Theories that attribute poverty to individual circumstances and choices tend to place sole responsibility on the economically disadvantaged system and geographic theories of poverty focus on political, economic, and infrastructure policies. For these reasons, both the traditional theory of poverty line and its measurement have become controversial consequently, there have been controversies over policies to eradicate, alleviate, or reduce poverty the neoclassical economic theory of poverty is based on the concept of marginal productivity of labour. Therefore, the issue of poverty under these perspectives affects close-by and state governments, associations, and additionally people's manner towards those tormented from desperation the plans showed demonstrate that organization intercession is the plan.
The causes of poverty - cultural vs structural denton, 1993, p5) this important point became lost as americans internalized the view of poverty as expressed by a 1964 edition of the saturday evening post which suggested the cause of poverty was in fact purely behavioral dysfunction transmitted between gener-ations (patterson, 1994.
Some theories on poverty in the developing world focus on cultural characteristics as a retardant of further development other theories focus on social and political aspects that perpetuate poverty perceptions of the poor have a significant impact on the design and execution of programs to alleviate poverty.
The different theories of poverty distinguish between individual, system, geographic, and cyclical causes theories that attribute poverty to individual circumstances and choices tend to place sole responsibility on the economically disadvantaged system and geographic theories of poverty focus on political, economic, and infrastructure policies.
Economic theories of poverty summary different schools of economic thought have a range of views on poverty, from the 19th-century classical and neoclassical definition, through the keynesian/neo-liberal shift, which brought poverty to the forefront of the policy agenda, to the most recent theories. The economics of poverty -- explanatory theories to inform practice article in journal of human behavior in the social environment 16(1) january 2007 with 112 reads doi: 101300/j137v16n01_03.
Theory two: poverty is structural the left-wing view is that poverty is a structural phenomenon on this view, people are in poverty because they find themselves in holes in the economic system that deliver them inadequate income.
The role of economic theory in policy formulation cannot be overemphasized theory provides the foundation upon which policy decisions are conceived, deliberated and eventually made ideally, the adoption of economic policy should depend heavily on economic theory, which should provide the necessary.