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My Courses de This course Hide blocks Assignment question 06 > Assignment question 06 gnment question 06 Briefly explain the concept of vicious cycle of poverty in economic growth in developing economies. Suggest or give some examples (from other countries) of ways to break this cycle? Start or edit my journal entry have not started this journal yet

Answer 1

In economics, vicious circle of poverty refers to the set of events or factors wherein the poverty, once started tends continue unless there is intervention from outside due to low rate of investment and saving on the supply side. For example: Education plays a vital role as a human capital investment that enhances future legitimate work opportunities. As there is a clear linkage between education, poverty reduction and sustainability, thus a lack of provision of education will not support the growth and create a vicious circle of poverty. Thus to break this cycle the countries like India have promoted provision of education and as a result there earnings are more and broke the vicious circle of poverty and promoted the economic growth