Dimensions and Causes of Poverty

Dimensions
1. Lack of Income
Income reflects the purchasing power of an individual. He/she cannot afford basic requirements
like health, education, communication etc. with lack of income. The income of rural people is low
as compared to urban people. Traditional farming and not having ownership on land has resulted
to low income. So, income shows about poverty and hence is the dimension of poverty.

2. Unequal Access to Assets

Ownership of asset also determines a person as rich or poor. Rich have enough land where as
poor have ownership to small area of land. Other means of physical property like gold, jewelry,
vehicle etc. are enough with rich person where as poor one has to think about what to have in
the evening. Poor doesn’t have a good house to stay in. In this way unequal access to assets also
creates a huge gap between rich and poor and hence explains about poverty.

3. Unequal Participation in the Market

Market refers to both good and service market. Poor having low income doesn’t have purchasing
capacity and are hence inactive in the market. Generally rich are more active and control over the
market including the service market. Even everyone doesn’t get equal job and wages. Everyone
doesn’t get equal opportunity in the society. So, the unequal participation in the market also
distinguish between rich and more and reflects about poverty in the society and country.

4. Unequal Access to Human Development, Freedom, Dignity, Self Esteem and the Respect of
Others
Equal opportunity and chance of development are not provided to everyone in the society. Poor
show less confidence and they have low self-esteem. The rich are again found to have high respect
in the society. Every person wants to experience freedom, dignity, self esteem and respect, but
the society creates difference and hence poor are more back warded.

5. Unjust Governance
The basic rights of poor and marginalized community have always been ignored by the
government. The system of governance is corrupted and hence listen to the powerful people who
are generally. Plans and policies for the control of poverty have not been implemented in the
society. Law od the country has always been favorable to rich and complex for poor. The voice of
poor is unheard or ignored.
Causes
1. Under Development
Corruption, poverty, war, huger, healthcare, education, safety etc. are the problems faced by
people in developing countries. The infrastructure of development will not be in the access of the
common citizens. There will be the lack of employment. These all lead to Poverty. So,
underdevelopment is the major cause of poverty.

2. Warfare/Conflict
Violent conflict contributes to poverty in a number of ways, including causing: damage to
infrastructure, institutions and production; the destruction of assets; the breakup of communities
and social networks; forced displacement and increased unemployment and inflation.

3. Capital Deficiency
Capital deficiency causes less investment in every sectors. The investment of government and
private sector in the infrastructure of development such as hospital, communication,
transportation, education etc. will be low. So that an individual should pay high for the basic
requirement which cause poverty.

4. Unemployment
The main cause of poverty is unemployment. How a person can afford basic requirement he is
unemployed? When one is unemployed for a certain period of time, he naturally gets into a
financially bad situation which leads to poverty. If a person cannot earn, he or she cannot afford
daily requirements, he or she cannot have savings and the investment will be low. These all results
to poverty.

5. Low Technology
Technology reduces the cost of doing much of the work. If the cost of production is low, it helps
to increase the profit margin, which is essential to eliminate poverty. Technology also leads to
more investment which will in return creates employment opportunities and increases the
household incomes among the poor population. If there is low technology, all of the above-
mentioned things will not happen and hence poverty will be caused in return. So that Low
technology is also one of the causes of poverty.

6. High Population
The resources are limited whereas the population is increasing day by day. So high population has
made the resources more scare. Everyone willing to get the resources is not getting them. They
have to pay high for the resources, which is ultimately leading to poverty. Work is limited though
with the large overpopulation due to immigration and families having more children. Even if any
individual does manage to find a job most likely the pay will be minimum wage. High population
even need high employment which is not possible because of the capital deficiency in the under
developed and developing countries. Due to lack of modern technology, most of the countries are
not being able to produce enough agriculture products. So that the countries like Yemen, Zambia,
Liberia, Haiti etc. are facing food deficit which is the intense condition of poverty.
 7. Social Factors
Social causes of poverty consist of lack of education, the family, too low of wages, immigration,
and minimal job opportunities. Educated person get good job get paid high amount whereas
uneducated are supposed to face the opposite. The more education an individual has the more
money that individual makes. The family size also causes poverty. Big sized family are supposed
to face more problem of poverty. Single parent families are more likely than two parent families
to be living in poverty. Work is limited though with the large overpopulation due to immigration
and families having more children. If a male and a female held the same job the male would end
up getting paid more just because he is a male even though they both have the same education
and qualifications.

8. Misuse of Resources
Proper use of resource is the most for the development. In case of Developing countries resources
are not used properly. Some limited persons are in the access of resource and use them for their
welfare. The government should work to use the resources wisely to promote development in
every sector. Even the human resources need to be mobilized properly. The fund established to
work for the poor should be used for them. If it is misused the mission and goal cannot be achieved
and the poverty increases.

9. Environmental Degradation, Weather, Climate Change and Natural Disaster

A farmer cannot have good agriculture outcome if the weather parameters are not suitable. This
may affect the income of the farmers. As well as various natural disasters destroy house and
property of the people and change their life style and make them poor. The environmental
degradation may cause various diseases so that a worker may not work properly and that
adversely affect the income of the person. In this way many natural disasters, weather, climate
and environmental degradation may cause poverty.

Submitted By: Sudarshan Gautam

Roll No.: 26

MA Economics, 1st Semester