Causes Of Poverty And Inequality In India And Afghanistan

Decent Essays
Causes of Poverty
There are many causes of poverty and inequality in both India and Afghanistan including the poverty circle, problems with population, poor governance and a lack of access to international markets

The poverty cycle is one cause of poverty. Low income can lead to low savings, poor health, low levels of education and low demand which causes low capital investment, low productivity which can lead to further low income. For example in India and Afghanistan a large percentage of the people living below the poverty line are illiterate. 45% of people living below the poverty line in India are illiterate compared to 26% of population. Additionally, in Afghanistan, 75.6% of poor people are illiterate. This means that poor people in Afghanistan face higher unemployment (8%) and underemployment (41%) and are more likely to work in agriculture (43.6%) or in the informal sector (84.3%) where they earn low and inconsistent wages.
Another cause of poverty is inequality which can reinforce relative self-perpetuating poverty. One reason is that when there is a big wealth gap between the richest section of the population than the poorest section. There may be more investment in urban areas for the wealthy urban population than the poorer rural population. In India 80% of their poor population lived in rural areas while in poverty in Afghanistan is concentrated in rural areas as four out of five people live in rural areas.
Population can be both a barrier and a
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