Poverty is a lack of basic needs like food, clothing, and shelter. It is caused by unequal distribution of resources, large populations, and natural disasters. Poverty can be measured using GDP, dependency rates, and literacy rates. Growth, inequality, and poverty are related - high inequality leads to more poverty and less growth, while more growth leads to less poverty. Measures to reduce poverty include liberalizing the economy, increasing infrastructure, technology, employment, and foreign aid. This helps stimulate growth and reduce inequality.
1. The document discusses the prospects for a demographic dividend in Africa in the near future. While fertility declines that change population age structures have been slow, some factors could hasten the process, like economic development, mortality decline, and investments in family planning.
2. A demographic dividend occurs when a rising proportion of the population is working-age, lowering dependency ratios and freeing up resources for investment. This can fuel economic growth. However, complementary policies are needed to take advantage of the opportunity.
3. The economics of a demographic dividend for Africa includes potential benefits like increased income and savings. However, realizing these gains depends on labor market conditions and complementary socioeconomic factors. Problems include rising unemployment and changing social dynamics
Africa’s immiserization and declining development interventions in a globaliz...Alexander Decker
This document discusses how globalization has contributed to the immiserization (increasing misery and poverty) of African countries in two key ways:
1. Accelerated economic liberalization policies imposed by international financial institutions in response to debt crises have reduced the ability of African governments to intervene in their economies and allocate resources to development programs.
2. African countries have been marginalized in the global economy, recording stagnating or declining GDP per capita in contrast to growth in wealthier nations. Poverty levels have risen substantially in Africa while falling elsewhere in the developing world.
The document argues that globalization has undermined the policy autonomy of African nations and exacerbated poverty, contradicting the promise of shared
Economic growth and poverty reduction in nigeria an empirical investigationAlexander Decker
This document discusses economic growth and poverty reduction in Nigeria. It begins by reviewing concepts of poverty, including income/consumption, basic needs, and capability perspectives. It then discusses the concepts of human capital and pro-poor growth. The document presents Nigeria's growth performance and poverty levels over time. It analyzes annual time series data using a vector autoregressive model to examine the effects of economic growth and other factors on human-capital poverty in both the short- and long-term. The results showed that agricultural development raised human capital poverty in the medium-to-long term, while developing other sectors reduced it. In the short-term, public capital expenditures on social services and agricultural credit/development showed potential to reduce poverty, while
Improving the Measurement of Poverty
By
Rebecca M. Blank
Mark H. Greenberg
1. Introduction
2. The Problem: An Out-of-Date Measure of Poverty
3
. An Improved Measure, Based on the Recommendations of the NAS Panel
4. Making Specific Choices for the New Poverty Measure
5. Recommendations Regarding How to Implement the Approach
6. An Example of What This Might Mean for the Poverty Rate
7. Conclusion
Appendix: Detailed Calculations for the Recommended New Poverty Measure
References
This document summarizes a study on poverty transitions in rural Bangladesh between 1996-97 and 2006-07. It finds that while poverty declined substantially over this period, some households remained chronically poor. Initial characteristics like education levels and assets affected poverty status, as did common shocks like illness and death of earners. Life histories revealed that dowry payments combined with health expenses sometimes pushed households into chronic poverty. The study concludes there is still work to do in increasing education, building assets, and providing protection from risks like illness through mechanisms like microinsurance.
The document provides an overview of global poverty and economic development. It discusses that nearly half the world lives in poverty, though some countries have transitioned from poor to rich. Africa continues to lag behind in development. Mobile technology is enabling growth in poor countries. There is debate around how to reduce extreme poverty.
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.
This document summarizes opposing viewpoints on whether inequality matters for poverty reduction. It discusses the World Bank's perspective that inequality does not necessarily hinder poverty alleviation if economic growth occurs. However, Robert Wade and Simon Maxwell argue that inequality complicates anti-poverty efforts and should be reduced simultaneously with poverty. The author ultimately agrees with Wade and Maxwell, concluding that inequality and poverty are intertwined and comprehensive strategies are needed that incorporate both economic and human development factors to effectively reduce poverty and inequality.
1. The document discusses the prospects for a demographic dividend in Africa in the near future. While fertility declines that change population age structures have been slow, some factors could hasten the process, like economic development, mortality decline, and investments in family planning.
2. A demographic dividend occurs when a rising proportion of the population is working-age, lowering dependency ratios and freeing up resources for investment. This can fuel economic growth. However, complementary policies are needed to take advantage of the opportunity.
3. The economics of a demographic dividend for Africa includes potential benefits like increased income and savings. However, realizing these gains depends on labor market conditions and complementary socioeconomic factors. Problems include rising unemployment and changing social dynamics
Africa’s immiserization and declining development interventions in a globaliz...Alexander Decker
This document discusses how globalization has contributed to the immiserization (increasing misery and poverty) of African countries in two key ways:
1. Accelerated economic liberalization policies imposed by international financial institutions in response to debt crises have reduced the ability of African governments to intervene in their economies and allocate resources to development programs.
2. African countries have been marginalized in the global economy, recording stagnating or declining GDP per capita in contrast to growth in wealthier nations. Poverty levels have risen substantially in Africa while falling elsewhere in the developing world.
The document argues that globalization has undermined the policy autonomy of African nations and exacerbated poverty, contradicting the promise of shared
Economic growth and poverty reduction in nigeria an empirical investigationAlexander Decker
This document discusses economic growth and poverty reduction in Nigeria. It begins by reviewing concepts of poverty, including income/consumption, basic needs, and capability perspectives. It then discusses the concepts of human capital and pro-poor growth. The document presents Nigeria's growth performance and poverty levels over time. It analyzes annual time series data using a vector autoregressive model to examine the effects of economic growth and other factors on human-capital poverty in both the short- and long-term. The results showed that agricultural development raised human capital poverty in the medium-to-long term, while developing other sectors reduced it. In the short-term, public capital expenditures on social services and agricultural credit/development showed potential to reduce poverty, while
Improving the Measurement of Poverty
By
Rebecca M. Blank
Mark H. Greenberg
1. Introduction
2. The Problem: An Out-of-Date Measure of Poverty
3
. An Improved Measure, Based on the Recommendations of the NAS Panel
4. Making Specific Choices for the New Poverty Measure
5. Recommendations Regarding How to Implement the Approach
6. An Example of What This Might Mean for the Poverty Rate
7. Conclusion
Appendix: Detailed Calculations for the Recommended New Poverty Measure
References
This document summarizes a study on poverty transitions in rural Bangladesh between 1996-97 and 2006-07. It finds that while poverty declined substantially over this period, some households remained chronically poor. Initial characteristics like education levels and assets affected poverty status, as did common shocks like illness and death of earners. Life histories revealed that dowry payments combined with health expenses sometimes pushed households into chronic poverty. The study concludes there is still work to do in increasing education, building assets, and providing protection from risks like illness through mechanisms like microinsurance.
The document provides an overview of global poverty and economic development. It discusses that nearly half the world lives in poverty, though some countries have transitioned from poor to rich. Africa continues to lag behind in development. Mobile technology is enabling growth in poor countries. There is debate around how to reduce extreme poverty.
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.
This document summarizes opposing viewpoints on whether inequality matters for poverty reduction. It discusses the World Bank's perspective that inequality does not necessarily hinder poverty alleviation if economic growth occurs. However, Robert Wade and Simon Maxwell argue that inequality complicates anti-poverty efforts and should be reduced simultaneously with poverty. The author ultimately agrees with Wade and Maxwell, concluding that inequality and poverty are intertwined and comprehensive strategies are needed that incorporate both economic and human development factors to effectively reduce poverty and inequality.
