Causes of poverty
The causes of poverty may vary with respect to nation, region, and in comparison with other countries at the global level. Yet, there is a commonality amongst these causes. Philosophical perspectives, and especially historical perspectives, including some factors at a micro and macro level can be considered in understanding these causes. There are behavioral, structural and political theories on the causes of poverty: "Behavioral theories concentrate on individual behaviors as driven by incentives and culture. Structural theories emphasize the demographic and labor market context, which causes both behavior and poverty. Political theories contend that power and institutions  cause policy, which causes poverty and moderates the relationship between behavior and poverty." Philosophical perspectives. Socialist perspective. The socialist perspective attributes poverty to the ill-distribution of capital, wealth and resources that favor the interests of the "wealthy elite" or the "financial aristocracy" versus the community at large. The socialist tradition calls for the re-distribution of wealth as the solution to poverty. In essence, the" major levers of the economy" must be de-privatized and allocated to the working community-class that will adequately represent "the interests of ordinary people, rather than [those of] the wealthy elite." According to  the Marxist theory, inequality (inherent in a class system) fosters poverty; both entities are generated from a "capitalist mode of production" with capitalism contributing to "inegalitarian social structures." Marxists believe the structural nature of society (which is the cause of poverty) has to be changed to remedy poverty in society. Conversely, critics to this perspective, like Milton Friedman postulated that under the socialist perspective, the suppression of individual rights and that of a free market economy can result in political absolutism and authoritarianism. Neoliberal perspective. The neoliberal perspective attributes poverty to centralization of free markets, sole government ownership of business  enterprise and de-capitalization - a system in which capital, wealth and resources are at the sole discretion of government versus the individual. The perspective is dedicated to the idea that creating conditions for profitable private investment is the solution to poverty—since the private sector is better than government in running business and creating profit. Neoliberal think tanks have received extensive funding. According to the IMF, the measures of privatization, public spending cuts, and deregulation (the themes of Neoliberal ideology) have "increased inequality" and crippled economic prosperity in some regions of the world, especially in highly indebted countries. Some causes , micro/macro levels. Micro level. The International Food Study Institute had a brief on a collection of extensive studies that analyzed the causes of poverty, with analysis of household data and review of empirical findings in 20 countries. Some of the major causes of poverty, with historical perspective, were noted as follows: Macro level. Colonialism. Economists Daron Acemoglu and James A. Robinson maintain that poverty is associated with colonialism. The effects of colonialism left behind institutions that were new, alien and unsustainable. The lack of continuity in these foreign institutions, left entirely in the untrained hands of the prior colonized  populace, tended to generate poverty in the communities. Climate change. Regionally. According to an article by Giovetti and McConville, climate change may cause poverty via the following, especially in highly indebted countries: The World Bank affirms that, without much needed intervention, climate change could cause more than "100 million people", world-wide, to plunge into poverty by 2030. By 2050, regional areas like Latin America, South Asia and Sub-Saharan Africa could trigger migratory patterns potentially impacting over "143 million people". Globally. While richer economies suffer less than poorer economies, richer economies are affected as well—through an increased burden  of responsibility. Primary causes by country. In alphabetical order Bangladesh. Bangladesh has made some strides in eradicating poverty through poverty reduction strategies (PRS). As a result of those strategies, some critical markers, indicative of poverty, show promise, viz. child mortality has decreased, gender parity is being promoted, micro-credit is practiced and a vibrant non-governmental sector is in place. Notwithstanding, some notable causes of poverty Bangladesh is fighting against are: remnants of inequality, burdened healthcare costs, poor governance at multiple levels, inadequate sanitation and limited access to safe drinking water. Canada. Statistics Canada reported in 2013 that high-risk  groups for poverty in Canada include "people with activity limitations (physical or mental disability), singles (unattached individuals), persons in lone-parent families, people with less than a high school education and minorities who are immigrants." Activist group Canada Without Poverty, referencing Statistics Canada, identifies that 1 in 7 individuals or 4.9 million persons in the nation are experiencing poverty. China. Though China is the second largest economy in the world and regarded as an upper-middle-income country, with a delineated poverty line of US$5.50 a day, about 373 million Chinese are believed to live below that stipulated poverty  line. The causes of poverty in China revolve around: The effects of pollution (with China being the biggest contributor to greenhouse gas emissions) contributes to global poverty through climate change and environmental degradation, especially in poorer economies. With the COVID-19 pandemic causing economic slowing of China's economy, anticipated redress appears to be futuristic for now. Haiti. Haiti, regarded as "the poorest country in the Western Hemisphere," has a GDP (per capita) of about US$797, as reported in 2019. Greater than 6 million Haitians reportedly live on less than US$2.41 per day, and more than 2.5 million on  US$1.12 per day. The causes of poverty in Haiti have been rooted in "institutional and political instability" that chronically suffocate the growth of its social and economic sectors. Apart from the 2021 COVID-19 pandemic that has affected it (both politically and economically), particularly the poor and most vulnerable, Haiti has other natural elements such as hurricanes and earthquakes that have rendered some damage to its fragile infrastructure and limited economic resources. Deforestation has also exacerbated the effects of storms, floods and hurricanes. Despite this depiction, the World Bank has committed financial resources (in the tune of over US$834.41  million—in October 2020) to resuscitate Haiti's economy. The International Finance Corporation (IFC) has also rendered support in re-vitalizing Haiti's