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Vicious Circle of Poverty definitions

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Terms in this set (15)

  • Vicious Circle of Poverty
    A self-reinforcing cycle where poverty leads to conditions that perpetuate further poverty, making escape increasingly difficult.
  • Low Per Capita Income
    A situation where average income per person is minimal, limiting access to goods, services, and opportunities for advancement.
  • Low Savings
    A condition where individuals or households are unable to set aside income, restricting future investment and economic security.
  • Low Demand
    A scenario where limited purchasing power results in reduced consumption of goods and services within an economy.
  • Low Investment
    A state where insufficient funds are allocated to physical or human capital, hindering economic growth and productivity.
  • Physical Capital
    Tangible assets like factories, tools, and equipment that enhance a nation's productive capacity.
  • Human Capital
    The collective skills, education, and abilities of a workforce that contribute to economic productivity.
  • Low Productivity
    A condition where output per worker or per unit of input is minimal, often due to inadequate resources or training.
  • Rapid Population Growth
    A demographic trend where the number of people increases quickly, often straining resources and lowering average income.
  • Rule of Law
    A framework where laws are clearly defined and enforced, reducing investment risk and encouraging economic activity.
  • Property Rights
    Legal protections that ensure individuals or businesses can own and control assets without fear of arbitrary seizure.
  • Infrastructure
    Foundational systems like roads, schools, and transportation that support economic activity and development.
  • International Trade
    The exchange of goods and services across borders, providing access to larger markets and investment opportunities.
  • Foreign Aid
    Assistance in the form of money, goods, or capital provided by developed nations to support economic development elsewhere.
  • Temporary Workers
    Individuals who migrate to another country for employment, often sending earnings back home to support their families.