The document defines and discusses different aspects of poverty. It defines absolute and relative poverty, with absolute poverty referring to lack of means to meet basic needs and relative poverty considering social and economic status compared to others. It discusses the poverty line as the minimum income level required to afford life's necessities, and how the World Bank adjusted the international poverty line over time. It provides statistics on global and regional poverty rates. For India, it details how the poverty line was originally calculated and varies between states, with some below 10% and others above 40%. It also discusses inequality, the Gini coefficient measure of inequality, and how India's Gini index and inequality has risen in recent decades.
This document discusses global inequalities of income, wealth, and social development. It covers topics like geoeconomics, trends in global income inequality within and between countries, debates around measuring global inequality, and forms of social inequality regarding human development, health, gender, race, and ethnicity. Specific data on global trends in life expectancy, literacy rates, and school enrollment by gender are presented. Causes of health inequalities and continuing challenges relating to inequalities based on gender, race, and ethnicity are also examined.
Harvard global economic burden non communicable diseases 2011paulovseabra
This document provides an overview and analysis of the global economic burden of non-communicable diseases (NCDs). It finds that NCDs already pose a substantial economic burden, expected to grow tremendously over the next two decades to $47 trillion in lost global output. This represents 75% of global GDP in 2010. Cardiovascular diseases and mental health conditions are the leading contributors. While high-income countries currently bear most of the burden, the developing world will see a rising share due to population and economic growth. Business leaders also express significant concern about the economic impacts of NCDs. The findings suggest a pressing need for increased prevention and control efforts to curb this mounting threat.
While the culture of poverty has usually been identified as a negative concept, we will reveal the true definition and its implications for child welfare. This workshop will focus on participants gaining the tools necessary to work with developmentally traumatized children and their families in a "culture of poverty."
Poverty and inequality in a changing contextLindsey Cottle
This document outlines poverty, inequality, and the Millennium Development Goals (MDGs). It defines poverty in monetary, capability, and participatory terms. It discusses measuring poverty through monetary indicators like consumption, capability indicators like health and education, and inequality indicators like income distribution. It notes most of the world's poor now live in middle-income countries rather than low-income countries. The document then outlines the MDGs on eradicating poverty, improving health, education, gender equality, and the environment. It discusses options for a post-2015 framework, including both macroeconomic approaches like foreign aid and microeconomic approaches like employment creation and public services. It proposes evaluating the MDGs from different perspectives and discourses.
The study specifically aims to review the status and determinants of poverty in Ethiopia. Ethiopia is amongst the poorest countries in the world, with a very low human-development ranking, or 174th out of 188 countries. About 23 million Ethiopians live in conditions substantially below the basic poverty line and food insecurity remains a major challenge. It is mostly a rural phenomenon, as the shares of the population below the poverty line in rural areas are higher than in urban areas. Over the past fifteen years, the headcount poverty rate declined by about 93 percent from 45.5 percent in 2000 to 23.5 percent in 2016. Between 2010/11 and 2015/16 about 5.3 million people are lifted out of poverty. Poverty gap and poverty severity indices have respectively declined from 10.1 percent and 3.9 percent in 2000 to 3.7 percent and 1.4 percent in 2016. Lack of asset/skill, backward attitude of people towards work, lack of income results in reduction of expenditure pattern, poor health leads to being unproductive, absence from work, less energetic, lack of education results in lack of skill, helplessness are the major factors of poverty. The empirical findings suggest that special attention should be given to improving crop and livestock market, veterinary services, health services, agricultural technologies and creation of awareness on family planning. Interventions like capacity building, agricultural research, agricultural marketing as well as infrastructures that enhance nonfarm activities in sustainable manner need to be designed to reduce poverty prevalence in the country.
This document analyzes the impact of trade liberalization on poverty in Pakistan. It discusses different types of poverty and provides statistics on poverty levels in Pakistan. The study aims to analyze the relationship between trade liberalization and poverty. It selects poverty as the dependent variable and trade liberalization, inflation, and GDP per capita as independent variables. The methodology includes stationarity testing, ARDL modeling, and Granger causality testing. The results find that trade liberalization and GDP per capita are negatively related to poverty, while inflation is positively related. The study concludes that increasing trade openness and GDP per capita while reducing inflation can help alleviate poverty in Pakistan.
The document discusses key differences between developed and developing countries across several categories:
- Developed countries have older populations while developing countries have younger populations, creating different challenges for each.
- Developed economies are dominated by services while developing rely more on agriculture and industry.
- Health indicators like life expectancy are higher in developed nations due to better healthcare and nutrition.
This document discusses various demographic indicators and compares statistics between first, second, and third world countries. It defines indicators like fertility rate, mortality rate, population growth rate, migration rate, and discusses metrics for countries like Canada, China, and Pakistan. Fertility rates are declining in developed nations due to economic factors influencing family size. Mortality rates are falling globally due to improved healthcare. Population growth is highest in the third world due to sustained high fertility and declining mortality. Migration is influenced by various push-pull factors. Overall life expectancy and health outcomes are better in the first world compared to other nations.
The meaning of development has changed over time. Originally, development referred primarily to economic growth, measured by increases in GDP and per capita income. In the post-World War II era, development took on a broader definition as a multi-dimensional process involving social and economic reorganization. More recently, development is understood as improving living standards and access to resources while also increasing individual freedoms and promoting sustainability.
The document discusses poverty and inequality. It defines absolute and relative poverty and methods of measuring poverty. Economic growth is shown to reduce poverty by increasing employment, wages and government resources. Inequality is an economic problem that affects development and stability. Strategies to reduce poverty include economic liberalization, property rights, infrastructure investment, aid, and microfinance programs like Grameen Bank. Good governance and community participation are also important for poverty alleviation.
Middle India contains over 400 million people, more than half of India's extreme poor. It has a high population density and low urbanization compared to other regions in India. Poverty in Middle India is expected to remain relatively unchanged through 2015 while decreasing in other regions, making it home to around 50% of India's poor. Key reasons for its difficult poverty situation include high population density, low urbanization, shorter life expectancy, and lower human development indicators compared to India as a whole.
This short presentation is meant to inform the general public of the challenges of global development. It starts by defining key concepts such as what is meant by a country's development level, the necessary conditions for sustainable development, how to compare the levels of development through the GDP/GNP, and why is the population growing despite a decreasing birth rate. Finally, recommendations are made in terms of how to finance the post-2015 development agenda. These are the result of the international development conference held in Addis Ababa, Ethiopia in July 2015. This digital artefact is available through the following link:
Hope you Enjoy!
A brief study on the measures of income distribution for both analytic and quantitative purposes in terms of size distribution and functional distribution.
The study includes discussion on following concepts-
Lorenz Curve
Gini Coefficient
Absolute Poverty
Foster Greer Thorbecke Measure
The document discusses poverty and challenges achieving the Millennium Development Goals in Nigeria. It finds that a significant proportion of Nigeria's population lives in poverty despite its natural wealth, due to issues like bad governance, corruption, and ineffective poverty programs. While Nigeria has implemented various poverty reduction strategies for decades and joined the Millennium Development Goals in 2000 to eradicate extreme poverty by 2015, poverty persists and threatens achieving the goals. The paper recommends policies to overcome institutional constraints preventing realization of the goals.
