The document discusses poverty, defining it as the deprivation of basic human needs like food, shelter, and clothing. It notes there is no single definition and poverty can be understood as either absolute destitution or relative economic inequality compared to others in a given location or society. Several statistics about global poverty are provided, such as over 1 billion people living in absolute poverty in 2008, with the highest rates in sub-Saharan Africa and India. The effects of poverty are also summarized, including impacts on health, hunger, education, housing, and increased risk of violence. Methods for measuring and alleviating poverty conclude the document.

1. Economic Environment Of Business
Submitted By : Submitted To:
Abhilash Varghese Mrs. Namita Roy
Madhu
Alisha James
BCOM 1st

2. Poverty is the deprivation of food, shelter, money
and clothing when people can’t satisfy their basic
needs. Poverty can be understood simply as a
lack of money or more broadly in terms of
barriers to everyday human life.

3.  According to Mobile Orshansky who
developed the poverty measurements used by
the U.S. government, “ Poor is to be deprived
of those goods, services and pleasures which
others around us take for granted.”
 According to David Kurten , Poverty also
involve social disintegration and environmental
degradation which he describe as forming the
threefold human crisis in the world today.

4. Poverty is the other economic problem
facing most of the nations in the world.
There is no unique definition of poverty.
This is based on the national definition as
well as the international standards of US
$1/day/person and US $2/day/person.
Lately poverty definition is changed to US
$4/day/person.

7. Poverty is a Horrifying
thing
HOW?

8.  Absolute Poverty : (Destitution) It refers to the
state of severe deprivation of basic human
needs.
Relative Poverty : It is defined contextually as
Economic inequality in location or society in
which people live.

9.  The world bank estimated that ,
1) Around 1.29 billion people were in absolute
poverty in 2008.
2) About 400 million people in absolute poverty
in India and 173 million people in china.
3) Sub-sahara Africa at 47% had the highest
incidence rate of absolute poverty in 2008.
4) Between 1990 and 2010, about 663 million
people moved above the absolute poverty
level.

10. 5) Every year 11 million children living in
poverty die before their 5th birthday.
6) 1.02 billion people go to bed hungry every
night.

11. The World bank’s “Voice of the poor” , based
on research with over 20,000 poor people in
23 countries, identifies a range of factors
which poor people identify as part of poverty
are :
(1) Precious livelihoods
(2) Excluded location
(3) Physical limitation

12. (4) Gender relationship
(5) Lack of security
(6) Problems in social relationship
(7) Weak community organization
(8) Limited capabilities

13. Poverty in INDIA

14.  The poverty threshold or poverty line is the minimum
level of income deemed adequate in a given country.
 In practice, like the definition of poverty, the official or
common understanding of the poverty line is significantly
higher in developed countries than in developing countries.
 The common international poverty line has in the past
been roughly $1 a day. In 2008, the World Bank came out
with a revised figure of $1.25 at 2005 purchasing-power
parity (PPP).

15.  Determining the poverty line is usually done by
finding the total cost of all the essential
resources that an average human adult
consumes in one year.
 The largest of these expenses is typically the
rent required to live in an apartment, so
historically, economists have paid particular
attention to the real estate market and housing
prices as a strong poverty line affector.

16.  Effects of poverty also be causes and creating a “Poverty
cycle” operating across multiple levels, individual,
national, global.
(1) Health : one third of deaths are due to poverty related
causes. . Those living in poverty suffer from life
expectancy.
 According to the World Health Organization, hunger and
malnutrition are the single gravest threats to the world's
public health and malnutrition is by far the biggest
contributor to child mortality , present in half of all cases.

17.  Almost 90% of maternal deaths during childbirth
occur in Asia and sub-Saharan Africa, compared
to less than 1% in the developed world.

18. (2) Hunger : Rises in the living cost making poor
people less able to afford items. Poor people spend
most of the portion of their budget on to food than
richer person.

19. (3) Education : Poor children are suffering from hunger,
irritability,headache,viral infection, colds. It is safe to
state that children who live at or below the poverty level
will have far less success educationally than children who
live above the poverty line.
• Poor children have a great deal less healthcare and this
ultimately results in many absences from the academic
year.
• Additionally, poor children are much more likely to
suffer from hunger, fatigue, irritability, headaches, ear
infections, flu, and colds. These illnesses could
potentially restrict a child or student's focus and
concentration.

20. (4) Housing : Poverty increases the risk of
homelessness. Slum-dwellers, who make up a
third of the world's urban population, live in a
poverty no better, if not worse, than rural
people, who are the traditional focus of the
poverty in the developing world , according to a
report by the United Nations. There are over
100 million street children worldwide.

21. (5) Violence : According to the reports, many
women become victims of trafficking. The
most common form of which is Prostitution as
a mean of survival and economic desperation.
• Deterioration of living conditions can often
compel children to abandon school in order to
contribute family income.

23.  The most common method of measuring and reporting
poverty is the headcount ratio, given as the percentage of
population that is below the poverty line.
 One of the undesirable features of the headcount ratio is
that it ignores the depth of poverty; if the poor becomes
poorer, the headcount index does not change.
 Poverty gap index provides a clearer perspective on the
depth of poverty.

24.  Increasing supply of basic needs.
 Increasing supply of food and other goods.
 Increasing supply of healthcare and
education, water and energy utilities.
 Removing constraints on govt. services
 Reversing brain drains.
 Controlling overpopulation.
 Increasing personal income.