Abject poverty is without question the major economic problem of the world. This has always been so, but it has become the focus of great concern for nations and for large numbers of persons in recent years. To understand its causes and achieve its possible alleviation, an understanding of the nature of economics and economic activity is necessary.
     Economic activity is generated by the wants of human beings, which seem tobe insatiable in the aggregate. The means available in any economy for satisfyingthe wants of its population are scarce. They consist of the economy's resources– its labor and its capital–along with its available technology. The supplies of resources, together with the level of technology available, determine the maximum GDP that the country can produce to satisfy wants. Dividing a country's GDP by its population yields its per capita GDP, which is a rough measure of its citizens' average well-being. Further insight into actual well-being is achieved when the distribution of GDP is taken into account, as well.
     The basic elements of economic activityand economic analysis provide insightinto the causes of poverty. Poverty stems from low labor force qualities, little capital for labor to work with, low levels of technology, inefficiencies in the use of resources, and, in some instances, excessive rates of population growth. To break out of the poverty trap, a country must make progress in attacking some or all of the causes. But it is unlikely to make much progress unless it achieves a marked degree of political and economic stability.
     Developed countries can and do assist LDCs as they strive to improve their economic lots. Aid takes two basic forms: (1) loans or grants and (2) technical assistance. Individual DCs have independent aid programs. They also engage in joint aid programs through such organizations as the World Bank.