1. The chapter discusses poverty, malnutrition, and income inequality on a global scale. It examines metrics like $1/day and $2/day poverty rates as well as trends over time and by region.
2. The document outlines several approaches to defining and measuring poverty, including Sen's capabilities approach, and discusses three common measures used by the World Bank, Institute of International Economics, and Sala-i-Martin.
3. It also analyzes theories around the relationship between economic development and inequality, such as Kuznet's inverted-U curve, and notes that women disproportionately experience the effects of poverty.
1. The chapter discusses poverty, malnutrition, and income inequality on a global scale. It examines metrics like $1/day and $2/day poverty rates as well as trends over time and by region.
2. The document outlines several approaches to defining and measuring poverty, including Sen's capabilities approach, and discusses three common measures used by the World Bank, Institute of International Economics, and Sala-i-Martin.
3. It also analyzes theories around the relationship between economic development and inequality, such as Kuznet's inverted-U curve, and notes that women disproportionately experience the effects of poverty.
1. The chapter discusses poverty, malnutrition, and income inequality on a global scale. It examines metrics like $1/day and $2/day poverty rates as well as trends over time and by region.
2. The document outlines several approaches to defining and measuring poverty, including Sen's capabilities approach, and discusses three common measures used by the World Bank, Institute of International Economics, and Sala-i-Martin.
3. It also analyzes theories around the relationship between economic development and inequality, such as Kuznet's inverted-U curve, and notes that women disproportionately experience the effects of poverty.
Poverty, Malnutrition & Income Inequality How can we provide a good quality of life & productive work for the 700-1000 million (10- 15%) of world’s 6.5 billion people who are poor or living on no more than $1 a day? Economic growth is the most important factor contributing to poverty reduction (Fig. 6-1). Country in which you live determines your position in world’s economic class system. Milanovic (2002): 88% of 1993 world inequality from between-country inequality.
Fields on minimal data standards (1) the database actual household survey or census; (2) encompass all income, including nonwage income; (3) include local price information, including rural- urban cost-of-living differences; (4) national in coverage; (5) disaggregated at the canton, district, or county level; (6) avoid lags between collection and publication, and long gaps between survey rounds; and (7) to compare across time, surveys, measures, and the income concept and recipient unit must be constant.
Also For time-series consumption or income, household data and poverty lines need to be adjusted for inflation, frequently with high inflation rates. Should have information on non-cash income such as food and other goods produced at home. Yet a few careful studies.
Topics to be discussed Multifaceted nature of poverty. Global income inequality. $1/day and $2/day poverty. Global and regional poverty. Effect of poverty on access to education and health. Poverty since the 19th century. Sen’s 3 measures of poverty and deprivation. Sen’s capabilities approach to poverty.
Topics to be discussed (cont) Lorenz curve & Gini index for income distribution. Poverty – World Bank, Bhalla, & Sala-i-Martin. Kuznets’s inverted-U explanation for changes in income distribution with growth. Adelman and Morris’s dual-economy stage theory of the inverted-U curve. Differences in poverty and inequality by: low-, middle-, and high-income countries; DCs and LDCs; slow- and fast-growing countries; and gender.
Topics to be discussed (cont) Accompaniments of absolute poverty. Subgroups hurt by poverty. Case studies of LDC policies. Policies to reduce poverty & improve income distribution. Relationship between inequality and political instability.
Poverty as multidimensional 1. Poverty consists of interlocked dimensions, yet lack of food dominant. 2. Poverty has important psychological dimensions, such as powerlessness, voicelessness, dependency, shame, and humiliation. 3. Poor people lack access to basic infrastructure – roads, transportation, & clean water. 4. Education offers escape if economic environment favorable & quality of education is good. 5. Poor health & illness source of destitution. 6. Assets – physical, human, social, and environmental – crucial. Has gender dimension (Narayan et al. 2000:4-5).
quintiles (fifths) of World Bank data to 1- percentile increments by interpolation & testing. Includes China but not Former Soviet Union, Former Yugoslavia, & Bulgaria. Fig. 6-3 (showing falling global income inequality) is consistent with Firebaugh.
Sen on “missing women”: low female to male ratio West 105 to 100; sub-Saharan Africa 102; 98 North Africa; 94 China, Bangladesh, & Middle East; 93 India (Kerala 104). With sub-Saharan Africa as benchmark, Sen estimates 44 million missing females in China & 37 million in India. Why? Family directs resources to males.
Accompaniments of absolute poverty for 400-1100 million $1/day 3/5- 4/5 spent on food. 50% undernourished. 2/10 die by 10 years. Immunization rates low. Lack access to safe & plentiful water & sanitation. Average life expectancy 45 years.
Poverty groups 4/7 in sub-Saharan Africa; 1/6 East Asia; 1/6 South Asia. Indigenous & minority groups overrepresented. 4/5 live in rural areas; many urban slums. Rural poor landless workers, sharecroppers, tenants, & small landowners. Urban poor unemployed, irregularly employed, menial workers, some small business people.
Poverty groups (cont) Relatively few wage laborers, unemployed compared to DCs. Most illiterate. Women, especially heads of households. 40% children under 10. Elderly poorer. Many live in remote regions, beyond gaze of casual visitor to village – away from roads, markets, & services.
Poverty, inequality, & war Wars & massive state violence occur mostly in low income countries, some of which are failed states. Economic stagnation worsens relative deprivation. Failed states associated with widespread rent seeking. Some predatory states, where elites plunder the economy.