Theories on the causes of poverty are the foundation upon which poverty reduction strategies are based.
While in developed nations poverty is often seen as either a personal or a structural defect, in developing nations the issue of poverty is more profound due to the lack of governmental funds. Some theories on poverty in the developing world focus on cultural characteristics as a retardant of further development. Other theories focus on social and political aspects that perpetuate poverty; perceptions of the poor has a significant impact on the design and execution of programs to alleviate poverty.
Causes of poverty in the United States
Poverty as a personal failing
When it comes to poverty in the United States, there are two main lines of thought. The most common line of thought within the U.S. is that a person is poor because of personal traits.[.] Thus, a person in poverty lacks adequate voice and exit (capacities) with which they can change their position. Appadurai specifically deals with the capacity to aspire and its role in the continuation of poverty and its environment. Aspirations are formed through social life and its interactions. Thus, it can be said, that one’s aspirations are influenced by one’s environment. Appadurai claims that the better off one is, the more chances one has to not only reach aspirations but to also see the pathways which lead to the fulfillment of aspirations. By actively practicing the use of their capacity of aspiration the elite not only expand their aspiration horizon but also solidify their ability to reach aspirations by learning the easiest and most efficient paths through said practice. On the other hand, the poor’s horizon of aspiration is much closer and less steady than that of the elite.]Thus, the capacity to aspire requires practice, and, as Chakravarti argues, when a capacity (or decision making process) is not refined through practice it falters and often fails. The unstable life of poverty often limits the poor’s aspiration levels to those of necessity (such as having food to feed ones family) and in turn reinforces the lowered aspiration levels (someone who is busy studying, instead of looking for ways to get enough food, will not survive long in the poverty environment). Because the capacity to aspire (or lack thereof) reinforces and perpetuates the cycle of poverty, Appadurai claims that expanding the poor’s aspiration horizon will help the poor to find both voice and exit. Ways of doing this include changing the terms of recognition (see previous section) and/or creating programs which provide the poor with an arena in which to practice capacities. An example of one such arena may be a housing development built for the poor, by the poor. Through this, the poor are able to not only show their abilities but to also gain practice dealing with governmental agencies and society at large. Through collaborative projects the poor are able to expand their aspiration level above and beyond tomorrows’ meal to the cultivation of skills and the entrance into the larger market. [harvnb|Appadurai|2004|pp= 59-84.]
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