Extreme poverty is a pervasive issue affecting many countries worldwide, leading to severe economic and social challenges. While corruption and high levels of illiteracy are considered to be the main causes of poverty, measures such as increasing transparency in the political arena and investing in high-quality education can be implemented to tackle the issue.
There are many reasons why some states struggle to combat extreme poverty today. One of the primary causes of this trend is systemic corruption, where public funds intended for development are misappropriated by those in power. In many developing nations, especially in parts of Africa, tax or trade revenues are frequently diverted to finance luxury lifestyles for the elite rather than being channelled into infrastructure development or poverty alleviation. Another significant factor is inadequate or absolutely no access to quality education. In many regions, education systems are underfunded or entirely inaccessible, leaving a large portion of the population without the skills needed for higher-paying professional roles, such as healthcare, teaching, science, or law, which in turn forces people to stay in the manual labour sector, perpetuating a cycle of low-wage labour and poverty across generations. For example, countries like India are notorious for high rates of illiteracy, and as a result, over 60% of the population is employed in the production sector, working in factories, while the state is experiencing a severe shortage of skilled professionals.
To efficiently address these causes, a multifaceted approach is necessary. Firstly, strengthening transparency in governance through rigorous anti-corruption measures is essential to ensure public funds are allocated effectively for development projects. Since local leaders in many impoverished regions may themselves be complicit in corruption, intervention by global organizations such as the United Nations may be necessary to establish more accountable governance. Secondly, investing in providing free education for everyone, regardless of age, gender, or socio-economic status, is essential. Investing in a well-educated workforce can lead to greater economic growth by equipping individuals with the skills needed for more complex and higher-paying jobs, which, in turn, can strengthen sectors currently lagging in development For example, South Africa was able to boost its GDP per capita by investing in higher education, which in turn created more job opportunities for the citizens that previously were working for low salary at the manufacturing plants.
In conclusion, extreme poverty is primarily caused by corrupt governments and lack of access to education. Addressing these issues requires comprehensive solutions, including developing transparency and investments in education. By taking these steps, governments of developing states can eliminate poverty and open up new opportunities for their citizens.