Of the population of the world, over 3 billion people live on less than $2.50 a day. This is a staggering number that begs the question, why? What are the causes of global poverty? There is a multitude of reasons as to why poverty devastates countries, but here are the top five causes of global poverty.

5 Causes of Global Poverty

1. War: A country that goes to war can impact poverty greatly. There are several factors to consider when looking at how war contributes to poverty. There is the destruction of the infrastructure wherever the conflict rages. Fierce fighting can destroy power facilities, buildings and roads and usually take years to rebuild. The disruption of trade can have a devastating impact on the goods that people rely on. The halt to production in factories, growing of crops and work in mines can bring a country’s economy to almost a complete stop. The human cost is the most devastating out of every impact that war can bring. Not only is there the number of dead to consider, but also the number of people fleeing the conflict zones. Large numbers of a country’s workforce are fleeing the conflict zones looking for peace in a different country. Today, 71 million people have been displaced because of war and violence in countries all over the world. Since the creation of organizations such as the United Nations, countries are more willing to talk to each other and keep the peace rather than fight.
2. Little to No Education: Often, when a country is in poverty, there is very little to no education available for its citizens.  Nearly 1 billion people came into the 21st century not knowing how to write their names or read a book. When a nation lacks in education, they become an untrained workforce for an impoverished nation. Families in these countries often cannot afford to send their children to school, and frequently require them to work to support their families. By the year 2000, it was possible to send every child in the world to school and in order to do that, the world would have only had to spend less than 1 percent of what it does on weapons. However, this obviously did not happen. Even though 1 billion people or 18 percent of the population could not read or write at the start of the century, this statistic is still an improvement from 1980 when the world illiteracy rate was 30 percent.
3. Corruption: One can blame poverty in a country on the leaders as well as any outside factors. A country with corrupt leadership can have a devastating impact on the well being of its people. Corruption can divert much-needed resources and funds away from those that need them. Every country may have some level of corruption, however, the most poverty-stricken countries often show the most corruption. According to Transparency International’s Corruption Index, out of the 177 nations it ranked, 118 had a score of 50 or less. A score of 100 means that the country is free of corruption. Meanwhile, the least developed nations in the world have a score of 28. Fortunately, many countries are creating offices to hold their leaders accountable. Cuba, for example, has started the Ministry for Auditing and Control that aims to fight corruption within the country.
4. Inflation: Countries’ economies can fluctuate from extreme highs to lows. Venezuela is a current example of a country going through this type of hardship. The South American country was able to prosper from an economic boom from its oil industry. When that began to regress, the country’s economy began to take a turn for the worse. Inflation ruined the country, making goods almost impossible to afford. There was also a lack of necessary supplies such as food and medicine. The current poverty rate in Venezuela sits at 90 percent out of a population of 32 million. Because of the economic hardship, 4 million people have left Venezuela as refugees. Despite Venezuela’s struggles, there are examples of countries that have faced terrible economic times and turned things around. Norway had one of the worst economies at the turn of the 20th century, but through foreign aid and resources, it is now one of the richest nations in the world.
5. Natural Disasters: A natural disaster can have an overwhelming impact on a country’s livelihood and the well-being of its people. There is very little that anyone can do to stop natural disasters from happening. Earthquakes, tsunamis, hurricanes, landslides, volcanic eruptions and tornadoes can destroy areas and leave whole regions to pick up the pieces. Countries that are already in poverty struggle to recover and frequently sink deeper into poverty. According to the World Bank, over 26 million people enter poverty each year because of natural disasters. By the end of 2018, the world lost $225 billion as a result of natural disasters globally. As technology improves, countries become better prepared for natural disasters and have more warning.

No matter what the causes of global poverty are, there is always a solution to fix them. Whether it is through international aid or a change in legislation around the world, people can eliminate those causes, or at the very least, limit the devastation of poverty.

– Sam Bostwick
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