Poverty trap
In general, in development economics, a poverty trap is “any form of self-reinforcing mechanism that causes poverty to persist”.
More specifically, a poverty trap is a negative balance - for a family, a community or a nation - that includes a downward spiral in which poverty and underdevelopment lead to more poverty and underdevelopment, often from one generation to the next. If poverty persists from generation to generation, the mechanism will begin to reinforce itself unless steps are taken to break the downward spiral.
In developing countries, many factors encourage the respective countries to embark on a downward spiral, for example: limited access to capital markets, corruption in state institutions, poor education systems, a poor health system, war and insufficiently developed infrastructure. In economics, the existence of poverty traps is controversial. Nevertheless, there are some economic models that model poverty traps. Some models suggest that a poverty trap can be broken with a heavy investment push .
Web links
- Ajayi, S. Ibi, Mahsin, S. Khan. "External Debt and Capital Flight in Sub-Saharan Africa." IMF, 2000. [1]
- Collier, Paul, et al. "Flight Capital as a Portfolio Choice." Development Research Group, World Bank.
Individual evidence
- ↑ Costas Azariadis, John Stachurski: Poverty Traps , Handbook of Economic Growth , 2005 326th
- ↑ Michael P Todaro and Stephen C. Smith: Economic development. 12th edition, p. 834.
- ^ Bonds, MH, DC Keenan, P. Rohani, JD Sachs. 2010: Poverty trap formed by the ecology of infectious diseases , Proceedings of the Royal Society of London, Series B, 277: 1185-1192. doi : 10.1098 / rspb.2009.1778