i

Poverty and Social Inequality

Submitted By:
Diksha Kumari sah
LC00016001017

Submitted To:
Ms. Dikshya Khadka

For the partial fulfillment of the requirements for the degree of bachelor of
Business Administration, as part of the assignment Sociology.

Nepal Business College

Biratnagar

11-01-2025
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ACKNOWLEDGEMENT
I want to express my gratitude to Lincoln University for establishing a system that
emphasizes the importance of assignments in the educational process. A big shout-out
to Nepal Business College for fostering a friendly environment that helps students
improve their presentation skills. I want to express my appreciation to the dedicated
founders, VED RAJ ACHARYA, BHESHA PRASAD DHAMALA, and
DEEPAK KOIRALA, who consistently contribute to the improvement of our
educational experience.
I'd like to extend a special thank you to Mr. Upendra Kr. Mandal, our BBA
assignment In-charge, for his continuous guidance and constructive feedback on our
assignments. A heartfelt appreciation to Ms. Dikshya Khadka our subject teacher,
for choosing such a
crucial topic for our assignment. His classes and instructions have been instrumental
in my understanding of the assigned topic.
In essence, my support system comprises not only my teachers but also the dedicated
staff, founders, and my friends who have been pillars of support throughout this
academic journey.
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ABSTRACT
Poverty and inequality are pressing issues that affect the well-being of local
communities. This assignment explores the underlying causes and far-reaching effects
of poverty and inequality, emphasizing how they interlink and perpetuate each other.
Furthermore, it investigates practical measures to address social and economic
disparities, ensuring sustainable and inclusive development. The objective is to
provide a comprehensive understanding of these challenges and propose actionable
solutions to reduce disparities and improve the quality of life for all members of the
community.
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ABBREVIATIONS

NBC: Nepal business college

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Table of Contents

ACKNOWLEDGEMENT .............................................................................................ii

ABSTRACT................................................................................................................. iii

ABBREVIATIONS ...................................................................................................... iv

CHAPTER ONE ............................................................................................................ 1

INTRODUCTION ......................................................................................................... 1

1.1 Background .......................................................................................................... 1

1.2 Objectives of the Study ........................................................................................ 3

1.3 Significance of the Study ..................................................................................... 3

1.4 Limitation of the study ......................................................................................... 3

CHAPTER TWO ........................................................................................................... 4

LITERATURE REVIEW AND METHODS ................................................................ 4

2.1 Literature review .................................................................................................. 4

2.2 Research and Methodology .................................................................................. 4

2.3 Nature and Source of Data ................................................................................... 5

CHAPTER THREE ....................................................................................................... 5

ANALYSIS .................................................................................................................... 6

3.1 Causes of Poverty and Inequality ......................................................................... 6

3.2 Effects of Poverty and Inequality ......................................................................... 8

3.3 Measures to Reduce Social and Economic Disparities ...................................... 10

CHAPTER FOUR........................................................................................................ 14

CONCLUSION ............................................................................................................ 14

REFERENCES ............................................................................................................ 15
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CHAPTER ONE
INTRODUCTION
1.1 Background
Poverty and inequality are big problems in many communities. Poverty means not
having enough money or resources to live a decent life, like food, shelter, and
healthcare. Inequality happens when resources, opportunities, or power are unfairly
divided among people in a society. Inequalities are not only driven and measured by
income, but are determined by other factors - gender, age, origin, ethnicity, disability,
sexual orientation, class, and religion. These factors determine inequalities of
opportunity which continue to persist, within and between countries (United Nations,
2020). Social inequality refers to the unequal distribution of resources, opportunities,
and privileges among different groups in society. It means that some people or groups
have more access to things like wealth, education, healthcare, and jobs, while others
have less or none at all. This inequality can be based on factors like income, race,
gender, ethnicity, disability, or social class. These problems are connected and make
life harder for those who are struggling. They limit people’s chances to get education,
good jobs, and basic services, creating a cycle of hardship. This study looks at what
causes poverty and inequality, how they affect local communities, and why it’s
important to understand them to make life better for everyone.

