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  • Kuliah 6 Indev 2012

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    Hedia Ayuningrum
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    This document discusses measuring and reducing poverty and inequality on an international scale. It addresses measuring absolute poverty as those living on less than $1.25 or $2 per day, as well as a multidimensional poverty index considering health, standard of living, and education. Inequality is measured using the Gini coefficient and Lorenz curve. Kuznet's curve suggests that in early economic growth stages, inequality worsens but later improves. The document considers whether reducing poverty conflicts with accelerating growth or not. It outlines government policies like correcting price distortions, structural changes, progressive taxes, direct transfers, and public services.

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    6. KULIAH 6 INDEV 2012

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    This document discusses measuring and reducing poverty and inequality on an international scale. It addresses measuring absolute poverty as those living on less than $1.25 or $2 per day, as well as a multidimensional poverty index considering health, standard of living, and education. Inequality is measured using the Gini coefficient and Lorenz curve. Kuznet's curve suggests that in early economic growth stages, inequality worsens but later improves. The document considers whether reducing poverty conflicts with accelerating growth or not. It outlines government policies like correcting price distortions, structural changes, progressive taxes, direct transfers, and public services.

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    6 views7 pages

    Kuliah 6 Indev 2012

    Uploaded by

    Hedia Ayuningrum
    This document discusses measuring and reducing poverty and inequality on an international scale. It addresses measuring absolute poverty as those living on less than $1.25 or $2 per day, as well as a multidimensional poverty index considering health, standard of living, and education. Inequality is measured using the Gini coefficient and Lorenz curve. Kuznet's curve suggests that in early economic growth stages, inequality worsens but later improves. The document considers whether reducing poverty conflicts with accelerating growth or not. It outlines government policies like correcting price distortions, structural changes, progressive taxes, direct transfers, and public services.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    of 7

    DEVELOPMENT, POVERTY, & EQUALITY

    KULIAH 5 PEMBANGUNAN INTERNASIONAL PENGAJAR : ANDRE ARDI

    Tuesday, October 23, 12

    Measuring Absolute Poverty

    absolute poverty: the number of people who are unable to command sufcient resources to satisfy

    Total number living below a specied minimum level of real incomean international poverty line

    BASKET OF FOOD

    Anyone living on less than $1.25 a day or $2 per day in PPP dollars

    based on nutritional requirements then adds other expenditures of this household, such as clothing, shelter, and medical care

    UNDP used its Human Poverty Index from 1997 to 2009. In 2010 new Multidimensional Poverty Index (MPI)

    HEALTH

    STANDARD OF LIVING

    EDUCATION

    Tuesday, October 23, 12

    Measuring inequality
    Size distribution of income
    Gini Coefcient = aggregate inequality measures and can vary anywhere from 0 (perfect equality) to 1 (perfect inequality)

    Functional Distribution
    to explain the share of total national income that each of the factors of production (land, labor, and capital) receives.

    Individual persons or households and the total incomes they receive. The way in which that income was received is not considered.
    Tuesday, October 23, 12

    Lorenz Curve

    Tuesday, October 23, 12

    Kuznets Curve

    Simon Kuznets suggested that in the early stages of economic growth, the distribution of income will tend to worsen; only at later stages it will improve.

    Tuesday, October 23, 12

    Are the reduction of poverty and the acceleration of growth conictual?

    Rapid growth bad for the poor because they would be marginalized by the structural change of modern

    The public expenditure for the poverty reduction would entail a reduction in the rate of growth

    True of false?

    Tuesday, October 23, 12

    Correct factor price distortions (underpricing capital or overpricing modern-sector skilled wages) so as to ensure that market or institutionally established prices provide accurate signals and incentives to both producers and resource suppliers.

    Government Policy

    Structural changes in the distribution of assets, power, and access to education and incomeearning (employment)

    Progressive Income and Wealth Tax

    Direct transfer payment and public provision of goods and services

    Tuesday, October 23, 12

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