inequalities that result from disparities in education exclusion of poor groups due to ethnicity or similar grounds or limited access to credit and services are hard for the poorest to overcome on the other hand removing market restrictions may compress labour returns to schooling that ultimately would help reduce inequality most ldcs experienced positive growth in per capita gdp the rate of reduction of poverty and hunger however has not been commensurate widi economic growth one reason for this is the rising inequality in income that most of these countries have experienced over the years table there are various types of shocks both idiosyncratic and covariate that affect the lives of the poorest