asad.mazher@yahoo.

com

Poverty
“Fundamentally, poverty is a denial of choices and opportunities, a violation of human
dignity. It means lack of basic capacity to participate effectively in society. It means not
having enough to feed and clothe a family, not having a school or clinic to go to, not
having the land on which to grow one’s food or a job to earn one’s living, not having
access to credit. It means insecurity, powerlessness and exclusion of individuals,
households and communities. It means susceptibility to violence, and it often implies
living on marginal or fragile environments, without access to clean water or sanitation”

Causes of Poverty:
Many people around the world face this situation every day of their lives. What could
have caused a situation like this to occur? The education and skill level, health or
handicap status, and discrimination play a vital role in poverty. A major factor
determining whether someone will end up living in poverty, education or skill level can
make or break an income. Education plays a vital role in acquiring jobs, learning new
skills, and bringing home necessities and comforts of life. A person who doesn’t receive
an education has a very small chance of making much money and acquiring skills that
would bring home a desirable income. Many who do not have an education bring their
family into a cycle of poverty, where their posterity doesn’t necessarily have the income
to go to college
Or even don’t have a desire to acquire a high school diploma.
Numerous causes exist that affect poverty in the world, but most sources agree that lack
of education, poor health, and discrimination play a key role in causing poverty. Those
causes can have an immense impact on countries, continents, and the whole Earth. The
education and skill level, health or handicap status, and discrimination play a vital role in
poverty. Some also other reasons given are also cause of poverty.
• Overpopulation
• Global Distribution of Resources
• High Standard of Living and Cost of Living
• Inadequate Education and Employment
• Environmental Degradation

Effects of Poverty
• Malnutrition and Starvation
• Infectious Diseases
• Mental Illness and Drug Dependence
• Crime and Violence
• Long-Term Effects

POVERTY CYCLE:
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Set of factors or events by which poverty, once started, is likely to continue unless there
is outside intervention. Once an area or a person has become poor, this tends to lead to
other disadvantages, which may in turn result in further poverty.

POVERTY IN PAKISTAN:
Intro to Poverty & Pakistan
Pakistan is a poor country. Its economy is facing fluctuations now a day. At the time of
independence Pakistan has very low resources and capital, so the processes of progress
were very slow. Unfortunately the politicians of Pakistan were all not well aware of
modern global system and the progress processes and the needs of country. Due to bad
policies today Pakistan is facing a lot of problems. The continuous failure of policies
leads the people of country to miserable conditions. The major problem in the country is
poverty which is becoming the cause of crime and social disorder.

Criterion of Poor
The criterion of poor is that if a person is not earning US $367.00 per is year considered
poor but this was repeated later on the criterion is changed and now it’s US $ 2.00 per
day.

Reasons Pakistan faces Poverty

There are seven sins committed by policy makers and Economist, due to those reasons
Pakistan faces Poverty

1. Divorce between Planning & Implementation

2. Number Game
3. Excessive Control (Army, MNCs, Other Countries, Bureaucrats)
4. Development Fashion
♣ 40-50s Industrialization
♣ 50s Export Promotion
♣ 60s Import substitution
♣ Mid of 60s Agriculture development
♣ 70s Socialism
♣ 80s Islamization
♣ Late 80s Privatization
♣ 90s Unbalanced Grwoth
♣ 2000s to onward Liberalism and War against territories
5. Investment Illusion
6. Neglect of HR
7. Growth without Justice
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Major Causes of Poverty in Pakistan

• Lack of Effective Demand
• Population Pressure
• Lack of Investment
• Absense of Solid Industrial Estates
• Sudden fluctuation in Demand and Supply
• Shortage of Capital
• Market imperfection
• Low literary rate
• Inflationary pressure
• Low Foreign Investment
• Dead/Zero Sum Investments
• Structual distortation
• Bad Educational System
• Govt. doesn’t work to create more Employment opportunities

Proposed Solutions
• Education and Job Training
• Long-Term Economic Plans
• Rehabilitation
• Eliminating Job Discrimination
• Better Tax Reform Programs
• Work for the Unemployable