How does poverty affect the economy?

How does poverty affect the economy?

More specifically, we estimate that childhood poverty each year: Reduces productivity and economic output by about 1.3 percent of GDP. Raises health expenditures and reduces the value of health by 1.2 percent of GDP.

What are the main causes of poverty in Namibia?

While poverty is caused by a variety of factors, here are three of the causes of poverty in Namibia.

• Agricultural and environmental factors. Seventy percent of the population depends on agriculture.
• Socioeconomic factors.
• Health factors.

What factors affect poverty rate?

11 Top Causes of Global Poverty

• INEQUALITY AND MARGINALIZATION.
• CONFLICT.
• HUNGER, MALNUTRITION, AND STUNTING.
• POOR HEALTHCARE SYSTEMS — ESPECIALLY FOR MOTHERS AND CHILDREN.
• LITTLE OR NO ACCESS TO CLEAN WATER, SANITATION, AND HYGIENE.
• CLIMATE CHANGE.
• LACK OF EDUCATION.
• POOR PUBLIC WORKS AND INFRASTRUCTURE.

What are the social problems in Namibia?

There have been several legal reforms aimed at addressing current social problems in Namibia. The problems are gender inequalities, gender based violence; poverty in strengthening social protection, lack of care co-ordination, underdevelopment and economic inequality (Freeman, 2017).

What are the effects of poverty in the society?

Nearly all the potential effects of poverty impact the lives of children—poor infrastructure, unemployment, malnutrition, domestic violence, child labor, and disease.

What are the effects of poverty on an individual?

Effects on Community Studies show that poor living conditions negatively affect physical and mental health. In fact, one study found that individuals in poor housing exhibit worse mental health in 100 percent of cases.

What are the 5 causes of poverty?

What Causes Poverty?

• Lack of shelter.
• Limited access to clean water resources.
• Food insecurity.
• Physical disabilities.
• Lack of access to health care.
• Unemployment.
• Absence of social services.
• Gender discrimination.

What is the poverty rate in Namibia?

More than 43.3 percent of Namibia’s population live in multidimensional poverty. The average intensity of poverty is 44.0%, meaning that poor people in Namibia experience, on average, 44.0% of the weighted deprivations.

How does poverty affect the individual?

Studies show that poor living conditions negatively affect physical and mental health. Additionally, inadequate or unsanitary living conditions can contribute to the spread of disease, which adds to health care costs, prevents individuals from working and threatens the well-being of community members.

How does poverty affect the environment?

degradation. It is also difficult to see how rural poverty is a major contributor to soil degradation, deforestation and over-use of freshwater worldwide in that most rural poverty is a result of rural people having so little access to land, forests and freshwater.

What is called poverty?

Poverty is about not having enough money to meet basic needs including food, clothing and shelter. However, poverty is more, much more than just not having enough money. The World Bank Organization describes poverty in this way: Poverty is not having a job, is fear for the future, living one day at a time.

What is poverty cause and effect?

Issues like hunger, illness, and poor sanitation are all causes and effects of poverty. That is to say, that not having food means being poor, but being poor also means being unable to afford food or clean water. The effects of poverty are often interrelated so that one problem rarely occurs alone.

How does the Namibian government help the poor?

“Ultimately, more inclusive and faster economic growth, job creation, and greater efficiency in public services that will help Namibia overcome the challenges of poverty and inequality,” he said.

What are the problems that Namibia is facing?

Namibia’s past steady economic growth has not been enough to deal with the country’s triple challenge of high poverty, inequality, and unemployment. The weakening of growth in the last few years combined with the COVID-19 shock further put at risk social development progress.

How did Namibia become an upper middle income country?

Political stability and sound economic management have helped anchor poverty reduction and allowed Namibia to become an upper-middle income country. However, socio-economic inequalities inherited from the past apartheid system remain extremely high and structural constraints to growth have hampered job creation.

Why is life expectancy so low in Namibia?

Namibia also faces a severe HIV/AIDS epidemic, in which 19.7 percent of the country is afflicted. As a result, life expectancy in the country has declined from 61 to 49 years. Promoting economic growth in the country is difficult due to an under-educated and low-skilled workforce.