What Is the Cause of Poverty?

Lack of Education – How can lack of education cause poverty? Without consistent educational opportunities, children and adults are often stuck in the generational cycle of poverty. When a person doesn’t have basic reading, writing and math skills, they are often stuck in day-labor positions, and many of those do not meet the basic financial needs of a family. When we study how lack of education causes poverty, we see that it also impacts the next generation. Data gives good cause to believe that learning to read and write is one of the “great miracle cures.”[1]

Lack of Healthcare – Chronic disease still plagues much of the impoverished world. For example, a waterborne illness like typhoid can cause mass illness in an entire community. Malaria and diarrhea are common illnesses that, when basic medical care is available, are often treated successfully. Without medical care, however, these illnesses can cause death. Clean water wells and sanitation facilities are also key to good health in a community, but they are often lacking in poorer neighborhoods.

Lack of Environmental Stability – Natural disasters and war cause vulnerability in a society long term. For example, if an earthquake hits a village and it cannot adequately recover, the impact of that earthquake will be felt for generations; the residents will be susceptible to long-term problems. Regions that often sustain natural disasters and political upheaval are known as “fragile and conflict-affected countries” (FCS) and are some of the most difficult places to fight poverty. These include South Asia and sub-Saharan Africa, chronically poor areas.[2]

Lack of Financial Opportunity or Assistance – In some areas of extreme poverty, a person can learn to read and write but still lack the opportunity to gain a higher-paying job. There simply aren’t opportunities to use his or her skills. They may want to start a business, but there is no one to loan them money to get started.