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Economics/Why many people are poor in the world


What is the exact reason for poverty?. How to eradicate poverty ?

Poverty affects the future
Poverty affects the fu  
In the world many experts and economics pitch the reason for poverty on the poor people, the environment, lack of funds to feed people etc…. Including World Bank, IMF, UN, Commonwealth etc..  believe that poverty cannot be eradicated without money diversion from charitable sources, educating the poor, pooling donations, social service expansion etc… All these are false notions and arguments.  

Poverty is directly related to the parity between earning and purchasing power of a household. The controlling factor of this parity is the “cost” of essential items. Hence,  I have an entirely different and practical approach.

The essential item producers and distributors in every nation, inflate the prices of their commodities, to cover up their mis-management every year, so that more and more people are not afford to buy them. Thus they create, increase and maintain an expanding below poverty line persons in the nation.  This article substantiates this statement, through verified inference. Also it suggests a dual ratio control on Essential item producers and distributors, for poverty eradication.

All the species, in this world survived over the generations, by fitting themselves within the available resources, for many millennium (Darwins’s theory). But human, because of their intelligence, survived in a 3 dimensional shell namely (a) The geography and environment
(b) The social influences and (c) The economic infrastructure. By a measure of the existence of the “Survival of the fittest” in this millennium, their distribution in the world,  the reasons for the hand to mouth living for basic needs, how people escape from this survival stage, a feasible  solution is arrived to eradicate this poverty stage. Accordingly the methodology is chosen to pin point each segment of the world population in and under poverty line using the World Bank survey map, and the Operating ratio as the measure of the performance of the essential suppliers. Lower ratio represents prosperity.

India is taken as a representative country for the analysis. Agriculture is found to be of little value compared to the return on land investment, due to the absence of mass farming. Milk and other essential items like travel, textiles and construction are taken as essential items. An analysis of their Operating ratio in government and private sectors indicate that the operating ratio is high. It is because of their mismanagement, and monopoly status. They keep the citizen as their captive customers and use price increase as a leverage for their continued survival. Hence corporate organisations producing and supplying the essential commodities create, maintain and increase the people below poverty line in any nation.

Comparatively, this ratio in developed nations are low and under control. Conversely, the operating ratio  of non-essential goods in the developing nations are low and favourable, because of competition and global business operators.  The golden rule is that the Essential need supplies should keep their Operating ratio at 75 % or below. In the discussion, the possible the suggested method for keeping this ratio under control (in  a normal and disturbed economic condition) is found to be through innovation in cost and expense control. The growth rate of GNP should be equal to the population growth rate OR the population growth rate should be kept equal or less than the feasible GNP growth rate.  This will eradicate the poverty in the world. This is applicable to all in government, public or private sectors and all the nations in developed, developing and under developed bracket of economic status.  


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Basically a B.Sc (Physics) from the University of Madras, India. Started the career in production engineering under German and Italian experts. MBA in Management from IIM, Ahmedabad (India). Ph.D (Management) from the University of Bomaby (the first ever awarded in this subject). Headed the computer centres of Multi nationals; "Data Processing expert" of the Commonwealth, London (To implement World Bank and UNDP Computer softwares); "Consultant Adviser" to the Caribbean Development Bank (CDB), Barbados. Associated with Nobel Laureate in Economic Science-1979, Arthur Lewis (Past President of CDB) & 4 more on his introduction. Visiting professor to many universities. A Trained ISO 9001:2000 Quality Auditor. Over 40 years of combined experience in Accounts, Computer Software, Economics, Engineering, Management, Science, Technology, Research & Development and Qulaity systems. Author of over 60 Application Research papers. Currently a free-lance consultant in ISO Quality Systems, Socio-Economic development acceleration, Innovative software designs. Can answer any question in Theoritical/Applied-economics with an in-depth and innovative dimension. I DO NOT ANSWER : 1. STATISTICAL data & analysis. 2. PRIVATE questions, as they do not appear for PUBLIC view & search 3. Examination & Project report oriented questions. Website


Experience in the area Over 40 years in Industrial, Service and Economic development sectors. Socio-economic development oriented expertise (1982-86). With Commonwealth Fund for Technical Cooperation, London as a "Data Processing Expert". With Caribbean Development Bank, Barbados (UNDP,World bank set up) as a "Cnsultant Adviser". See "" and "". National & International awards. R & D Author at and

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See full details at (1) D.Litt in Computer Science - 1983. World University, USA. (2) Ph.D - 1975. First management doctorate awarded by the University of Bombay, India, after the inception of the subject. (3) MBA – 1966. IIM, Ahmedabad. India. First batch. 4) B.Sc - 1959. Physics. University of Madras, India

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