Economic and Social Indicators of DevelopmentRich Elle
This document discusses economic and social development and indicators. It defines sustainable development as meeting present needs without compromising future generations' ability to meet their own needs. Economic development aims to promote growth through improving factors like health, education and policies. Social development refers to societal changes and progress. The document outlines the physical, vital and mental stages of development that societies progress through. It also discusses definitions, theories, and measures of economic and social development.
The document discusses population and demography topics including:
- Population growth has rapidly increased over time, doubling from 1950-1987 as the world population reached 5 billion.
- The Philippines has one of the fastest growing populations in the world, ranking 13th in population size globally. Its population grew from 15 million in 1900 to over 60 million in 1990.
- Population change is influenced by three variables: fertility rates, mortality rates, and migration patterns. Reductions in mortality contributed to global population growth while migration has not significantly impacted growth in most countries.
This presentation is part of a lesson on measuring disparities in wealth and development found at the following link : http://mcleankids.wetpaint.com/page/Measurements+of+Regional+and+Global+Disparities
The document discusses differing views on the concept of development over time. It describes how development was initially viewed primarily as economic growth, but perspectives broadened to incorporate social, environmental, and human dimensions. Sustainable development emerged as a concept that aims for growth that meets current needs without compromising future generations by considering economic, social and environmental factors. The human development index was also introduced as a measure that goes beyond just economic indicators.
Globalization and poverty are controversial issues. While globalization can lead to economic growth through increased trade and investment, it also widens inequality gaps and disproportionately impacts developing regions. Globalization promotes the interests of developed nations over poorer ones, making them more reliant on unstable foreign industries and employment. However, globalization itself is not the sole cause of poverty and, if implemented carefully and inclusively, it could still help develop nations compete internationally. The relationship between the two phenomena is complex with reasonable arguments on both sides.
The Pay Gap Is Because of Gender, Not Jobs By ALANOOD ALOTAIBI Alanood Alotaibi
The document summarizes an article by Claire Cain Miller that argues the pay gap between men and women is due to gender discrimination within occupations, not women's career choices. Miller presents data showing female doctors, lawyers, and others earn significantly less than male counterparts doing the same work. The author discusses two types of labor market discrimination - wage discrimination and occupational discrimination. Occupational discrimination occurs when employers reserve higher-paying jobs for men due to beliefs that women prefer flexible, lower-paying roles to balance work and family. However, the author argues the pay gap has roots in gender inequality and a lack of policies ensuring equal pay regardless of gender.
The document defines and discusses different aspects of poverty. It defines absolute and relative poverty, with absolute poverty referring to lack of means to meet basic needs and relative poverty considering social and economic status compared to others. It discusses the poverty line as the minimum income level required to afford life's necessities, and how the World Bank adjusted the international poverty line over time. It provides statistics on global and regional poverty rates. For India, it details how the poverty line was originally calculated and varies between states, with some below 10% and others above 40%. It also discusses inequality, the Gini coefficient measure of inequality, and how India's Gini index and inequality has risen in recent decades.
This document discusses global inequalities of income, wealth, and social development. It covers topics like geoeconomics, trends in global income inequality within and between countries, debates around measuring global inequality, and forms of social inequality regarding human development, health, gender, race, and ethnicity. Specific data on global trends in life expectancy, literacy rates, and school enrollment by gender are presented. Causes of health inequalities and continuing challenges relating to inequalities based on gender, race, and ethnicity are also examined.
Harvard global economic burden non communicable diseases 2011paulovseabra
This document provides an overview and analysis of the global economic burden of non-communicable diseases (NCDs). It finds that NCDs already pose a substantial economic burden, expected to grow tremendously over the next two decades to $47 trillion in lost global output. This represents 75% of global GDP in 2010. Cardiovascular diseases and mental health conditions are the leading contributors. While high-income countries currently bear most of the burden, the developing world will see a rising share due to population and economic growth. Business leaders also express significant concern about the economic impacts of NCDs. The findings suggest a pressing need for increased prevention and control efforts to curb this mounting threat.
While the culture of poverty has usually been identified as a negative concept, we will reveal the true definition and its implications for child welfare. This workshop will focus on participants gaining the tools necessary to work with developmentally traumatized children and their families in a "culture of poverty."
Poverty and inequality in a changing contextLindsey Cottle
This document outlines poverty, inequality, and the Millennium Development Goals (MDGs). It defines poverty in monetary, capability, and participatory terms. It discusses measuring poverty through monetary indicators like consumption, capability indicators like health and education, and inequality indicators like income distribution. It notes most of the world's poor now live in middle-income countries rather than low-income countries. The document then outlines the MDGs on eradicating poverty, improving health, education, gender equality, and the environment. It discusses options for a post-2015 framework, including both macroeconomic approaches like foreign aid and microeconomic approaches like employment creation and public services. It proposes evaluating the MDGs from different perspectives and discourses.
The study specifically aims to review the status and determinants of poverty in Ethiopia. Ethiopia is amongst the poorest countries in the world, with a very low human-development ranking, or 174th out of 188 countries. About 23 million Ethiopians live in conditions substantially below the basic poverty line and food insecurity remains a major challenge. It is mostly a rural phenomenon, as the shares of the population below the poverty line in rural areas are higher than in urban areas. Over the past fifteen years, the headcount poverty rate declined by about 93 percent from 45.5 percent in 2000 to 23.5 percent in 2016. Between 2010/11 and 2015/16 about 5.3 million people are lifted out of poverty. Poverty gap and poverty severity indices have respectively declined from 10.1 percent and 3.9 percent in 2000 to 3.7 percent and 1.4 percent in 2016. Lack of asset/skill, backward attitude of people towards work, lack of income results in reduction of expenditure pattern, poor health leads to being unproductive, absence from work, less energetic, lack of education results in lack of skill, helplessness are the major factors of poverty. The empirical findings suggest that special attention should be given to improving crop and livestock market, veterinary services, health services, agricultural technologies and creation of awareness on family planning. Interventions like capacity building, agricultural research, agricultural marketing as well as infrastructures that enhance nonfarm activities in sustainable manner need to be designed to reduce poverty prevalence in the country.
This document analyzes the impact of trade liberalization on poverty in Pakistan. It discusses different types of poverty and provides statistics on poverty levels in Pakistan. The study aims to analyze the relationship between trade liberalization and poverty. It selects poverty as the dependent variable and trade liberalization, inflation, and GDP per capita as independent variables. The methodology includes stationarity testing, ARDL modeling, and Granger causality testing. The results find that trade liberalization and GDP per capita are negatively related to poverty, while inflation is positively related. The study concludes that increasing trade openness and GDP per capita while reducing inflation can help alleviate poverty in Pakistan.
The document discusses key differences between developed and developing countries across several categories:
- Developed countries have older populations while developing countries have younger populations, creating different challenges for each.
- Developed economies are dominated by services while developing rely more on agriculture and industry.
- Health indicators like life expectancy are higher in developed nations due to better healthcare and nutrition.
This document discusses various demographic indicators and compares statistics between first, second, and third world countries. It defines indicators like fertility rate, mortality rate, population growth rate, migration rate, and discusses metrics for countries like Canada, China, and Pakistan. Fertility rates are declining in developed nations due to economic factors influencing family size. Mortality rates are falling globally due to improved healthcare. Population growth is highest in the third world due to sustained high fertility and declining mortality. Migration is influenced by various push-pull factors. Overall life expectancy and health outcomes are better in the first world compared to other nations.
