries living in extreme poverty without access to essentials like clean water and housing. For help with your essays, check out our round-up of the best essay checkers .

Essays About Poverty: Top Examples

1. pensioner poverty: fear of rise over decades as uk under-40s wealth falls, 2. the surprising poverty levels across the u.s., 3. why poverty persists in america, 4. post-pandemic poverty is rising in america’s suburbs.

  • 5. The Basic Facts About Children in Poverty
  • 6. The State of America’s Children 
  • 7. COVID-19: This is how many Americans now live below the poverty line

10 Poverty Essay Topics

1. the causes of poverty, 2. the negative effects of poverty, 3. how countries can reduce poverty rates, 4. the basic necessities and poverty, 5. how disabilities can lead to poverty, 6. how the cycle of poverty unfolds , 7. universal basic income and its relationship to poverty, 8. interview someone who has experience living in poverty, 9. the impact of the criminal justice system on poverty, 10. the different ways to create affordable housing.

There is growing concern about increasing pensioner poverty in the UK in the coming decades. Due to financial challenges like the cost of living crisis, rent increases, and the COVID-19 pandemic, under 40s have seen their finances shrink.

Osborne discusses the housing wealth gap in this article, where many under the 40s currently pay less in a pension due to rent prices. While this means they will have less pension available, they will also retire without owning a home, resulting in less personal wealth than previous generations. Osborne delves into the causes and gaps in wealth between generations in this in-depth essay.

“Those under-40s have already been identified as  facing the biggest hit from rising mortgage rates , and last week a study by the financial advice firm Hargreaves Lansdown found that almost a third of 18- to 34-year-olds had stopped or cut back on their pension contributions in order to save money.” Hilary Osborne,  The Guardian

In this 2023 essay, Jeremy Ney looks at the poverty levels across the US, stating that poverty has had the largest one-year increase in history. According to the most recent census, child poverty has more than doubled from 2021 to 2022.

Ney states that the expiration of government support and inflation has created new financial challenges for US families. With the increased cost of living and essential items like food and housing sharply increasing, more and more families have fallen below the poverty line. Throughout this essay, Ney displays statistics and data showing the wealth changes across states, ethnic groups, and households.

“Poverty in America reflects the inequality that plagues U.S. households. While certain regions have endured this pain much more than others, this new rising trend may spell ongoing challenges for even more communities.” Jeremy Ney,  TIME

Essays About Poverty: How countries can reduce poverty rates?

In this New York Times article, a Pulitzer Prize-winning sociologist explores why poverty exists in North America.

The American poor have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most. Matthew Desmond,  The New York Times

The U.S. Census Bureau recently released its annual data on poverty, revealing contrasting trends for 2022. While one set of findings indicated that the overall number of Americans living in poverty remained stable compared to the previous two years, another survey highlighted a concerning increase in child poverty. The rate of child poverty in the U.S. doubled from 2021 to 2022, a spike attributed mainly to the cessation of the expanded child tax credit following the pandemic. These varied outcomes underscore the Census Bureau’s multifaceted methods to measure poverty.

“The nation’s suburbs accounted for the majority of increases in the poor population following the onset of the pandemic” Elizabeth Kneebone and Alan Berube,  Brookings

5.  The Basic Facts About Children in Poverty

Nearly 11 million children are living in poverty in America. This essay explores ow the crisis reached this point—and what steps must be taken to solve it.

“In America, nearly 11 million children are poor. That’s 1 in 7 kids, who make up almost one-third of all people living in poverty in this country.” Areeba Haider,  Center for American Progress

6.  The State of America’s Children  

This essay articles how, despite advancements, children continue to be the most impoverished demographic in the U.S., with particular subgroups — such as children of color, those under five, offspring of single mothers, and children residing in the South — facing the most severe poverty levels.

“Growing up in poverty has wide-ranging, sometimes lifelong, effects on children, putting them at a much higher risk of experiencing behavioral, social, emotional, and health challenges. Childhood poverty also plays an instrumental role in impairing a child’s ability and capacity to learn, build skills, and succeed academically.” Children’s Defense Fund

7.  COVID-19: This is how many Americans now live below the poverty line

This essay explores how the economic repercussions of the coronavirus pandemic 2020 led to a surge in U.S. poverty rates, with unemployment figures reaching unprecedented heights. The writer provides data confirming that individuals at the lowest economic strata bore the brunt of these challenges, indicating that the recession might have exacerbated income disparities, further widening the chasm between the affluent and the underprivileged.

“Poverty in the U.S. increased in 2020 as the coronavirus pandemic hammered the economy and unemployment soared. Those at the bottom of the economic ladder were hit hardest, new figures confirm, suggesting that the recession may have widened the gap between the rich and the poor.” Elena Delavega,  World Econmic Forum

If you’re tasked with writing an essay about poverty, consider using the below topics. They offer pointers for outlining and planning an essay about this challenging topic.

One of the most specific poverty essay topics to address involves the causes of poverty. You can craft an essay to examine the most common causes of extreme poverty. Here are a few topics you might want to include:

  • Racial discrimination, particularly among African Americans, has been a common cause of poverty throughout American history. Discrimination and racism can make it hard for people to get the education they need, making it nearly impossible to get a job.
  • A lack of access to adequate health care can also lead to poverty. When people do not have access to healthcare, they are more likely to get sick. This could make it hard for them to go to work while also leading to major medical bills.
  • Inadequate food and water can lead to poverty as well. If people’s basic needs aren’t met, they focus on finding food and water instead of getting an education they can use to find a better job.

These are just a few of the most common causes of poverty you might want to highlight in your essay. These topics could help people see why some people are more likely to become impoverished than others. You might also be interested in these essays about poverty .

Poverty affects everyone, and the impacts of an impoverished lifestyle are very real. Furthermore, the disparities when comparing adult poverty to child poverty are also significant. This opens the doors to multiple possible essay topics. Here are a few points to include:

  • When children live in poverty, their development is stunted. For example, they might not be able to get to school on time due to a lack of transportation, making it hard for them to keep up with their peers. Child poverty also leads to malnutrition, which can stunt their development.
  • Poverty can impact familial relationships as well. For example, members of the same family could fight for limited resources, making it hard for family members to bond. In addition, malnutrition can stunt the growth of children.
  • As a side effect of poverty, people have difficulty finding a safe place to live. This creates a challenging environment for everyone involved, and it is even harder for children to grow and develop.
  • When poverty leads to homelessness, it is hard for someone to get a job. They don’t have an address to use for physical communication, which leads to employment concerns.

These are just a few of the many side effects of poverty. Of course, these impacts are felt by people across the board, but it is not unusual for children to feel the effects of poverty that much more. You might also be interested in these essays about unemployment .

Different countries take different approaches to reduce the number of people living in poverty

The issue of poverty is a major human rights concern, and many countries explore poverty reduction strategies to improve people’s quality of life. You might want to examine different strategies that different countries are taking while also suggesting how some countries can do more. A few ways to write this essay include:

  • Explore the poverty level in America, comparing it to the poverty level of a European country. Then, explore why different countries take different strategies.
  • Compare the minimum wage in one state, such as New York, to the minimum wage in another state, such as Alabama. Why is it higher in one state? What does raising the minimum wage do to the cost of living?
  • Highlight a few advocacy groups and nonprofit organizations actively lobbying their governments to do more for low-income families. Then, talk about why some efforts are more successful than others.

Different countries take different approaches to reduce the number of people living in poverty. Poverty within each country is such a broad topic that you could write a different essay on how poverty could be decreased within the country. For more, check out our list of simple essays topics for intermediate writers .

You could also write an essay on the necessities people need to survive. You could take a look at information published by the United Nations , which focuses on getting people out of the cycle of poverty across the globe. The social problem of poverty can be addressed by giving people the necessities they need to survive, particularly in rural areas. Here are some of the areas you might want to include:

  • Affordable housing
  • Fresh, healthy food and clean water
  • Access to an affordable education
  • Access to affordable healthcare

Giving everyone these necessities could significantly improve their well-being and get people out of absolute poverty. You might even want to talk about whether these necessities vary depending on where someone is living.

There are a lot of medical and social issues that contribute to poverty, and you could write about how disabilities contribute to poverty. This is one of the most important essay topics because people could be disabled through no fault of their own. Some of the issues you might want to address in this essay include:

  • Talk about the road someone faces if they become disabled while serving overseas. What is it like for people to apply for benefits through the Veterans’ Administration?
  • Discuss what happens if someone becomes disabled while at work. What is it like for someone to pursue disability benefits if they are hurt doing a blue-collar job instead of a desk job?
  • Research and discuss the experiences of disabled people and how their disability impacts their financial situation.

People who are disabled need to have money to survive for many reasons, such as the inability to work, limitations at home, and medical expenses. A lack of money, in this situation, can lead to a dangerous cycle that can make it hard for someone to be financially stable and live a comfortable lifestyle.

Many people talk about the cycle of poverty, yet many aren’t entirely sure what this means or what it entails. A few key points you should address in this essay include:

  • When someone is born into poverty, income inequality can make it hard to get an education.
  • A lack of education makes it hard for someone to get into a good school, which gives them the foundation they need to compete for a good job. 
  • A lack of money can make it hard for someone to afford college, even if they get into a good school.
  • Without attending a good college, it can be hard for someone to get a good job. This makes it hard for someone to support themselves or their families. 
  • Without a good paycheck, it is nearly impossible for someone to keep their children out of poverty, limiting upward mobility into the middle class.

