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Poverty

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The document defines and discusses different types of poverty. The United Nations defines poverty as the inability to access opportunities and basic human needs like food, water, shelter, and education. The World Bank sees poverty as lacking well-being in multiple dimensions like income, health, education, and security. Absolute poverty refers to deprivation of basic needs and is measured as living on less than $1.25 or $2 per day. Relative poverty measures income inequality within a society. Common indicators used to measure poverty include the headcount ratio of those below the poverty line and the poverty gap reflecting resources needed to eliminate poverty.

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Poverty
Definition by United Nations • Fundamentally, poverty is the inability of getting choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one’s food or a job to earn one’s living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation
Definition by World Bank • Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life.
Another Definition • Robert McNamara, the former President of the World Bank, described absolute or extreme poverty as, "...a condition so limited by malnutrition, illiteracy, disease, squalid surroundings, high infant mortality, and low life expectancy as to be beneath any reasonable definition of human decency"
Types of Poverty 1) Absolute Poverty Absolute poverty or destitution refers to the deprivation of basic human needs, which commonly includes food, water, sanitation, clothing, shelter, health care and education.
Types of Poverty Absolute Poverty Lines These lines reflect the value of the resources needed to maintain a minimum level of welfare. The aim is to measure the cost involved in purchasing a basket of essential products (goods and services), which allow a person to reach minimum levels of satisfaction in terms of basic needs. 1. The food energy intake method 2. The cost of basic needs method 3. Less than $1 per day method
Types of Poverty Food Energy Intake (FEI)/Caloric Approach A monetary expenditure necessary to reach the minimum calorie intake, and it also includes a minimum expenditure of non-food items) 2350 calories per adult per day
Types of Poverty Less than $1.25 and $2.50 per day One of these absolute lines that is widely used fixes a dollar per capita a day as the value of minimum resources needed for a person • Now, the World Bank defines extreme poverty as living on less than US$1.25 (PPP) per day, and moderate poverty as less than $2 or $5 a day
Types of Poverty The cost of basic needs method • a poverty line using a basket of products made up of all those essential goods and services needed to meet the minimum sustenance requirements in households. The poverty threshold is set using the monetary value of this basket plus a fixed amount of money aimed at covering other types of expenditure, such as petrol or rent. Every household whose income is less than this figure will be classified as poor. • The poverty line for 2010-11 is calculated at Rs1745 per adult equivalent per month
Types of Poverty 2) Relative poverty Views poverty as socially defined and dependent on social context, hence relative poverty is a measure of income inequality. Usually, relative poverty is measured as the percentage of population with income less than some fixed proportion of median income. There are several other different income inequality metrics, for example the Gini coefficient.
Indicators For To Measure Poverty Incidence of poverty (headcount index): • This is the share of the population whose income or consumption is below the poverty line, that is, the share of the population that cannot afford to buy a basic basket of goods. • Suppose the proportion of the population whose line is Z [poverty line] • Suppose we have a population size n in which q people are poor, then the headcount is defined as H = q/n • To be able to do so, we make a critical assumption that all household members enjoy the same level of well-being. This assumption may not hold in many situations.
Indicators For To Measure Poverty Poverty gap : • Is the mean shortfall of the total population from the poverty line expressed as a percentage of the poverty line. This measure reflects the depth of poverty as well as its incidence. • The indicator is often described as measuring the per capita amount of resources needed to eliminate poverty, or reduce the poor’s shortfall from the poverty line to zero, through perfectly targeted cash transfers. PG = 1nƩ[(z – yi) z] • where the poverty gap (z - yi) is the difference between the poverty line (z) and income or consumption for those who are poor
Characteristics of Poverty • Effects of poverty also be causes and creating a ―Poverty cycle‖ operating across multiple levels, individual, national, global 1. Health : one third of deaths are due to poverty related causes. . Those living in poverty suffer from life expectancy. • Almost 90% of maternal deaths during childbirth occur in Asia and sub-Saharan Africa, compared to less than 1% in the developed world.
(2) Hunger : Rises in the living cost making poor people less able to afford items. Poor people spend most of the portion of their budget on to food than richer person. (3) Education : Poor children are suffering from hunger, irritability,headache,viral infection, colds. It is safe to state that children who live at or below the poverty level will have far less success educationally than children who live above the poverty line. (4) Housing : Poverty increases the risk of homelessness. Slum-dwellers, who make up a third of the world's urban population, live in a poverty no better, if not worse, than rural people, who are the traditional focus of the poverty in the developing world , according to a report by the United Nations. There are over 100 million street children worldwide.
(5) Violence : According to the reports, many women become victims of trafficking. The most common form of which is Prostitution as a mean of survival and economic desperation. • Deterioration of living conditions can often compel children to abandon school in order to contribute family income. E.g. Slavery and Human trafficking. 6. Lack of adequate governance 7.Feudalism 8.Poverty and Islamic militancy 9.Inequality and natural disasters
Facts About Global Poverty • Nearly half of the world’s population — more than 3 billion people — live on less than $2.50 a day. More than 1.3 billion live in extreme poverty (less than $1.25 a day). • 1 billion children worldwide are living in poverty. According to UNICEF, 22,000 children die each day due to poverty. • More than 1 billion people lack adequate access to clean drinking water and an estimated 400 million of these are children. Because unclean water yields illness, roughly 443 million school days are missed every year. • In 2011, 165 million children under the age 5 were stunted (reduced rate of growth and development) due to chronic malnutrition. • 870 million people worldwide do not have enough food to eat. • Preventable diseases like diarrhea and pneumonia take the lives of 2 million children a year who are too poor to afford proper treatment. • As of 2011, 19 million children worldwide remain unvaccinated. • A quarter of all humans live without electricity — approximately 1.6 billion people.

