The vicious circle of poverty is a theory that explains the phenomenon of persistent poverty in developing countries. It is a self-reinforcing cycle in which poverty is both a cause and a consequence of other social, economic, and environmental factors.

The cycle begins with a lack of basic resources, such as food, water, and shelter, which can lead to poor health and low educational attainment. This, in turn, can limit job opportunities and lead to low incomes, which perpetuates the lack of resources and creates a cycle of poverty.

The vicious circle of poverty can also create a lack of investment and infrastructure, which further limits economic growth and exacerbates poverty. Additionally, poverty can also lead to social and political instability, which can further hinder economic development.

Breaking the vicious circle of poverty often requires a multi-faceted approach that addresses the underlying causes of poverty, such as improving access to education, healthcare, and basic resources. It may also involve policies that promote economic growth and investment in developing countries, as well as measures to address inequality and social exclusion.