Social and economic disparities happen when some people in society have more
money, resources, and opportunities than others. This creates an unfair gap where
some live comfortably while others struggle to meet basic needs. These differences
can harm communities, causing problems like lack of unity and slower progress. To
fix this, we need to find ways to reduce these gaps, like helping disadvantaged groups,
improving access to education and healthcare, and creating fair policies. This study
focuses on simple and effective ways to create a fairer society where everyone has the
chance to succeed.
The top 1% controls 99% of world’s wealth
This explanation highlights how wealth and opportunities are distributed unevenly
between the richest 1% and the rest of the population (the other 99%).
The Rich (1%): The wealthiest people often make their money not by working
regular jobs but through owning businesses, investing in things like stocks or real
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estate, or inheriting wealth from family. They can grow their wealth because they
have resources to invest and access to opportunities like global markets and favorable
government policies. They also earn money by using other people's work to generate
profits for themselves, meaning they don’t need to directly work to make more
money.
The Poor (99%): Most people earn their money by working hard in jobs or running
small businesses. They often live paycheck to paycheck, with little or no savings or
investments. Without access to quality education, better job opportunities, or
resources to start investing, they remain stuck in a cycle of poverty. Meanwhile, the
rich continue growing their wealth, which widens the gap between the rich and poor
over time.

Using the example of Mukesh Ambani (one of the richest people in India) and
poor people:
1.⁠ ⁠Unequal Start in Life
Ambani: Mukesh Ambani was born into a wealthy family. His father, Dhirubhai
Ambani, had already built a successful business. Mukesh started with resources,
connections, and opportunities.
Poor People: Many poor people are born into families that struggle to afford basic
needs like food, education, and healthcare. They start with nothing and have to fight
just to survive.
2.⁠ ⁠Education Gap
Ambani: Mukesh Ambani went to top schools and even studied at Stanford
University, gaining knowledge and skills that helped him grow his business empire.
Poor People: Poor families often can’t afford quality education for their children.
Even if they attend school, it might be poorly funded, leaving them with limited skills
and fewer chances for good jobs.
3.⁠ ⁠Wealth Passed Down
Ambani: Mukesh Ambani inherited his father’s business, Reliance Industries, which
was already making a lot of money. This gave him a big advantage in growing his
wealth.
Poor People: Poor families don’t have land, businesses, or savings to pass down.
Instead, they often pass down debts or the struggle to make ends meet.
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4.⁠ ⁠Wage Inequality

Ambani: As a business owner, Mukesh Ambani makes money not just from his work
but also from the labor of thousands of employees and investments. His wealth grows
even when he’s not working directly.
Poor People: Poor people often work long hours in hard jobs but get paid very little.
They don’t have savings or investments to make money grow.
5.⁠ ⁠Uneven Access to Opportunities
Ambani: Mukesh Ambani has access to powerful networks, government support, and
global markets that help him expand his business.
Poor People: Poor individuals lack access to such opportunities. They may live in
rural areas with no good jobs, or they may not have the money to start a business or
learn new skills.
1.2 Objectives of the Study
• To find out why poverty and inequality exist in local communities.
• To see how poverty and inequality affect people’s lives and the community.
• To suggest solutions to tackle poverty and inequality.
• To explore ways to reduce income gaps and inequality.
• To find ways to improve education, healthcare, and jobs for everyone.
1.3 Significance of the Study
This study is important because it helps us understand the root causes of poverty and
inequality and how they affect individuals and local communities. By identifying
these causes and their impacts, it becomes easier to design effective solutions and
policies to address these challenges. It also highlights the importance of reducing
income gaps and improving access to education, healthcare, and job opportunities for
disadvantaged groups. Furthermore, the study provides valuable insights that can
guide governments, organizations, and communities to work together towards
creating a fairer and more equal society, improving the overall quality of life for
everyone.
1.4 Limitation of the study
During the research, the researcher developed certain limitation which are follows:
• Moreover, use of secondary source for obtaining information.
• Due to time limitation, unable to give lengthy explanation to each and every topic.
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CHAPTER TWO
LITERATURE REVIEW AND METHODS
2.1 Literature review

This graph shows the percentage of the population living below the poverty line from
1990 to 2020. It highlights a steady decline in poverty over three decades. In 1990,
around 49% of the population lived in poverty, which decreased to 42% by 1995. The
trend continued, with the poverty rate dropping to 30.4% in 2005, 25.16% in 2010,
21.6% in 2015, and finally reaching 18.7% in 2020. This consistent reduction
indicates improvements in living standards, economic growth, and poverty alleviation
efforts over the years. However, the remaining percentage shows that poverty is still a
challenge, requiring further efforts for complete eradication (Enotes World , 2024)
2.2 Research and Methodology
To compile this project, we utilized online sources for research and gathering
information. In addition to these secondary sources, we applied our own knowledge
and learning experiences to analyze the case.
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2.3 Nature and Source of Data

