Development Economics Paper 3 Essay Example | Topics and Well Written Essays - 500 words - 1

Development Economics Paper 3 - Essay ExampleFrom a critical point of view I believe in the humankind of the impoverishment trap that has essenti completelyy entangled a group of people and deprive them from getting what they would entrust to get. In essence, an case-by-case born to a poor family in the village set up of a third world country may be entangled inwardly the vicious circle of destitution, want of access to education and healthcare facilities as well as exposure to the world out there. In such a case, the child may be limited and despite of his talent and great mind, they separate to get a platform to practice it and perfect the art. This leaves them in the same place becoming a vicious circle for a family or the state at large. there is scantness trap for those who baffle too little and cannot invest to get enough returns whereas those who have access to reasonably more resources, there potential to grow is evident regardless of the situation around them. As one continues to invest in what they have, growth is eminent and sooner or later there will be no poverty trap entangling them as they break free from it.Yes, I believe that the poverty trap works when all other factors are kept constant. Someones financial income essentially determines there financial susceptibility and dictates what they can do in as far as investment is concerned. The economic status of an individual starts flat then rises as one gets income but the goes down as responsibilities increases creating an S-curve that depicts element of a poverty trap. In this sense, poverty trap is evident and works by way of limiting ones potential within their financial might derailing them from the ability to invest a break away from the vicious cycle of poverty (Banerjee and Duflo 55).S-curve is a theoretical shape depicting a poverty trap that shows one beginning on a straight line, then goes up to a point where they stagnant and start the downward endeavor again. This concept is used