The meaning of development has changed over time. Originally, development referred primarily to economic growth, measured by increases in GDP and per capita income. In the post-World War II era, development took on a broader definition as a multi-dimensional process involving social and economic reorganization. More recently, development is understood as improving living standards and access to resources while also increasing individual freedoms and promoting sustainability.
The document discusses poverty and inequality. It defines absolute and relative poverty and methods of measuring poverty. Economic growth is shown to reduce poverty by increasing employment, wages and government resources. Inequality is an economic problem that affects development and stability. Strategies to reduce poverty include economic liberalization, property rights, infrastructure investment, aid, and microfinance programs like Grameen Bank. Good governance and community participation are also important for poverty alleviation.
Middle India contains over 400 million people, more than half of India's extreme poor. It has a high population density and low urbanization compared to other regions in India. Poverty in Middle India is expected to remain relatively unchanged through 2015 while decreasing in other regions, making it home to around 50% of India's poor. Key reasons for its difficult poverty situation include high population density, low urbanization, shorter life expectancy, and lower human development indicators compared to India as a whole.
This short presentation is meant to inform the general public of the challenges of global development. It starts by defining key concepts such as what is meant by a country's development level, the necessary conditions for sustainable development, how to compare the levels of development through the GDP/GNP, and why is the population growing despite a decreasing birth rate. Finally, recommendations are made in terms of how to finance the post-2015 development agenda. These are the result of the international development conference held in Addis Ababa, Ethiopia in July 2015. This digital artefact is available through the following link:
Hope you Enjoy!
A brief study on the measures of income distribution for both analytic and quantitative purposes in terms of size distribution and functional distribution.
The study includes discussion on following concepts-
Lorenz Curve
Gini Coefficient
Absolute Poverty
Foster Greer Thorbecke Measure
The document discusses poverty and challenges achieving the Millennium Development Goals in Nigeria. It finds that a significant proportion of Nigeria's population lives in poverty despite its natural wealth, due to issues like bad governance, corruption, and ineffective poverty programs. While Nigeria has implemented various poverty reduction strategies for decades and joined the Millennium Development Goals in 2000 to eradicate extreme poverty by 2015, poverty persists and threatens achieving the goals. The paper recommends policies to overcome institutional constraints preventing realization of the goals.
Economic and Social Indicators of DevelopmentRich Elle
This document discusses economic and social development and indicators. It defines sustainable development as meeting present needs without compromising future generations' ability to meet their own needs. Economic development aims to promote growth through improving factors like health, education and policies. Social development refers to societal changes and progress. The document outlines the physical, vital and mental stages of development that societies progress through. It also discusses definitions, theories, and measures of economic and social development.
The document discusses population and demography topics including:
- Population growth has rapidly increased over time, doubling from 1950-1987 as the world population reached 5 billion.
- The Philippines has one of the fastest growing populations in the world, ranking 13th in population size globally. Its population grew from 15 million in 1900 to over 60 million in 1990.
- Population change is influenced by three variables: fertility rates, mortality rates, and migration patterns. Reductions in mortality contributed to global population growth while migration has not significantly impacted growth in most countries.
This presentation is part of a lesson on measuring disparities in wealth and development found at the following link : http://mcleankids.wetpaint.com/page/Measurements+of+Regional+and+Global+Disparities
The document discusses differing views on the concept of development over time. It describes how development was initially viewed primarily as economic growth, but perspectives broadened to incorporate social, environmental, and human dimensions. Sustainable development emerged as a concept that aims for growth that meets current needs without compromising future generations by considering economic, social and environmental factors. The human development index was also introduced as a measure that goes beyond just economic indicators.
Globalization and poverty are controversial issues. While globalization can lead to economic growth through increased trade and investment, it also widens inequality gaps and disproportionately impacts developing regions. Globalization promotes the interests of developed nations over poorer ones, making them more reliant on unstable foreign industries and employment. However, globalization itself is not the sole cause of poverty and, if implemented carefully and inclusively, it could still help develop nations compete internationally. The relationship between the two phenomena is complex with reasonable arguments on both sides.
The Pay Gap Is Because of Gender, Not Jobs By ALANOOD ALOTAIBI Alanood Alotaibi
The document summarizes an article by Claire Cain Miller that argues the pay gap between men and women is due to gender discrimination within occupations, not women's career choices. Miller presents data showing female doctors, lawyers, and others earn significantly less than male counterparts doing the same work. The author discusses two types of labor market discrimination - wage discrimination and occupational discrimination. Occupational discrimination occurs when employers reserve higher-paying jobs for men due to beliefs that women prefer flexible, lower-paying roles to balance work and family. However, the author argues the pay gap has roots in gender inequality and a lack of policies ensuring equal pay regardless of gender.
Modern Craft is an innovative winery that creates unique fruit-infused wines using a proprietary infusion process. They encourage customers to experience wine in new and creative ways by mixing their wines or with other beverages. Their specialty wines are produced in small batches using a combination of traditional and modern techniques and are often only available for a limited time. They offer a selection of traditional wines as well as many fruit-flavored wines that can be enjoyed or mixed in various ways for customized drinking experiences.
Este documento define la inteligencia empresarial como el conjunto de metodologías y tecnologías que permiten transformar datos en información estructurada para apoyar la toma de decisiones. Explica que la inteligencia empresarial ofrece beneficios como accesibilidad a la información, apoyo en la toma de decisiones y orientación al usuario final. También distingue datos, información y conocimiento, y describe brevemente el plan estratégico y las principales plataformas de inteligencia empresarial.
GUIDELINES FOR HOMEBASED WORKERS ON ENERGY MANAGEMENTRuchi Sankrit
1) The document provides guidelines for homebased workers on reducing electricity costs and improving energy management. It discusses replacing regular light bulbs with more efficient CFL and LED bulbs, using appliances with higher energy star ratings, installing electronic fans regulators, and utilizing natural light when possible.
2) Specific tips include only using lights and appliances when needed, choosing efficient bulbs and deregulators, and adopting simple techniques to improve natural ventilation and light in homes.
3) Reducing cooking fuel waste by using efficient stoves and covering pots is also recommended to reduce energy usage and costs for homebased workers.
Este documento presenta información sobre los fundamentos de la educación superior a distancia. Describe cuatro elementos clave de la educación a distancia, incluyendo que la población estudiantil es principalmente adulta, los estudiantes están dispersos geográficamente, hay una separación entre el facilitador y el estudiante, y se utilizan múltiples medios tecnológicos. También discute las diferencias entre la educación a distancia y la educación presencial.
O documento fornece dados demográficos, socioeconômicos e educacionais do município de Itabaiana, localizado no estado de Sergipe. A população total é de aproximadamente 86.967 habitantes, sendo a maioria urbana. O IDHM é de 0,642, indicando desenvolvimento humano médio. Os programas de transferência de renda como Bolsa Família e BPC atingem milhares de famílias. A economia se baseia na agricultura e pecuária, com queda na matrícula escolar nos últimos anos.
Este documento resume los elementos clave de la cultura hip hop. Explica que el hip hop surgió en la década de 1970 en Estados Unidos como un estilo de música de baile derivado del funk que se caracteriza por su base electrónica. Se divide en cuatro elementos principales: graffiti, break dance, MC y DJ. Brevemente describe cada uno de estos elementos y sus orígenes, así como las block parties en el Bronx de Nueva York donde surgió el hip hop. Finalmente, destaca que Afrika Bambaataa fue pionero en el desarrollo inicial del hip
Functionalism theory views society as a structure made up of interrelated systems that work together to maintain social order and achieve societal goals. It sees economic stratification and inequality as inevitable and beneficial aspects of this social structure. According to this perspective, inequality arises due to differences in skills and contributions of individuals to socially important roles, and helps ensure that the most functionally important positions are filled by the most qualified people. A comparison of economic indicators like GDP, inflation rates, and mortality rates between the U.K. and Dominican Republic provides evidence that wealth concentrates in nations with stronger economic institutions and development strategies, while poorer nations with traditional modes of production tend to have lower growth and human development outcomes.