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Poverty

  • 2. Definition by United Nations • Fundamentally, poverty is the inability of getting choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one’s food or a job to earn one’s living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation
  • 3. Definition by World Bank • Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life.
  • 4. Another Definition • Robert McNamara, the former President of the World Bank, described absolute or extreme poverty as, "...a condition so limited by malnutrition, illiteracy, disease, squalid surroundings, high infant mortality, and low life expectancy as to be beneath any reasonable definition of human decency"
  • 5. Types of Poverty 1) Absolute Poverty Absolute poverty or destitution refers to the deprivation of basic human needs, which commonly includes food, water, sanitation, clothing, shelter, health care and education.
  • 6. Types of Poverty Absolute Poverty Lines These lines reflect the value of the resources needed to maintain a minimum level of welfare. The aim is to measure the cost involved in purchasing a basket of essential products (goods and services), which allow a person to reach minimum levels of satisfaction in terms of basic needs. 1. The food energy intake method 2. The cost of basic needs method 3. Less than $1 per day method
  • 7. Types of Poverty Food Energy Intake (FEI)/Caloric Approach A monetary expenditure necessary to reach the minimum calorie intake, and it also includes a minimum expenditure of non-food items) 2350 calories per adult per day
  • 8. Types of Poverty Less than $1.25 and $2.50 per day One of these absolute lines that is widely used fixes a dollar per capita a day as the value of minimum resources needed for a person • Now, the World Bank defines extreme poverty as living on less than US$1.25 (PPP) per day, and moderate poverty as less than $2 or $5 a day
  • 9. Types of Poverty The cost of basic needs method • a poverty line using a basket of products made up of all those essential goods and services needed to meet the minimum sustenance requirements in households. The poverty threshold is set using the monetary value of this basket plus a fixed amount of money aimed at covering other types of expenditure, such as petrol or rent. Every household whose income is less than this figure will be classified as poor. • The poverty line for 2010-11 is calculated at Rs1745 per adult equivalent per month
  • 10. Types of Poverty 2) Relative poverty Views poverty as socially defined and dependent on social context, hence relative poverty is a measure of income inequality. Usually, relative poverty is measured as the percentage of population with income less than some fixed proportion of median income. There are several other different income inequality metrics, for example the Gini coefficient.
  • 11. Indicators For To Measure Poverty Incidence of poverty (headcount index): • This is the share of the population whose income or consumption is below the poverty line, that is, the share of the population that cannot afford to buy a basic basket of goods. • Suppose the proportion of the population whose line is Z [poverty line] • Suppose we have a population size n in which q people are poor, then the headcount is defined as H = q/n • To be able to do so, we make a critical assumption that all household members enjoy the same level of well-being. This assumption may not hold in many situations.
  • 12. Indicators For To Measure Poverty Poverty gap : • Is the mean shortfall of the total population from the poverty line expressed as a percentage of the poverty line. This measure reflects the depth of poverty as well as its incidence. • The indicator is often described as measuring the per capita amount of resources needed to eliminate poverty, or reduce the poor’s shortfall from the poverty line to zero, through perfectly targeted cash transfers. PG = 1nƩ[(z – yi) z] • where the poverty gap (z - yi) is the difference between the poverty line (z) and income or consumption for those who are poor
  • 13. Characteristics of Poverty • Effects of poverty also be causes and creating a ―Poverty cycle‖ operating across multiple levels, individual, national, global 1. Health : one third of deaths are due to poverty related causes. . Those living in poverty suffer from life expectancy. • Almost 90% of maternal deaths during childbirth occur in Asia and sub-Saharan Africa, compared to less than 1% in the developed world.
  • 14. (2) Hunger : Rises in the living cost making poor people less able to afford items. Poor people spend most of the portion of their budget on to food than richer person. (3) Education : Poor children are suffering from hunger, irritability,headache,viral infection, colds. It is safe to state that children who live at or below the poverty level will have far less success educationally than children who live above the poverty line. (4) Housing : Poverty increases the risk of homelessness. Slum-dwellers, who make up a third of the world's urban population, live in a poverty no better, if not worse, than rural people, who are the traditional focus of the poverty in the developing world , according to a report by the United Nations. There are over 100 million street children worldwide.
  • 15. (5) Violence : According to the reports, many women become victims of trafficking. The most common form of which is Prostitution as a mean of survival and economic desperation. • Deterioration of living conditions can often compel children to abandon school in order to contribute family income. E.g. Slavery and Human trafficking. 6. Lack of adequate governance 7.Feudalism 8.Poverty and Islamic militancy 9.Inequality and natural disasters
  • 16. Facts About Global Poverty • Nearly half of the world’s population — more than 3 billion people — live on less than $2.50 a day. More than 1.3 billion live in extreme poverty (less than $1.25 a day). • 1 billion children worldwide are living in poverty. According to UNICEF, 22,000 children die each day due to poverty. • More than 1 billion people lack adequate access to clean drinking water and an estimated 400 million of these are children. Because unclean water yields illness, roughly 443 million school days are missed every year. • In 2011, 165 million children under the age 5 were stunted (reduced rate of growth and development) due to chronic malnutrition. • 870 million people worldwide do not have enough food to eat. • Preventable diseases like diarrhea and pneumonia take the lives of 2 million children a year who are too poor to afford proper treatment. • As of 2011, 19 million children worldwide remain unvaccinated. • A quarter of all humans live without electricity — approximately 1.6 billion people.