The problem of poverty is a positive feedback loop. It can be nearly impossible for those who live this every day to escape. Therefore, you might want to explore a few initiatives that could break the cycle of world poverty and explore other measures that could break this feedback loop.

Many business people and politicians have floated the idea of a universal basic income to give people the basic resources they need to survive. While this hasn’t gotten a lot of serious traction, you could write an essay to shed light on this idea. A few points to hit on include:

  • What does a universal basic income mean, and how is it distributed?
  • Some people are concerned about the impact this would have on taxes. How would this be paid for?
  • What is the minimum amount of money someone would need to stay out of poverty? Is it different in different areas?
  • What are a few of the biggest reasons major world governments haven’t passed this?

This is one of the best essay examples because it gives you a lot of room to be creative. However, there hasn’t been a concrete structure for implementing this plan, so you might want to afford one.

Another interesting topic you might want to explore is interviewing someone living in poverty or who has been impoverished. While you can talk about statistics all day, they won’t be as powerful as interviewing someone who has lived that life. A few questions you might want to ask during your interview include:

  • What was it like growing up?
  • How has living in poverty made it hard for you to get a job?
  • What do you feel people misunderstand about those who live in poverty?
  • When you need to find a meal, do you have a place you go to? Or is it somewhere different every day?
  • What do you think is the main contributor to people living in poverty?

Remember that you can also craft different questions depending on your responses. You might want to let the interviewee read the essay when you are done to ensure all the information is accurate and correct.

The criminal justice system and poverty tend to go hand in hand. People with criminal records are more likely to be impoverished for several reasons. You might want to write an essay that hits on some of these points:

  • Discuss the discriminatory practices of the criminal justice system both as they relate to socioeconomic status and as they relate to race.
  • Explore just how hard it is for someone to get a job if they have a criminal record. Discuss how this might contribute to a life of poverty.
  • Dive into how this creates a positive feedback loop. For example, when someone cannot get a job due to a criminal record, they might have to steal to survive, which worsens the issue.
  • Review what the criminal justice system might be like for someone with resources when compared to someone who cannot afford to hire expert witnesses or pay for a good attorney.

You might want to include a few examples of disparate sentences for people in different socioeconomic situations to back up your points. 

The different ways to create affordable housing

Affordable housing can make a major difference when someone is trying to escape poverty

Many poverty-related problems could be reduced if people had access to affordable housing. While the cost of housing has increased dramatically in the United States , some initiatives exist to create affordable housing. Here are a few points to include:

  • Talk about public programs that offer affordable housing to people from disadvantaged backgrounds.
  • Discuss private programs, such as Habitat for Humanity , doing similar things.
  • Review the positive impacts that stable housing has on both adults and children.
  • Dive into other measures local and federal governments could take to provide more affordable housing for people.

There are a lot of political and social angles to address with this essay, so you might want to consider spreading this out across multiple papers. Affordable housing can make a major difference when trying to escape poverty. If you want to learn more, check out our essay writing tips !

what are the main causes of poverty essay

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The top 11 causes of poverty around the world

Feb 3, 2022

Woman in the DRC

Approximately 10% of the world’s population lives in extreme poverty. But why? Updated for 2022, we look at 11 of the top causes of poverty around the world.

For most of us, living on less than $2 a day seems far removed from reality. But it  is  the reality for roughly 800 million people around the globe. Approximately 10% of the global population lives in extreme poverty, meaning that they're living below the poverty line of $1.90 per day.

There is some good news: In 1990, that figure was 1.8 billion people. We've made progress. But in the last few years we've also begun to move backwards — in 2019, estimates were closer to 600 million people living in extreme poverty. Climate change and conflict have both hindered progress. The global economic impact of the COVID-19 pandemic only made matters worse.

There’s no one single solution to poverty . There isn't a single cause of poverty, either. In fact, most cases of poverty in 2022 are the result of a combination of factors. Understanding what these factors are and how they work together is a critical step to sustainably ending poverty.

Learn more about the causes of poverty — and how we're solving them

1. inequality.

Let's start with something both simple and complex: Inequality is easy enough to understand as a concept. When one group has fewer rights and resources based on an aspect of their identity compared to others in a community, that's inequality. This marginalization could be based on caste, ability, age, health, social status or — most common and most pervasive — gender.

How inequality functions as a cause of poverty, however, is a bit more multifaceted. When people are given fewer rights or assets based on their ethnicity or tribal affiliation, that means they have fewer opportunities to move ahead in life. We see this often in gender inequality , especially when women have fewer rights around their health and economic power. In this case, equality isn't even relative. It doesn't matter that someone has more.  What matters is that someone else doesn't have enough.

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This is especially harmful when inequality is combined with risk — which is the basic formula we use at Concern to understand the cycle of poverty . A widow raising a family of five won't have the same resources available to her husband. If she lives in an area vulnerable to the effects of climate change, that puts pressure on what few  resources she has. In some countries, this is the rule rather than the exception.

To address inequality, we must consider all groups in a community. What's more, to build equality we have to consider equality of results, as opposed to equality of resources.

2. Conflict

If poverty is caused by inequality multiplied by risk, let's talk about risks. At the top of the list of risks for poverty is conflict . Large-scale, protracted crises, such as the decade of civil war in Syria , can grind an otherwise thriving economy to a halt. As fighting continues in Syria, for example, millions have fled their homes (often with nothing but the clothes on their backs). Public infrastructure has been destroyed. Prior to 2011, as few as 10% of Syrians lived below the poverty line. Ten years later, more than 80% of Syrians now live below the poverty line.

But the nature of conflict has changed in the last few decades, and violence has become more localized. This also has a huge impact on communities, especially those that were already struggling. In some ways, it's even harder to cope as these crises go ignored in headlines and primetime news. Fighting can stretch out for years, if not decades, and leave families in a permanent state of alert. This makes it hard to plan for the long-term around family businesses, farms, or education.

A Syrian refugee woman shows the torn plastic covers of her tent in the village of Shir Hmyrin, in Akkar.

3. Hunger, malnutrition, and stunting

You might think that poverty causes hunger (and you would be right!). But hunger is also a cause — and maintainer — of poverty . If a person doesn’t get enough food, they’ll lack the strength and energy needed to work. Or their immune system will weaken from malnutrition and leave them more susceptible to illness that prevents them from getting to work.

In Ethiopia, stunting contributes to GDP losses as high as 16%.

This can lead to a vicious cycle, especially for children. From womb to world, the first 1,000 days of a child’s life are key to ensuring their future health. For children born into low-income families, health is also a key asset to their breaking the cycle of poverty. However, if a mother is malnourished during pregnancy, that can be passed on to her children. The costs of malnutrition may be felt over a lifetime: Adults who were stunted as children earn, on average, 22% less than those who weren't stunted. In Ethiopia, stunting contributes to GDP losses as high as 16%.

Workitt Kassaw Ali, who, along with her husband, Ketamaw, joined Concern Ethiopia’s ReGrade program in 2017.

4. Poor healthcare systems — especially for mothers and children

As we saw above with the effects of hunger, extreme poverty and poor health go hand-in-hand. In countries with weakened health systems, easily-preventable and treatable illnesses like malaria , diarrhea, and respiratory infections can be fatal. Especially for young children.

When people must travel far distances to clinics or pay for medicine, it drains already vulnerable households of money and assets. This can tip a family from poverty into extreme poverty. For women in particular, pregnancy and childbirth can be a death sentence.  Maternal health is often one of the most overlooked areas of healthcare in countries that are still built around patriarchal structures. New mothers and mothers-to-be are often barred from seeking care without their father's or husband's permission. Adolescent girls who are pregnant (especially out of wedlock) face even greater inequities and discrimination.

5. Little (or zero) access to clean water, sanitation, and hygiene

Currently, more than 2 billion people don’t have access to clean water at home. This means that people collectively spend 200 million hours every day walking long distances to fetch water. That’s precious time that could be used working, or getting an education to help secure a job later in life. And if you guessed that most of these 200 million hours are shouldered by women and girls… you're correct. Water is a women's issue as well as a cause of poverty.

Contaminated water can also lead to a host of waterborne diseases, ranging from the chronic to the life-threatening. Poor water infrastructure — such as sanitation and hygiene facilities — can compound this. It can also create other barriers to escaping poverty, such as preventing girls from going to school during their cycles.

Concern Community workers Justin Mwihire Bulunga and Anita Kalamo help construct a hand washing station

6. Climate change

Climate change causes poverty , working as an interdependent link between not only extreme poverty but also many of the other causes on this list — including hunger , conflict, inequality, and a lack of education (see below). One report from the World Bank estimates that the climate crisis has the power to push more than 100 million people into poverty over the next decade.

Many of the world’s poorest populations rely on farming or hunting and gathering to eat and earn a living. Malawi, as an example, is 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 (including the widespread droughts caused by El Niño ) leave millions of people without food, it pushes them further into poverty, and can make recovery even more difficult.

what are the main causes of poverty essay

How climate change keeps people in poverty

By 2030, climate change could force more than 100 million people into extreme poverty.

