The top 11 causes of poverty around the world

For most of us, living on less than $2.15 a day seems far removed from reality. But it is the reality for roughly 700 million people around the globe (according to the latest World Bank data). That’s roughly 8.5% of the world’s population currently living in poverty. 

We’ve made significant progress towards ending poverty in the last few decades — in 1990, the number of people living in poverty was 1.8 billion. However, in recent years we’ve also undone a lot of that progress amid a rise in conflict, natural disasters, and the lasting effects of the pandemic. Together, these have led to an increase of nearly 100 million people experiencing poverty compared to 2019 figures. Let’s take a closer look at the 11 greatest causes of poverty today.

1. Lack of resources

At Concern, our core understanding of poverty is that it’s a combination of inequality and risk. The inequality here becomes an issue when people don’t have access to the same resources and protections as others based on gender, class, ethnicity, age, etc. This lack of access means that certain people have fewer opportunities to move ahead in life, and fewer coping mechanisms during a disaster or crisis (more on that in a bit). In these situations, it doesn't matter that someone has more rights than someone else. What matters is that someone else doesn't have enough.

Circumstances like a natural disaster or conflict can make this lack of resources even more devastating for a person or family’s economic resources and living situation. This is what fuels the cycle of poverty. Let’s take a closer look at some of the risks…

2. Conflict

Conflict is at the top of the list of risks that can send a person or family into poverty. Large-scale, protracted crises can grind an otherwise functioning economy to a halt. Prior to the conflict (and resulting humanitarian crisis) that began in 2011, as few as 10% of Syrians lived below the poverty line. Today, that number has been inverted, with UNHCR estimating over 90% of Syrians living below the poverty line at the end of 2023. 

Conflict has become more localized over the last few decades, which has a huge impact on communities with fewer headlines in the international press. However, as we have also seen over the past three years with the escalated crisis in Ukraine, a major conflict in one part of the world can also have a ripple effect on economies in entirely different countries — and continents. 

3. Hunger and malnutrition

It’s a vicious cycle: poverty causes hunger, but hunger is also a key cause of poverty. If a person doesn’t get enough food, they’ll lack the strength and energy needed to work. Or their immune system will weaken from malnutrition and leave them more susceptible to illness that prevents them from getting to work. They may also go into further debt if they need to see a doctor or get ongoing care. 

This can lead to a vicious cycle, especially for children. From womb to world, the first 1,000 days of a child’s life are critical for a lifetime of health. However, malnourished mothers are more likely to have malnourished children, and the costs of malnutrition can be felt over a lifetime. Adults who were stunted as children earn, on average, 22% less than those who weren't stunted. In Ethiopia, stunting contributes to GDP losses as high as 16%.

4. Inadequate healthcare systems

As we saw above with the effects of hunger, extreme poverty and poor health go hand-in-hand. In countries with weakened health systems, easily-preventable and treatable illnesses like malaria, diarrhea, and respiratory infections can be fatal. Especially for young children, whose immune systems are still developing. (Similar risks exist for the elderly and immunocompromised for the same reasons.) 

When people must travel far distances to clinics or pay for medicine, it drains already vulnerable households of money and assets. This can tip a family from poverty into extreme poverty. 

5. Public health crises and epidemics

Living in a country without basic healthcare access is one thing, but what happens if a major epidemic or pandemic breaks out? The World Bank estimates that, during the first year of the West African Ebola epidemic, Liberia and Sierra Leone saw GDP losses of 3.4% and 3.3%, respectively. These losses (combined with a 2.1% loss in Guinea) totaled nearly $1.6 billion. A study from Johns Hopkins University estimates that cholera (another ongoing epidemic in many countries) costs Bangladesh $122 million per year. 

In a community that’s experiencing an active outbreak, businesses, infrastructure, and governments can grind to a halt in order to manage current cases and prevent future spread. Shelter-in-place measures often prevent low-income people from getting to work as many jobs don’t have remote options. If a patient dies, especially if they were a parent or caregiver, other members of a family (including children) may need to step in to find work and make up for the lost income, which can mean a lifetime of working low-paying jobs.

6. Little or no access to clean water and sanitation services

More than 2 billion people don’t have access to clean water at home. This presents another health issue that’s linked to poverty: Poor sanitation and hygiene means higher rates of disease transmission and even fatalities. 

