The given diagrams illustrate the recurring nature of poverty at both institutional and individual levels.
At the institutional level, poverty is initiated by low population density, which causes the lack of essential services and infrastructure. This shortage inhibits business creation, leading to fewer job opportunities. When this is the case, workers tend to migrate other places, which makes a further reduction in population, and this creates a loop where the development in that place remains delayed.
At the individual level, poverty initiates with low income, absence of assets, and limited education which can help to gain better source of income. This lack of personal resources results in an absence of capital and critical skills, which in turn reduces the essential ability to generate sufficient income. Therefore, individuals become vulnerable towards economic and health insecurities and end up as loan takers which even lessen the income they had. This cycle constrains such individuals literally to poverty.
Both institutional and individual levels show a recurring loop in which the poverty causes ensure that it will never be solved, and in the end, a cycle seems impossible to escape.
