October 31, 2025

Understanding the Causes of Poverty

What causes poverty? And why is poverty a problem? Learn why millions of children live in extreme poverty, how it affects them and what you can do to help.

  • Poverty is more than not having enough money. It’s extreme hunger and thirst, lack of shelter, not having access to school, being sick without care, being vulnerable to abuse and living without hope of a brighter future.

  • Some of the top causes of poverty include war and conflict, natural disasters, a lack of nutrition and clean water, limited access to medical care and poor infrastructure.

  • Poverty is a problem because it impacts every aspect of a child’s life, keeping them from reaching their God-given potential.

What Is Poverty?

Many people define global poverty by the amount of money a person earns. For example, many families living in the world’s most impoverished countries must meet their basic needs with less than $2.15 a day.

But money doesn’t tell the whole story about poverty. A true definition of poverty addresses the many different types of poverty. It acknowledges that poverty is:

  • Extreme hunger and thirst.

  • Lack of shelter.

  • Not being able to read or write.

  • Not having access to school.

  • Being sick and unable to see a doctor.

  • Being vulnerable to abuse, exploitation and violence.

  • Feeling powerless and trapped by things beyond your control.

  • Living without hope of a brighter future beyond poverty.

5 Quick Facts About Poverty

  1. Nearly 10% of the world’s population lives in extreme poverty, earning less than $2.15 a day.

  2. Another 3.5 billion people must live on less than $6.85 per day.

  3. Three-quarters of all people in extreme poverty live in Sub-Saharan Africa.

  4. Three million children die each year due to hunger.

  5. One in 27 children dies before the age of 5 each year from causes such as preventable and treatable illnesses like pneumonia.

Two Thai boys stand outside their block home behind two bicycles.
Photo by: Piyamary Shinoda

6 Causes of Poverty

Poverty is a complex problem with many different causes. Let’s discuss some of the most common causes of poverty, from conflict to poor infrastructure.

1. War & Conflict

Conflicts such as war and gang violence often force families to flee their homes or destroy them altogether. Children in these situations may suddenly lose their shelter, access to food and in some cases, their caregivers.

Conflict also destroys infrastructure such as hospitals, schools and roads, leaving entire communities without vital services like medical care and education. Without their needs met, children and the communities they live in struggle to get back on their feet, keeping them in poverty.

2. Natural Disasters

According to the World Bank, natural disasters force 26 million people into poverty every year. For example, natural disasters like earthquakes and hurricanes destroy homes and communities, leaving many children and families with nothing but the clothes on their backs.

Floods or droughts destroy critical crops that families depend on for their income and nutrition. Even if families have some savings to turn to, it’s often far from enough to cover their needs after losing everything.

But those who already live in poverty before disaster? They don’t have any buffer or savings to turn to, leaving them without access to shelter, food, clean water and other necessities.

3. Lack of Nutrition

Poverty causes hunger. However, hunger also perpetuates poverty. For example, hunger can diminish a child’s immunity to disease and illness, keeping them sick and unable to attend school.

Without an education, children can’t learn the skills they need to provide for themselves or their families as adults. This often means they must raise their own children hungry and malnourished, perpetuating poverty for the next generation.

4. Lack of Clean Water

One in three people globally lacks access to clean drinking water. And for many families, finding water is an all-day task.

Children and families often must travel to find water and bring it back to their homes. For adults, this is time spent away from work. And for kids, this is time they could spend learning and growing. And if the water they gather is contaminated, sickness will keep them from work and school as well.

5. Limited Access to Medical Care

Many impoverished children can’t get quality medical care (if medical services are available in their community at all). In fact, about 4.5 billion people are not able to access essential health services.

Without access to basic medical care, children suffer from preventable illnesses. Like hunger, this keeps children from going to school, leaving them without the skills needed to achieve brighter futures.

To get even basic medical care, families must often drain what little resources they do have. This leaves them unable to afford food, rent and other necessities, pushing them further into poverty.

6. Poor Infrastructure

Many impoverished communities lack basic systems that many of us take for granted, such as roads and water supplies. And this poor infrastructure worsens the causes of poverty listed above, amplifying their effects.

For example, without roads, it’s hard to travel for medical care, food or work. And without water supply systems, many people are left drinking dangerously contaminated water that can sicken or even kill them.

An alley view of an impoverished community in Colombia.
Photo by: Lina Marcela Alarcón Molina

Why Is Poverty a Problem?

Poverty impacts every aspect of a child’s life, preventing them from becoming who God created them to be.

  • Poverty causes debilitating hunger and thirst.

  • Poverty hinders healthy physical growth and development.

  • Poverty increases infant and child mortality rates.

  • Poverty increases stress and can bring about life-altering trauma.

  • Poverty causes children to suffer from preventable illnesses and diseases.

  • Poverty prevents children from getting an education, keeping them from reaching their full potential.

All of these damaging impacts of poverty make children feel valueless and hopeless. They prevent children from seeing a brighter future beyond their circumstances. And without hope, the cycle of poverty continues throughout each generation.

How Compassion Helps Children Living in Poverty

We believe that all children should experience the fullness of life Jesus promised them (John 10:10). But for millions of children, poverty stands in the way.

At Compassion, we work to share the gospel in word and action to release children from poverty in Jesus’ name.

What does this mean? First, we share the good news of the gospel with every child in our program, giving them eternal hope. We then live out the gospel by taking action to meet their tangible right-now and long-term needs.

For example, all children receive access to medical checkups, malnutrition monitoring and education to ensure they have the necessities they need to grow. We also step in to provide disaster relief for children facing crises and prioritize child protection to keep children safe from violence and exploitation.

With their needs met, children go from surviving to thriving, empowered to journey out of poverty. We’ve seen the impact of our program[blog/compassion-impact-data] time and time again. In fact, a recent study shows that out of the Compassion sponsorship alumni surveyed in the Dominican Republic, 97% were released from poverty!

Easter Celebration
Photo by: Nico Benalcazar

Two young girls embrace while standing in front of a tin home.

Release a Child From Poverty in Jesus' Name

By sponsoring a child, you can help them fight back against all the causes of poverty. Through sponsorship, you share the hope of the gospel by helping a local church provide the love and care a child needs to thrive.