Causes of poverty is a highly ideologically charged subject, as different causes point to different remedies. Broadly speaking, the socialist tradition locates the roots of poverty in problems of distribution and the use of the means of production as capital benefiting individuals, and calls for re-distribution of wealth as the solution, whereas the neoliberalschool of thought is dedicated to the idea that creating conditions for profitable private investment is the solution. Neoliberal think tanks have received extensive funding, and the ability to apply many of their ideas in highly indebted countries in the global South as a condition for receiving emergency loans from the International Monetary Fund. The text below represents an analysis of the causes of poverty that ignores the role of capitalist social organization in generating and maintaining inequality. Causes of poverty is changing trends in a country's economy. Associated with the lack of education, high divorce rate, a culture of poverty, illiteracy, overpopulation, epidemic diseases such as AIDS and malaria and environmental problems such as lack of rainfall. Extreme weather may be a cause of poverty in many countries. Drought, rainfall and flooding are some of the biggest causes of poverty by weather. When natural disasters do not gain media attention raising money becomes more difficult. This is made worse when governments spend money in the capitals instead of the poorest areas which need it most. In 2014, almost 50 percent of people in the world lived on less than $2.50 per day.
Causes of global poverty
The International Food Study Institute had a brief on a collection of extensive studies that analyzed the causes of poverty, analyzing household data and reviewing empirical research in 20 countries. They found that some of the major causes of poverty were the inability of poor households to invest in property and education, limited access to credit, in some cases these instances produce more poverty via inherited poverty. The systematic exclusion of ethnic minorities, scheduled castes, tribes, women and people with disabilities and health issues. Persistence of poverty is partially attributed to these classes not having access to institutions and markets. War and violence may be some of the primary causes of poverty. Political violence and organized crime have affected 39 countries since 2000, in those countries the poverty level is twice that of non-violent countries. These two items, poverty and violence may also feed themselves. When asked why young people joined gangs and rebel groups in half a dozen countries, two thirds of the respondents said that unemployment was their main reason, only one tenth cited a belief in the cause.
Colonialism
Economists Daron Acemoglu and James A. Robinson maintain that poverty is associated with colonialism.
The causes of poverty in Bangladesh are due to the country's low economy caused by the poor labour market, the vast amount of floods that occur, and overpopulation. Colonialism has also played a massive role.
Canada
Statistics Canada reported in 2013 that high-risk groups for poverty in Canada include "...people with activity limitations, singles, persons in lone-parent families, people with less than high school education and visible 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.
Philippines
From 1621 to 1901 food prices increased due to a change in the policies of commodity prices which 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.
Unemployment is the leading cause of poverty within the US. In 1999 and 2005, 71 percent of the families that were below the poverty line did not have any working family members. Among the families below the poverty line that had at least one family member working, low wages and insufficient benefits were also leading causes. It is estimated that over 25 million Americans over the age of 60 are 250% below the federal poverty level, making less than $29,425 annually. The poverty rate among seniors in the United States is at 9 percent. In 1960 the official poverty rate among the elderly was 35 percent. Extreme poverty may affect lifespan, and the lack of money via some type of pension system increases the poverty rate among the elderly worldwide. Issues like hunger, illness and thirst are all causes and effects of poverty.
South Africa
One of South Africa's major causes and effects of poverty is the past impoverishment of black people by colonisers and the apartheid regime's unequal opportunities and education. For many years black people were forcibly removed from where they lived and then were not allowed to own land in their own country. This led to high unemployment rates among black people, making impoverishment almost inescapable. Unemployment causes families to live in unsanitary conditions because of a lack of financial means to improve living conditions. If the parents are unemployed, this can also affect how the child is brought up and what kind of education they receive. This issue has been recognized by the South African government.
