Intergenerational Poverty in Developing Countries : A Critical Review Followed by a Two-Stage Firoza Model

Poor people are trapped in a vicious cycle of intergenerational poverty. This study critically reviews existing literature to explore why long-lasting poverty exists despite various initiatives taken by national and international development organizations (NGOs), charity organizations, and government agencies. It is evident from the literature that lack of human capital (education & skills) is one of the most important factors that facilitate the intergenerational transmission of poverty in developing countries, along with other factors interlinked with human capital. This study analyzes a particular developing country (Bangladesh) case with an assumption of generalizability to the other developing countries in the post-MDG era. We find that failure to ensure quality secondary education is a major concern in fighting the poverty transmission from one generation to another. Finally, the study proposes a two-stage model to overcome intergenerational poverty in the long run by comprehensively addressing secondary education through a Social Fund