how to break the vicious circle of poverty

How to break the vicious circle of poverty

Poverty is the shortage of common things as
food, clothing, shelter and safe drinking water ,all of which determine our quality of life. It may also include the lack of access to opportunities such as education and employment which aid the escape from poverty and allow one to enjoy the respect of fellow citizen.
Poverty may affect individuals or groups, and is not confined to the developing nations. poverty in development countries is manifest in a set of social problems including homelessness and the persistence of housing clusters.
We, the people of the group should have a mutual interest in questions concerning less development countries (LDC)and how one can improve the conditions of life for the poor families living in these country.
Poverty can have many dimensions, low earning and low level of skill or ability, lack of assets and access to training and education.poor health ,malnutrition.lack of shelter and food insecurity are also signs of poverty.
The vicious circle of poverty
The theory of the vicious circle of poverty can be used both at the national and individual levels,but we will concentrate on the individual level in this report.we think that by studying poverty on the individual level one can more concretely see what cause poverty.on the individuals level,the vicious cirle of poverty start with the statement that a poor person.
(a)can not pay for an adequatesupply of food and.
(b) thus is physically weak.
(c) and can not work efficiently.
(d) and unable to earn much money.
(e) and thus is poor.
The circle starts all over again with a situation where the person dose not have money to get nutritious food .this process goes on and on.
There are circular relationships known as the’ vicious circle of poverty’ That tend to perpetuate the low level of development in LDC.it implies a circular constellation of forces tending to act and react upon one another in such a way as to keep a poor country in a state of poverty. For example a poor man may not have enough to eat being underfed,his health may be weak,being physically weak,his working capacity is low which means that he is poor ,which in turn means that he will not have enough to eat and sdo on. A situation of this sort relating to a country as a whole can be summed up in the trite proposition “A county is poor because it is poor”.
The basic vicious circle stems from the fact that in (LDC) total productivity is low due to deficiency of capital,market imperfections,economics backwardness and underdevelopment.however the vicious circle operate both on the demand side and the supply side.the demand side of the vicious circle is that the low level of real income leads to a low level of demand which ,in turn,leads to a low rate of investment and hence back to deficiency of capital.low productivity and low income.the low level of real income means low saving. The low level of saving leads to a low investment and to deficiency of capital.the deficiency of capital in turn leads to a low level of productivity and back to low income.thus the vicious circle is complete from the supply side.it is depicted in FIG-2the low level of real income,reflecting low investment and capital deficiency is a common feature of both the vicious circles.
FIG-1 - low productivity -low income-low demand-low investment-capital deficiency.

FIG-2 - low productivity-low income-low saving-low investment-capital deficiency.
FIG-3 –
Market imperfections
↑ ↑
underdevelopment natural resources
↑ ↓
backward people
a third vicious circle envelops underdevelopment human and natural resources.development of natural resources is dependent upon the productivecapacity of the peoplein the country.if the people are backward and illiterate,lack in technical skill,knowledge and entrepreneurial activity, the natural resources will tend to remain unutilized,underutilized or even misutilized. On the other hand people are economically backward in a country due to underdevelopment natural resources.underdevelopment natural resources are therefore both a consequence and cause of the backward people this is explained in fig-3.

“poverty and underdevelopment of the economy are thus synonymous.A country is poor because it is underdevelopment.A country is underdevelopment cause it is poor and remains underdeveloped as it has not the necessary resources for promoting development.poverty is a curse but a greater curse is that it is self-perpetuating.


ENTREPRENEURSHIP:
Entrepreneurship it was originally meant to designate an organized of musical or other entertainments. In economics an entrepreneur is an economic leader who possesses the ability to recognize opportunities for successful introduction of new commodities,new techniques,and new sources of supply, and to assemble the necessary plant and equipment,management,and labour force and organise them into a running concern.whatever be the from of economic and political set-up of the country ,entrepreneurship is essential for economics development.in a socialist state,the state is the entrepreneur.so is the case in underdevelopment countries where private entrepreneurship is shy in undertaking the risks associated with new ventures. But in advanced capitalists societies,private entrepreneurs have played the crucial role in economic development.
a country is poor cause capital is shortage if we get enough money then we can break vicious circle of poverty.i wanna say its individual step every body take step entrepreneurship can broken our vicious circle of poverty.