Causes of poverty

Understanding the Causes of Poverty

Poverty is a multifaceted issue fueled by economic, educational, health-related, social, and geographical factors. It is a complex problem that affects millions of people around the world, and understanding its root causes can be essential for students, teachers, parents, and families alike.

While the topic can seem daunting, breaking it down into manageable parts makes it easier to grasp and discuss. This article explores some key causes of poverty while keeping it engaging and instructive.

You can read on the causes of illiteracy here.

The causes of poverty are explained below:

• Economic Factors

At the core of poverty lies a myriad of economic factors. This will include low income which can stem from a lack of job opportunities, or low wages that don't keep pace with the rising cost of living.

Other economic factors that can lead to poverty will include inflation and monopoly. With regards to inflation, there is a marked increase in the price of goods and services.

A memorable instance of inflation in Nigeria was triggered on Monday, May 29, 2023, during the inaugural speech of president Bola Tinubu, where he announced that 'subsidy is gone'. Subsequently, the Nigerian naira was floated, leading to inflation, poverty and eroding of the middle class. 

Please read more on the concept of inflation here.

In July 2024, President Bola Tinubu approved an increase in the minimum wage from N30,000 to N70,000 in an attempt to alleviate the sufferings of the Nigerian workers.

For students studying economics, it's interesting to note how changes in local, national, and global markets can significantly impact employment rates and income levels. Additionally, economic recessions or downturns can lead to widespread unemployment.

• Wars

War often lead to the deaths of thousands, or even millions of people. Apart from this, it can also lead to the destruction of industries, technologies and infrastructures that had taken years to built, eventually bringing affected structures to ground zero. In this regard, poverty, disease and the deaths of many are the aftermath of wars. 

An instance of war which resulted into the impoverishment of the south-eastern region of Nigeria is the Nigerian civil war  (6 July 1967 – 15 January 1970). Food supplies were cut from one of the warring nations, that is, Biafra; resulting into great hunger in the land. In fact, this was one of the reasons Nigeria triumphed over the Biafran nation at that time.

We also saw in 2024 how the country of Israel devastated the city of Gaza during the Israel-Hamas war. Gaza Strip (which was believed to be a safe haven for Hamas) was brought down to ruins, thus making its people dependent on food supplies (from the UN and other countries) for their survival. Simply put, Israel destroyed the ability of Gaza to feed itself (through the war), thus bringing about poverty in the land.

Please read on the consequences of conflicts and solutions to conflict here.

• Poor Infrastructural Facilities

A lack of infrastructure, or poor infrastructural facilities will include bad road network, poor electricity, poor internet services, lack of good transport system, poor academic institutions, poor healthcare system, underdeveloped playground for various sports, and so on.

The aforementioned poor infrastructure can isolate communities living in rural areas, cutting them off from good paying jobs, decent academic system, and industrialization. These events will eventually cascade into little job opportunities and misuse of talents, giving rise to poverty in these areas.

You can read on economic empowerment through agriculture here.

• Level of Education

Education plays a pivotal role in determining a person's future economic status.

Although, we may have uneducated people who are rich; however, the truth remains that most people living in poverty often lack proper education. In fact, this is one reason why poverty is rampant in developing countries, since they often have poor educational systems.

Students from low-income families often have limited access to quality education, which can result in a cycle of poverty. Those who lack high school diplomas or college degrees may find it challenging to secure stable, well-paying jobs.

Please read on contemporary social problems in Nigeria here.

Encouraging educational initiatives and support systems in schools can bridge this gap and help break the cycle of poverty.

• Health Issues

Health can significantly impact one's ability to work and earn a living. Chronic illnesses and disabilities can limit employment opportunities for individuals, thus leading to poverty.

In 2021, the World Health Organization (WHO) and the United Nations Children's Fund (UNICEF) estimated that 2 billion people worldwide lack access to clean water. This can lead to disease outbreak, e.g, cholera, which can drain the finances of victims involved, and may consequently lead to their poverty.

Families often face financial strain due to medical expenses and the inability to work full-time. Teaching children about the importance of health and wellness can prepare future generations to maintain a better quality of life.

Please read on harmful traditional practices in Nigeria here.

• Climate Change and Natural Disasters

The world bank made an estimate on poverty level in 2015. According to their projection, over 100 million people will slide into poverty by 2030. This estimate is based on the prevailing climate change crises.

On September 10, 2024; flood devastated the city of Maiduguri in Nigeria, destroying properties worth millions of dollars. This led to increased homelessness, and loss of job, further sliding the people into poverty. Unfortunately, precious lives were also lost during this disaster.

The aforementioned flood also destroyed agricultural land, further pushing thousands of people into poverty.

You can read on the roles of government in agriculture here.

• Pandemic and Epidemic

The effects of a pandemic and an epidemic can be devastating, especially in countries with poor medical facilities. In this regard, millions of dollars meant to alleviate the povery of some citizens are rather channelled into containing the pandemic (or epidermic), thus indirectly increasing poverty rate in affected countries.

Pandemic refers to a widespread occurrence of an infectious disease over the whole area of a country or the world at a particular time; while an epidemic is a disease outbreak that occurs within a specific geographical area. 

During the COVID-19 pandemic, we saw how millions of people became jobless due to the shutdown of many institutions. For instance, the lucrative game of football was halted for some weeks, leading to retrenchment of various beneficiaries; for instance, the ball boy and other non contract staff. In addition, losses were made by clubs since spectators weren't allow into stadiums at that time. In fact, some smaller clubs almost declared bankruptcy as a result of the pandemic.

English football clubs lost £1billion in revenue due to COVID-19

Importantly, the COVID-19 pandemic also led to border closures and interruptions to trade, resulting to lower national income for many nations.

You can read on the causes of environmental problems here.

• Family Structure

The structure of a family can also influence the likelihood of living in poverty. For instance, single-parent households often face more economic challenges due to limited income and the cost of childcare.

Please read on family bond and cohesion here.

It's vital for students and families to discuss the different family dynamics and their effects on economic stability. Understanding these relationships can foster empathy and encourage supportive community practices.

• Geographic Location

A person's place of residence can drastically affect their access to resources and opportunities.

Rural areas may lack job opportunities compared to urban centers, leading to higher poverty rates in those regions.

Unfortunately, people living in developing counties are more likely to be poor compared to those living in developed countries. In this regard, they tend to relocate to these developed countries in search of greener pastures.

Discussing geographic inequalities can help families understand the need for targeted social interventions and resource allocation.

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• Government Policies

Government policies play an influential role in alleviating or exacerbating poverty. Programs aimed at providing social safety nets, such as food assistance and housing support, can significantly help families in need. Conversely, cuts to these programs can lead to increased poverty rates.

Educating students about civic duties and the significance of policy-making can empower them to take action in their communities.

Please read on the responsibilities, duties and obligations of a citizen here.

In summary, the causes of poverty will include:

• Joblessness, lack of good job and poor paying jobs

• Lack of good education

• Poor health, diseases or illnesses

• War and conflicts

• Gender discrimination

• Pandemic and Epidemic

• Illiteracy

• Climate change

• Lack of adequate power supply

• Lack of social safety nets

• Poor government policies

• Natural disasters

• Hunger, lack of good food and malnutrition

• Poor infrastructural facilities

Please read on the effects of poverty here.

For students, teachers, parents, and families, recognizing these complexities of poverty is the first step toward fostering understanding and initiating change.

By working together to address the roots of poverty, communities can create a more equitable society for all. 

This exploration of the causes of poverty invites readers to take a proactive approach, learning more about local and global initiatives aimed at combating this ongoing challenge.