Chapter 9 Global Inequality and PovertyONE PHOTO CAPTURES A SH.docxbissacr
Chapter 9 Global Inequality and Poverty
ONE PHOTO CAPTURES A SHARP CONTRAST BETWEEN RICH AND POOR IN THE DEVELOPING WORLD. The high-rise buildings in the background are apartments for the wealthy.
Learning Objectives
1. 9.1Examine how widening gap between rich and poor strengthens inequality-perpetuating institutions
2. 9.2Contrast between the viewpoints of globalists and antiglobalists on the effects of globalization
3. 9.3Examine the causes and the impact of domestic or global inequality between nations
4. 9.4Examine the economic, social, and educational inequality that exists within rich countries
5. 9.5Examine the inequalities that exist in different aspects of life in poor countries
6. 9.6Review the six dimensions of poverty that can be used to gauge poverty
7. 9.7Evaluate some of the measures for diminishing poverty and reducing inequality
The richest eighty people in the world control as much wealth as the poorest half of the world’s population. Thirty-five of those eighty are Americans. The top 1 percent of the world’s richest people control 48 percent of the world’s total wealth. More than one billion people in the world live on less than $1.25 a day. Inequality exists within the United States. The richest four hundred Americans own more assets than the poorest 150 million, or almost half the population. The bottom 15 percent, about forty-six million people, live in households earning less than $22,000 per year. The top 5 percent of households in Washington, D.C., make an average of more than $500,000, while the bottom 20 percent make less than $9,500. Conflict between rich and poor is now the greatest source of tension in American society. Economic inequality has emerged as a dominant global issue that has fueled massive protests and popular uprisings. The global financial crisis and economic recession have rekindled debates about inequality and its consequences. Discussions about wealth and poverty and how to achieve greater equality are as old as human society. They demonstrate a perennial concern about the implications of inequality for the security and well-being of communities. Given the persistence of inequality among individuals, groups, and nations over centuries, this debate is interminable. Struggles to achieve equality are also endless. Issues pertaining to global inequality and poverty permeate almost every significant global problem, from trade to the environment, from terrorism and criminal activities to democratization and human rights, and from ethnic conflicts to the proliferation of weapons of mass destruction. As we have seen, popular uprisings in the Middle East and North Africa were strongly influenced by widespread inequality and poverty. Consequently, as our discussion shows, inequality and poverty are closely connected to politics, economics, and culture.
A central question addressed in this chapter is whether inequality matters. Human societies are inherently unequal due to variations of abilities, opportun.
Role of Agriculture and Rural Development in Poverty AlleviationTri Widodo W. UTOMO
The document discusses strategies for alleviating rural poverty through agricultural development and empowering local communities. It argues that poverty remains a major problem in rural areas due to lack of economic opportunities and disparities between rural and urban areas. Effective strategies should focus on improving small-scale agriculture and cooperatives to boost rural economies and empowering local people through participation in decision making, training, and access to resources and markets.
This document discusses global demography and population trends. It begins by defining key terms like demography, population, and multipolar world. It then explains that demography studies human populations with regards to size, density, distribution and vital statistics. The document discusses theories of demographic transition from high mortality and fertility rates to low rates. It notes this transition began in Europe in the 19th century and is ongoing, influenced by factors like improved health, nutrition, and economics. The transition is still ongoing in developing nations. The document also explores trends in global population like economic issues, conflicts, crime, climate change and migration.
ECON 22134. Poverty and InequalityMeasuring povertyTo .docxjack60216
ECON 2213
4. Poverty and Inequality
Measuring poverty
To measure poverty, we first need to decide on a poverty line, such that those below it are considered poor. We can use an absolute poverty line (e.g., the World Bank’s $1 or $2 per day poverty line) or a relative poverty line (e.g., half of median income).
The most common way to measure poverty is to use the poverty rate or headcount ratio: this is the share of the population below the poverty line.
Measuring poverty
The poverty rate is simple and easy to understand, but has weaknesses.
First, the poverty rate does not indicate the depth or intensity of poverty, i.e., how far below the poverty line poor people are.
Second, the poverty rate does not change if people below the poverty line become poorer.
These weaknesses are addressed with the poverty gap. This adds up the extent to which individuals on average fall below the poverty line and expresses it as a percentage of the poverty line.
Measuring poverty
The squared poverty gap (or poverty severity index) takes into account inequality among the poor. This is a weighted sum of poverty gaps, where the weights are the poverty gaps themselves (e.g., a poverty gap of 10% of the poverty line gets a weight of 10%, a poverty gap of 50% of the poverty line gets a weight of 50%, etc.), thereby putting more weight on individuals who are far below the poverty line.
Measuring poverty
In Canada, we measure poverty based on a person’s or household’s income. In low-income countries, it may be better to measure poverty based on consumption, as consumption may be more accurately measured, and many workers may receive in-kind income (e.g., food).
Other measures of well-being can be used, such as the Human Development Index, education, life expectancy, infant mortality, or Sen’s “capabilities” approach.
Measuring inequality
The Gini coefficient or Gini index is the most common measure of inequality. The Gini coefficient is a number between 0 (perfect equality) and 1 (perfect inequality).
A Gini is based on a Lorenz curve, which shows how much of a country’s income is received by various percentages of the population; Gini is the ratio of the area between the line of complete equality and the Lorenz curve to the area of the triangle between the line of complete equality and the axes.
The formula for the Gini index is:
Measuring inequality
Other ways to measure inequality include the range (top earner minus bottom earner), the ratio (top earner divided by bottom earner), the coefficient of variation (standard deviation divided by mean), and the Theil index, which is one of a set of generalized entropy measures.
The Theil index has a strong advantage over the Gini, as it is decomposable into between-group and within-group inequality.
The formula for the Theil T index is:
Measuring inequality
Inequality can be measured:
Within a household.
Between households.
Within a village.
Between villages.
Within ...
Introduction to international development myungnam kim finalKBS
South Korea faces serious problems of wealth (asset) inequality according to an academic paper. Wealth is highly concentrated among the top 1% of earners who make over 9 times the average income. This level of inequality can increase corruption, reduce economic growth, and undermine fair institutions. The paper argues that addressing asset inequality through tax policy reforms is needed to promote social justice and sustained economic growth in South Korea.
This document analyzes the relationship between income inequality and human development. It explores how income inequality is negatively correlated with human development, and that this correlation is stronger in poorer countries. The author develops models incorporating measures of human development, income, and income inequality to test the hypothesis. Regression analysis is used to shed light on how the three indicators relate and how income inequality affects development.
Economic inequality refers to differences in wealth, income, and assets between individuals and populations. The document discusses several key points about economic inequality:
1) It is a significant global issue as the world's wealth is unevenly distributed, with the richest 1% owning over 40% of global wealth while the poorest half own barely 1%.
2) Economic inequality is measured using the Gini coefficient, which calculates a country's wealth distribution on a scale of 0 to 1.