7. Lack of education

Not every person without an education is living in extreme poverty. But most adults living in extreme poverty did not receive a quality education. And, if they have children, they're likely passing that on to them. There are many barriers to education around the world , including a lack of money for uniforms and books or a cultural bias against girls’ education .

But education is often referred to as the great equalizer. That's because it can open the door to jobs and other resources and skills that a family needs to not just survive, but thrive. UNESCO estimates that 171 million people could be lifted out of extreme poverty if they left school with basic reading skills. Poverty threatens education, but education can also help end poverty .

Classmates following a class 6 lesson at the Muslim Brotherhood School in Masakong

8. Poor public works and infrastructure

What if you have to go to work, but there are no roads to get you there? Or what if heavy rains have flooded your route and made it impossible to travel? We're used to similar roadblocks (so to speak) in the United States. But usually we can rely on our local governments to step in.

A lack of infrastructure — from roads, bridges, and wells, to cables for light, cell phones, and internet — can isolate communities living in rural areas. Living off the grid often means living without the ability to go to school, work, or the market to buy and sell goods. Traveling further distances to access basic services not only takes time, it costs money, keeping families in poverty.

As we've found in the last two years, isolation limits opportunity. Without opportunity, many find it difficult, if not impossible, to escape extreme poverty.

9. Global health crises including epidemics and pandemics

Speaking of things we've learned over the last two years… A poor healthcare system that affects individuals, or even whole communities, is one cause of poverty. But a large-scale epidemic or pandemic merits its own spot on this list. COVID-19 isn't the first time a public health crisis has fueled the cycle of poverty. More localized epidemics like Ebola in West Africa (and, later, in the DRC ), cholera in Haiti or the DRC, or malaria in Sierra Leone have demonstrated how local and national governments can grind to a halt while working to stop the spread of a disease, provide resources to frontline workers and centers, and come up with contingency plans as day-to-day life is disrupted.

All of this comes, naturally, at a cost. In Guinea, Liberia , and Sierra Leone — the three countries hit hardest by the 2014-16 West African Ebola epidemic — an estimated $2.2 billion was lost across all three countries' GDPs in 2015 as a direct result of the epidemic. This included losses in the private sector, agricultural production, and international trade.

what are the main causes of poverty essay

The crisis in Kenya: Climate, COVID, and hunger

The worst drought in four decades, the worst locust invasion in seven, plus the domino effects of a global pandemic have northern Kenyans living out an underreported crisis and facing an uncertain future.

10. Lack of social support systems

In the United States, we're familiar with social welfare programs that people can access if they need healthcare or food assistance. We also pay into insurances against unemployment and fund social security through our paychecks. Theses systems ensure that we have a safety net to fall back on if we lose our job or retire.

But not every government can provide this type of help to its citizens. Without that safety net, there’s nothing to stop vulnerable families from backsliding further into extreme poverty. Especially in the face of the unexpected.

11. Lack of personal safety nets

If a family or community has reserves in place, they can weather some risk. They can fall back on savings accounts or even a low-interest loan in the case of a health scare or an unexpected layoff, even if the government doesn't have support systems to cover them. Proper food storage systems can help stretch a previous harvest if a drought or natural disaster ruins the next one.

At its core, poverty is a lack of basic assets or a lack on return from what assets a person has.

People living in extreme poverty can't rely on these safety nets, however. At its core, poverty is a lack of basic assets or a lack on return from what assets a person has. This leads to negative coping mechanisms, including pulling children out of school to work (or even marry ), and selling off assets to buy food. That can help a family make it through one bad season, but not another. 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.

what are the main causes of poverty essay

Solutions to Poverty to Get Us To 2030

What would Zero Poverty look like for the world in 2030? Here are a few starting points.

How can you help?

At Concern, we believe that zero poverty is possible, especially when we work with communities to address both inequalities and risks. Last year, we reached 36.9 million people with programs designed to address the specific causes of extreme poverty in countries, communities, and families.

Pictured in the banner image for this story is one of those people, Adrenise Lusa. Born 60 years ago in the DRC's Manono Territory, Adrenise joined Concern's Graduation program in 2019 and participated in trainings on income generation and entrepreneurship, which gave her ideas on how to increase her production and income. With monthly cash transfers as part of Graduation and a loan from her community Village Savings and Loans Association, she invested in a few income-generating activities including goat rearing and trading oil, maize, and cassava. Prior to joining Graduation, she had the ideas. But, as she explains, "I didn’t start these businesses because I just didn’t have enough money."

Since launching her new ventures, Adrenise has increased her income from approximately 30,000 francs per month to anywhere between 100–400,000 francs per month, depending on the season. She's used her additional income to buy a plot of land and build a new house, feed her family with more nutritious food, and send her son and daughter to university.

You can make your own impact by supporting our efforts working with the world’s poorest communities. Learn more about the other ways you can help the fight against poverty.

More about the causes of poverty

what are the main causes of poverty essay

Extreme Poverty and Hunger: A Vicious Cycle

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When analyzing such a global issue, one should consider historical and cultural factors. Nations that are among the poorest in the world were once colonies, or areas from which richer countries exported slaves; also, some of these territories were drained of resources. Rare exceptions like Canada or Australia do not deny the fact that, for example, almost the entire continent of Africa is a problematic area in terms of poverty and hunger. This happened due to the fact that colonialism contributed to the establishment of conditions where people living in former colonies cannot access capital or education. In addition, there exist several hot spots in the world where wars and political instability also cause a significant decrease in the quality of life: Syria, Egypt, Ukraine, and so on ( The Borgen Project ).

Perhaps the most direct causal link exists between poverty and the balance between a country’s population density and its agricultural capabilities. Although such countries as the Netherlands or Belgium have a high density of population, their agricultural industry is based on mechanized farming and high-tech solutions, so poverty and hunger have no chance there. The same refers to other technologically-advanced countries. In contrast, Bangladesh, which has one of the world’s largest population densities (2,791 persons in a square mile) exists on the edge of extreme poverty—mostly because the majority of population is involved in low-efficient manual farming. On the other hand, there are countries in Africa with only about 80 persons per square mile, but because of low soil fertility, and the use of manual labor, these countries cannot boost their productivity and development ( povertyhci.weebly.com ).

Along with objective poverty factors, it is also important to consider social factors—in particular, psychological traits that many poor people possess. In many developed countries, poor people do not try to improve their financial conditions, relying on welfare payments provided to them by governments (CliffsNotes). Due to the lack of education and skills (also caused by the inability to pay for them), they cannot work at well-paid jobs, although they can still become maids, cleaners, postal workers, couriers, and so on. Doing so would enable such people to earn more money necessary for education and personal development, but they prefer to keep the status quo.

Reasons of poverty are numerous, and it is difficult to analyze the entire complex of causes of such a global issue. However, some of them are obvious: a colonial background, wars and political instability, dense population combined with low agricultural capabilities, and certain psychological traits of poor people. These factors help keep poverty in the world’s list of the most urgent problems.

“Top 5 Causes of Poverty.” The Borgen Project. N.p., 25 June 2013. Web. 21 May 2015.

“Poverty at Large: A Dark Spot in Humanity.”Http://povertyhci.weebly.com/. N.p., n.d. Web. 21 May 2015.

“Causes and Effects of Poverty.” CliffNotes. N.p., n.d. Web. 21 May 2015.

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What Causes Poverty in the World Report (Assessment)

Poverty rates in the world, overpopulation and world poverty, culture and world poverty, global distribution of resources: historical injustices and poverty in nations, education and unemployment, environmental degradation, inflation and development approaches, works cited.

This essay discusses the causes of poverty in the world. Poverty and related social inequality are as old as human history. Over the years, people have postulated many causes of poverty and social inequality. The many causes of poverty not withstanding, many definitions of the phenomena have been established. Whichever the definition, poverty is associated with want, lack of or deprivation of necessities in life. According to World Bank, people are individuals who survive on less than a dollar per day.

Despite the fact that living below a dollar, especially in urban areas, is an indicator of being poor, this definition does not apply in given contexts. For people living in some rural areas, the value of what they use as per their market pricing is lower than a dollar. However, considering the quality of life they live, they are better off than many others who live on more than ten dollars a day in the big cities of the world. Therefore, poverty is a complex concept and highly relative in its application or misapplication.

The world of today has the many people living in better socio-economic conditions than a century ago. However, the divide between the rich has widened over the years with the poor in the world forming an overwhelming majority. Statistics indicate that Africa carries the bulk of the poor in the world.

However, even in highly developing nations like India and China, given regions are notably highly impoverished. The impoverished regions of the world are characterized by dilapidated housing, lack of access to education, health care, frequent famines and other humanitarian disasters and catastrophes.

Due to poor infrastructure, response to problems is not efficient and effective enough thus resultant high impacts of disasters that would otherwise be averted. To understand this point better, one has to consider how a natural disaster like a tsunami of say Katrina’s magnitude would affect a third world country. The effects would be high due to poor response unlike what actually happened in the USA.

One of the major factors that have contributed to poverty in given areas of the world is overpopulation (Jones 137). The condition of having many people with fewer available resources combined with little space inevitably results in poverty. Uncontrolled birth rates, in places like Africa, have resulted in a general population boom.

The population upsurge has continually exerted pressure on available resources in the world. The available resource in given countries can only support a given number of people (McCarthy 42). One of the critical resources that support mankind is farming. A majority of people around the world depend on farming or general agriculture for sustenance. Population upsurge and resultant splitting of land into smaller pieces has led to less food production.

