IGCSE Economics 0455

Topic: Economic Development - Poverty

Objective: Causes of Poverty: Environmental Factors

This section explores how environmental factors contribute to poverty. Environmental conditions can significantly impact a country's economic development and exacerbate poverty. We will examine various ways in which the environment can create or worsen poverty.

Environmental Factors Contributing to Poverty

Environmental factors can be broadly categorized into natural and human-induced environmental issues. These factors often interact with economic and social conditions to create cycles of poverty.

Natural Environmental Factors

• Climate Change: Extreme weather events like droughts, floods, and hurricanes can destroy crops, livestock, and infrastructure, leading to food insecurity and economic hardship.
• Natural Disasters: Earthquakes, volcanic eruptions, and tsunamis can cause widespread devastation, displacement, and loss of life, severely hindering economic development and increasing poverty.
• Land Degradation: Deforestation, soil erosion, and desertification reduce the productivity of land, impacting agriculture and livelihoods dependent on natural resources.
• Limited Natural Resources: Scarcity of essential resources like water, fertile land, and minerals can constrain economic growth and perpetuate poverty.

Human-Induced Environmental Factors

• Pollution: Air and water pollution can lead to health problems, reducing productivity and increasing healthcare costs, thus contributing to poverty.
• Deforestation: Unsustainable logging practices can lead to soil erosion, loss of biodiversity, and reduced access to essential resources.
• Overfishing: Depletion of fish stocks can impact coastal communities that rely on fishing for their livelihoods.
• Habitat Loss: Destruction of natural habitats can reduce biodiversity and disrupt ecosystem services that support human well-being.

Examples of Environmental Factors and Poverty

The following table illustrates how specific environmental factors can lead to poverty in different regions.

Environmental Factor	Example Region/Country	Impact on Poverty
Drought	Sub-Saharan Africa	Crop failure, livestock loss, food insecurity, increased malnutrition, economic hardship.
Flooding	Bangladesh	Destruction of homes, infrastructure, and crops; displacement of people; increased disease; economic loss.
Deforestation	Amazon Rainforest (Brazil, Peru, etc.)	Loss of livelihoods for indigenous communities, soil erosion, reduced agricultural productivity, increased vulnerability to natural disasters.
Pollution (Industrial)	Developing countries with lax environmental regulations	Health problems (respiratory illnesses, waterborne diseases), reduced productivity, increased healthcare costs, economic burden.
Coastal Erosion (Climate Change)	Small island nations in the Pacific	Loss of land, homes, and livelihoods; displacement of communities; economic damage to tourism and fishing industries.

Addressing Poverty Through Environmental Management

Addressing poverty caused by environmental factors requires a multi-faceted approach, including:

• Sustainable Agriculture: Promoting farming practices that conserve soil and water resources.
• Climate Change Mitigation and Adaptation: Reducing greenhouse gas emissions and helping communities adapt to the impacts of climate change.
• Environmental Conservation: Protecting forests, wetlands, and other ecosystems.
• Improved Infrastructure: Building flood defenses, irrigation systems, and other infrastructure to reduce vulnerability to environmental hazards.
• Community-Based Natural Resource Management: Empowering local communities to manage their natural resources sustainably.