Poverty in less Developed Countries is Largely due to?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

Poverty in less developed countries is largely due to income inequality. When large amounts of money are concentrated in a few hands, it leads to poverty. The reason behind the income inequality is static wages, long-term unemployment, and rising prices for essentials such as food and fuel.

Poverty in Less-Developed Countries

A less developed country is a low-income country. This leads to structural impediments to sustainable development that make them vulnerable to economic and environmental shocks. The less developed country has a high rate of poverty due to income inequality. More complex reasons include racism, immigration, and an increase in divorce leading to single parents.

The distribution of income in such countries is unevenly distributed. The Gini coefficient is used to measure the income inequality of any country. Here are some characteristics of less developed countries.

  • The per capita income is very low
  • There is a shortage of capital
  • Population explosion and high dependency
  • Massive unemployment
  • Predominance of agriculture
  • Unproductive investment
  • Low levels of productivity


Poverty in less Developed Countries is Largely due to?

Income inequality largely leads to poverty in less developed countries. Due to income inequality, the growth and development of a country are hampered. Other factors that affect the growth of a country include population growth, urbanization, poor policy-making, a decrease in agricultural land and lack of proper education also causes poverty.

Related Questions:

Our Apps Playstore
SSC and Bank
Other Exams
GradeStack Learning Pvt. Ltd.Windsor IT Park, Tower - A, 2nd Floor, Sector 125, Noida, Uttar Pradesh 201303
Home Practice Test Series Premium