3) Economic inequality relates to and exacerbates many other social problems like poverty, lack of access to education and healthcare, gender inequality, and crime. It persists due to power imbalances that public policies and the economic system reinforce.
Poverty is a matter of great concern across the societies in the world, and there have been several efforts to eradicate this menace at individual, community, national and international levels especially in the developing nations, where absolute poverty is at high stakes. Various sociological ideologies have been developed to explain the issue of poverty in society, with the objective of improving our understanding on it.
This post will take a deeper look at this unfortunate occurrence.
- See original at: http://www.customwritingservice.org/blog/poverty-in-society/
Factors that determine a country's population size include birth rates, death rates, immigration, and emigration. Birth rates are influenced by nutrition, fertility, abortion policies, economic factors, and culture. Death rates are affected by disease, war, healthcare access, and development levels. Immigration and emigration depend on "pull" and "push" factors that attract or displace people. Governments implement population policies to manage these factors.
Will-women-in-low-income-countries-get-lost-in-transformation-Louise-FoxLouise Fox
This document provides an overview of a paper that analyzes how economic transformation may affect women in low-income countries. It defines economic transformation as the movement of resources to more productive sectors and activities. While economic change can create opportunities, it also creates winners and losers. The paper aims to determine whether transformation is likely to increase women's income, power, and agency by considering their roles as workers, producers, consumers, mothers, and citizens. It argues that overall the prospects for beneficial effects are good if complementary policies are implemented to promote equality of opportunity. However, the extent of benefits depends on factors like existing gender norms and inequalities.
Addressing the political economy of conditional cash transfer as a poverty re...AJHSSR Journal
This paper examines the political economy of the conditional cash transfer (CCT) Scheme in
Nigeria within the context of poverty reduction efforts over the years. The concept, dimensions and some
theoretical explanations for poverty are once again revisited. The nature and operation of condition cash transfer
is examined, with an eye on the economics and politics of this scheme. Authors observe that as a social
redistribution programme, CCT is a potent safety net that could really help to break the cycle of poverty among
the very poor in the country. However, within the Nigerian context, the paper observes that the issues of a clear
cut target, beneficiaries, lack of institution framework, including a standardized Monitoring and Evaluation
(ME) procedure, coupled with the obvious use of the CCT for political expedience all aggregate to dim the
possibility, viability and potency of the CCT‟S success in reducing poverty in Nigeria. However suggestions are
made against the background of how this programme is being operated elsewhere in the world, as to how to
improve the operation of this scheme in the overall matrix of poverty reduction in Nigeria.
CENTRE FOR ADVANCED ARTS, SCIENCE, SOCIAL AND MANAGEMENT SCIENCE RESEARCHogbaji udochukwu
This document discusses poverty and hunger in Nigeria in the context of achieving the Millennium Development Goals. It notes that despite government efforts, poverty remains widespread in Nigeria, with about 70% of the population living in poverty. The introduction of the Millennium Development Goals, which aim to reduce extreme poverty and hunger globally by 2015, provides an opportunity for Nigeria to escape poverty. Specifically, the document focuses on how eradicating extreme poverty and hunger can help achieve all of the Millennium Development Goals in Nigeria. It examines concepts of poverty and suggests that education reform with proper planning and policy could be used as a tool to reduce poverty and hunger in the country if accompanied by political will and participatory reforms.
The document discusses localization and globalization from business and economic perspectives. It argues that while globalization has helped reduce poverty in countries like China, there are still imbalances between countries' economic development through globalization. Local governments should adopt business models of localization/glocalization to maximize national development and address disparities caused by globalization. Global companies prioritize localization when entering new markets to generate profit, and local governments could similarly adjust globalization activities through domestic trade policies.
Discussion 1Rania Explain the implications of globalizati.docxcharlieppalmer35273
Discussion 1
Rania :
Explain the implications of globalization
There are several implications when it comes to globalization, some can be good, and some can be bad. I will first start off with the good implications of globalization, such a as the enormous rise in economic growth, workable trading throughout nations, technology advancement and even introducing diversity into new countries. This means introducing global citizenship since valuing diversity is one of the most important outcomes of being a global citizen. Nevertheless , here are the bad implications of globalization such as diseases that spread across borders( note which we are currently dealing with) , terrorism, and threats to global environment (Bhargava, 2006). Having the trading with other nation I feel might go wrong , because the outcomes could be very bad and tragic and can lead to the economic and sociological destruction of one nation.
Identify at least two ethical issues that go along with the global societal topic you have chosen for your final essay
The issue of unemployment and lack of economic opportunity affects lower class citizens the most. societal issue.Unemployment and the lack of economic opportunity affects trillions of people across the planet and to fix the problem there must be a change in the way that businesses go through the hiring process Countries’ economic and employment performance varies considerably; even if growth is resuming in a number of them, job creation remains subdued, and many people are experiencing deeper crisis. According to the International Labour Organization (ILO),4 global unemployment is set to rise in 2014, with more than 200 million people without work across the world. Youth unemployment in the Middle East and North Africa will remain at close to 30% until 2017. In parts of southern Europe, between 33% and 50% of young people eligible to work are unemployed. Overall unemployment in the euro area is forecast to remain at close to 12% into 2015. Unemployment, especially long-term unemployment, often leads to discouragement and loss of human capital. It is associated with
physical and mental ill-health, imposing continuing burdens on health and welfare systems and ultimately having a negative impact on growth. Persistent youth unemployment in particular has a scarring effect, increasing unemployment risks later in life and depressing lifetime earnings. In 2012 the Global Agenda Council on Employment and Social Protection5 warned that, without decisive action, the cyclical unemployment that followed the crisis could very quickly become long-term, structural unemployment. That risk is now becoming a worrying reality for many.
While job creation is essential, policy-makers must give equal attention to the quality of employment. Low quality work is rarely sustainable work.
The core message of this document is that decision- makers must give the jobs crisis the attention it deserves. Employment must be the priority for the.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
This document discusses three articles that analyze the impacts of globalization from different perspectives. While globalization is said to promote economic growth and provide access to technology and capital for developing nations, it also contributes to rising inequality within developed countries and between skilled and unskilled workers. The articles agree that governments need welfare policies and redistribution programs to mitigate the negative effects of globalization and prevent the public from favoring protectionism. Further research is still needed to better measure poverty and inequality impacts.
The document discusses various concepts related to development and underdevelopment including definitions, indicators, and indexes. It provides definitions for key terms like development, underdevelopment, and sustainable development. It outlines several economic and non-economic indicators used to measure development, including GDP, life expectancy, literacy rates, HDI, and GDI. It notes both advantages and disadvantages of different indicators. Composite indexes like the HPI and PQLI that incorporate multiple variables are discussed as attempts to provide a more comprehensive view of development.
The document discusses the causes and effects of global poverty. It outlines that poverty has direct economic impacts like increased bankruptcies and more people relying on food banks. Rising poverty is also linked to increased unemployment, hunger, and crime. Poverty hinders economic growth and prevents people from meeting basic needs. It disproportionately impacts developing nations through issues like debt burdens and lack of access to healthcare and education. Overall, the document examines how poverty is multidimensional and perpetuating, affecting individuals and societies around the world.
Wealth distribution has to be as equitable as possible to embrace .docxcelenarouzie
Wealth distribution has to be as equitable as possible to embrace regional balance in the country. Equal distribution of wealth starts with ensuring equal opportunities politically, socially and economically to all people in the society regardless of their socioeconomic status, gender, or disabilities among other discriminative factors. In this regard, the even distribution of wealth also ensures equal growth and development of a country because of the uniform improvement of the citizens’ living standards across the nation. Irrespective of all these advantages, there are still many gaps in the distribution of opportunities; hence, affluence in America and across the world at large.