Culture is one of the reasons why people remain glued to practices that perpetuate poverty. For example, in some developing countries the more children one has the higher he or she is regarded in society. Cultural practices in traditional rural communities usually sanction the ability of large members of the family (Baker 154).

The governments of most third world countries give little or no attention to family planning because it goes against the cultural assumptions of the people. People anticipating to have smaller families experience difficulty in realizing this as others consider them weird (Rohr 105). Surging population rates point to even higher poverty rates in developing countries (Rohr 149).

Some thinkers have attributed poverty in some parts of the world to unequal distribution of resources. The legacy of colonialism is largely blamed for unequal resource distribution in the world economy (Baker 1).

Most of the developing countries have put more efforts to develop and strengthen their economies with technology and industries but this has been unsuccessful. The inequality in world economy due to historical events has largely hampered poverty alleviation efforts in the world (Pogge 17). Colonialists, for example, left Africa with a very weak infrastructure i.e. transport systems, power generation and communication after bludgeoning the resources of the colonies.

These happenings have derailed all aspects of moving away from poverty because the infrastructure is critical in the development of industries and expansion of the economy (Pogge 123). In recent years, wealthier countries have been accused of neocolonialism i.e. economic based dominance. This influence has enabled the wealthier countries to acquire inexpensive resources such as oil, ores and mineral from poor countries (Fields 59).

Lack of educational opportunities hampers development especially of children from rural areas (Baker 26). For the educated, lack of employment opportunities denies them an opportunity for social mobility. The rural areas in most countries of the world have high rates of illiteracy.

Illiteracy has been more severe in developing countries especially Africa south of the Sahara. Governments of poor countries have faced the inability to provide good and efficient public schools thus not marching with developments in the developing countries. Without good and sound education people fail to find a meaningful income.

Most poor people, in rural areas, forego going to school to facilitate concentration on how to make a minimal living (Iceland 79). Developing countries provide minimal employment opportunities, especially for women, which dampens the youth’s morale of going to school. When people do not work, there is no money which is earned and thus this increases high unemployment rate which in turn increases the level of poverty (Gilbert 131).

Environmental degradation in many parts of the world has led to the increase of poverty in the world. The world natural resources, which support mankind and enable growth and development, are slowly getting depleted due to unsustainable usage.

The climatic conditions have been changing gradually and natural habitats have slowly but surely been severely changed (Fields 167). Water bodies, atmosphere, forests and soils have deteriorated and this is a major cause of increasing world poverty. Global environmental degradation has led to the phenomenon of global warming.

Weather conditions are no longer steady but rather erratic and unpredictable. Over use of fertilizers and other wrong use of land has highly affected crop yield. Intensive farming or land over use, for instance, has lead to soil infertility and decrease in crop production (Fields 218).

Pollution from industries such as power production, mining, automobiles, agricultural fertilizers and chemical production has adversely affected adequate food production, availability of clean water for drinking, and facilitated destruction of natural habitats especially for aquatic beings.

Deforestation has brought environmental effects especially in developing countries where some sections of the population depend entirely on forests as source of food and wood to power their activities. Their survival efforts have largely contributed to deforestation and its related effects (Fields 225). Forests absorb pollutant and offers catchment area for water. Without forests, the rain cycle is affected leading to increased famines in the world.

Poverty in the world is linked to economic trends. Developed countries, such as the United States in the 1950s, experienced high income growth (Dudley 167). Most families doubled their income within this period. However, in 1970s and early 1990s, inflation grew steadily hence raising the cost of living.

The economic recession of the 1980s adversely affected families; the young and less educated people could not get well paying jobs to support themselves. The change of labor market in most developed countries has also further aggravated the situation of poverty in the world today (Dudley 215).

The number of well paying jobs in the manufacturing industries has declined whereas in the service and technology industries, workers have significantly increased. Most people who cannot afford college education experiences hardship in securing a well paying work hence they are locked out of social mobility.

Moreover, in most wealthy countries, many people living in poverty have increased because of the rising inequality in the way resources are distributed. For instance in the United States, 20% of the poor have got smaller percentage of the total national income whereas the wealthy have increasingly earned much higher national income of 45%.

During this period, the middle and bottom income distribution has been progressively worse as the cost of living has gone up (Kendall 67). Demographic shifts have contributed to poverty especially among the children. In the US for example, family structures have been altered significantly increasing single parenting. This has increased poverty in the world (Kendall 73).

Poverty levels have been soaring around the world despite improved economic fortunes for a minority. The major causes of world poverty are improper policies and development approaches or plans undertaken in different nations. Economic imbalance or inequalities resulting from historical injustices also maintain a world order that does not sustain all. To alleviate world poverty, issues like overpopulation, environmental degradation among other factors have to be looked into more closely.

Baker, Judy, L. Poverty Reduction and Human Development in the Caribbean: a cross- country study, Parts 63-366 . Washington: World Bank Publication.1997

Fields, Gary, S. Poverty, Inequality, and Development . Florida: CUP Archive. 1980

Gilbert, Geoffrey. World poverty: a Reference handbook, Contemporary world issues. California: ABC-CLIO. 2004

Iceland, John. Poverty in America: a handbook . California: University of California Press. 2006

Jones, Philip, W. Education, Poverty and the World Bank . New Jersey: Sense Publishers. 2006

Kendall, Diana. Sociology in Our Times . Connecticut: Cengage Learning, 2007

McCarthy, Callaghan. The Causes of Poverty . East Yorkshire: P. S. King & Son, 1908

Pogge, Thomas, Winfried, Menko. World Poverty and Human Rights: Cosmopolitan Responsibilities and Reforms . Cambridge: Polity, 2008

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Human Rights Careers

10 Common Root Causes of Poverty

Poverty is a global problem. According to the World Bank in 2015 , over 700 million people were living on less than $1.90 a day. While that represents a milestone (in 1990, it was over one billion ) that’s still way too many people. That number also includes extreme poverty that is defined by the UN as “a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services.”

What causes poverty in the first place? Here are ten root causes:

#1. Lack of good jobs/job growth

This is the first reason a lot of people think about. When you don’t have a good job, you aren’t getting a good income. In many countries, traditional jobs like farming are disappearing. The Democratic Republic of Congo is a good example, where most of the population live in rural areas stripped of natural resources from years of colonialism. Half of the DRC live below the poverty line. Even in nations like the United States where many people do have jobs, those jobs aren’t paying enough. According to the Economic Policy Institute , large groups of workers with full-time, year-round employment are still below federal poverty guidelines.

#2: Lack of good education

The second root cause of poverty is a lack of education. Poverty is a cycle and without education, people aren’t able to better their situations. According to UNESCO , over 170 million people could be free of extreme poverty if they only had basic reading skills. However, in many areas of the world, people aren’t getting educated. The reasons vary. Often times, families need kids to work, there aren’t schools close by, or girls aren’t being educated because of sexism and discrimination.

#3: Warfare/conflict

Conflict has a huge impact on poverty. In times of war, everything stops. Productivity suffers as well as a country’s GDP. It’s very difficult to get things going again as foreign businesses and countries won’t want to invest. For families and individuals, war and conflict can make it impossible to stay in one place. It’s also very common for women to become the primary breadwinners, and they deal with many barriers like sexual violence and discrimination.

#4: Weather/climate change

According to the World Bank , climate change has the power to impoverish 100 million people in the next decade or so. We know climate change causes drought, floods, and severe storms, and that can take down successful countries while pulling poor ones down even further. Recovering is extremely difficult, as well, especially for agricultural communities where they barely have enough to feed themselves, let alone prepare for the next harvest year.

#5: Social injustice

Whether it’s gender discrimination, racism, or other forms of social injustice, poverty follows. People who are victims of social injustice struggle with getting a good education, the right job opportunities, and access to resources that can lift them out of poverty. The United Nations Social Policy and Development Division identifies “inequalities in income distribution and access to productive resources, basic social services, opportunities” and more as a cause for poverty. Groups like women, religious minorities, and racial minorities are the most vulnerable.

#6: Lack of food and water

Without access to basic essentials like food and water, it’s impossible to get out of poverty’s cycle. Everything a person does will be about getting food and water. They can’t save any money because it all goes towards their daily needs. When there isn’t enough sustenance, they won’t have the energy to work. They are also way more likely to get sick, which makes their financial situation even worse.

#7: Lack of infrastructure

Infrastructure includes roads, bridges, the internet, public transport, and more. When a community or families are isolated, they have to spend a lot of money, time, and energy getting to places. Without good roads, traveling takes forever. Without public transport, it may be next to impossible to get a good job or even to the store. Infrastructure connects people to the services and resources they need to better their financial and life situation, and without it, things don’t get better.

#8: Lack of government support

To combat many of the issues we’ve described, the government needs to be involved. However, many governments are either unable or unwilling to serve the poor. This might mean failing to provide (or cutting) social welfare programs, redirecting funds away from those who need it, failing to build good infrastructure, or actively persecuting the population. If a government fails to meet the needs of the poor, the poor will most likely stay that way.

#9: Lack of good healthcare

People who are poor are more likely to suffer from bad health, and those with bad health are more likely to be poor. This is because healthcare is often too expensive or inaccessible to those who need it. Without money for medicine and treatment, the poor have to make really tough decisions, and usually essentials like food take priority. People who are sick get sicker, and then they can’t work, which makes the situation even more dire. If people do seek treatment, the cost often ruins their finances. It’s a vicious cycle.

