Which one of the following highlighted that “An area is poor because it is poor”?

Correct option is A

Gunnar Myrdal's theory of cumulative causation explains the concept that poverty in a region or area perpetuates itself. In his model, he argues that the underdevelopment or poverty in a region is not merely due to external factors but is also internally reinforced by processes that ensure continued poverty. The key idea is that areas are poor because they are poor—poverty leads to further poverty in a self-reinforcing cycle. This is often referred to as the "vicious circle of poverty," which highlights how economic backwardness can lead to the entrenchment of poverty through various social and economic mechanisms.

Information Booster:

1. Gunnar Myrdal’s concept of cumulative causation shows how poverty in certain regions is both a cause and an effect of poor economic and social conditions.
2. In this model, economic development does not happen uniformly across a country; instead, development tends to favor certain regions, leaving others stuck in poverty.
3. Myrdal's idea contrasts with earlier development theories that focused more on the external factors causing poverty.
4. The theory also highlights the role of education, infrastructure, and governance in either breaking or reinforcing the cycle of poverty.
5. Myrdal’s work laid the foundation for understanding regional disparities in development and the need for targeted policy intervention to break the cycle.

Additional Knowledge:​

Perroux’s growth pole: Perroux's growth pole theory suggests that economic development is not uniformly distributed but is often centered around specific areas or “poles” of growth, which attract investment and resources. Unlike Myrdal’s theory, Perroux’s model emphasizes the positive externalities of development, where growth in one region can stimulate growth in surrounding areas.

Meadow’s limits to growth: Meadows' theory, introduced in the "Limits to Growth" report, focused on the environmental and resource constraints on economic growth. This theory discusses the eventual limits of economic development due to finite resources but does not directly address the cyclical nature of poverty.

Rostow’s stages of Economic Growth: Rostow's model outlines five stages of economic growth, from traditional society to high mass consumption. While this theory provides a linear view of development, it does not emphasize the cyclical nature of poverty and regional disparities as Gunnar Myrdal’s theory does.