At the moment, there is a great deal of debate in the scientific community as to what exactly should be considered poverty. Because of the constant process of societal development, the concept of poverty changes rapidly, adapting to the new standards of modern human life. Thus, it is impossible to determine the causes of poverty with absolute precision. Still, a range of empirical knowledge about humanity allows identifying three groups of causes most likely to lead people and entire societies to poverty. Thus, this paper’s central thesis is that a person’s poverty can be influenced not only by the characteristics of his behavior but also by the circumstances in which he was born. These may include political and economic factors, which often cause poverty for the individual and the whole society.
There are various theories that summarize the causes of poverty. Brady (2019) writes that all theories about the emergence of poverty can be divided into three conditional groups: structural, behavioral, and political. The behavioral factor refers to the set of qualities of an individual that impede his financial well-being. These may include various addictions, insufficient level of education, a person’s worldview, and other reasons. Structural factors include labor market conditions, demographic context, and other socio-economic circumstances. An example is the increase in poverty associated with the development of the COVID-19 pandemic. According to the World Bank (2022), declining incomes, job losses and work stoppages during the pandemic have significantly reduced household incomes. Finally, political causes refer to the policies pursued by the government and its institutions, which hinder the economic well-being of the citizen and society.
Observing the behavioral causes of poverty, it is worth noting several vital factors highlighted by scholars. Brown (2018) writes that given the same circumstances, some people may become more prosperous than others, which may be due to a number of their behavioral characteristics. Various studies have tested the correlation between different measures of human character and one’s financial situation. Still, one can assume the deductive argument that greater diligence, striving for growth and development, ambition, and other personality traits can affect whether or not one will be poor. According to behavioral theory, if people become poor, then they themselves are responsible for this, since their individual shortcomings, laziness or lack of qualifications necessary for society lead to the impossibility of finding a job. Mavroudeas et al. (2019) note that the character traits of the unemployed can vary widely, from a lack of hard work or good morals to a low level of education or competitive market skills. Moreover, it is worth considering that some illnesses prevent a person from reaching their goals. Such illnesses include disabilities, congenital problems, and other factors affecting a person’s future expenses and employment.
The next group of reasons is related to the demographic characteristics of the region and the conditions of the labor market there. Fewer children are born in countries where the second demographic transition has occurred. It allows parents to concentrate all their efforts on upbringing, education, and health. In less developed countries or countries with higher fertility rates, parents have to rely on the number of their children. High infant mortality forces parents to have more children than their financial situation can afford, which is also a significant cause of poverty in the developing world.
Several political, social, historical, and economic factors prevent certain societies, and therefore most of their members, from crossing the poverty threshold. Being in a prolonged military conflict, a severe financial crisis, and insufficient valuable resources for economic development are important causes of poverty for many African and Asian countries (Wijekoon, 2021). All these factors harm the region’s economic development, creating several behavioral and structural problems. For example, higher levels of unemployment often lead to problems with alcohol addiction in society. It is also worth noting that Greve (2019) identifies certain categories of citizens who, due to demographic, social and economic reasons, find themselves in a state of poverty. These include the disabled, pensioners, people with a high incidence of disease, and those with a large number of dependents. Thus, the cause of poverty is a person’s belonging to these groups.
The political reasons also include a high level of state corruption, leading to an unfair allocation of resources. In situations where a limited number of people own most of the country’s natural reserves, resources, and finances, essential to discuss unnatural causes of regional poverty caused by the incompetent work of the state apparatus. Correct distribution of resources in the economy, which promotes competition between businesses and individuals, can lead a country to develop and reduce the number of poor people.
Thus, many causes of poverty affect individuals and society in different ways. Although the definition of poverty is constantly changing and varies from country to country, there are several universal reasons for the poverty of some and the wealth of others. These reasons are historical, political, demographic, and others, as many factors, influence a person’s financial situation. Each of these causes can be a consequence of the previous one, just as alcohol addiction can follow a wage fall or an increase in unemployment.
References
Brady, D. (2019). Theories of the Causes of Poverty. Annual Review of Sociology, 45, 155-175.
Brown, U., & Long, G. (2018). Poverty and welfare. In Social Welfare (pp. 19-34). Routledge.
Greve, B. (2019). Poverty: The Basics (1st ed.). Routledge.
Mavroudeas, S., Akar, S., & Dobreva, J. (2019). Globalization, poverty, inequality, & sustainability. IJOPEC.
The World Bank. (2022). Poverty. The World Bank. Web.
Wijekoon, R., Sabri, M. F., & Paim, L. (2021). Poverty: A literature review of the concept, measurements, causes and the way forward. International Journal of Academic Research in Business and Social Sciences, 11(15), 93-111.