#10: High costs

The last root of poverty is simple: stuff costs too much. Even the basics can be too expensive. According to stats from the World Food Programme, the poorest households in the world are spending 60-80% of their incomes on food. Food prices are also very unpredictable in certain areas, so when they rise, the poor have to keep cutting out other essentials. Housing is another essential that is rising. Global house markets have been climbing, according to the International Monetary Fund. Income growth, however, has not.

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About the author, emmaline soken-huberty.

Emmaline Soken-Huberty is a freelance writer based in Portland, Oregon. She started to become interested in human rights while attending college, eventually getting a concentration in human rights and humanitarianism. LGBTQ+ rights, women’s rights, and climate change are of special concern to her. In her spare time, she can be found reading or enjoying Oregon’s natural beauty with her husband and dog.

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The Top 9 Causes of Global Poverty

what are the main causes of poverty essay

More than 10% of the world’s population lives in extreme poverty — but do you know why? We look at 9 of the top drivers of global poverty.

Picture it: you need to feed your family, travel to and from work, and get your child school supplies. But you only have $1.90 in your pocket. It seems like an impossible scenario. But for approximately  800 million people  in the world, it’s their reality. 11% of the world’s population is living in  extreme poverty , which is defined as surviving on only $1.90  a day .

As dire as those figures are, there is some good news: In 1990, 35% of the world (1.8 billion people) was living in extreme poverty — so we’ve made some huge strides. While many argue that we will never be able to truly get rid of poverty,  extreme  poverty can be eradicated. Unfortunately, there is no “magic bullet” solution, but if we want to get rid of extreme poverty, we must first understand its causes. Here, we look at some of the top causes of poverty around the world.

1. INADEQUATE ACCESS TO CLEAN WATER AND NUTRITIOUS FOOD

Currently, more than  2 billion people  don’t have access to clean water at home, while over  800 million  suffer from hunger. You might think that poverty causes hunger and prevents people from accessing clean water (and you would be right!), but hunger and water insecurity are also big reasons why people struggle to escape extreme poverty.

If a person doesn’t get enough food, they simply don’t have the strength and energy needed to work. Lack of access to food and clean water can also lead to preventable illnesses like diarrhea. And when people must travel far distances to clinics or spend what little money remains on medicine, it drains already vulnerable populations of money and assets, and can knock a family from poverty into extreme poverty.

Even if clean water sources are available, they’re often located far from poor, rural communities. This means that women and girls collectively spend some  200 million hours  every day walking long distances to fetch water. That’s precious time that could be used working or getting an education to help secure a job later in life.

2. LITTLE OR NO ACCESS TO LIVELIHOODS OR JOBS

This might seem a bit like a “no brainer.” Without a job or a way to make money, people will face poverty. But it’s easy to assume that if someone wants a job, they could have one. That just isn’t true, particularly in developing and rural parts of the world. Dwindling access to productive land (often due to conflict, overpopulation, or climate change), and overexploitation of resources like fish or minerals is putting increasing pressure on many traditional livelihoods. In the  Democratic Republic of Congo  (DRC) for example, most of the population lives in rural communities where natural resources have been plundered over centuries of colonialism — while conflict over land disputes has forced people from the land they relied upon for food and money. Now, more than half of the country lives in extreme poverty. While inconsistent work and low paying jobs can land a family in poverty, absolutely no work means that a family can’t get by without assistance.

3. CONFLICT

Conflict can cause poverty in several ways. Large scale, protracted violence that we see in places like Syria can grind society to a halt, destroy infrastructure, and cause people to flee, forcing families to sell or leave behind all their assets. In Syria, around  70% of the entire population  now lives below the poverty line — this in a country where extreme poverty was once very rare. Women often  bear the brunt of conflict : 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.

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. Women are particularly vulnerable in these kinds of conflicts, too, as they often become the targets of sexual violence while fetching water or working alone in the fields.

4. INEQUALITY

There are many different types of inequality in the world, from economic to social inequalities like gender, caste systems, or tribal affiliations. But no matter the inequality, it generally means the same thing: unequal or no access to the resources needed to keep or lift a family out of poverty.

Sometimes inequalities are obvious, but in other situations, it can be subtle — for example, the voices of certain people or groups might not be heard in community meetings, meaning they don’t get a say in important decisions. Regardless, these inequalities mean that the people affected don’t have the tools they desperately need to get ahead, and for already vulnerable families, this can mean the difference between being poor or living in extreme poverty.

5. POOR EDUCATION

Not every person without an education is living in extreme poverty. But most of the extremely poor don’t have an education. And why is that? There’s a lot of  barriers  stopping children from going to school. Many families can’t afford to send their children to school and need them to work. More still don’t see a benefit in  educating girls . Education is often referred to as the great equalizer, and that’s because education can open the door to jobs and other resources and skills that a family needs to not just survive but thrive. UNESCO estimates that  171 million people  could be lifted out of extreme poverty if they left school with basic reading skills. And, with even more education, world poverty could be cut  in half .

6. CLIMATE CHANGE

You might be stunned to learn that the World Bank estimates that  climate change  has the power to push more than  100 million people  into poverty over the next ten years. As it is, climate events like drought, flooding, and severe storms disproportionately impact communities already living in poverty. Why? Because many of the world’s poorest populations rely on farming or hunting and gathering to eat and earn a living. 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 natural disasters (including the widespread droughts caused by  El Niño ) leave millions of people without food, it pushes them further into poverty, and can make recovery even more difficult.

7. LACK OF INFRASTRUCTURE

Imagine that you have to go to work, or to the store, but there are no roads to get you there. Or heavy rains have flooded your route and made it impassable. What would you do then? A lack of infrastructure — from roads, bridges, and wells to cables for light, cell phones, and internet — can isolate communities living in rural areas. Living “ off the grid ” means the inability to go to school, work, or market to buy and sell goods. Traveling farther distances to access basic services not only takes time, it costs money, keeping families in poverty. Isolation limits opportunity, and without opportunity, many find it difficult, if not impossible, to escape extreme poverty.

8. LIMITED CAPACITY OF THE GOVERNMENT

Many people living in the United States are familiar with social welfare programs that people can access if they need healthcare or food assistance. But not every government 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 if something goes wrong. Ineffective governments also contribute to several of the other causes of extreme poverty mentioned above, as they are unable to provide necessary infrastructure or ensure the safety and security of their citizens in the event of conflict.

9. LACK OF RESERVES

People living in poverty don’t have the means to weather the storms of life. So when there is a drought, or conflict, or illness, there is little money saved or assets on hand to help. In Ethiopia for example, repeated cycles of drought have caused harvest after harvest to fail, causing a widespread hunger crisis. To cope, families will pull their children from school, and sell off everything they own to eat. That can help a family make it through one bad season, but not another. 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.

This blog was originally published at www.concernusa.org

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11 top causes of global poverty.

Around 8% of the world’s population lives in extreme poverty — but do you know why? We look at 11 of the top causes of global poverty.

Living on less than $2 a day feels like an impossible scenario, but’s a reality for around 600 million people in our world today. Approximately 8% of the global population lives in extreme poverty, commonly defined as surviving on only $1.90 a day, or less

There is some good news: In 1990, that figure was 1.8 billion people, so serious progress has been made. While many wonder if we can really end extreme poverty , we at Concern believe the end is not only possible — but possible within our lifetimes. There’s no “magic bullet” solution to poverty , but understanding its causes is a good first step. Here are 11 of those causes, fully revised for 2020.

1. INEQUALITY AND MARGINALIZATION

“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 decision-making 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 inequality, 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 .

2. CONFLICT

Conflict is one of the most common forms of risk driving poverty today. Large-scale, protracted violence that we’ve 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. Women also bear the brunt of conflict , which adds a layer of inequality to all conflict: 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.

3. HUNGER, MALNUTRITION, AND STUNTING

You might think that poverty causes hunger (and you would be right!), but hunger is also a cause — and maintainer — of poverty. If a person doesn’t get enough food, they’ll lack the strength and energy needed to work (or their immune system will weaken from malnutrition and leave them more susceptible to illness that prevents them from getting to work).

The first 1,000 days of a child’s life (from womb to world) are key to ensuring their future health and likelihood of staying out of poverty. If a mother is malnourished during pregnancy, that can be passed on to her children, leading to wasting (low weight for height) or stunting (low height for age). Child stunting , both physical and cognitive, can lead to a lifetime of impacts: Adults who were stunted as children earn, on average, 22% less than those who weren’t stunted. In Ethiopia, stunting contributes to GDP losses as high as 16%.

ADULTS WHO WERE STUNTED AS CHILDREN EARN, ON AVERAGE, 22% LESS THAN THOSE WHO WEREN’T STUNTED. IN ETHIOPIA, STUNTING CONTRIBUTES TO GDP LOSSES AS HIGH AS 16%.

4. POOR HEALTHCARE SYSTEMS — ESPECIALLY FOR MOTHERS AND CHILDREN

Extreme poverty and poor health often go hand in hand. In countries where health systems are weak, easily preventable and treatable illnesses like malaria, diarrhea, and respiratory infections can be fatal — especially for young children. And when people must travel far distances to clinics or pay for medicine, it drains already vulnerable households of money and assets, and can tip a family from poverty into extreme poverty.