For the analysis there is use of secondary source for collecting information. Few
website are researched for relevant content and information. The information
regarding impact of poverty and inequality is gathered from the Google. Some of the
information are presented by the researcher itself and some additional information
from magazine, books, lecture etc.
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CHAPTER THREE
ANALYSIS
3.1 Causes of Poverty and Inequality
1.⁠ ⁠Lack of Education
Education is key to improving a person’s life. Without good education, people may
find it hard to get jobs that pay well. If someone can’t go to school or doesn’t have
access to quality education, they may end up in jobs that pay very little. This makes it
difficult for them to make enough money to live comfortably, which keeps them stuck
in poverty. Education gives people the knowledge and skills to do better work, earn
more, and live better lives.
Example: A person without a high school diploma might only be able to work at a
low-paying job, like fast food, while someone with a college degree can get a better
job, such as in business or healthcare, earning more money.
2.⁠ ⁠Unemployment
Unemployment happens when people who are willing and able to work can’t find a
job. This can happen for several reasons, like there just not being enough jobs in the
area or because people don’t have the right skills for the available jobs. When people
can’t find work, they don’t have money to pay for things like food, rent, or healthcare.
This leads to them struggling financially and staying in poverty.
Example: In a small town with very few companies, many people might be looking
for jobs but can’t find any, which makes it harder for them to support themselves and
their families.
3.⁠ ⁠Discrimination and Social Exclusion
Discrimination means treating someone unfairly because of their race, gender,
religion, or background. This can prevent people from getting good jobs or having
access to important services like healthcare and education. When people face
discrimination, it makes it harder for them to succeed, creating a gap between the rich
and the poor.
Social exclusion is when certain groups of people are left out from opportunities,
which keeps them in poverty. These groups might include women, ethnic minorities,
or the elderly. When people don’t get equal opportunities, inequality grows.
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Example: A person who is rejected from a job because of their gender or race might
not be able to support themselves or their family, making it harder for them to escape
poverty.
4.⁠ ⁠Economic Policies and Globalization
Economic policies are the rules set by governments and businesses that affect how
money is shared. Sometimes, these policies help rich people or large companies get
even wealthier while leaving poor people behind. Globalization, which connects
businesses across the world, can also create jobs in some places but leave others
without any. This deepens the divide between the rich and the poor.
Example: If the government cuts taxes for big corporations, these companies get
richer, but ordinary workers don’t see the same benefits, leading to greater inequality
in society.
5.⁠ ⁠Poor Healthcare Systems
Healthcare is essential for everyone’s well-being. If a community does not have good
healthcare services, people may get sick and not be able to work. When they can’t
work, they can’t earn money, which leads to poverty. If healthcare is expensive or
hard to access, it can push families deeper into poverty.
Example: If someone gets sick and can’t afford a doctor, they might miss work for
weeks. Without an income, they could fall behind on bills, pushing them further into
financial struggle.
6.⁠ ⁠Lack of Affordable Housing
Housing is a basic need, but when people can’t find a place to live that they can
afford, they end up spending a large part of their income on rent. This leaves them
with little money for other needs, like food or education. When people live in
overcrowded or poor conditions, it can also affect their health and well-being, making
it harder to escape poverty.
Example: A family living in a big city might have to pay most of their monthly
income just to rent a small apartment. Because of this, they won’t have enough left for
essentials like food or education for their kids.
7.⁠ ⁠Environmental Factors and Natural Disasters
Poverty can also be caused by natural disasters like floods, earthquakes, or droughts.
These events can destroy homes, crops, and businesses, leaving people without their
livelihood. Poor environmental conditions, like dirty water or air pollution, can make
people sick, which affects their ability to work and earn money.
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Example: If a town is hit by a flood, many families might lose their homes and
businesses. Rebuilding can take years, and during that time, they won’t have enough
money to support their families.
3.2 Effects of Poverty and Inequality
1.⁠ ⁠Poor Health
When people live in poverty, they often can’t afford healthcare. This means they
might not go to the doctor when they feel sick or may not have access to necessary
treatments or medicines. Without proper care, minor health problems can turn into
serious illnesses. Additionally, people in poverty may not have access to healthy food
or clean water, which leads to malnutrition and other health issues. The combination
of poor nutrition, lack of sanitation, and inadequate medical care creates a cycle
where people stay unhealthy, which makes it even harder for them to work or improve
their lives.
Example: A person who can’t afford a doctor’s visit might have untreated health
problems like a bad toothache or high blood pressure. Over time, this can cause
severe complications, leading to a lower life expectancy.
2.⁠ ⁠Limited Access to Education
Children growing up in poverty often don’t have access to quality education. Schools
in poorer areas may not have enough resources, such as textbooks, teachers, or good
facilities, which means children don’t get the best education. Without education,
children may struggle to get good jobs when they grow up. This keeps them in
poverty because they don’t have the skills needed to earn higher wages. As a result,
they may pass on the same struggles to their own children, creating a cycle of poverty
that continues for generations.
Example: A child from a low-income family might attend a school with overcrowded
classrooms and outdated materials. Because of this, they may not learn as much as
children from wealthier families, limiting their future job opportunities.
3.⁠ ⁠Increased Crime Rates
Poverty and inequality often lead to higher crime rates. When people don’t have
enough money to meet their basic needs like food, shelter, and clothing, they might
turn to crime as a way to survive or make money. Some may steal, sell illegal goods,
or engage in other criminal activities out of frustration or desperation. On the other
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hand, inequality can cause feelings of anger and injustice, making some people more
likely to commit crimes to express their dissatisfaction with their situation.
Example: A person living in poverty might steal food because they can’t afford it. In
areas with a lot of inequality, some people might also commit violent crimes to
protest against the unfair system they are living in.
4.⁠ ⁠Social Unrest
Social unrest occurs when people become upset and frustrated with how society treats
them. If a large number of people feel they are being treated unfairly or left behind by
the system, it can lead to protests, strikes, or even riots. Inequality creates division
between different groups of society, making some feel powerless and ignored. This
