The Poverty Cycle in Simple Terms

By Kaylee Chou

Today’s world is hard to live in. With the plethora of issues we have, combined with the lack of resources we have to solve them, it can be almost impossible for people to live a happy life–let alone survive. In fact, one of the greatest global issues we have is poverty.

Poverty, as defined by Britannica, means “the state of one who lacks a usual or socially acceptable amount of money or material possessions.”

In addition to this, WorldVision states that while poverty is an issue of income, quality of life also needs to be considered; “living in poverty means a life of struggle and deprivation.”

While poverty is terrible across all lines, it’s important to note that there are many different types. WorldVision breaks it down in 4 ways: extreme, absolute, relative, and extreme.

EXTREME POVERTY:

Extreme poverty, as defined by WorldBank in 2015, are people living on less than $1.90 a day. Extreme poverty is then broken down into 2 parts: absolute and relative.

ABSOLUTE POVERTY:

Absolute poverty is when one cannot afford the minimum need of food, clothing and shelter where they live.

RELATIVE POVERTY:

Relative poverty is when one’s household income is below the median of the country they reside in. Relative poverty is a better measure when looking at poverty within a country. And multidimensional focuses more on quality of life as opposed to income. For example, although one may have an income above the poverty line, that doesn’t mean everything is affordable to them. Necessities like electricity, healthcare and education may still be inaccessible. To note, the poverty line is the determining line below in which it becomes impossible or tough to afford basic needs. This line differs in every country.

EXTREME POVERTY:

According to WorldVision, as of 2021, approximately 689 million people globally suffer from extreme poverty. Children and youth are 2/3rds of this statistic, with women representing a majority. As for multidimensional poverty, 1.3 billion people in 107 developing countries experience it.

As one can imagine, the solutions to ending poverty are not quick, one-time fixes. They take plenty of time, energy, money, and resources. However, to find a solution to end poverty, we first need to understand how people become impoverished. This leads us to the poverty cycle.

**The Poverty Cycle, as illustrated by** ***Penny Appeal*, along with organizations that help people facing it. Check them out!**

The poverty cycle is what can cause generations of families to be impoverished. It starts when a child is born into a poor family.

Oftentimes this means that the family lacks the resources for the child to be raised, have all their basic needs met and ultimately, lack opportunities to create a better life. When a child grows up in poverty, they don’t have access to proper education, making it almost impossible for them to get a decent paying job, let alone a job at all. This essentially leaves them stuck in a vicious cycle– or trap, and if they have a child, that child will likely undergo the same difficulties. While all people in the poverty cycle are affected, these children are most impacted. They rely on their parents and guardians to take care of them, and when they can’t, they’re trapped.

Though it’s challenging, it is possible to break the cycle of poverty. For one, ensuring that children have access to education increases their likelihood of finding employment and having a steady income. WorldVision also states that girls who stay in school are less likely to marry early, which contributes to their health and well being. If they have kids in the future, this allows them to better educate their children. Economic empowerment is another solution. Helping improve the finances within a person’s household gives them the knowledge and power to make better decisions. WorldVisions offers individuals this help in 4 main ways: microfinance, savings groups, market/value chain development, and training small business owners. As one’s business grows, they’ll need to hire employees, helping others break out of the cycle.

While it’s great that these solutions exist, how do we put them into action? Well, donating. Donating is one of the best ways you can help people in poverty.

WorldVision offers sponsorship programs in which you can learn about impoverished children’s stories and choose one to sponsor. By donating $39 each month, you help provide them and their community with improved education, water, finances, and food. Along with that, you get the option to form a connection with your child through letters. And if $39 per month is a bit pricey for you, you can always consider pooling money together with friends or family. If you’re unable to donate, you can always help educate others on the poverty crisis. Spread awareness and knowledge; the more people that know, the better. Though we all come from different backgrounds, beliefs and countries, we are all human, and need to take care of each other.