For some women, pregnancy and childbirth can be a death sentence. In many of the countries where Concern works, access to quality maternal healthcare is poor. Pregnant and lactating mothers face a multitude of barriers when seeking care, from not being allowed to go to a clinic without a male chaperone to receiving poor or even abusive care from a doctor. This is especially true for adolescent girls aged 18 and under, leaving mothers-to-be and their children at increased risk for disease and death.

5. LITTLE OR NO ACCESS TO CLEAN WATER, SANITATION, AND HYGIENE

Currently, more than 2 billion people don’t have access to clean water at home. This means that people (which is to say, women and girls) collectively spend some 200 million hours every day walking long distances to fetch water. That’s precious time that could be used working, or getting an education to help secure a job later in life.

Contaminated water can also lead to a host of waterborne diseases, ranging from the chronic to the life-threatening. Poor water infrastructure — such as sanitation and hygiene facilities — can compound this, or create other barriers to escaping poverty, such as keeping girls out of school during menstruation.

6. CLIMATE CHANGE

Climate change creates hunger , whether through too little water (drought) or too much ( flooding ), and its effects contribute to the cycle of poverty in several other ways including disproportionately affecting women, creating refugees, and even influencing conflict. One World Bank estimates that climate change has the power to push more than 100 million people into poverty over the next decade.

Many of the world’s poorest populations rely on farming or hunting and gathering to eat and earn a living — for example, Malawi is 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 (including the widespread droughts caused by El Niño ) leave millions of people without food, it pushes them further into poverty, and can make recovery even more difficult.

7. LACK OF EDUCATION

Not every person without an education is living in extreme poverty. But most of the extremely poor don’t have an education. There are many barriers to education around the world , including a lack of money for uniforms and books, a bias against girls’ education , or many of the other causes of poverty mentioned here.

But education is often referred 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. UNESCO estimates that 171 million people could be lifted out of extreme poverty if they left school with basic reading skills. Poverty threatens education, but education can also help end poverty .

8. POOR PUBLIC WORKS AND INFRASTRUCTURE

Imagine that you have to go to work, but there are no roads to get you there. Or heavy rains have flooded your route and made it impossible to travel. A lack of infrastructure — from roads, bridges, and wells, to cables for light, cell phones, and internet — can isolate communities living in rural areas. Living off the grid often means living without the ability to go to school, work, or the market to buy and sell goods. Traveling further distances to access basic services not only takes time, it costs money, keeping families in poverty.

Isolation limits opportunity. Without opportunity, many find it difficult, if not impossible, to escape extreme poverty.

ISOLATION LIMITS OPPORTUNITY.

9. LACK OF GOVERNMENT SUPPORT

Many people living in the United States are familiar with social welfare programs that people can access if they need healthcare or food assistance. But not every government 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.

10. LACK OF JOBS OR LIVELIHOODS

This might seem like a no-brainer: Without a job or a livelihood, people will face poverty. Dwindling access to productive land (often due to conflict, overpopulation, or climate change) and overexploitation of resources like fish or minerals puts increasing pressure on many traditional livelihoods. In the Democratic Republic of Congo (DRC) 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.

11. LACK OF RESERVES

All of the above risk factors — from conflict to climate change or even a family illness — can be weathered if a family or community has reserves in place. Cash savings and loans can offset unemployment due to conflict or illness. Proper food storage systems can help if a drought or natural disaster ruins a harvest.

People living in extreme poverty usually don’t have these means available. This means that, when a risk turns into a disaster, they turn to negative coping mechanisms, including pulling children out of school to work (or even marry ), and selling off assets to buy food. That can help a family make it through one bad season, but not another. 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.

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Poverty Essay for Students and Children

500+ words essay on poverty essay.

“Poverty is the worst form of violence”. – Mahatma Gandhi.

poverty essay

How Poverty is Measured?

For measuring poverty United nations have devised two measures of poverty – Absolute & relative poverty.  Absolute poverty is used to measure poverty in developing countries like India. Relative poverty is used to measure poverty in developed countries like the USA. In absolute poverty, a line based on the minimum level of income has been created & is called a poverty line.  If per day income of a family is below this level, then it is poor or below the poverty line. If per day income of a family is above this level, then it is non-poor or above the poverty line. In India, the new poverty line is  Rs 32 in rural areas and Rs 47 in urban areas.

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Causes of Poverty

According to the Noble prize winner South African leader, Nelson Mandela – “Poverty is not natural, it is manmade”. The above statement is true as the causes of poverty are generally man-made. There are various causes of poverty but the most important is population. Rising population is putting the burden on the resources & budget of countries. Governments are finding difficult to provide food, shelter & employment to the rising population.

The other causes are- lack of education, war, natural disaster, lack of employment, lack of infrastructure, political instability, etc. For instance- lack of employment opportunities makes a person jobless & he is not able to earn enough to fulfill the basic necessities of his family & becomes poor. Lack of education compels a person for less paying jobs & it makes him poorer. Lack of infrastructure means there are no industries, banks, etc. in a country resulting in lack of employment opportunities. Natural disasters like flood, earthquake also contribute to poverty.

In some countries, especially African countries like Somalia, a long period of civil war has made poverty widespread. This is because all the resources & money is being spent in war instead of public welfare. Countries like India, Pakistan, Bangladesh, etc. are prone to natural disasters like cyclone, etc. These disasters occur every year causing poverty to rise.

Ill Effects of Poverty

Poverty affects the life of a poor family. A poor person is not able to take proper food & nutrition &his capacity to work reduces. Reduced capacity to work further reduces his income, making him poorer. Children from poor family never get proper schooling & proper nutrition. They have to work to support their family & this destroys their childhood. Some of them may also involve in crimes like theft, murder, robbery, etc. A poor person remains uneducated & is forced to live under unhygienic conditions in slums. There are no proper sanitation & drinking water facility in slums & he falls ill often &  his health deteriorates. A poor person generally dies an early death. So, all social evils are related to poverty.

Government Schemes to Remove Poverty

The government of India also took several measures to eradicate poverty from India. Some of them are – creating employment opportunities , controlling population, etc. In India, about 60% of the population is still dependent on agriculture for its livelihood. Government has taken certain measures to promote agriculture in India. The government constructed certain dams & canals in our country to provide easy availability of water for irrigation. Government has also taken steps for the cheap availability of seeds & farming equipment to promote agriculture. Government is also promoting farming of cash crops like cotton, instead of food crops. In cities, the government is promoting industrialization to create more jobs. Government has also opened  ‘Ration shops’. Other measures include providing free & compulsory education for children up to 14 years of age, scholarship to deserving students from a poor background, providing subsidized houses to poor people, etc.

Poverty is a social evil, we can also contribute to control it. For example- we can simply donate old clothes to poor people, we can also sponsor the education of a poor child or we can utilize our free time by teaching poor students. Remember before wasting food, somebody is still sleeping hungry.

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  • Poverty Essay for Students in English

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Essay on Poverty

Poverty is a disease that has no cure. The deeper this disease is, the deeper its wound. By the way, man lives under compulsion. But usually one wants to avoid it. Poverty is a condition of extreme poverty for any person or human being. This is a situation when a person starts to lack important things in his life such as the roof, necessary food, clothes, medicines, etc. to continue his life.

The causes of poverty are excessive population, fatal and contagious diseases, natural disasters, low agricultural yields, unemployment, casteism, illiteracy, gender inequality, environmental problems, changing trends in the economy of the country, untouchability, little or limited access to people's rights, Problems such as political violence, sponsored crime, corruption, lack of encouragement, inaction, ancient social beliefs, etc. have to be faced.

Poverty has become a big problem of the world, efforts are being made across the world today to remove poverty, but the problem is that it does not take the name of ending. This problem affects a human's economic and daily life. Poverty teaches man to live like a slave in which he has to change the place over time, in this situation due to the lack of education of the poor, his nature and speech also make a difference. Living in a world of poor people has become a curse. Getting enough money to get food is like getting relief from a curse for the poor, that's why they do not have access to education.

Reasons of Poverty

There are many reasons that have continued with carrying it for a long time. Because of this,  freedom, mental and physical fitness, and lack of security in a person remains. It is very important that in order to live a normal life, the country and the whole world will have to work together to bring proper physical and mental health, complete education, a home for everyone, and other important things.

In today's time, there is the problem of poverty which gives all the pain, pain, and despair to the poor. Due to the lack of money from poverty, I show the lack of many things. Poverty makes children spend life in compulsion. If forced to make bread, sometimes in bringing children's books. At that time he is also unable to raise children.

We can tell poverty in many ways like it has become a common thing in India. Most of the people here are unable to get the things they need. Here a vast section of the population is illiterate, hungry, and forced to live without clothes and a home. About half of India's population suffers from this epidemic of poverty.

A poor person lives his life without possession of basic things like food for two times, clean water, house, clothes, proper education, etc. There are many reasons for poverty in India. Incorrect distribution of national income is also a reason. People in the low-income group are much poorer than those in the high-income group. Children of poor families never get proper education, nutrition, and a happy childhood environment. The main cause of poverty is illiteracy, corruption, growing population, weak agriculture, the growing gap between rich and poverty, etc.

Measures to Control Poverty

Corruption has to be erased.

