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Causes Of Poverty In Peru

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Poverty, undoubtedly, has been a serious issue in many countries in the world and has been an

obstacle on their path to rapid and sustainable development. The main reasons for global poverty

have been identified as all forms of discrimination, illiteracy, overpopulation and environmental

factors such as droughts affecting farmers.

It is saddening that 49% of Peru’s population, even today, lives in poverty and 15% of the

population lives on less than $1 a day . One of the main reasons for these statistics is the unequal

income distribution among the people, with 10% of the population controlling 35.4% of the

nation’s wealth. Though there is a respectable literacy rate of 88.7% for students of age 15 and

above in the country, the high-school dropout rate is an alarming 49%. This is one of the main

causes of unemployment in the country as well, which has consequently led to poverty.

Peru has made big strides in the fight against poverty in the past five years, thanks to positive

economic indicators and sound fiscal policies. With growth estimated at around 6%, it is

currently one of the most dynamic economies in Latin America, ranking eighth out of the 10

fastest growing economies in the world. The most significant measures taken against poverty in

the country have been :

1) Establishment of the National Roundtable for the Fight Against Poverty, a multi-

sectoral, government-civil society forum to facilitate dialogue and participation in public
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Poverty exists all around us, whether people realize it or not. Those living in poverty encounter problems that one may not understand. Children are born into poverty and are more likely to develop learning disabilities, have less parent-child interactions, and have a lower academic performance compared to those children not living in poverty (Brooks-Gunn, J., & Duncan, G. J, 1997). A major problem that is related to those living in poverty is illiteracy. Adults living in poverty tend to have higher rates of illiteracy compare to those adults not living in poverty.

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