3

Question 1

Dimensions of Poverty

• poverty reflect not only lack of income, also:

Answer 1

1. Poverty health (child mortality rate)
2. low life expectancy
3. high incidence of maternal death (at childbirth)
4. poor education
5. poor quality of life ( time spent in basic survival)
6. difficulty to realize ambition (loan, insured)

Question 2

strategy to deal with large issues( jeffrey sach)

Answer 2

divide the issue into smaller, more manageable

Question 3

Poverty trap graph

Answer 3

S-shaped curve of income trajectory

• if today’s income is not sufficient for needs (consumption and investment) tomorrow income is lower (therefore poverty trap)
• if today’s income is sufficient for needs (consumption and investment) tomorrow income is higher (therefore wealth accumulation)

Question 4

No Poverty trap:

Answer 4

Inverted L-shaped trajectory

• the poor has potential to earn in future than they start with today- can save and invest from their own income
• the potential for relatively more income is significantly more at lower income levels. (Diminishing rate of return )

Question 5

Jaffrey Sach’s Millennium Villages project

Answer 5

• Millennium village economies can transition over a period from subsistence farming to self-sustaining commercial activity

(give an initial investment in productivity items )

Question 6

Field Experiment

Answer 6

• Empirical micro-level studies guided by economic theory

- Randomized controlled trial (RTC)

Question 7

Nutrition based for poverty trap

Answer 7

poverty traditionally is based on hunger

• It create a relationship between income today, and income tomorrow

decrease in productivity = less income

Question 8

contradiction to traditional poverty trap theory (base on health)

Answer 8

• (in the data) (in general)
• the poor don’t spent all it income in food (approximately 30%), the rest is share with other basic utilities
• Some households, suggests that getting more calories was not a priority. Getting better-tasting ones was
• One reason the poverty trap might not exist is that most people have enough to eat. Starvation exist, but only as result of the way food get share . There is not absolute scarcity
• POVERTY TRAP BASED ON NUTRITION IS CONTRADICTORY TO PEOPLE BEHAVIOR

Question 9

does eating more make people more productive?

Answer 9

• John strauss study:

suggest that the relationship between calories and productivity may be inverted L-shaped (Diminishing marginal rate of return)

Question 10

Magnitud of poverty

Answer 10

• 2015, 9.9% global population lives under 1.90 (mostly sub-Saharan Africa with 413 M) - 736M total
• 2017, 821 M undernourished
• 5.4M children under 5 died, preventable diseases
• everyday 810 preventable causes (motherhood )
• 19.4M children did not get life-saving vaccinations
• half of children still leaver school without basic literacy and numeracy skill

Question 11

Rokia experiment

Answer 11

• experiment that show distinction between identifiable victim and statistical victim

identifiable victim got more donation