Theories of poverty

Theories of poverty

Theories on the causes of poverty are the foundation upon which poverty reduction strategies are based.

While in developed nations poverty is often seen as either a personal or a structural defect, in developing nations the issue of poverty is more profound due to the lack of governmental funds. Some theories on poverty in the developing world focus on cultural characteristics as a retardant of further development. Other theories focus on social and political aspects that perpetuate poverty; perceptions of the poor has a significant impact on the design and execution of programs to alleviate poverty.


Poverty as a personal failing

When it comes to poverty in the United States, there are two main lines of thought. The most common line of thought within the U.S. is that a person is poor because of personal traits. These traits in turn have caused the person to fail. Supposed traits range from personality characteristics, such as laziness, to educational levels. Despite this range, it is always viewed as the individual’s personal failure not to climb out of poverty.


This thought patterns stems from the idea of meritocracy and its entrenchment within U.S. thought. Meritocracy, according to
Katherine S. Newman is “the view that those who are worthy are rewarded and those who fail to reap rewards must also lack self-worth.” This does not mean that all followers of meritocracy believe that a person in poverty deserves their low standard of living. Rather the underlying ideas of personal failure show in the resistance to social and economic programs such as welfare; a poor individual’s lack of prosperity shows a personal failing and should not be compensated (or justified) by the state.