Pathways out of poverty. (A thread)
There is difference between personal and structural causes of poverty. Personal poverty is when the factors leading to lack of resources are caused by your inability to seize opportunities and manage resources well.
Structural Poverty on the other hand is systematic and instutitionalised. Here the factors leading to overall poverty are beyond individual control. These factors may include geography, poor governance and poor employment opportunities.
By the way we have more structural poverty than personal poverty even if our leaders want us to believe otherwise. If you keen on the government data you realise that education which is supposed to equip the majority with employable skills is not doing its job well.
How can you explain 1.5M children getting in P.1 and only 80,000 graduating 16 years. The sacrilege of the century is that we can't even find enough jobs for those lucky enough to graduate. That's what structural poverty does.
For the sake of the lesson today, let's deal with personal poverty and whicih pathways can help you make economic progress.When you look at it broadly, you have four common pathways;
a. Get a good education resulting in a successful career and good pay.
b. The enterpreneuerial approach. Find an opportunity, seize it and extract maximum value out of it.
c. Get given some of wealth from those that have. This encompasses charity, marrying into money and the free loaders in politics.
d. Win a lottery. (You have more chance of being struck by lightning than winning a substantial sum at a luck game).
But frankly speaking its only a & b that can deliver consistent and predictable results.
The problem I see often, is that we tend to assume that everyone can be an enterpreneuer which is not the case. A society that has 10% of its population as natural born enterpreneuers is indeed blessed and will in due course have substantial economic acceleration.
So choose which pathway will work for you.
Once you strike out you will soon realise that to stay clear of poverty you will need to learn to invest. For while everyone doesn't have to be an entrepreneur, everyone needs to become an investor.