Unemployed will have to give proper employment

A growing population will have to be stopped

Farmers have to be given proper facilities for farming

Education should be provided to children for proper education

Poverty is not just a human problem but it is a national problem. It should be solved by implementing some effective methods on a quick basis. Every person should be united by ending corruption. A problem has been created in which he does not get even the basics. That is why at present, many measures are being taken to prevent poverty so that the standard of living of people around the world can be improved.

Short Essays on Poverty

Poverty is akin to being a slave, as a person cannot achieve anything he desires. It has various faces that alter depending on who you are, where you are, and when. It can be defined in various ways depending on how a person feels or experiences it.

Poverty is a state that no one wants to be in, but it must be removed owing to cultural norms, natural disasters, or a lack of adequate education. The individual who is experiencing it frequently wishes to flee. Poverty is a call for poor people to earn enough money to eat, have access to education, have adequate shelter, dress appropriately, and take steps to protect themselves from social and political violence.

It's a problem that goes unnoticed yet significantly impacts a person's social life. Poverty is an entirely avoidable problem, but there are various reasons why it has persisted in the past.

Poverty robs people of their freedom, mental health, physical well-being, and security. Everyone must strive to eradicate poverty from the country and the world, ensuring appropriate physical and mental health, full literacy, a home for all, and other necessities for living a simple life.

When a person cannot do anything according to his will, he is said to be in poverty. Many different faces alter depending on who you are, where you are, and time. It can be characterized in a variety of ways, depending on how the person feels or what they have achieved. Poverty is a circumstance that no one wants to be in, even if it is forced upon them due to a lack of experience, nature, natural disasters, or a lack of suitable education. Humans have won it, but they prefer to stay away from it. Poverty is a call for needed clothing and protection against social and political violence for the poor to earn enough money to buy food, receive an education, and find a suitable place to live.

This is an unseen problem that harms a person's social life. Even though numerous factors have contributed to its long-term persistence, poverty is a perfectly preventable problem. As a result, a person's freedom, mental and physical well-being, and sense of security are all compromised. It is critical to bring poverty and poverty from worldwide to work together to live everyday life, provide adequate physical and mental health, complete education, a home for everyone, and other essential things.

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FAQs on Poverty Essay for Students in English

1. What are the Effects of Poverty?

When people are not able to afford their basic necessities. For example medications and hospital fees are impossible to afford for that means they choose crook ways of obtaining money i.e. stealing, robbery, etc.  

2. What are the Possible Ways to Remove Poverty?

Since India is a developing country, eliminating poverty here is much tougher than in other countries but still some measures can be taken and government assistance would be much helpful in this step which requires some relevant planning and policies for those who fall under the poverty line. Another major factor of poverty is illiteracy and unemployment. Therefore education is the most efficient tool to confine the poverty line in the country. 

3. What is the Poverty Line?

The Below Poverty Line (BPL) signifies the state of people who fall under poverty status. It also symbolizes an economic drawback. In addition, it is used for people who are in need of help and assistance from the government.

4. What are the causes of poverty?

Poverty has several causes, including a lack of access to essentials such as water, food, shelter, education, and healthcare. Poverty is also caused by inequities such as gender or ethnic discrimination, bad governance, conflict, exploitation, and domestic violence. These disparities not only cause a person or a society to fall into poverty, but they can also prevent people from receiving social assistance that could help them get out of it. Due to political upheaval, past or present conflict, corrupt authorities, and lousy infrastructure that restricts access to education, clean water, healthcare, and other essentials, children and communities in fragile states confront greater poverty rates.

5. What can we do to put an end to extreme poverty?

We can aid in the eradication of extreme poverty by determining what causes it in a particular community and then determining what needs to change. Because poverty manifests itself differently in different regions and is caused by different circumstances, the work to end extreme poverty differs depending on the situation. More economic resources are needed to assist people in increasing their income and better providing for themselves and their families. To ensure that poverty does not return, the work must be sustainable, regardless of the solution. As a result, the community must be involved at every stage.

6. What criteria are used to assess poverty?

Each country's government determines poverty levels by conducting home surveys of its citizens. The World Bank, for example, assists and may conduct their surveys, although data collecting is time-consuming and slow. New high-frequency surveys are being created and tested, leveraging estimations and mobile phone technologies. If you want to learn more about these topics, download the Vedantu App that has been specifically designed and curated for students by experts.

7. What is the poverty cycle?

Poverty can be a catch-22 situation. To escape poverty, a person requires access to possibilities such as education, clean water, local medical services, and financial means. Poverty creates a generational cycle if these critical factors are not there. If parents cannot afford to take their children to school, they will struggle to find work when they grow up. Even natural disasters and conflicts can exacerbate the poverty cycle by bringing more people.

8. What are the United Nations' Sustainable Development Goals (SDGs)?

The Sustainable Development Goals (SDGs) are a set of goals for countries worldwide to work together in a global partnership for the benefit of people, the environment, and prosperity. The Sustainable Development Goals aim to abolish extreme poverty for all people everywhere by 2030 and to reduce the proportion of people living in poverty in all forms by at least half. In September 2015, the United Nations member states accepted this objective as one of 17 to end extreme poverty.

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Poverty in Africa: Real-Life Consequences & Sustainable Solutions

Outreach works to fight poverty in Africa

In this blog post, we’ll explore the underlying causes of poverty in Africa and their profound effects on families. We’ll note some research findings to shed light on why this issue is so persistent in this part of the world. And we’ll share the good news of the community-led programs facilitated by Outreach International and the sustainable solutions they can lead to.

Development projects in Africa help communities grow.

A Closer Look at the Causes and Effects of Poverty in Africa

Economic challenges and unemployment.

In 2015 the United Nations committed itself to the Sustainable Development Goals (SDGs) in its efforts to end global poverty. Its goals include improvements in health, education, equality, economic development, and environmental improvement by 2030.

However, at this point in time, Africa is not on track to meet these goals. Africa has the highest extreme poverty rates globally , with 23 of the world’s 28 poorest countries, which have extreme poverty rates above 30%. Using the poverty line of $1.90 per day, Africa’s extreme poverty rate was recently estimated to be about 35.5% . This rate is 6.8 times higher than the average for the rest of the world.

One of the key factors contributing to poverty in Africa is economic instability. High rates of unemployment, income inequality, and economic policies that sometimes fail to prioritize the needs of the most vulnerable citizens of an African nation all play a role. For instance, in sub-Saharan Africa, youth unemployment rates are staggeringly high. This makes it difficult for young people to secure a stable livelihood. Income inequality adds to the issue, with an extremely uneven distribution of wealth leaving many struggling to meet even their most basic household needs. This issue of economic disparity not only affects individual families but spreads through entire communities, preventing progress and development.

Healthcare is part of the issue of poverty in Africa

Health Issues and Access to Medical Care

A person’s physical health is central to their overall well-being. But many communities within several African nations lack access to adequate healthcare. This puts them at unusually high risk of preventable illness and a lack of injury treatment. These issues not only result in a lower day-to-day quality of life but also have wider-ranging implications for stifling economic growth and development. This is especially true for communities in rural and remote areas.

And the COVID-19 pandemic only made matters more difficult for many of these communities. The Institute for Security Studies states that about 30 million more Africans fell into extreme poverty (living on less than US $1.90 a day) when COVID-19 broke out in 2020. Health problems can lead to reduced productivity and increased healthcare expenses. These factors perpetuate an unending cycle of chronic poverty. When people are too ill or injured to work or attend school, they cannot make strides toward prosperity. Addressing these health challenges is essential to breaking this cycle.

A new healthcare clinic in Boyole, Malawi.

The community of Boyole, Malawi, was dealing with the most serious issue of a high mortality rate for children under five. The community-led organization in Boyole, the Tithandizane Organization, realized that children and young mothers lacked adequate access to the healthcare necessary to solve this problem. The organization submitted a proposal to Outreach International, which approved the project. Now, families in Boyole have a permanent clinic with a dedicated healthcare professional that is managed by the government health department. This successful project has led to adequate healthcare for 1,800 young children and their mothers, and is a shining example of the effectiveness of the community-led development process. (Read more about the Boyole children’s clinic.)

what are the main causes of poverty essay

Impact on Education

Education is the surest way to escape poverty. But in Africa, it’s not uncommon for children to face barriers to accessing quality education. Geographic distance from adequate schools and inadequate resources in existing schools create significant hurdles for students. Also, children in impoverished families must often contribute to the necessary work of subsistence living, such as fetching water from a distant source and irrigating crops by hand. These time-consuming tasks can prevent a child from finding the time to attend school. This perpetuates the cycle of poverty into the next generation.

Also, the role of education in empowering adults cannot be overstated. Job skills training, literacy, and community development project competency all equip people with the skills and knowledge they need to improve their lives. But the lack of educational opportunities in impoverished areas hinders progress even for adults.

But Outreach-affiliated communities always seem to find a way to overcome their poverty-related issues, even under the most difficult of circumstances. During the COVID-19 pandemic, while poverty rates were spiking throughout Africa, our community groups got to work. They set up training sessions where community members learned how to make masks . They sourced their own supplies, created a source of income, and protected their communities in the process.

Environmental factors effect natural resources like water in Africa.

