UNIVERSITY OF NAIROBI

SCHOOL OF ECONOMICS

Unit Code: XEA 406/CEC 418

Unit Title: POVERTY AND DEVELOPMENT
Program(s): ECONOMICS
Lecturer Name: Ms. LYDIA PKAREMBA
Lecturer Contacts: Email: P/No. 0729169823
Consultation time Monday 0800 to 1100 Hours

Course Description
Course Objective: The course provides coverage of the institutional background and the history of
poverty in Kenya and around the world. The course will introduce learners to the knowledge and
analysis of key issues on poverty and in-depth information and tools of poverty measurements,
monitoring and analysis.

Pre-requisites: XET 201-Microeconomics; XEA 301- Development Economics

Course content : Concepts and definitions; Poverty lines; Poverty analysis and measurements;
Metric and non-metric approaches to poverty measurements; Poverty and inequality; Evaluation and
Monitoring; Poverty reduction strategies; Poverty and health; poverty and environment; Poverty and
empowerment; Macroeconomic policies and poverty; Poverty and social conflict; Role of social
capital; Safety nets and transfers.

Students will do a class timed test which will be marked out of 30. The main examination will be
marked out of 70

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TEACHING METHODOLOGY
The course will be taught mainly through lectures, tutorials, group discussions, simulations
and student presentations

CONTENTS.

Week Topic Sub-topic

Week 1 Orientation Orientation

 Concepts and definitions

Week 2 Introduction  Development and Growth
 Poverty
 Global poverty

Week 3 Measurement of poverty  Poverty analysis and measurement

 Steps in measuring poverty
 Measuring poverty: Welfare indicators

Week 4 Measurement of poverty  Accounting for household composite

differences
 OECD scale
 Other scales
 Estimates and equivalence scale
 Income, expenditure and other methods of
measuring poverty

Week 5 Types of poverty  Poverty lines

 Relative poverty
 Absolute poverty
 How to determine poverty lines

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Week 6 Poverty indexes  Headcount index
 Poverty gap index
 Squared poverty gap
 Sen index
 The Sen-Shorrocks index
 The Watt Index
 Other measures
Week 7 Inequality  Inequality measures
 Decile dispersion ratio
 Gini coefficient of inequality
 Generalized entropy measures
 Atkinson Inequality measures
 Inequality comparisons
Week 8 Policies and strategies  Determinants of poverty
 Poverty reduction policies and strategies
 Pro-poor growth

Week 9 Guidelines in poverty  Poverty monitoring

measurement  Selecting indicators
 Setting targets
 Impact evaluation
Week 10 Poverty, Health and  Poverty and Health
Environment  Poverty and Environment
 Definition of Environment
 Link between environment and poverty

Week 11 & 12 Poverty, Conflict and  Poverty and conflict

Macroeconomic Policies  Role of social capital in poverty reduction
 Social capital and economic outcomes
 Macroeconomic policies and poverty
 Safety nets and transfers
Week 13 Continuous Assessment CAT
Test
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 Week 14 REVISION

Week 15 EXAMS

TEACHING /LEARNING METHO DOLOGY

The course will be taught mainly through lectures, tutorials, group discussions and student
presentations.

References
1. Haughton, Jonathan; Khandker, Shahidur R.(2009). Handbook on Poverty and Inequality.
Washington, DC: World Bank. © World Bank.
https://openknowledge.worldbank.org/handle/10986/11985 License: CC BY 3.0 IGO
2. Organisation for Economic Co-operation and Development & World Health
Organization. (2003). Poverty and health. World Health Organization
https://apps.who.int/iris/handle/10665/42690
3. Saegert, S., Thompson, J. P., & Warren, M. R. (Eds.). (2001). Social capital and poor
communities. Russell Sage Foundation.
4. Grootart, Christian. (1998). Social Capital the Missing Link. The World Bank Social
Development Network, Social Capital for Development: The Initiative on Defining,
Monitoring and Measuring Social Capital, Social Capital Working Paper No.3, World Bank
5. Brian Ames, Ward Brown, Shanta Devarajan, Alejandro Izquierdo. (2001). Macroeconomic
Policy and Poverty Reduction. Prepared by International Monetary Fund and the World Bank
August 2001

APPROVED BY:

Approval for circulation by:

Unit lecture name: Ms. Lydia Pkaremba Signature…

Hod name: Dr. Martine Oleche Signature………

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