Otive
Igbuzor
The challenge of how to eradicate poverty has engaged scholars throughout history. There are several theories that have emerged on the causes of poverty and how to eradicate it. We shall examine some of the categorisations. Bradshaw has identified five theories of poverty.
The first theory of poverty argues that the
individual is responsible for his/her poverty situation. This theory blames
individuals in poverty for creating their own problems, and argue that with
harder work and better choices, the poor could have avoided (and now can
remedy) their problem.
The
second is the theory of cultural belief systems which argues that poverty is
created by the transmission over generations of a set of beliefs, values and
skills that are socially generated but individually held. The theory contends
that individuals are not necessarily to blame because they are victims of their
dysfunctional subculture or culture.
The third
is the theory of poverty caused by economic, political and social distortions
or discrimination. The theory points out that it is the economic, political and
social system which causes people to have limited opportunities and resources
with which to achieve economic well-being.
The
fourth is the theory of poverty caused by geographic disparities and argues
that people, institutions and cultures in certain areas lack objective
resources needed to generate well-being and also lack power to claim
redistribution.
Bradshaw’s
fifth theory is the theory of poverty caused by cumulative and cyclical
interdependence which argues that the individual and their communities are
caught in a spiral of opportunity and problems, and that once problems
dominate, they close other opportunities and create a cumulative set of
problems that make any effective response nearly impossible.
According
to Albrecht, theories of poverty generally fall into two major categories:
cultural and structural.
Cultural
explanations are generally based on what has been called a “culture of poverty”
in which the primary problem lies with the individual. According to cultural
theories of poverty, people are poor because they have a distinctive culturally
determined way of life that largely explains the occurrence and persistence of
poverty.
Relevant
aspects of this "defective" culture include a limited time horizon,
impulsive need for gratification, low aspirations, and psychological self-doubt.
When these aspects are taken together, the resulting worldview helps poor
people to cope with pervasive hopelessness and despair. Poor families and
communities then socialize their young with these ingrained values and norms,
and consequently limit or obstruct their successful participation in mainstream
institutions.
The
resulting "underclass" thus becomes permanent and is "locked
into its own unique, but maladaptive culture".
According to the structural theories of
poverty, the causes of poverty can be found in the social or economic system
rather than in the individual.
These
theories argue that people are poor because of racism, gender, class and
segregation which limit or deny certain categories or groups of people access
to training or jobs that are sufficient to maintain an acceptable standard of
living or quality of life.
Finally,
we can classify the theories of poverty into Marxist theories and neo-liberal
theories. Marxist theories argue that poverty and inequality are functional
components of the capitalist mode of production and that capitalism necessarily
produces inegalitarian social structures.
Inequality is therefore transferred from one
generation to another through the environment of services and opportunities
which surround each individual.
The end
result is the reproduction of a hierarchical class structure that can only be
changed through class struggle. On the other hand, neo-liberal (neo-classical)
trickle down theories suggests that the problem of poverty and unequal distribution
can be resolved without recourse to special policy interventions by simply
accelerating the rate of growth of production.
Neo-liberalism
is a model and ideology of economic development that promotes the rolling back
of the role of the state and the dominance of market forces.
In our
view, the utilisation of the Marxist and neo-liberal theories of poverty can
help us to understand the programmes that have been put in place all over the
world to address poverty. Our position is that capitalism generates and
promotes poverty, hunger and injustice. The global political and economic
structures are organised in such a way as to continue to perpetuate poverty,
hunger and injustice through policies and actions that continue to widen the
disparity between the rich and the poor.
Marx and
Engels propounded the laws of historical materialism and stated that the
inherent contradictions in capitalism will lead to ruin of the capitalist
system with the enthronement of socialism. Some scholars arguing for a non-communist
approach to societal development encouraged conspicous consumption in the
developed capitalist economies leading to the present economic melt down and
credit crunch.
With the
recent crisis, Northern governments have resorted to policies and actions that
progressive and socialist scholars have advocated for years including state
intervention in the economy, massive subsidies and nationalisation of banks.
This is a somewhat confirmation of the correctness of the progressive approach
and hence the kind of intervention required including state intervention and
social protection measures. Unfortunately, public funds are now being used to
bail out the failure of the bourgeosie and the capitalist system.
In some
way, Bradshaw’s first and second theories correspond to neo-liberal
propositions while the third, fourth and fifth theories correspond to the
progressive positioning. Similarly, Albrecht’s cultural theory approximates
neo-liberal theory of poverty while the structural theory corresponds to the Marxist
theory of poverty or progressive approach. We posit that the focus on
individual is misplaced and misdirected. In this regard, we agree with Bradshaw
who points out that this will amount to “blaming the victim.” For us, the cause
of poverty can be located in the structural failings of the economic, political
and social system.
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