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What is Poverty? • “a state or condition in which a • person or community lacks the financial resources • and essentials to enjoy a minimum standard of life • and well-being that's considered acceptable in society” • Source: Pakistan Economic Survey 2013-14 Who are consider to poor? People living below $1.25 a day as per 2005 international dollar prices are considered poor. Poverty line are drawn locally according to some set criteria Who are considered poor in Pakistan • a person is earning less than Rs.1745 per person is considered as poor in Pakistan. • (source Pakistan economic survey 2013-14 where Survey of 2010-11 transpiring the above figure) • Example. If a family consists of 5 members and their total income is less than Rs.8725 per month, than that family is considered as poor. How many people’s are poor in Pakistan? • Official view: World Bank calculations indicate that there are 21.04% of the population (2008 estimates)are living below the Internationally specified poverty line i.e. $1.25. • (source Word Development Indicator 2014) How many people’s are poor in Pakistan • Independent view: According to a study conducted by SDPI (Sustainable Development Policy Institute) • 1/3rd Pakistanis are poor • (source The Express Tribune 25 Feb. 2014) What is difference between absolute and relative poverty • When poverty is measured considering the money necessary to need the necessities than it is termed as absolute poverty. Whereas relative poverty in concerned the quality of life with respect to the other members of the society. How we measure the poverty • Headcount Index • Poverty Gap Index • Squared Poverty Gap (Poverty Severity) • Index • Sen Index • The Sen-Shorrocks-Thon Index • The Watts Index • And many others measures Causes of poverty • Conflicts and War • Corruption • Bad Geography • Colonialism • Higher population growth rate • Low level of Industrialization • External dependence • Low Human Development • Adverse Climatic conditions Consequences of Poverty • Poverty causes Low growth thus low development and prospective for up-coming generations. • High infant mortality and Death rate • High incidence of diseases • Increased crime rate • High conflicts and less social cohesion • Less capability to utilized their endowed resources What we should do • As we cannot live alone the handicap brother and sister without help so we should not leave alone the 1/3rd fellow brother and sister of our nation alone. • Since they will not be able to handout in the economic progress of nation. Thus we should prepare policies which are mostly socially inclusive.
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Poor people and poverty
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