The growth rate in most of the developing countries have gone up from 1800 to 2000.The main reason for a set back of these developing countries were that they were pulled into the so called Vicious Circle of Poverty which was very hard to break . Most of the countries which survived a little from this had to face greater difficulties later in the process of development. The countries like China, India, Bangladesh Etc had to into variety of experimental stimulants into the economy to back it up in the process of growth. Certain other countries in the world got into this circle and even now it is difficult for them to get out. The Main reason that their policies have become ineffective are because of the shocks that are created in the economies mainly in the form of poverty, unemployment, dis-economies etc. This has caused the nation to be in poverty itself and has not allowed it to get out the the Vicious circle of poverty. Thus the growth rate itself has become ineffective in the shadow of Vicious Circle of Poverty.