Q.2 What is the vicious circle of poverty?
Ans:
The vicious circle of poverty refers to the interconnectedness of different factors
that reinforce each other for generating poverty. They are poor because they are
too many. They are too many because they are poor. According to Nurkse and
Kindleberger the reasons for this vicious circle of poverty can be classified into three groups.
- Supply side factors
- Demand side factors
- Market imperfection.
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| Extra Info : Causes of Poverty in India Colonial Exploitation:Lack of Investment for the PoorSocial System in IndiaIndia’s Economic PoliciesOver-reliance on Agriculture:Heavy population pressuresHigh IlliteracyHigh Unemployment :Lack of Entrepreneurship Remedies for Poverty Increase in Saving :Increase in InvestmentBalanced Growth:Human Capital FormationIndustrialisation |