2. Poverty
Absolute Poverty : A situation where
individuals don’t have access to basic requirements of
life –Food, Shelter and Clothing
Relative Poverty :is a poverty measure
based on a poor standard of living or a low
income relative to the rest of society.
3. Poverty
Half the world’s population, about 3 billion, live on less
than $2 per day.
Malnutrition, lack of health care, substandard
housing, and illiteracy breed desperation, disease and
daily suffering.
Poverty traps future generations in a vicious cycle
without hope or opportunity.
4. Poverty Statistics
Almost 30,000 children under the age of five die
Approximately 790 million people in the developing
world are chronically undernourished.
Nearly a billion people entered the 21st century unable
to read a book or sign their names.
5. Difference between “Poor” &
“Poorest”
The term “poorest” or “very poor”
refers to people
living on less than $1 per day or
in the bottom half of those living
below their nation’s poverty line.
The term “poor” means those living
in poverty above $1 per day or the
upper half of those living below
their nation’s poverty line.
6. Causes of Poverty
Decline in overall national
growth
Political instability
Natural disasters
Corruption
Socio-economic
disparities.
Lack of access to
education
Lack of infrastructure
Lack of relevant laws
&administrative
procedures
Lack of access to
investment & credit,
complete market
information
7. Effects of Poverty
All or most of the money earned go to basic survival.
There is little or no money left to improve quality of
life.
Living in poverty almost always means that the harsh
reality of today will repeat itself tomorrow.
8. Effects of Poverty, continued…
Poverty breeds poverty. If one cannot afford proper
nutrition or health care for one’s family, children grow
up at greater risk of acquiring a life threatening or
disabling disease.
If one cannot afford to educate one’s children, it will
be a repeat of their parents’ life
If one cannot afford to buy one’s own land or home or
livestock, there are few opportunities to build assets
that will last over time.
9. The 5 Poorest Countries Of The
World
1. Democratic Republic of Congo (GDP – per
capita: $300)
2. Republic of Liberia (GDP – per capita: $500)
3. Republic of Zimbabwe (GDP – per capita: $500)
4. The Solomon Islands (GDP – per capita: $600)
5. Republic of Somalia (GDP – per capita: $600)
10. Causes of Poverty In Pakistan
Government Bad Policies
CORRUPTION
Inflation
Smuggling
Overpopulation
Unemployment
Lack of education
Law and order situation
Foreign Investment
11. Government’s Expenditures
It is estimated that around 5 Crore is spent on the
security of Prime Minister and the President
Monthly expense of 1 minister = 30 Lacs, Monthly
expense of 96 minister = 288000000 (28 Crore80 Lacs
12. CORRUPTION
It’s a condition when People forget about mortality, and
don’t care about the fact if money is being earned by fair
means
Only one relationship that is exists in society is money. One
has to pay a heavy cost to get his right.
Institutions have failed to provide justice to common
Citizens.
13. Inflation
Poverty in Pakistan is increasing because of general
rise in prices of all products in Pakistan
Hence, it decreases purchasing power of people
earning low earnings/Wages/Salaries.
14. Smuggling
Pakistan was recently facing the shortage of sugar and
wheat due to the smuggling these items to
neighboring countries.
Pakistan is the 7th largest wheat producer, it’s
consumption was 20 Million ton and produced 23
million ton recently
Similarly Pakistan is the 4th largest sugarcane
producing country, but due to stocking habits of it’s
owners…It was facing severe sugar crises
15. Unemployment
International Labour Organization defines, occurs
when people are without jobs and they have actively
sought work
Unemployment rate in 2009was 7.40 which is doubled
in 2010, the current rate is15.20%
When peoples are unemployed they consume
the resources but are unable to
contribution overall economy,
which results in overt.
16. Law and Order Situation
There are lots of problem regarding Law & Order
situation in Pakistan
Terrorist attacks create uncertainty in stock marks and
people earnings from stock are getting loss due to
which the whole country faces uncertain increase in
commodity prices
Local Industries, Firms, are unable
to sign agreements with foreign
investors due to prevailing law
order situation
17. Role of IMF
IMF loans usually come with conditions, restrictions and
requirements imposed by IMF on the borrowing country
Pakistan is also seeking the help from IMF on very
dangerous conditions which are causing more poverty in
the country. Some of the conditions are Listed Below:
Put an end to subsidies on all products.
Taxes should be increased.
Govt. expenditure should be stop.
cut military spending by almost a third
18. Solutions to remove poverty
Govt. should make the Policies in Favor of Pakistan, and
Pakistani people.
Govt. should not waste national assets and utilize them to
remove the poverty
Corruption should put to an end and Judiciary should take
some action against corrupt people.
Population rate should be controlled.
Govt. should make policies to provide employment to the
Labor force.
