Causes of poverty: environmental factors

Published by Patrick Mutisya · 14 days ago

IGCSE Economics – Economic Development: Poverty – Environmental Factors

Economic Development – Poverty

Objective

Identify and explain the environmental factors that cause poverty.

Key Concepts

  • Definition of poverty
  • Environmental factors vs. economic/social factors

Environmental Factors Contributing to Poverty

  1. Natural Disasters

    Events such as floods, earthquakes, droughts, and hurricanes can destroy assets, reduce agricultural output, and displace populations, pushing households into poverty.

  2. Climate Change

    Long‑term changes in temperature and precipitation patterns affect crop yields, water availability and health, especially in developing economies.

  3. Depletion of Natural Resources

    Over‑exploitation of soil, forests, and fisheries leads to reduced productivity and loss of livelihoods.

  4. Geographical Location

    Landlocked countries or those in arid zones often face higher transport costs and limited agricultural potential.

  5. Environmental Degradation

    Pollution, desertification and loss of biodiversity diminish the capacity of ecosystems to support livelihoods.

How Environmental Factors Lead to Poverty

Environmental FactorMechanism Linking to Poverty
Natural DisastersDestruction of homes and crops → loss of income → increased debt and reduced savings.
Climate ChangeReduced agricultural productivity → food insecurity → higher food prices and lower real wages.
Resource DepletionDecline in soil fertility → lower yields → reduced employment in agriculture.
Geographical ConstraintsHigher transport costs → less competitive markets → limited export earnings.
Environmental DegradationHealth problems from pollution → higher medical expenses and lower labour productivity.

Case Study: Drought in the Sahel

The Sahel region of Africa experiences recurring droughts. These droughts reduce crop yields, force pastoralists to migrate, and increase reliance on food aid. The resulting income loss pushes many households below the poverty line.

Suggested diagram: Cycle showing how drought reduces agricultural output, leading to lower incomes, reduced investment in education and health, and deeper poverty.

Mitigation Strategies

  • Investment in resilient infrastructure (e.g., flood defenses, drought‑resistant crops).
  • International aid and insurance schemes for disaster‑prone regions.
  • Sustainable natural resource management and reforestation.
  • Adaptation policies to address climate change impacts.

Summary

Environmental factors such as natural disasters, climate change, resource depletion, geographical disadvantages, and environmental degradation can directly and indirectly push individuals and communities into poverty. Understanding these links helps policymakers design targeted interventions to break the cycle of poverty.