tension can result in a breakdown of social harmony, as people demand more equality,
fairness, and justice.
Example: In a city with high levels of inequality, poor people may protest because
they feel the government is not doing enough to improve their living conditions.
These protests could lead to disruptions, damaging the social peace and order in the
community.
5.⁠ ⁠Intergenerational Poverty
Intergenerational poverty refers to the idea that poverty is passed down from one
generation to the next. Children born into poor families often face the same struggles
as their parents. They may not have access to the same opportunities—like education,
healthcare, or good jobs—that wealthier children do. This means that the children of
poor parents may grow up to be poor themselves, continuing the cycle of poverty for
many generations. This creates long-term social and economic challenges for families
and communities.
Example: A child born to parents who struggle to make ends meet may not be able to
go to a good school because their family can’t afford it. This limits their future job
opportunities and keeps them in poverty, just like their parents.
6.⁠ ⁠ Poor Living Conditions
Poverty often forces people to live in unhealthy or unsafe conditions. Many people in
poverty live in overcrowded houses or neighborhoods that lack basic services like
clean water, electricity, or good sanitation. These poor living conditions can cause
various problems, including physical health issues (like respiratory diseases from poor
air quality) and mental stress (due to overcrowding or constant insecurity). Living in
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these conditions not only affects physical well-being but also limits people’s chances
of improving their quality of life.
Example: A family that lives in an overcrowded, poorly built house may face issues
like mold growth, which can lead to health problems like asthma. These poor
conditions make it harder for them to work, study, or focus on improving their
situation.
3.3 Measures to Reduce Social and Economic Disparities
1. Improving Access to Education
Education is one of the most powerful tools to reduce inequality. When everyone has
access to good education, they have a better chance of finding a good job that pays
well, which can help them move out of poverty. Education also gives people the
knowledge they need to make smart decisions about their health, finances, and
community involvement.
Measures to Improve Education:
• Build more schools in low-income neighborhoods so that every child can go to
school close to home.
• Offer free or affordable education and textbooks to make sure that no one is
held back just because they can’t afford school supplies or tuition.
• Provide scholarships or financial help to students from poor families so they
can attend college or vocational schools and get the education they need for
better jobs.
Example: A child from a poor family who gets a good education might later land a
well-paying job, which can raise their family’s financial status and help break the
cycle of poverty that has been passed down.
2. Creating More Job Opportunities
Access to stable and well-paying jobs is essential for people to support themselves
and their families. The government, together with businesses, should work on creating
more job opportunities in areas where unemployment is high. When people have jobs,
they are better able to meet their basic needs and improve their quality of life.
Measures to Create Jobs:
• Invest in industries like construction, renewable energy, or technology, which
can offer jobs to people in low-income communities.
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• Set up job training programs to help people learn new skills that are needed for
better-paying jobs.
• Start public projects, like building roads, schools, and hospitals, that provide
temporary employment and improve infrastructure at the same time.
Example: A community center that offers free training in skills like plumbing or
coding can give people the tools to find steady, well-paying jobs, helping them earn
more money and improve their lives.
3. Promoting Fair Wages and Labor Rights
In many communities, workers are not paid enough to meet their basic needs, which
makes it hard for them to break out of poverty. Ensuring that workers earn fair wages
for their labor and work in safe, reasonable conditions can help reduce income
inequality.
Measures to Ensure Fair Wages:
• Set a minimum wage that ensures everyone can earn enough to cover their
basic expenses like food, rent, and transportation.
• Strengthen labor laws to protect workers from exploitation, such as unfair
wages, long working hours, or dangerous working conditions.
• Encourage companies to pay fair wages that reflect the skills and effort of their
employees, not just the profits they make.
Example: If the minimum wage is increased, workers in low-paying jobs, such as
those in retail or fast food, will have more money to cover their basic needs,
improving their overall quality of life and reducing inequality.
4. Improving Access to Healthcare
Health and wealth are closely connected. People who have access to affordable
healthcare are healthier, can work more, and contribute to the economy. Providing
access to healthcare for all, especially for low-income individuals, is a key factor in
reducing inequality.
Measures to Improve Healthcare:
• Make healthcare services more affordable or even free for people who cannot
pay for it.
• Set up healthcare clinics in underserved areas where people lack access to
medical care.
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• Offer affordable health insurance programs for those who cannot afford private
health insurance.
Example: A person who has regular access to healthcare is more likely to stay
healthy, be able to work, and support their family. This can help them stay out of
poverty and improve their financial situation.
5. Building Affordable Housing
Many people in low-income areas spend a large portion of their income just on
housing. This leaves them with little money for other important things, like food or
healthcare. Building more affordable housing allows people to live in safe, clean, and
affordable homes, which helps improve their standard of living.
Measures to Provide Affordable Housing:
• Build more low-cost housing in areas where demand is high, such as cities.
• Offer rent subsidies or housing vouchers to help low-income families afford a
place to live.
• Provide incentives like tax breaks to private developers who build affordable
homes.
Example: A family that can live in an affordable home won’t have to spend all their
money on rent. Instead, they can spend on things like education, healthcare, and other
basic needs, improving their overall living conditions.
6. Providing Social Safety Nets
Social safety nets are programs that provide financial support to people during tough
times, such as losing a job or experiencing illness. These programs are important for
preventing people from falling deeper into poverty when they face difficult situations.
Measures for Social Safety Nets:
• Expand unemployment benefits so that people who lose their jobs can get help
while they search for new work.
• Provide food assistance to families who can’t afford enough food to eat.
• Offer financial support to elderly people or people with disabilities who cannot
work anymore.
Example: If someone loses their job and cannot find another one right away,
unemployment benefits will help them pay bills and avoid slipping deeper into
poverty while they search for new opportunities.
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7. Ensuring Equal Rights and Opportunities

