Causes of Poverty


 
 
Concept Explanation
 

Causes of Poverty

Causes of Poverty: Poverty continues in India for a variety of reasons, These are:    Historically, there was a low level of economic development under the British colonial administration prior to 1947. They discouraged traditional handicrafts and also industrial development, reducing job opportunities and income growth.     The low level of economic development persisted for many years after independence and due to population increase, per capita income growth was low, increasing poverty.     The Green Revolution improved opportunities in agriculture, only in certain areas of the country.    The growth in population increased the number of job seekers, who had to be content with low paying jobs in urban areas, leading to poverty spreading to towns and cities,     Socio-cultural (i.e. traditions) and economic factors lead to extra expenditure, which ultimately increases poverty.    There is unequal distribution of land and other resources, that is why there are large income inequalities also.     Land reforms have not been properly implemented and lack of adequate land resources is also a reason for many people to be poor.     Small farmers borrow money for seeds, fertilisers and pesticides, etc and later on fail to pay landing in debt trap. This high level of indebtedness is both the cause and effect of poverty.

 

 
 


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