Psychology of poverty

“Poverty is an ethical concept, not a statistical one”. — John Wall, World Bank, 2006

IN nuclear-powered Pakistan nearly 40-50 per cent of the country’s 240 million people live below or around the poverty line, fighting for daily survival. But millions more are extremely vulnerable. As John Wall said, “The incomes of a very large portion of the population are just above and below the official poverty line. This clustering around the poverty line also implies that families are quite vulnerable to falling into poverty with the slightest run of bad luck. A drought or bad agricultural year, an illness of a breadwinner, rises in prices of basic commodities — all these can cause families to fall into poverty.”

In Pakistan, poverty is often discussed in numbers, percentages, GDP ratios, and economic growth rates. Policymakers debate fiscal reforms, economists analyse inflation trends, and politicians promise relief packages. Yet, what remains largely ignored is the psychology of poverty — the effect chronic deprivation has on the human mind, behaviour and social fabric. Poverty is not only an economic condition but also a psychological experience, one that influences how millions of poor in Pakistan think, feel, and act every day.

Behind statistics lie complex emotional realities: uncertainty, humiliation, despondency and a persistent sense of powerlessness. Poverty is not merely about lack of money; it is about lack of dignity and agency. It distorts one’s sense of self, narrows cognitive functions, and traps individuals in cycles of stress and short-term survival. Inflation, unemployment, and debt create an unbearable cognitive load........

© Dawn