There are various ways of determining the wealth of people. Nonetheless, in the US, the main method focuses on the wages or salaries and the total possessions of the people (Domhoff, 2005). In this respect, many factors affect salaries and wages, as well as personal properties of the people, which in turn, affect the distribution of wealth of the citizens in the nation. Meanwhile, salaries and wages (incomes) are among the major factors that influence wealth distribution of people across the world.
Peoples' income influences wealth distribution because it dictates the property's acquisition potential of individuals. Citizens with high incomes can purchase expensive things and as much as they want; hence, they are rich, as opposed to the low earning people. In most societies, the rich reside in high standard states and towns with slams and other low standard residences left for the poor (Domhoff, 2005). It is in this regard that the high standard residences are growing and developing with improved services and goods at the expense of the rest of the region. If we have to develop the other regions as well, we will have to better the incomes of their residents through better economic opportunities. The wealth of people within a country can change depending on the changes occurring in the levels of their income regardless of where they are living (Domhoff, 2005).
Government policies also dictate wealth and its distribution. Good examples are the money-related policies. The US government, for example, controls the supply of cash to guarantee its currency value strength (Krugman, 2014). Effective policies encourage a country’s financial development and security and lower the joblessness not in some parts of the country but all of them. Furthermore, when a nation is able to keep the value of its currency high and strong, it presents an equal platform for all of its citizens—men and women, old and young and other groups— to earn well and raise their living standard so that they are all capable of accumulating wealth.
Age is another factor that affects wealth distribution in the US. There is a huge gap in terms of wealth between the young adults and the elderly. Stats show that the vast of the riches in the US belongs to the retired citizens with the number soaring sig.
Similar to research paper Alotaibi, Alanood %22poverty%22 pdf (20)
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Poverty
Introduction
The aspect of poverty occurs both in developing and the developed nations. Some studies
put forward that poverty is inevitable regardless of the various measures that came into act to
reduce the scourge. The following article illustrates the various causes of poverty and the
variables that may cause either an upsurge or a reduction in poverty. The article also provides
details in the measurement of poverty. More insight of inequality and growth are also a
composition of the script. The relationships between the poverty levels, the inequality and the
growth in a particular place form part of the discussion. A provisional reference list appears at
the end of the document in an instance of authenticating the propositions therein.
Definition
Poverty in general relates to the lack of material possessions or money. However,
absolute poverty depicts the lack of the basic needs by humans. The primary necessities include
food, clothing, and shelter. Poverty tends to be the world's most common scourge with billions
living in poverty. The level of [poverty however differs with the level of growth of a particular
economy. The level of poverty in developing economies tends to be very high while debt in the
developed economies is very little (Klump, 2006).
Poverty measurement
The measure of poverty is possible through the use of economic indicators. Some of the
useful indicators are the Growth Domestic Product. The other levels that measure poverty
include the level of dependency in a particular area. The other size frame is the standards of
living of the people that are under study. The difference in social classes whereby there is a
comparison in the number of the wealthy in the society in relation to the poor becomes useful in
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the measurement of the poverty levels. Other measures include the rates of savings as well as the
rates of investments. The presence of high savings and high levels of investment implicate that a
particular area has low levels of poverty. The other relative measure is the levels of literacy that
attribute to a particular area. Other significant measures are the per capita income that determines
the individual income in a particular area (Felicitas Nowak-Lehmann D. & Inmaculada Martinez
Zarzoso & Stephan Klasen & Dierk Herzer, 2009).
Causes of poverty
The causes of poverty tend to vary depending on the attributes that make up the political,
economic and social aspects of the community. The primary determinant of poverty is the
deficiency of an equal distribution of resources within the region. The unequal distribution tends
to make one region better off than another thus the lack of a Pareto efficient situation in that area.
The other cause of poverty is a large population. High population tends to create pressure for the
existing resources (Bourguignon, 2002). The level of dependency tends to increase while
simultaneously increasing pressure in the social amenities that are available for a particular
group in the society. Population increase also leads to a reduction in the capacity of planning for
the population by the state. Another cause of poverty is bad management. Bad management
creates the room for corruption that in turn becomes a source for unequal distribution of the
existing resources. Other factors that cause poverty include natural calamities. The natural
disasters such as famines, droughts and floods may be sources of poverty
Inequality
Definition
Variation relates to the differences in the endowment of resources that characterizes
different regions, institutions, groups or even individuals. Difference in a region reflects the level
Text
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of poverty in that region. The other implications of variation include bad governance as well as
the lack of proper planning by the state. The goal of every policy maker is thus in an attempt to
reduce the inequality levels in a bid to reduce the poverty that escalates from the term.
Concepts of inequality
The concept of difference tends to encompass various areas. The inequality may attribute
to the following fields
Economic inequality
The inequality regards to the differences in the economic developments of different
aspects that affect the human population in a particular region. The economic inequality relates
to the differences that the economy can service the human population that resides within its
borders (Bourguignon, 2005).
Gender inequality
The type of imbalance depicts the differences that exist for the provisions of the different
sexes. The differences may include the opportunities and the rewarding of those opportunities,
the differences in the rights that are prevalent for the different genders and the discrimination
that may arise from a person’s gender.
Racial and ethnic inequality
The concept relates to the advantages or bias that a person experiences due to his or her
belonging to a particular race or ethnicity background. The aspect is one of the major causes of
conflict and may lead to poverty in many areas in a particular region (Short, 2010).
Health inequalities
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The differences in the access of health services are what create the health inequalities that
attribute to a particular region. The provisions of services and the quality of the services illustrate
the happening of the inequality.
Age inequality
The concept of age is the most common. The term refers to the differences in the age of different
humans. Some people may move in discrimination of the age of others or on the contrary action
in the advantage of those people.
Evolvement of difference concepts over the past sixty years
History considers the concept of global income inequality. The instance refers to the
change that encounters different people in the reception of their conception with relation to their
areas. The global income imbalance is the problem that creates the issue of the difference in the
economies with accordance to the regions. The aspect marks the evolvement of the global north
and the formation of the global south.
The evolvement of the concepts of inequality dates back to the happenings of significant
revolutions ion the world. The nature of the industrialization process, for example, did create a
wealthy class in Europe but also did create a disadvantaged group in the same area. The point
saw the circumnavigation whereby different parties from Europe made an exploration of the
world. The character led to the tirade that was the first formation of the globalization process.
The investigation process made an impact that saw the creation of business. The nature of
business made some people better off while others became worse off. The example saw the
creation of difference. The other aspect was the creation of business that was harmful such as the
institution of slavery (Britta Rennkamp, 2012). The issue gave an advantage to the global north
while the global south did not increase any benefit. The aspect of the evolvement of the
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inequality as per the regions also has an attachment of the same fact. The other instance was the
settlement process. The concept of expansion also gave the room for imperialism. The example
saw the absence of a Pareto efficient scenario whereby the colonizers were better off. The
example saw the creation of a significant regional inequality that would accrue into a difference
in the global compensation of people. The other aspect in the evolvement process is the
happenings such as the global warming. The issue has led to the occurrence of natural calamities
in distinct areas. The effect creates a difference in the endowments of a particular region thus
inequality.
