what is visiuious circle of poyerty

Vicious circle of poverty implies that 'poverty leads to poverty'. In underdeveloped and developing countries, due to high population growth rate the per capita income is low. Low per capita income in turn implies that savings remain low. Low level of saving leads to low investment and thereby, to low per capita capital. Low per capita availability of capital leads to low productivity. Low productivity in turn results in low employment and thus, to low income and poverty. The vicious circle of poverty can be better understood with the help of the following diagram.