Tuesday, June 5, 2007

5.3 "The Poverty Trap"

The poverty trap is sometimes called the poverty cycle.

See page 75 of Chittenden for a diagram showing the Poverty Cycle.

The poorer you are the more likely you are to have children, which means that you are unlikely to save money because you are spending money on feeding and clothing your children. This becomes a continuous cycle of poverty.

Remember most Monsoon Asian countries do NOT have benefits for families let alone solo parents therefore these families can not get any government assisstance.

It is this reason that paretns rely on their children to work and provide for them in the future.

"Most youthful populations are developing (poor) countries"

The following Venn Diagram illustrates the relationship between having a youthful population and being poor.



The Human Developemet Index (HDI) is an index based on life expectancy, education and income to measure and compare living standards. If countries have a low HDI then we can describe the country as being a developing (poor) country.

The Venn Diagram shows us that the countries that have a low HDI will have a high birth rate, however, not all countries that have high birth rates have a low HDI.

We can also say that countries in Monsoon Asia which are currently poor are likely to remain poor for a long time due to the poverty trap. If life expectancies are low, then people will have larger families to compensate for the high death rate because children are parents' insurance that someone will work the family plot and provide for them in the future.

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