Environmental Factors and Resource Scarcity

Africa’s current environmental challenges also create poverty-related issues. Drought, deforestation, and resource scarcity are all contributing factors. And there’s abundant evidence that climate change is exacerbating these problems. These environmental factors often lead to serious poverty-related issues, including food insecurity, the hardship of displacement, and increased competition for limited resources.

Access to clean water, arable land, and other natural resources is essential for sustainable development. When these resources are scarce or mismanaged, it perpetuates extreme poverty in vulnerable communities. Addressing these environmental issues is not only a matter of ecological stability but also a pathway to economic growth and sustainable development.

Poverty in Africa disproportionately affects remote communities and children.

Unequal Distribution of Wealth and Resources

Wealth and resources in Africa are often not evenly distributed in a way that includes remote areas. Some regions and communities have abundant access to natural and government resources and the opportunities they provide, while others do not. This unequal distribution perpetuates disparities in living standards and equal access to essential services.

For instance, in some African countries, like many places in the world, a small percentage of the population controls a significant portion of the nation’s wealth. This leaves the majority of people struggling to meet their needs. According to the United Nations, the poverty rate in rural areas in Africa is 17.2%, which is more than three times higher than in urban areas, at 5.3%. This unequal distribution of wealth in Africa can lead to social unrest and instability, making poverty alleviation even more challenging.

Communities work together to bring hope to families.

Outreach International’s Impact: Community-Led Solutions to Build a Better Future

Outreach International is making a tangible difference in the lives of communities in several African countries. We’re dedicated to empowering local communities through innovative solutions and sustainable development projects. Our goal is to demonstrate to people who live in even the most extreme poverty that they have the power within themselves to improve their own lives.

Innovative Approaches and Sustainable Development

Outreach International is working with communities in the African countries of DR Congo, Zambia, and Malawi. We help communities solve their poverty-related issues with the methodology of community-led development . This work is based on the idea that improvements are most likely to be sustained if the people who benefit from the solution are involved in the process. Every community has a unique set of issues that keep it in a state of chronic poverty. This is why the people who live with these issues are the ones who are most qualified to identify and solve them. By involving community members in development projects, we empower them to learn, lead, and begin to solve issues on their own.

Poverty in Africa is a complex issue with deep-seated causes, but it’s not insurmountable. Outreach International is creating positive change , and community-led organizations are making strides every day to lift themselves out of poverty and into a life filled with prosperity and hope that can last for generations.

How to Help

The fight against poverty in Africa is not one that can be waged by organizations alone; it requires the collective efforts of individuals like you. You can contribute to alleviating poverty in Africa through Outreach International with your donations.

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What Causes Poverty in Africa, and How to Help

Wondering why poverty is such a persistent issue in Africa and how you can contribute to change?

Like many things, poverty is a complicated problem with many roots. From economic challenges and political instability, to impacts of climate change and more, there are a number of factors at play in the African continent. There have been mission organizations and nonprofits involved in helping for decades – so why do these challenges still persist?  

Major Causes of Poverty in Africa  

MOHI_Poverty Causes Graphic_v1_06-22-23

 Economic Factors : Many African countries face tough economic times. Things like high inflation, job scarcity, and low wages make it hard for people to make ends meet. Plus, a lot of these economies rely heavily on farming. When things like weather patterns or global market prices change, it can really hurt the livelihoods of these farming communities.

Political Instability : Politics can be a bit unpredictable in some African countries. Governments can change frequently, and corruption can be a big problem. This lack of stable and effective leadership makes it hard to put in place the long-term plans needed for economic growth and poverty reduction.

Conflict and Violence : Sadly, wars and conflicts are a reality in some parts of Africa. These conflicts can force people to leave their homes, destroy important infrastructure like roads and schools, and disrupt the economy. All of this makes it difficult for people to build a stable and prosperous life.

Health Issues : Diseases like HIV/AIDS and malaria are a big problem in Africa. They not only cause a lot of suffering but also lead to high healthcare costs and loss of productivity. When people are sick, they can't work or go to school, and this can trap families in a cycle of poverty.

Education : Getting a good education can be a real challenge in some parts of Africa. Without access to quality education, people miss out on the skills and knowledge they need to get better jobs and improve their economic situation.

Climate Change : Changes in the weather and climate can have a big impact on farming, which many African economies rely on. When the rains don't come or temperatures change, it can lead to food shortages and make it hard for farmers to earn a living.

Debt : A lot of African countries have large debts to pay off. This means they have less money to spend on important things like building roads, schools, and hospitals. These kinds of investments are important for reducing poverty and helping people improve their lives.

Colonial Legacy : The effects of colonial rule still linger in many African countries. The economic and political systems set up during colonial times often favored the colonizers, not the local people. This has had long-term impacts that continue to pose challenges today.

When describing Africa, we must be careful not to treat the continent as a monolith. These factors can vary significantly from one country to another, and even within different regions of the same country.

Africa is a massive continent (about 25% larger than North America) and each region has its own unique history and culture, and different languages. Kenya alone has 61 languages currently spoken within its borders. Addressing poverty in any part of Africa therefore requires us to have a deep understanding of the local area in question.

If that sounds discouraging, don’t worry: while organizations like MOHI need to have a deep understanding of these countries to effectively address poverty , you don't necessarily need to have the same level of expertise to make a difference.

Through programs like child sponsorships, you can contribute positively by supporting initiatives that have been specifically designed to meet the unique needs of the communities they serve.

How to Help Address Poverty in Africa

Let’s explore some of the ways you can help.

Engage in Child Sponsorship Programs

Child sponsorship is a highly effective long-term intervention. Sponsored children are more likely to complete secondary school, graduate from college, secure white-collar jobs, and become community and church leaders.  

As they grow into leaders, they can contribute to projects addressing clean water, sanitation, and healthcare; they can start small businesses, supporting the local economy; and they can inspire others to pursue education and overcome adversity.

Support Sustainable Development Projects

These projects focus on long-term solutions to poverty and hunger, promoting economic, social, and environmental well-being. They might involve healthcare initiatives, climate-smart agriculture, water and sanitation projects, or educational programs.

By supporting projects like these, you're helping to empower communities and build their capacity to address challenges independently. We do have a number of programs outside of child sponsorship that you can be part of.

To learn more about our special projects, visit the projects area of the MOHI website.

Donations are a powerful way to contribute to causes you care about. They can help non-profit organizations meet urgent needs, fund specific projects, and continue their vital work. Whether you're supporting education, healthcare, or other initiatives, every donation makes a difference.

You can support local initiatives by working with organizations that involve community members in decision-making processes, encourage microfinance and entrepreneurship, offer vocational training, and create job opportunities.

Serving on mission trips can be transformative experiences that allow you to make a meaningful impact in the communities you serve. You'll have the opportunity to immerse yourself in the culture, participate in community work , see the impact of sponsorship and development work firsthand, and meet your sponsored child.

Plus, you'll get to experience new things, like trying local food, visiting local markets, and maybe even going on a safari!

Getting started

Whether sponsoring a child or embarking on a mission trip, every step you take makes a difference, and those steps add up to something miraculous. Even if you don’t have deep expertise on the causes of poverty in Africa (or how to address it), you can always support organizations who do. Together, we can break the cycle of poverty.

If you’re ready to see what’s next, you can read more details about what you can do to help , or find out how to get involved with child sponsorship .

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Home — Essay Samples — Social Issues — Poverty — Poverty Is The Root Of Crime

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How Poverty is The Main Cause of Crime

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Published: Dec 16, 2021

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  • brooklyn eagle. (2019,October 15). New York's most desperate caught up in 'crimes of poverty'. Retrieved from https://brooklyneagle.com/articles/2019/10/15/new-yorks-most-desperate-caught-up-in-crimes-of-poverty/
  • Ginni Correa. (2020,june 18). Addiction center. Retrieved from https://www.addictioncenter.com/addiction/low-income-americans/
  • OSAC. (6/18/2019). Venezuela 2019 Crime & Safety Report. Retrieved from https://www.osac.gov/Country/Venezuela/Content/Detail/Report/b0933dac-4154-4dc2-89c1-160ca3b2c4c2
  • Tom Mack. (3 JAN 2020). Leicestershire live . Retrieved from https://www.leicestermercury.co.uk/news/leicester-news/man-stealing-metal-feed-family-3699993

Should follow an “upside down” triangle format, meaning, the writer should start off broad and introduce the text and author or topic being discussed, and then get more specific to the thesis statement.

Provides a foundational overview, outlining the historical context and introducing key information that will be further explored in the essay, setting the stage for the argument to follow.

Cornerstone of the essay, presenting the central argument that will be elaborated upon and supported with evidence and analysis throughout the rest of the paper.

The topic sentence serves as the main point or focus of a paragraph in an essay, summarizing the key idea that will be discussed in that paragraph.

The body of each paragraph builds an argument in support of the topic sentence, citing information from sources as evidence.

After each piece of evidence is provided, the author should explain HOW and WHY the evidence supports the claim.

Should follow a right side up triangle format, meaning, specifics should be mentioned first such as restating the thesis, and then get more broad about the topic at hand. Lastly, leave the reader with something to think about and ponder once they are done reading.

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    Essay on Poverty. Poverty is a disease that has no cure. The deeper this disease is, the deeper its wound. By the way, man lives under compulsion. But usually one wants to avoid it. Poverty is a condition of extreme poverty for any person or human being. This is a situation when a person starts to lack important things in his life such as the ...

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