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Speaking about causes of poverty, it is primarily necessary to underline that poverty is not caused by some personal problems or, at least, it is not solely a problem caused by some psychological factors solely, instead it is rather a social phenomenon that affects the entire society and basically caused by the social injustice and inequality.
First of all, it is necessary to underline that poor people do not have the same opportunities as representatives of the middle or upper classes. Such a situation seems to be paradoxical in a society where all people formally have equal rights and opportunities, but actual situation is quite different. One of the major causes of poverty, which often defines the entire life of an individual, is education. In this respect, it should be said that students from low-income families cannot afford higher education and the education they receive is apparently insufficient, while in developing countries the situation is even worse when a considerable part of the population is simply illiterate and, therefore, is doomed to poverty because of the lack of knowledge and skills essential for a good and well-paid job, instead they are employed in low- or semi-qualified jobs. Consequently, their socio-economic position will be worse compared to the middle-class, for instance, since poor don’t have any prospects and when you are not sure that you could attend school next day because you had to earn money to live. buy an essay
Another cause of poverty is closely related to the problem of the employment. It should be said that poor people face a serious problem in this regard because often poverty is caused by the unemployment, which may be caused by the lack of competitive power in the labor market or simply by the oversaturation of the market (Coopers and Lybrand, 215), in addition to the causes mentioned above, such as the lack of education and qualification.
A very significant cause of poverty, along with inequality in educational opportunities and abilities of people, is the existing socio-economic hierarchy of society. Basically, even in the most democratic societies it is still quite difficult for people originating from lower classes to overcome the existing social barriers. In this respect, their educational and professional levels are important but, in addition, it is possible to name the cultural factor and prejudiced attitude to employees who represent marginalized groups. For instance, a person may have a talent, some outstanding skills and abilities, but if he/she committed a crime in the past, then he/she would have little opportunities to find a well-paid job or start some profitable business because of the negative attitude of society and mistrust to him/her as an employee or reliable business person.
Furthermore, it should be said that the modern world is characterized by the process of globalization which also contributes significantly to the growing gap between rich and poor and deteriorates the problem of poverty in global terms. In fact, the globalization implies the elimination of financial barriers and progress of international free trade which produce a negative impact on the poorest country where the share of the population living beyond the ceil of poverty often reaches 50% or even more (Danaher, 214). It is necessary to underline that economies of developing countries are, as a rule, underdeveloped and are practically unable to compete with economies and, therefore, companies of developed countries, such as the US or the EU. As a result, the national economies of developing countries become a source of cheap labor force, new markets, and simply a source of natural resources for developed countries, which use the economic potential of developing countries in their own interests because it is developed countries that define the economic policy of the entire world.
In the result of the process of globalization the gap between poor and rich or developing and developed countries grows wider (Khor, 158). This means that poor get poorer and rich get richer. The deterioration of economic situation in developing countries forces people to immigrate into developed countries, where they again occupy the lowest position in the social hierarchy and enlarge the army of poor people in developed countries threatening to socio-economic stabilities of these countries.