A Man Is Poor Because He Is Poor

1. A man is poor because he is poor..

2. DEFINITION;
“Vicious circle of poverty is due to low level of
investment on one side and low level of
demand on the other side which is due to
low level of income , which is the result of
economic backwardness and primitive
technology”.

3. SIDES OF POVERTY;
All the developing countries have
main feature which is poverty.
which effect any economy from
two sides;
poverty
Demand side
supply side

4. DEMAND SIDE OF V.C.P;
“It is due to low purchasing power
of the public which is due to low
level of income and low income
bounds the demand and small size
markets discourage the
investments, it reduces the
productivity which leads to low
income.”

5. DEMAND SIDE CIRCLE;
Low
production
Low
income
Low
purchasin
g power
Low
investment
Low
demand

6. SUPPLY SIDE OF V.C.P;
“In less developing countries , the
saving of people is low due to low
income and low savings means
low investment which is the cause
of low productivity which leads to
low income”.

7. SUPPLY SIDE CIRCLE;
Low
productivity
Low
capital
Low
income
Low
savings
Low
investment

8. MEASURES TO BREAK V.C.P;
 The under developed countries
can achieve rapid growth by
making the proper use of their
resources.
 Such countries should take steps to
control their population with
reasonable limits.
 More of such countries should be
sent to abroad for training and
higher education.

9. MEASURES TO BREAK V.C.P;
 Stable monetary policy should be
adopted by such countries to
control inflation.
 Their government should decrease
their luxury expenditures.
 Wealth should be equally
distributed.
 The government of such countries
should provide loans to their
productive sectors.

10. MEASURES TO BREAK V.C.P;
 Such countries should reduce their
imports and produce substitutes.
“ Mainly”
 Their willingness to make progress,
…“AL QURAN”….
“Verily! Allah will not change the condition of a
people as long as they do not change their
condition themselves”..

11. Thank You For
Watching 