Structural causes of poverty

Definition

Structural causes of poverty refer to the systemic and institutional factors that create and perpetuate economic inequality and limit access to resources, opportunities, and services. These causes are often deeply embedded in social, political, and economic systems, leading to persistent poverty that is difficult to eradicate without significant structural change.

5 Must Know Facts For Your Next Test

1. Structural causes of poverty often include inadequate education systems, discriminatory labor markets, and unequal access to healthcare services.
2. Political instability and corruption can exacerbate poverty by limiting government effectiveness in implementing policies aimed at reducing inequality.
3. Economic policies that favor certain industries or groups can entrench existing disparities, making it difficult for marginalized communities to escape poverty.
4. Geographical factors, such as living in rural areas with limited access to infrastructure and services, can also contribute significantly to structural poverty.
5. In many cases, structural causes of poverty are interrelated, meaning that addressing one area requires comprehensive strategies that tackle multiple contributing factors simultaneously.

Review Questions

• How do structural causes of poverty influence the economic policies in oil-dependent countries?
  • Structural causes of poverty heavily influence economic policies in oil-dependent countries by creating a reliance on oil revenues that often exacerbate inequalities. In these countries, wealth generated from oil extraction tends to be concentrated among a small elite while marginalized populations continue to face barriers such as lack of education and job opportunities. This dynamic can lead to policies that prioritize oil extraction over social development, perpetuating the cycle of poverty for many citizens who remain excluded from the benefits of resource wealth.
• Evaluate the impact of oil dependence on the structural causes of poverty in Latin America.
  • Oil dependence in Latin America significantly impacts structural causes of poverty by fostering economic environments where wealth is concentrated among a few. Governments reliant on oil revenues may neglect other sectors such as agriculture or manufacturing, leaving rural communities with fewer economic opportunities. This focus can perpetuate social stratification, where those without access to the oil industry remain trapped in cycles of poverty while benefiting from lower investment in public services like education and healthcare.
• Synthesize the relationship between structural causes of poverty and political stability in oil-rich nations.
  • The relationship between structural causes of poverty and political stability in oil-rich nations is complex and often cyclical. Structural inequalities fostered by reliance on oil revenues can lead to social unrest and political instability as marginalized groups demand more equitable access to resources. Conversely, political instability can impede efforts to address these structural issues, creating a vicious cycle where both poverty and instability persist. Effective governance that prioritizes inclusive economic policies is essential for breaking this cycle and promoting long-term stability.

Related terms

Economic Inequality: The unequal distribution of income and opportunity among different groups in society, which can lead to varying levels of wealth and access to resources.

Social Stratification: The hierarchical arrangement of individuals in society based on factors such as wealth, income, education, and social status.

Globalization: The process of increased interconnectedness and interdependence among countries, which can have both positive and negative impacts on local economies and poverty levels.