What Is Vicious Circle Of Poverty?

Are you curious to know what is vicious circle of poverty? You have come to the right place as I am going to tell you everything about vicious circle of poverty in a very simple explanation. Without further discussion let’s begin to know what is vicious circle of poverty?

The vicious circle of poverty is a concept that has plagued societies for centuries, trapping individuals and communities in a never-ending cycle of economic hardship and deprivation. This relentless cycle perpetuates poverty and makes it exceedingly difficult for those affected to break free from its grip. In this blog, we’ll delve into the meaning, causes, and consequences of the vicious circle of poverty, as well as explore strategies to break free from its chains.

What Is Vicious Circle Of Poverty?

The vicious circle of poverty is a self-reinforcing cycle in which poverty begets more poverty, creating a downward spiral of deprivation. This cycle typically involves various interconnected factors that exacerbate one another, making it challenging for individuals or communities to escape poverty. Here’s a breakdown of its key elements:

  1. Limited Access to Resources: Individuals in poverty often have limited access to essential resources such as education, healthcare, and job opportunities. These limitations hinder their ability to improve their living conditions.
  2. Lack of Education: Limited access to quality education perpetuates poverty by restricting individuals’ skills and knowledge, making it difficult for them to secure well-paying jobs or break free from low-income occupations.
  3. Inadequate Healthcare: Poor health outcomes can result from poverty, which, in turn, limits one’s ability to work and earn a living. Lack of access to healthcare exacerbates health issues, further entrenching poverty.
  4. Low Income: Low-income levels can trap individuals in poverty by preventing them from saving, investing, or accessing opportunities for economic advancement.
  5. Limited Assets: Poverty often leads to a lack of assets or property ownership, making it challenging to accumulate wealth or access credit for economic development.

Causes And Consequences

Several factors contribute to the perpetuation of the vicious circle of poverty:

  1. Structural Inequalities: Systemic disparities in access to education, healthcare, and economic opportunities disproportionately affect marginalized communities, trapping them in poverty.
  2. Lack of Social Safety Nets: Insufficient social safety nets and support systems leave individuals vulnerable to economic shocks, pushing them deeper into poverty.
  3. Intergenerational Transmission: Poverty can be transmitted from one generation to the next, as children growing up in impoverished households often face the same challenges as their parents.
  4. High Population Growth: In regions with high population growth rates and limited resources, poverty can become more entrenched due to increased competition for limited opportunities.

Breaking Free From The Vicious Circle

Breaking the vicious circle of poverty is a complex and multifaceted challenge that requires concerted efforts from governments, organizations, and communities. Here are some strategies to combat and break free from this cycle:

  1. Education and Skills Development: Investment in quality education and skills training can empower individuals to access better job opportunities, increase their earning potential, and escape poverty.
  2. Healthcare Access: Ensuring affordable and accessible healthcare services can improve overall health outcomes, reduce medical expenses, and enable individuals to remain productive.
  3. Social Safety Nets: Establishing robust social safety nets, including unemployment benefits, food assistance, and housing support, can provide a safety net during economic downturns.
  4. Economic Empowerment: Encouraging entrepreneurship, providing access to microfinance, and supporting small businesses can help individuals generate income and build assets.
  5. Addressing Systemic Inequalities: Efforts to dismantle systemic inequalities in education, employment, and healthcare are essential for breaking the cycle of poverty.


The vicious circle of poverty is a deeply entrenched and multifaceted challenge that affects individuals and communities worldwide. However, with concerted efforts, policy interventions, and a commitment to addressing its root causes, it is possible to break free from this cycle and create opportunities for economic advancement, social mobility, and a brighter future for all. Breaking these chains of poverty is not just a moral imperative; it is an investment in human potential and the well-being of societies as a whole.


What Is The Vicious Circle Of Poverty Class 12?

The vicious cycle of poverty states that low-income levels lead to low-income investment and savings. Therefore, there will be a low rate of investment, leading to a decrease in the productivity rate that will again lead to low income.

What Is A Vicious Circle In Economics?

A vicious circle will continue in the direction of its momentum until an external factor intervenes to break the cycle. A well-known example of a vicious circle in economics is hyperinflation. When the results are not detrimental but beneficial, the term virtuous cycle is used instead.

Who Gave The Concept Of Vicious Circle Of Poverty?

Ragnar Nurkse, an economist in 1953 introduced the model vicious circle of poverty theory to demonstrate low level of economic activity. [5] It consists of two levels; supply level and demand level.

What Is Vicious Circle Of Poverty Wikipedia?

The poor start with a very low level of capital per person, and then find themselves trapped in poverty because the ratio of capital per person actually falls from generation to generation. The amount of capital per person declines when the population is growing faster than capital is being accumulated …

I Have Covered All The Following Queries And Topics In The Above Article

What Is Vicious Circle Of Poverty Class 12

What Is Vicious Circle Of Poverty Pdf

What Is Vicious Circle Of Poverty In India

What Is Vicious Circle Of Poverty Class 9

Vicious Circle Of Poverty – Wikipedia

Vicious Cycle Of Poverty Examples

Vicious Circle Of Poverty By Nurkse

Vicious Circle Of Poverty Ppt

What Is Vicious Circle Of Poverty