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The image contains two flowcharts titled "The Vicious Circle of Poverty - at the institutional level" and "The Vicious Circle of Poverty - at the individual level." The top flowchart has four components in a circular arrangement starting with "Low population density," leading to "Lack of critical mass for services and infrastructure," followed by "Low rate of business creation," then "Fewer jobs," and circling back to "Workers move away." The bottom flowchart also has four components arranged circularly, starting with "Low income, low assets & low education," leading to "Lack of capital & needed skills," followed by "Lower capacity to generate income," then "Low security against economic & health risks," and circling back to "In debt & further loss of income." The charts do not include any numerical data points/percentages.
Given the complexity of the image, the above description may not be entirely accurate.
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Note: Both the topic and the answer were created by one of our users.
The vicious circles of poverty at two levels: institutional and individual are represented by the flow charts.
Overall, it is observed from the flow charts that both the circles are never ending. Several reasons are mentioned due to which the poverty cannot be eradicated.
To begin with the institutional level, when there is a lack of critical mass of services and infrastructure, the creation of business declines and as a result, scarcity in jobs is prevalent in the institutions. As a consequence, workers move away from that institution and hence population density reduces. Again, there is are few number of workers with the institution.
However, if an individual has a low level of income, qualification and assets, they would not have capital and the skills that are necessary, which is responsible for less efficiency in generating income. Moreover, a person cannot considered themselves secured, economically as well as may have health risks due to which a person has to suffer from debt and loss of income which in turn repeats the cycle again.
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