Poverty is complex and multifaceted. There is no universally accepted definition of poverty. Poverty not only relates to economic factors such as insufficient income, lack of assets, in particular, land; lack of access to decent jobs. Poverty also relates to social, political and cultural factors such as discrimination based on gender, ethnicity, caste, age, disability; lack of access to education, and training; bad health; lack of representation, lack of empowerment; vulnerability to shocks and crisis. All these factors are interrelated and this is how poverty is so complex. With respect to work, poverty is characterized by decent work deficits that are particularly acute in the informal economy and in rural areas.
What causes poverty?
There are many, interrelated causes. Some of them can be traced to a lack of growth and development, to unequal access to physical capital (land, equipment) and human capital (education and training, health). Low levels of productivity, inequitable terms of trade and the concentration of investments in urban areas are aggravating factors. There is a close relationship between poverty and the informal economy in most countries, although not all informal operators or workers are poor. But holding a job in the formal economy does not always guarantee that one escapes from poverty. Nevertheless, the informalization of the economy in many countries through outsourcing, expansion of global value chains and casualization of the workforce most often are linked to increased vulnerability and poverty.
Some features of poverty
It is estimated that 530 million workers earn less than enough to support their families. Furthermore, it is estimated that “75 per cent of poor people in developing countries live in rural areas and engage in activities which, for the most part, lie outside the bounds of the formal, organized economy, whether in agriculture or in rural non-farm activities”. Women are disproportionately represented in the informal economy and among the poor. So are vulnerable groups such as youth, migrant workers, disabled persons, etc.
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