economy in the areas of "energy, beverage [production], garment manufacturing, financial markets, and hospitality." Other resources from donors include over US$40 million for economic remedy in the aftermath of the COVID -19 pandemic. Thus, overall, promising results are being observed in the sectors of education, health, better access to safe drinking water, energy production, agriculture and transport. Moldova. Once part of the USSR, Moldova is regarded as the poorest country in Europe, with a reported "GDP  per capita of $2,289." Despite that designation, Moldova has taken strides in reversing that designation. Between 2006 and 2015, the percentage of its people living below the national poverty line fell from over 30% to less than 10%. Some cited reasons behind Moldova's poverty are: Nigeria. Nigeria is the most populated African nation with 42.54% of the population falling within the age group of 0 -14. Despite the population growth and its status as an OPEC member, Nigeria has 51% of the population living in extreme poverty, with some people living on as little as $1.90 a  day. Some causes of poverty, as highlighted by Olatomide Waheed Olowa, are: "low or negative economic growth, inappropriate macroeconomic policies, deficiencies in the labor market resulting in limited job growth, low productivity, low wages, and a lag in human resource development." Other factors which have contributed to poverty include "increase in crime and violence, environmental degradation, retrenchment of workers, a fall in the real value of safety nets, and changes in family structures." Philippines. From 1621 to 1901, food prices increased due to a change in the policies of commodity pricing which—in turn—increased the poverty rate. From 1960  to 2009, slow economic growth has contributed to the persistence of poverty and has also contributed to the non-poor becoming poor. Although poverty has been reduced overall, the inequality of poverty has increased, according to the Asian Development Bank. Russia. According to Russia's State Statistics Service (Rosstat), Russia's poverty statistics equaled 14.3%, or 20.9 million people versus 13.9%, or 20.4 million people, in the first three months of 2018. The causes of poverty in Russia are complex: a shrinking economy, inflation, falling oil prices (due to Western sanctions) and in a rise in "consumer prices." High transportation  costs, including the cost of logistics, and the perception of inequality have hindered growth in investments, which, in turn, has generated a cycle of poverty. Vladimir Putin is promoting a program that will tame the poverty stats by 2024. South Africa. Despite South Africa being ranked 38th in the "ranking of the richest countries with net financial assets per capita of $8,385 (R140,200)," the causes of poverty in South Africa are multi-faceted. Major causes of poverty, precipitated by a history of apartheid, involve disparities in the distribution of resources, coupled with poor educational opportunities. Non-whites have also  had poor access to job opportunities and health care—known catalysts in the generation and cycle of poverty. In response to these challenges, South Africa initiated the so-called Expanded Public Works Programme (EPWP) to participate in job creation and promoting equitable policies in employment practices. The government has also endeavored to improve schools, provide health care for the poor, children (ages 6 and below) and pregnant women. United States. The United States economy, complex and highly developed, is the largest global economy with the sixth highest per capita GDP (PPP) and about 20% of the total global output. The  economy comprises dominant production sectors such as technology, financial services, healthcare, and retail. More than 20% of companies on the Fortune Global 500 originate from the United States. The poverty rate in the United States, in 2019, was 10.5 percent, the reported lowest reported since 1959. The poverty rate varies across racial lines and was reported to have reached “historic lows in 2019.” For black Americans, the rate was about 18.8%; for white Americans (non-Hispanic), the rate was 7.3% and for Hispanics, it was 15.7%. For Asians, the rate was 7.3%, "the lowest on record." Specifically, the poverty rate , in 2019, was most notable in the younger age category of 18 to 24 years old, of which 17.1% were males versus 21.35% females. Children were, as a group, most affected by poverty between the period, 1990 and 2018. Between 2000 and 2010, the poverty rate increased. A dip of 14.4% was later noted in 2019. People of ages 65 to 74 had the lowest poverty rate. The number of people living in relative poverty, across the country, tends to vary from state to state, e.g. in California (in 2018), 4.66 million people lived in poverty versus in Minnesota with  about 456,000 people that lived in poverty. The causes of relative poverty in the US are complex and revolve around the following: Trends. COVID-19 2020. According to the World Bank, in 2015, approximately 734 million people, equating to 10 percent of the world's population, survived on less than $1.90 a day—versus 1.9 billion people in 1990 (equating to about 36 percent of the world's population). The aforementioned progress made will be (and has been) reversed by the current global COVID-19 pandemic crisis, which is significantly affecting national, regional and global economies through unemployment, layoffs, poor delivery  of essential goods and services as well as disruptions in the education and health sectors. One fact is clear: the effects of COVID-19 will impact the poor and poor economies to a disproportionately high degree, and causing more people to become poor. In retrospect, countries, all over the world, injected vast monetary resources into social programs to mitigate the financial woes associated with the pandemic. Advanced economies utilized almost 28 percent of their GDP to keep their communities and others beyond them afloat. Similarly, middle income economies spent 7% of their GDP while developing economies spent 2% of their GDP  for the upkeep of their own communities. These measures, ultimately, protected many families and communities from plunging into poverty. The full impact of COVID-19 on poverty, in countries world-wide, is expected to be fully discerned in a period of 12 to 24 months, from 2021. Projections reveal that the long-term effects of COVID-19 will likely expand poverty in countries with the following defining parameters: It is projected that by 2030, nine countries with an expanded segment of the "extreme poor" will be in Africa, with Burundi and North Korea tied together in tenth place. A number of middle -income economies will likely see an increased incidence of poverty in their nations as well. Notwithstanding, these projected trends are reversible with the creation of social programs that can be utilized to protect the most vulnerable in each community nation.