What is a “ Poverty Trap ”?

poverty trap

Introduction Poverty Trap is a re-incurring mechanism where poor people remain poor. It is a state where poor people can’t get out of the cyclical pattern of poverty. In economic theory, poverty trap is a self-perpetuating condition where an economy, caught in a vicious cycle, suffers from persistent underdevelopment. Prof. Ragnar Nurkse, an Estonian economist, … Read more