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.
Global Poverty Explained
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 $3.00 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.
10 Major Causes of Poverty
Understanding what causes poverty requires looking at both immediate challenges and deeper systemic issues. Below are 10 major causes of poverty that affect millions of children and families worldwide.
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.
A 2024 UN study found that 1.1 billion people live in acute poverty and 455 million of them live in conflict-affected countries. Conflict can leave children and families displaced or seeking asylum in far-away places.
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. Underemployment and a Lack of Economic Development
Geographically, there are areas of the world that don’t have the economy to sustain the amount of people who live there. This can lead to a lack of job opportunities or extremely low wages, a rise in underemployment and ultimately to individuals not having enough to get ahead.
The International Labour Organization states that many impoverished communities are struggling to turn rapid population growth into productive jobs. Because of limited access to job security and employment rights, people struggle to get hired and stay hired.
This is a harsh reality for many people around the world. And unfortunately, when someone lives in a community that lacks the necessary resources and economic opportunities to thrive, this can lead to generational poverty.
3. Natural Disasters
According to the World Bank, 26 million people are forced into poverty due to natural disasters, 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 lived in poverty before the disaster? They don’t have any buffer or savings to turn to, leaving them without access to shelter, food, clean water and other necessities.
4. Hunger and Malnutrition
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.
In extreme cases, this cycle can lead to severe acute malnutrition (SAM), which can permanently stunt children’s growth and development. Roughly 13.6 million children under the age of 5, globally experience SAM.
Due to lessened immunity and inability to receive education, children can’t learn the skills they need to provide for themselves or their families as adults.
This matters because children, no matter where they come from, have a right to learn and grow as they were created to.
5. Lack of Clean Water
One in three people globally lack 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.
6. 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 cannot 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.
7. Systemic Discrimination & Social Inequalities
Based on cultural and societal factors, many parts of the world still discriminate against individuals based on gender, race or disability. In 2018, The World Bank found that 104 economies prevented women from working in certain jobs or working at all.
Gender roles and unforeseen circumstances can lead people to poverty. For example, if a husband and wife live in an area where women are traditionally supposed to stay home, cook, clean and care for the children, and the husband loses his job or leaves his family — this leaves the woman and her children without any income or support.
Individuals in impoverished communities with disabilities are also more likely to suffer from poverty because the little income they gain goes to medical expenses. And in certain cultures, children with disabilities are shunned by their community altogether.
8. Environmental Factors
Due to changes in climate, like extreme drought or harsh flooding, crops and agricultural communities can be negatively affected. Farmers whose sole income comes from crop production can experience food insecurity.
This often means families don’t know where their next meal will come from, and when they do, the food may lack essential nutrients.
The International Fund for Agricultural Development (IFAD) states that in Sub-Saharan Africa, agricultural development is “11 times more likely to reduce extreme poverty than any other sector of aid.”
That is why Compassion partners with organizations like ECHO, a Christian nonprofit that teaches small-scale, sustainable farming methods, empowering families to provide for themselves and their communities.
9. Public Health Crises
During public health crises, many aspects of daily life are disrupted. This impact is even more heightened in communities that already don’t have quality access to medical care.
When an epidemic occurs, businesses, communities and governments can halt all work, meaning people in those jobs are not able to provide for their families. And in the case of a death in the family, a child may be required to take on the financial burden, leading to possible harmful child labor or forced child marriage.
10. 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.
How These Causes of Poverty Are Connected
Reducing poverty is complex because these causes are deeply interconnected and often reinforce one another. This interconnected system is referred to as the cycle of poverty.
Without access to basic needs, children and families struggle to secure shelter and put food on the table, let alone generate sufficient income.
An example of the interconnectedness of poverty is when disaster strikes a community. Natural disasters are catastrophic events that leave many families desolate, with nothing to come home to. This major cause of poverty can lead to several other factors like hunger, homelessness, lack of clean drinking water, no access to education, overrun hospitals and so on.
The cycle of poverty doesn’t look the same in every community. But as you can see, when crises strike in an already impoverished community, it can create a domino effect for many families.
This poverty domino effect can take a significant toll on parents’ and children’s mental health, too. When you live in extreme poverty, it can feel all-consuming when you’re just trying to make it to the next day.
How Does Poverty Affect Children?
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 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.
To better understand the long-term impact, read more about the effects of poverty on children.
How Compassion Fights the Leading Causes of 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.
Fighting the Causes of Poverty Through Sponsorship
Through child sponsorship, 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 time and time again. In fact, in a recent survey of 99 Compassion alumni from the Dominican Republic, 97% of those surveyed said they were released from poverty!
Einoth (left) and Anna (right) are seated outside, holding on to a cross in a field at their local church. Photo by: Eric D. Lema
The causes of poverty are complex and deeply connected, from conflict and economic instability to limited access to education and healthcare. These challenges can keep children and families trapped in the cycle of poverty for generations.
But when we address these root causes, lasting change becomes possible. Children can grow, learn and build futures filled with hope — breaking the cycle of poverty for themselves and for generations to come.
