Question

Why do some countries get caught in a "poverty trap"?

Answer 1

Countries, especially least developed and developing countries get caught in poverty trap because of many reasons as per below.

1 Lack of education.

2 Lack of health care facilities and its cost burden

3 Lack of industrial growth

4 No or very less financial aid, both domestic and international

5 War/ Political instability/internal violence

6 Lack of planned investment by the government

7 Lack of opportunities

Lack of educational opportunities make people backward and keep them in poverty trap and they are not able to get education, higher education, adoption of technology, innovation and use of these technologies, innovation and advancement in order to improve their lives economically and their families and the society.

Lack of healthcare facilities and its associated cost burden, disease burden put financial burden on the people and it causes loss of their working hours which keep them in poverty trap.

Lack of industrial growth also limits the employment opportunities for the working age population of these countries which also keep them financially poor and this also keeps them in poverty trap.

Financial aid both domestic and international play their part in improving the economic condition of the poorest of the poor nations and absence of this also becomes one of the reason for keeping these nations into poverty trap, this factor is to be done with other efforts but lack of this also causes harm to the people of these countries.

War/political instability/internal violence also increases financial burden on the people of these countries, political instability will lack long term economic policies for the people of these nations and war and internal violence will keep people away from productive work and will put the people into poverty trap.

Lack of planned investment, planned policies for the people of poor nations also keep the people of these countries into poverty trap since without economic growth policies, poor nations will be trapped in poverty.

Lack of opportunities for the people of these nations also keep them trapped in poverty because without enough opportunities they will keep on living on subsistence income or even will be forced to die with hunger.