Beyond that, the global water crisis exacerbates many existing inequalities, broadening the poverty gap. When water points are far away, it’s usually the task of women and girls to collect it. UNICEF estimates that women and girls spend 200 million hours collecting water every day — time that could be better spent in school or working on other projects that can generate income for a family. Investing in water can also be a key solution to poverty: The UN notes that every $1 invested in WASH initiatives brings a $4 return in costs (and then some). 

7. Natural disasters

In 2015, the World Bank estimated that climate disasters would push more than 100 million people into poverty by 2030. In 2024, that estimate has gone up to more than 130 million people. 

Many low-income countries are at greatest risk for natural disasters and also rely heavily on agriculture and pastoralism for their economies. Malawi, as an example, is 80% agrarian. Farming families often have only just enough food and assets to last through the next season, and not enough reserves to fall back on in the event of a poor harvest. So when climate change or natural disasters (including the widespread droughts caused by El Niño) leave millions of people without food, it pushes them further into poverty, and can make recovery even more difficult.

8. Lack of education

Not every person without an education is living in extreme poverty. But most adults living in extreme poverty did not receive a quality education. And, if they have children, they're likely passing that on to them. 

But education is also called the great equalizer for a reason. It can open the door to jobs and other resources and skills that a family needs to not just survive, but thrive. UNESCO estimates that 171 million people could be lifted out of extreme poverty if they left school with basic reading skills. Poverty threatens education, but education can also help end poverty.

9. Poor public works and infrastructure

What if you have to go to work, but there are no roads to get you there? Or what if heavy rains have flooded your route and made it impossible to travel? We’re used to similar roadblocks (so to speak) in the United States. But usually we can rely on our local governments to step in.

A lack of infrastructure — from roads, bridges, and wells, to cables for light, cell phones, and internet — can isolate communities living in rural areas. Living off the grid often means living without the ability to go to school, work, or the market to buy and sell goods. Traveling further distances to access basic services not only takes time, it costs money, keeping families in poverty.

10. Lack of social support systems

In the United States, we’re familiar with social welfare programs that people can access if they need healthcare or emergency food assistance. Many of us pay directly into unemployment insurance and our future retirement funds through our paychecks. These systems ensure that we have a safety net to fall back on if we lose our job or retire.

But not every government can provide this type of help to its citizens. Without that safety net, there’s nothing to stop vulnerable families from backsliding further into extreme poverty. This is especially true for countries facing conflict or other long-term crises that have also left people more vulnerable to natural and man-made disasters and less likely to receive the support they need when they need it. 

11. Lack of personal safety nets

If a family or community has reserves in place, they can weather some risk. They can fall back on savings accounts or even a low-interest loan in the case of a health scare or an unexpected layoff. Proper food storage systems can help stretch a previous harvest if a drought or natural disaster ruins the next one.

But people living in extreme poverty can’t rely on these safety nets. At its core, poverty is a lack of basic assets or a lack of return from what assets a person has. This leads to negative coping mechanisms, including pulling children out of school so that they can help support the family, and selling off assets to buy food. That can help them make it through one bad season, but not another. For communities constantly facing climate extremes or prolonged conflict, the repeated shocks can send a family reeling into extreme poverty and prevent them from ever recovering, let alone setting aside some funds for the next emergency.

Concern’s work to end poverty

At Concern, we work to sustainably end poverty by addressing both inequalities and risks faced in individual communities. The solutions to poverty that we implement help people and families build up resources to help them withstand natural disasters, conflict, and even personal setbacks so that they can continue to keep themselves above the poverty line.

Our livelihoods programs address some of the underlying problems experienced by people trying to earn a living while also dealing with the challenges and setbacks of extreme poverty. Other programs in education, health and nutrition, and emergency response help to address many of the other common causes of poverty. Consistently, our focus is on the hardest-to-reach communities and people who are the furthest behind. The more support they have in improving their financial future, the more national and international economies benefit overall.

What we have found through nearly 60 years of work is that the communities and individuals we work with already know what they want to do, they often just need some resources to make it happen. We provide those resources, along with some sustainable means of keeping them up long after we’re needed.

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