Behavioral theory of poverty
The original Malthusian argument was that the poor/peasant of developing countries over-exploits their environment out of sheer necessity and thus further aggravates their poverty status. The extension of this line of thought was that this “vicious circle" could be reversed, that poverty alleviation efforts by individuals would automatically reduce severity of poverty. Neither argument received much empirical …show more content…
For example, rural areas are most of the time the last stop of technologies, and competitive pricing and low wages dominate production (Hansen, 1970). The lack of social infrastructure limits economic activity and places left behind experience the largest competition (Lyson and Falk, 1992). Therefore, privileged areas stand to grow more than underprivileged areas even during the time of general economic growth with some “trickle-down” but not lead to equalizing effects as classical economists assert (Rural Sociological Society, 1990; cited in Bradshaw, 2007). The geographical theory of poverty connotes that responses need to be focused to solving the key dynamics that create deprivation and economic decline in disadvantaged areas while other areas are growing (Bradshaw, 2007). Instead of focusing on individuals, governments, businesses, cultural processes, or welfare systems, the geographical theory guides community developers to emphasize at depressed areas. The prime reason is that the evils of poverty are highly reinforced by the geographical environment of the slum districts where the poor are …show more content…
This theory does not blame the victim for his/her own poverty as individualistic and cultural theories do, but it looks to the social, political, and economic system which causes individuals to have inadequate resources with which to realize their income and well-being (Bradshaw, 2007). The standards of living and social relations of individuals in a society are shaped by educational facilities, labor market opportunities, and economic growth. The inherent structures in the society including social relations such as gender, race, power and class determines the fate of individuals (Bradshaw, 2007). This implies that it is the malfunction of the structures that causes poverty in the