Question

Supply side vicious circle of poverty suggest why the poor nation remain pootn

Answer 1

Answer:

Different economists have different opinions about the vicious circle of poverty.

According to Prof. Nurkse, “The main reason of vicious circle of poverty is the lack of capital formation.”

Similarly, Kindleberger opined that vicious circle of poverty takes place due to the small size of the market.

Answer 2

Answer:

A less developed country is caught in the vicious circle of poverty. It assumes that people of less developed countries save little or nothing since they are poor. Since savings are low, investment is low. Low investment means low productivity levels, and, with low productivity levels, people will always remain poor.