Poverty and Homelessness

BY Mahwish Moiz. LAST REVISED ON August 20th, 2023.

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the facts, statistics, and more

How does poverty cause homelessness? What are the top 5 most impoverished cities in the world? This article answers both and more!

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A Definition of Poverty

i A woman in an all black hoodie kneels on the brick cement begging for some change in her cup.An impoverished woman in an all black hoodie kneels on the brick cement begging for change in her cup. | Poverty can be defined as lacking adequate financial means to sustain life and good physical, social, and emotional wellbeing.

Poverty is one of the biggest factors behind homelessness. Defined as the state of not having enough possessions or assets to fulfill a person’s needs, poverty and homelessness are severe social issues in almost every part of the world.

This means that poverty can include social, economic, and political elements as well. While there are many definitions to consider, one thing is for certain: poverty results in exclusion from society.

When people don’t have enough financial resources to have an adequate standard of living, they can’t afford to spend on luxuries. They can only focus on the basics, including food and shelter. Since they get excluded from society, they are neither well educated nor are in the best physical condition.

There are various causes of poverty. The nature of work and income levels play a significant role in contributing to this condition. Many people work long hours for a paltry sum that is hardly enough for their needs. Others comprise families where there is usually just a single breadwinner trying to make ends meet.

Other significant factors that cause homelessness include the lack of the affordable housing, mental illness, and substance abuse.

People who face the highest risk of falling into poverty include:

  • Unemployed individuals
  • Individuals relying on government payments
  • Immigrants from developing nations
  • Single-parent families

Poverty is a complex societal issue that can’t be solved overnight. It results from many structural faults that can only be fixed if all members of society work together to provide opportunities to everyone.

How poverty causes homelessness

Along with unemployment and lack of affordable housing, it is touted as one of the most crucial reasons for homelessness.

Thus, a very strong correlation exists between poverty and homelessness. Consider the following statistics from Family Promise:

  • Almost 40 million people in the US live below the poverty line
  • Over 15 million children under age 18 in the US are poor
  • A worker within a family of four needs to earn $12.73 per hour to reach the poverty level
  • Median rent increased by 61% from 1960 to 2016, while median renter income only rose by 5% in that period
  • The US faces a shortage of over 7.2 million rental homes affordable to very low-income households

Poverty strips an individual of the resources necessary to afford a decent shelter for the long term. A poor individual or family can only spend so much. Between food and having a roof above their heads, most people prefer the former. Therefore, homelessness often precedes hunger. Thus, homelessness results from not having enough financial resources to afford rent and other housing costs.

The 5 most impoverished cities in the world

Poverty is a social issue that exists all over the world, in both developing and developed countries. However, some places are poorer than others and have a lower standard of living. The following are the five most impoverished cities in the world:

1). Burundi

The terrible situation during the civil war in 1994 left a massive 65% of the population of Burundi in extreme poverty. Its gross national income (GNI) per capita is just over $700. A majority of the children only get to complete three years of education. The low literacy rate combined with the high level of poverty makes this African nation one of the most impoverished in the world.

2). Chad

Chad is one of the poorest nations in the world, courtesy of poor infrastructure and constant conflict. The latter is mostly spread by the military group Boko Haram. A considerable 48% of the residents face financial vulnerability. The GNI per capita stands at $1,750, with children receiving 2.3 years of education on average.

3). South Sudan

This African nation is a very young one, as it gained independence in 2011. However, its long history of conflict and violence has rendered it a very poor nation. The World Bank estimates that about 82% of the South Sudanese population lives in extreme poverty. The GNI per capita is $963, while children get just 4.8 years of schooling on average.

4). Central African Republic

The Central African Republic (CAR) is not only one of the poorest countries in the world, but it’s also the hungriest. The 2018 Global Hunger Index classified the CAR as the only country with “extremely alarming” hunger levels. 62% of the country’s population lives in severe poverty. The GNI per capita is $633, with children receiving an average of 4.3 years of schooling.

5). Niger

Niger was classified as the country with the lowest Human Development Index score in 2018. With a GNI per capita of just $906 combined with only two years of schooling for children on average, this makes sense. The World Bank report form 2014 suggests that 44.5% of the country’s population lives in extreme poverty.

How to solve poverty

The best way to reduce poverty around the world is to increase average incomes. This sounds obvious, but there are several ways to go about it. At the end of the day, earning enough to fund your accommodation is the one certain way in which people can lift themselves out of poverty and homelessness.

Here are five ways in which the incomes of poor people can be increased:

1) Increase employment

This is where the government will play a crucial role. By investing in infrastructure and services such as schools and childcare centers, the government can generate both jobs and social benefits. Local-hiring ordinances for large employers in low-income communities can ensure high employment rates for the poor as well. Providing low-cost housing can also increase the amount of available income by cutting down on housing costs. Of course, the government itself can be an employer for many of these people.

2) Strengthen social safety measures

Many countries have existing social programs like unemployment insurance, tax credits, food stamps, and cash assistance. Such measures need to be strengthened and any barriers to access need to be removed.

3) Paid family and sick leave

Paid leave would allow people to take care of themselves and their families without having to sacrifice the income that is so vital for them.

4) Improve lives of immigrants

Some of the poorest people in developed countries are immigrants from developing nations. They are discriminated against, face few opportunities, and are exploited by their employers. Thus, there needs to be effective immigration reform to improve their lives and give them better opportunities in society.

5) Eliminate segregation

Structural segregation has made it difficult for minorities to rise out of poverty. They end up being isolated, deprived of resources, and excluded from society. Since they also comprise some of the poorest people, it is essential to provide them with the right opportunities. Their children must be educated and given better access to resources to give them a fighting chance.

Summary

Poverty is the state of not having enough resources to fulfill a person’s needs. It is largely caused by low-income levels and increasing costs. A strong correlation exists between poverty and homelessness. Each is responsible for the other. Poverty prevents a person from affording a decent shelter over the long term.

Some of the poorest nations in the world include Burundi, Chad, South Sudan, the Central African Republic, and Niger.

Poverty can be reduced by increasing average incomes among the poor sectors of society. This can be achieved by increasing employment, strengthening social benefits, encouraging paid leaves, reforming immigration, and eliminating segregation in society.

further reading

This article focused exclusively on poverty and homelessness. What it focused little to none on, however, is substance abuse and homelessness...

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key takeaways

  • Poverty is the state of lacking enough possessions or assets to fulfill a person’s needs.
  • Homelessness results from not having enough financial resources to afford rent and other housing costs.
  • Burundi is the most impoverished country in the world.
  • If we increase desirable employment opportunities, and offer more social programs, poverty can be a thing of the past.
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