Discrimination based on race, gender, religion, or other factors can hold people back
from reaching their full potential. Ensuring that everyone has equal rights and
opportunities can help reduce social disparities and promote fairness.
Measures for Equal Rights and Opportunities:
• Enforce laws that protect people from discrimination in areas like jobs,
education, and healthcare.
• Promote diversity and inclusion in hiring so that people from different
backgrounds are given equal opportunities in the workplace.
• Provide special support programs for women, minorities, or disadvantaged
groups to help them access education, jobs, and leadership positions.
Example: If a woman is paid the same as a man for doing the same work, she will
have more financial independence and be able to support herself and her family,
reducing gender inequality.
The measures mentioned above are important steps towards reducing social and
economic disparities. By improving access to education, creating more job
opportunities, ensuring fair wages, providing healthcare and affordable housing, and
promoting equal rights, we can work towards a more equal society where everyone has
a fair chance to succeed.
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CHAPTER FOUR
CONCLUSION
In conclusion, poverty and inequality are deeply connected issues that affect many
local communities, with significant social and economic consequences. The causes of
these challenges are multifaceted, including inadequate access to education, economic
instability, discrimination, and political corruption. These factors prevent individuals
from accessing opportunities and resources, which limits their ability to escape
poverty and contributes to ongoing disparities in wealth and social standing. As a
result, those affected experience poor health, lack of education, and limited economic
mobility, while communities face social unrest and reduced economic growth.

To address these issues, it is crucial to implement measures that promote equal

opportunities for all. This includes improving access to quality education, creating fair
job opportunities, providing social safety nets, and addressing systemic
discrimination. By focusing on these solutions, communities can reduce the gaps in
social and economic well-being, allowing individuals to improve their quality of life.
Ultimately, the key to overcoming poverty and inequality lies in collective efforts to
create a more inclusive and equitable society, where everyone has the chance to thrive
and contribute to the overall development of their community.
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REFERENCES
United Nations. (2020). Retrieved from https://www.un.org/:
https://www.un.org/en/un75/inequality-bridging-divide#:~

Enotes World . (2024). Retrieved from https://enotesworld.com/:

https://enotesworld.com/status-and-trend-of-poverty-in-nepal/