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Why does poverty exist in country with abundant resources?

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When you travel to South America, you encounter countries that have a vast amount of natural resources, and very large labor forces. However, despite of the abundance of these resources, you also see a lot of poverty. Can you provide an economic explanation of why poverty exists? (Hint: review the list of factors of production necessary to produce goods and services).

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The poverty exists because South America lack of certain factors of production. Factors of production are the resources of land, labor, capital, and enterprise used to produce goods and services. South America has a vast amount of land ...

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This solution discusses why poverty exist in country with abundant resources in 160 words.

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Culture of Poverty Thesis

You are meeting with a few members of city council and the agenda is focused on social services for the poor. You find yourself engaged in a heated debate. Some members cite that the culture of poverty thesis suggests that the poor are largely responsible for their own poverty. Others argue that this attitude essentially blames the victim and that, instead, poverty is caused by society's unequal distribution of wealth.

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Which position do you agree with and why? Support your position with facts wherever possible.

I will need to write 2-3 pages. Please see attached scenario.

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