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Poverty Of Poverty And Poverty

Decent Essays

I. Background, Statistics, Introduction
Poverty traps are economic anomalies that continually reinforce poverty within a country’s, or multiple countries’, economies. There are many different types of poverty traps such as savings traps, “big push” models, nutritional traps, behavioral traps, geographic traps, etc. that all affect an economy in different ways. Not only can poverty be enforced through these traps, but also through the way an economy is run or the moralities of the government. According to Mark Koyama (2015), poverty traps are important due to more than 3 billion people, nearly half the world’s population, living on less than $2.50 per day, and about 1.3 billion people living in extreme poverty on just $1.25 per day. Among these 3 billion some people living in poverty, one billion of them are children of which thousands are dying daily. It is necessary to study these different poverty traps in order to begin to decrease the distressingly high percentages of people living in poverty.
The purpose of this review is to investigate the claims made by economists on why poverty is a reoccurring factor in developing areas, and whether or not that particular claim is indeed one of the reasons that these areas suffer from poverty. Poverty traps are one of the prominent factors in the reasoning behind poverty in developing areas; however, there are also many other supporting factors that reinforce poverty. Shepherd (2007) believes there is a point of equilibrium in

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