In the past sixty years, there have been various economic events that have had adverse
effects on the globe. Examples include the economic depression that had an effect on all
countries and the rise in fuel costs in the1970s. The creation of the inequality was possible since
some people lost property while others lost their sources of income. The differences in ideologies
from the cold war and the corresponding alignments before the 19990s were also another cause
of the difference. The countries that were capitalist nations saw an increase in economic growth
more than the socialists’ nations thus creating differences in economic growth (Bourguignon F.
o., 2013).
Growth
Definition
Growth depicts an increase in the value of products that a country produces in the market,
another aspect of growth relates to the percentage increase in the GDP. Growth also marks an
increase in the per capita income that relates to the GDP increase with respect to the number of
the population. The primary determinant of growth is the efficient use of critical inputs in the
production; processes. The other aspect is the redistribution of resources within the region to
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ensure Pareto efficiency occurs. Growth may also be due the exploitation of new opportunities or
resources. Some of the exploitation may include the venture into minerals, the shift from rain-fed
agriculture to irrigation or even the broadening of the market. The population control acts may
also lead to growth in the long run. The measurement of growth is mostly annual and nationally.
The level of inflation reflects the level of growth in a particular country. Effects of growth on the
distribution
The relationship between growth and distribution is one of the best markers towards that
shows a reduction or an increase in the same. The aspect also creates the best frame to measure
the economy of a particular region. Research establishes that the apprehension of growth
demands for an equal distribution of opportunities. Growth, therefore, relates to a reduction in
the inequalities that encompass the redistribution of opportunities.
Relationship between Poverty, Inequality, and Growth
The three factors tend to have a relationship that may act as an advantage or a
disadvantage of a particular region. Poverty and inequality tend to have a positive relationship. In
addition, poverty tends to be the dependent factor while inequality in the instance tends to be the
independent variable. The increase in inequality in an area leads to a constant increase in the
poverty levels in that particular area. A reduction in the same causes a reduction in the poverty.
The relationship between poverty and growth is inversely proportional. Growth tends to be the
dependent variable while poverty is the independent variable in the model. The poverty levels
tend to dictate the level of growth in the economy. An increase in the levels of poverty results in
a decrease in the level of economic growth.
The relationship between growth and inequality is inverse proportional. The increase of
one factor leads to the automatic decrease in the value of the other variable. Growth is the
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dependent factor while inequality acts as an independent factor. The increasing inequality leads
to a reduction in the growth of the region experiencing the upsurge in inequality. The reduction
of inequality also leads to an automatic increase in the growth levels of that particular area.
Debt reductions
The process of reducing poverty requires that the policy makers reduce the factors or
variables that cause the prevalence of the poverty levels in the region. The primary goal of
poverty reduction is to enhance the individuals experiencing poverty to produce own wealth in
an instance to put an end to the institution of debt. The central issue of poverty reduction takes
into consideration the cause factors that create poverty in a society. For instance, some of the
persons are inadequate in a voluntary manner whereby the poor play victim to religious or even
philosophical beliefs. In the aspect of religion especially in the Christian ideology, the nuns plus
the monks tend to take a pledge that requires them to abstain from any forms of luxurious living.
The persons may thus experience poverty from the beliefs (Bourguignon, 2002).
The greatest measure in the reduction of poverty includes the redistribution of resources.
Priority favors the areas with disadvantages or the places that are experiencing alarming poverty
rates. The instance tends to reduce the inequality levels thus enabling the reduction of poverty.
The reduction of poverty is through the availability of income to poor persons with the reduction
in the dependency levels that accrue. In many regions, there is an acceptance that poverty is
inevitable. The governments thus act in an attempt to reduce as well as provide it (Klump, 2006).
Measures to reduce poverty
Liberalization of the economy
The strategy encourages the extension of the protection of property rights to the poor in
the society. The security of the resources such as land is some of the best reformations that a
9. POVERTY 9!
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nation can implement ion the elimination of poverty. Area in particular is one of the resources
that act as an asset to most societies especially those experiencing poverty rates that are alarming
(Bourguignon, 2002).
Another liberalization procedure is the reduction in the bureaucracies that existing in an
economy. Many economic systems tend to delay the delivery of products to the market. The
opening of business in accordance to the procedures may take a lot of time to establish legally.
The instance should, therefore, act in the encouragement of trade through saving of time. Less
bureaucratic procedures will increase in foreign investment in a particular destination. The aspect
will tend to increase the income of the region and consequently reduce the poverty levels.
Infrastructure, technology and capital
The long run growth of an individual is due to the abundance that a person has in terms of
money and the advancement in technology. The capital; may be physical or human. The
availability of health thus is easy to access creates a healthy human capital that can create
growth. Education is also a form of human capital. Education builds skills that are an advantage
in the reduction of poverty (Short, 2010).
The other important factor is the infrastructure. The support includes the availability of
transport, communication and auxiliary services that provide financial aid. Good support makes
sure that there is easy accessibility of the work and the redistribution of resources.
Technology is one of the best methods of reducing poverty. Technology makes sure that the poor
access information that is useful in ensuring efficiency in carrying out of their work. Technology
also creates the economic freedom that ensures the accessibility to the financial services by the
poor. The poor also know the safe places to save their money and the best places to invest their
savings. The instance creates the reduction in poverty.
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Labor productivity and employment
The provision of employment and the consequent increase in the productivity of labor
eliminates poverty significantly. The provision of employment creates income to the poor. An
increase in the productivity, on the other hand, tends to increase the efficiency of the resources in
a way that the resources can serve a broader segment of the population. The output from the
available resources tends to increase thus causing a reduction in the poverty levels and increase
in the economic growth (Klump, 2006).
The other inclusion factor to the reduction of poverty is aid. Aid is the assistance that a
country gets in the form of finances or in kind in order to stimulate the economic growth.
Economic growth in turn reduces the poverty in a particular region. Study shows that most
developing countries require an external stimulus and the injection of capital (Nowak-Lehmann,
Martinez , Klasen & Herzer, 2009). The reason is that the injection of capital creates investments
that act as a kind of economic growth. The instance delivers the poverty-stricken countries from
the vicious circle of poverty. Other aspects include the relief of debt burdens for countries. The
relief creates room for borrowing and investing in poor countries.
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References
Bourguignon, F. (2002). The growth elasticity of poverty reduction : explaining heterogeneity
across countries and time periods. Paris: DELTA Working Papers.
Bourguignon, F. (2005). Comment on "Measuring Poverty in a Growing World (or Measuring
Growth in a Poor World)" by Angus Deaton,". The Review of Economics and Statistics,
87(1), pp. 20-22.
Bourguignon, F. o. (2013). The Poverty-Growth-Inequality Triangle. London: The World Bank.
Britta Rennkamp, A. M. (2012). Reducing Inequality and Poverty while Mitigating Climate
Change: Key Challenges for Research and Practice in Middle Income Countries in Africa
and Latin America. 33-36.
Felicitas Nowak-Lehmann D. & Inmaculada Martinez Zarzoso & Stephan Klasen & Dierk
Herzer. ( 2009). Aid and Trade - A Donors Perspective. Courant Research Centre:
Poverty, Equity and Growth (p. Discussion Papers 7). New York: Courant Research
Centre PEG.
Klump, D. H. (2006). Poverty, Government Transfers, and the Business Cycle: Evidence for the
United States. New York: Ibero America Institute for Econ. Research (IAI).
Short, T. I. (2010). Identifying the Poor: Poverty Measurement for the U.S. from 1965 to 2005.
Review of Income and Wealth 56(2), 237-258.