With reference to a poverty trap (poverty cycle), explain how “investing in human development is crucial to ... reducing poverty”

A poverty trap is a vicious cycle that can be observed in poorer societies or poorer members of rich societies. It is caused by lack of capital - this includes natural capital, human capital, and actual capital. Imagine a child being born in a poor family, having difficulties to provide for themselves - lack of access to water sources, heating, proper nutrition. The child is disadvantaged since the beginning - poor health. When the child grows up, they are most likely forced to work with the family - usually in the primary sector, or even to self-sustain themselves - thus missing school and failing to obtain a good education. Lack of human capital possessed by the child means they fail to find a well-paid job, and it remains impossible for them to obtain the capital necessary to escape the poverty trap.