CAUGHT : TRAP OF MISFORTUNE.
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CAUGHT : TRAP OF MISFORTUNE.
–Aarya Kalyankar
FY BSC
2023-2027
In the grand tapestry of life, we are all wanderers in the labyrinth of existence. Each path we tread leads us to different destinations, but some find themselves ensnared in a perplexing web- the Poverty Trap. It’s like navigating a maze of never-ending corridors, where the way out seems ever elusive.
Before we understand what poverty trap is, let’s understand poverty . To cite the World Bank’s definition, poverty is “pronounced deprivation in well-being” and poverty trap is “Insufficient monetary resources to purchase the minimum consumption basket socially accepted”. The “poor” are those individuals whose expenditure (or income) are below what is socially acceptable as a minimum living standard. Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not being able to go to school, not knowing how to read, not being able to speak properly. Poverty is not having a job, fear for the future, and living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation and freedom.
WHAT IS A POVERTY TRAP?
“Poverty trap is a spiral mechanism which forces people to remain poor. It is so binding in itself that it doesn’t allow the poor people to escape it. Just as a desert presents vast, unforgiving terrain with scarce provisions, poverty creates a challenging environment with limited opportunities and resources for those ensnared within its confines.”
Now you see this, you definitely don’t want to be a child born in such a family, or be a part of a country mired in poverty. Now think of the people whose destitution defines their very existence, how traumatizing their lives are. To understand such an issue we need to ask: why do countries fall into the poverty trap?- Ragnar Nurkse has a brilliant answer to this (which I agree with the most):
- Poverty means low incomes, when there is low income the ability to save reduces ,and then if there are no savings there are no investments, because of no capital and thus that means no investment, no increase in productivity ,and no change in income
- When people have low income they do not spend more on health care ,that leads to low productivity rates, and therefore low incomes.
- Lastly, that low income means low demand, that means a restricted market, and when there are such conditions foreign investments are not encouraged .
Along with this some economists believe that mismanagement of funds by poor nations also is a cause of poverty trap, countries like these don’t even bother about their growing population and would rather spend more on buying weapons or to build a palace. For example a country like Pakistan, the expenditure allotted to the Defence sector is on the higher end but they fail to realize the opportunity cost of mismanagement of their funds, opportunity cost for the development (healthcare , education and infrastructure). Pakistan claims that it poses a threat from countries like India and invasions from Afghanistan. which forces their allocation of funds to defence , thereby it has managed to modernize its Military, but population in the country is ever growing resulting into high levels of poverty and inequality, to match its citizens needs, Pakistan is heavily dependent on foreign aid, especially from China, therefore it becomes a country which is running in deficit. Directly impacting the FDI’s in Pakistan and reducing interest of investors, leading no employment and no incomes and the cycle continues this also a well studied phenomenon in Economics called “Guns or the Butter argument”: TRAPPED
Are Poverty Traps subjected only to the economy?- No they aren’t
Poverty traps can be geographic, educational, social, generational and even institutional. The all-encompassing aspect of poverty makes it crucial that a country aims to develop all aspects of its infrastructure and not just focus on economic growth.
How does one get out? Should one choose to survive, succeed or escape?
Escaping the clutches of the poverty trap is a complex journey that demands a multifaceted and sustainable approach. Successful nations, rising from the ashes of economic deprivation, often share common strategies that weave together economic, social, and political threads. First and foremost, fostering education becomes a beacon of hope, empowering citizens with the tools to break the chains of generational poverty. Equally pivotal is the creation of a conducive business environment that encourages entrepreneurship and innovation, unleashing the latent potential of a nation’s workforce. Investment in infrastructure, healthcare, and social welfare programs creates a solid foundation, ensuring that progress is inclusive and reaches every stratum of society. Additionally, fostering international partnerships and embracing technological advancements propels countries into the global arena, enabling them to participate in the interconnected world of trade and innovation. Through a harmonious symphony of education, economic empowerment, and global integration, nations can orchestrate their way out of the poverty trap, creating a crescendo of prosperity that resonates across generations.
Breaking a Poverty Trap looks like a creature of myth and legend: THE PHOENIX— a symbol of rebirth risings from its ashes, an allegory of emerging from the depths of adversity, akin to breaking free from the shackles of poverty embodying the possibility of a future unshackled by poverty. How do you see that visually? Don’t hesitate to have a look at the url below
Gapminder ; This data visualization tools is a fun way to look at how the countries across globe have managed to beat the shackles of poverty, it also shows the other side of the coin, this tool is backed by a lot of research and data all credits to the man who developed it Hans-Rosling, a Swedish physician and statistician who collected statistics and used computer software, props, and his own showmanship to showcase facts and trends revealed by the data about the world in such a fashion that made him a Youtube star.
About Poverty Trap I have tried to answer the following questions for you all
- What does the World look like today ?
- Why does it look the way it does?
- What can we do to make the World a better place ?
I would encourage you all to think for a better solution on the 3rd Question and answer it. Not because the solution for it is very difficult but because the more brains into a thing the higher probability of getting a better solution and therefore achieving a better result.