The economics of poverty in poor countries.

This paper, which examines recently studied links between 1) poverty, high fertility, and undernourishment and 2) environmental degradation and civic disconnection in developing countries, opens by reviewing the limitations of orthodox discussions of economic institutions and property rights and the orthodox dichotomy that has located the cause of poverty in the suppression of markets. The introduction also notes that much of the analysis in this paper is based on data from sub-Saharan Africa and India. The next section of the paper summarizes evidence on the magnitude and extent of world poverty. Section 3 exposes the connection between undernourishment and a person's capacity to work as one of the pathways to the poverty trap. Sections 4 and 5 consider the dependence of impoverished rural populations on common-property resources and how the conventional process of economic growth can break down this system and make certain sections of the population especially vulnerable to economic shocks. The next two sections explore the possibility that links between poverty, high fertility, and environmental degradation may constitute another pathway to the poverty trap. The eighth section reviews the methodology of using net national product (which includes resource depletion and environmental deterioration) as an evaluation criterion and argues that mainstream development economists may have neglected environmental and population problems because they have been relying on the wrong economic indices. The final section concludes that a number of policies must be used to improve options for people.