Poverty trap refers to mechanism which keeps poor people poor.
Poor people do not have enough to eat and investment in skills and
training. Thus, their employability in lucrative jobs are scant.
Hence, they earn low income. Low income keep them poor. In other
words, Poor People - Poor investment in skills and Low productivity
- Low Income- Resultant Poor people.
Millennium Village:
Millennium village project was launched in African countries to
get people out of poverty trap. It is rural and community led
development program.
Millennium village project helped people to increase their
skills and employment opportunities. Self employments were
generated through this project. Hence, it helped a lot of people to
escape poverty.