Causes of poverty in developing nations

Causes of poverty in developing nations

Poverty as cultural characteristics

Development plays a central role to poverty reduction in third world countries. Some authors feel that the national mindset itself plays a role in the ability for a country to develop and to thus reduce poverty. Mariano Grondona (2000) outlines twenty “cultural factors” which, depending on the culture’s view of each, can be indicators as to whether the cultural environment is favorable or resistant to development.


In turn Lawrence E. Harrison (2000) identifies ten “values” which, like Grondona’s factors, can be indicative of the nation’s developmental environment. Finally, Stace Lindsay (2000) claims the differences between development-prone and development-resistant nations is attributed to mental models (which, like values, influence the decisions humans make). Mental models are also cultural creations. Grondona, Harrison and Lindsay all feel that without development orientated values and mindsets, nations will find it difficult if not impossible to develop efficiently, and that some sort of cultural change will be needed in these nations in order to reduce poverty.


In “A Cultural Typology of Economic Development”, from the book Culture Matters, Mariano Grondona claims development is a matter of decisions. These decisions, whether they are favorable to economic development or not, are made within the context of culture. All cultural values considered together create “value systems”.


These systems heavily influence the way decisions are made as well as the reactions and outcomes of said decisions. In the same book, Stace Lindsay’s chapter claims the decisions individuals make are a result of mental models. These mental models influence all aspects of human action. Like Grondona’s value systems, these mental models which dictate a nations stance toward development and hence its ability to deal with poverty.