Poverty is one distressing situation that majority of people in developing countries have to contend with in their daily lives. It is widespread among the low and middle income earners in these countries. Though many of those affected may live in denial of their state, it is a grim reality they have to face. In the following paragraphs, I have discussed the major causes of poverty in these developing countries and looked at their adverse effects on the citizens and the economy as a whole. One of the major causes of poverty in these countries is the high rate of unemployment which is rampant in these countries. The high rate of unemployment arises from the high birth rates which lead to a large population, and the economy does not have the ability to generate enough jobs for everyone. The mostly affected are the youths who are then forced to depend on the working population. This causes reduced savings and consequently reduced capital for investment within the country. This impedes and deters economic growth. In addition, the unemployed youths are forced to engage themselves in social crimes in order to earn a living. This leads to a rise in theft, robbery, drug trafficking and prostitution as they look for ways to earn a living and put food on their tables. The evils that these youth get into are just unfathomable and simply unpalatable. Another contributing factor to poverty is the embezzlement and the misappropriation of public funds by unscrupulous and selfish government officials and representatives. Funds set aside for development and alleviation of poverty usually disappear in mysterious circumstances and they end up in the hands of greedy persons. The bitter pill to swallow is that the masterminds of these plots usually are protected from the so called long arm of the law. This leads to a situation in which the income in these countries is usually in the hands of a few affluent individuals while majority of the citizens live in appalling conditions. This situation leads to a scenario where the rich get richer while the oppressed and the impecunious get more impoverished. This tends to increase government expenditure in trying to provide basic necessities to these citizens who have to depend on aid either from the government or from donors. Cultural hostilities and ethnic antagonisms lead to displacement of people from their homelands and they end up sojourning in makeshift structures they refer to as home. These clashes have adverse effects since they lead to annihilation of poverty, loss of lives. This leads to emergence of refugee camps where the citizens live in sordid housing. They lack even the most basic of necessities and they have to depend on government aid which is insufficient. The living conditions are so depraved and this gives room for an epidemic to spread and cause death of those staying in those camps. As a result, government expenditure is channeled to aid these persons and in the process, other sectors of the economy are usually neglected resulting in reduced economic growth and the economy suffers. In conclusion, mentioned above are just but some causes and effects of poverty in third world countries. In spite of all efforts to combat this perennial problem, it has still proven fruitless and many citizens still languish in abject poverty.