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THE CONSTRUCTION
OF A
POVERTY IMPACT INDEX
IN A
GLOBAL VALUE CHAIN ASSIGNMENT
Gary Baker
Cheryl Johnson
Rachel Elfman
Corbin Smith
BACKGROUND
PROGRESS OUT OF POVERTY
WEBSITE
THE TEAM & ASSIGNMENT
STRUCTURE
Photographer: Jeff M for Short
https://flic.kr/p/hZbGe
STEP 1: CHOOSE A CONTINENT
STEP 2: CHOOSE A PRODUCT
PREPARING STUDENTS FOR STEP 3
STEP 3: COUNTRY PRESENTATIONS
STEP 4: GLOBAL VALUE CHAIN
PRESENTATIONS
STEP 4: GLOBAL VALUE CHAIN
PRESENTATIONS
STEP 4: GLOBAL VALUE CHAIN
PRESENTATIONS
PREPARING STUDENTS FOR STEP 5
STEP 5: VISUALIZING DATA &
DETERMINING A PIIN
PRODUCT
De Beers Aura Solitaire Ring
• 2.2 mm (0.09 in.) wide
platinum ring
• 0.50ct - 0.59ct
• $5,500.00
ENTRY-LEVEL WAGES OF DIAMOND
MINERS
5,700 Rand/month
$472.50/month
WAGES OF US DIAMOND CONSUMERS
CPI OF BOTH NATIONS
PRICES OF FOOD/STAPLES
PRICES OF BASIC UTILITIES
HUMAN DEVELOPMENT INDEX - S. AFRICA
0.658 - RANKED 118 GLOBALLY
• Life expectancy
• 56.92 years at birth
• Government spends 8.52%
of GDP on Health
• Education
• Mean years of schooling - 9.94
• Expected years of schooling - 13.1
• 93% of adults are literate
• Government spends 5.98% of
GDP on Education
• Gross National Income Per Capita
• $11,787.91 in 2011
• Life expectancy
• 78.94 years at birth
• Government spends 17.85%
of GDP on Health
• Education
• Mean years of schooling -
12.94
• Expected years of schooling -
16.5
• Government spends 5.62% of
GDP on Education
• Gross National Income Per Capita
• $52,308.38 in 2011
HUMAN DEVELOPMENT INDEX - US
0.914 - RANKED 5 GLOBALLY
TIME NECESSARY TO PURCHASE CHIEF
STAPLES
DENISON POVERTY IMPACT INDEX
NUMBER
Algorithm:
• m = hourly wage of producer or consumer
• n = hourly wage of at poverty line S. Africa or in US
The lower the number, the more likely it is that the worker lives in poverty
Explanation
DENISON PIIN COMPARISONS
S. Africa diamond miners:
18 for a $5,500 ring
~15 for a $33,000 ring
Canadian diamond miner wage:
$24.84 ($20.43 USD)
Canadian diamond miners:
• 65 for a $4,580 ring
• 53 for a $32,100 ring
PIIN - scale 1-100
DENISON PIIN
CONCLUDING REMARKS
QUESTIONS

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Poverty impact index

Editor's Notes

  1. Design – Production – Marketing – Consumption of your product
  2. Design – Production – Marketing – Consumption of your product
  3. http://www.reuters.com/article/2015/04/23/us-safrica-mining-labour-exclusive-idUSKBN0NE26620150423 (South Africa’s National Union of Mineworkers)
  4. https://nces.ed.gov/fastfacts/display.asp?id=77 Annual Diamond Report by Bain & Company in collaboration with Antwerp World Diamond Central (Biggest diamond organization, based in Belgium). (5000 diamond consumers in US) Annual Diamond Report from B&C and Anwterp. Range of Salary: $25K to $150K AVG: $87.5K ~$7,291.67/month Most consumers own on average 2-5 diamond products. AVG: 3.5 (products) Age range: 25 to 45
  5. http://dspace.africaportal.org/jspui/bitstream/123456789/31732/1/BIDPAPolicyBriefNo8_000.pdf?1 http://www.numbeo.com/cost-of-living/country_result.jsp?country=South+Africa https://www.google.com/#q=dollar+to+rand+conversion 1 Dollar = 12.06 Rand Bread - more expen. in US - a loaf of bread in S. Africa costs 37% of a loaf of bread in US
  6. http://dspace.africaportal.org/jspui/bitstream/123456789/31732/1/BIDPAPolicyBriefNo8_000.pdf?1 http://www.numbeo.com/cost-of-living/country_result.jsp?country=South+Africa Basic utilities Electricity, heating, water, garbage for 85 m² apt.