The vicious circle to poverty on the supply of capital starts from the fact the underdeveloped countries are essentially those where real income of people is extremely low?
Low real income means low capacity to save and hence a smaller volume of savings. With low savings the level of investment also remains low. Low investment means smaller stock of capital goods or lesser availability of machinery and equipment in the economy. Working with smaller stock of capital or lesser machinery per worker is bound to keep productivity of workers very low, resulting in lower output and income. Thus the circle starts with low income and ends with low income.