Unit 4.9 · Barriers to Economic Growth and/or Economic Development
Poverty Traps and Cycles
AO2AO4Diagram required
Syllabus Requirement
Self-reinforcing mechanisms that prevent individuals or countries from escaping poverty, often involving multiple linked factors like low income, poor health, and limited education.
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
Summary
Poverty traps, also known as poverty cycles, refer to a self-reinforcing loop where poverty leads to conditions that perpetuate further poverty. Understanding these cycles is important in economics as they highlight the challenges faced by individuals and communities in breaking free from poverty.