ch 3 poverty

Question 1

does economic growth automatically mean poverty reduction?

Answer 1

no
growth models do not have poverty reduction component

Question 2

what does it mean that economic growth can lead to wealth inequality?

Answer 2

income to capital owners grows faster than income for labourers

Question 3

what is the basic concept of monterary poverty?

Answer 3

low incomes and the inability to acquire the basic goods and services necessary for survival with dignity

Question 4

what are three other dimensions other than health and eduction that is part of multidimensional poverty?

Answer 4

access to clean water/sanitation
bad physical security
no opportunities to better life

think of maslows hierarchy
physiological - sanitation- security

Question 5

what are the three steps to measure poverty?

Answer 5

1)welfare indicator chosen (either income or consumption)
2)choose minimum accceptable level of that indicator
3) calculate poverty measure (headcount or poverty gap) using that indicator and survey data

Question 6

what two types of welfare indicators are chosen the most often?

Answer 6

consumption and income of a household

Question 7

what do you need to do to adjust either welafaire indicator(income or consumption of a household?)

Answer 7

account for price differences (PPP)
and
normalize on the size of the household

Question 8

what are two ways to economically/statistically describe poverty?

Answer 8

relative and absolute poverty

Question 9

what are some socially defined ways to explain poverty?

Answer 9

access to healthcare and education
isolation to community
powerlessness feeling
hoplessness feeling
respect

Question 10

what is the absolute poverty line

Answer 10

cost of basic needs

Question 11

how does world bank define absolute poverty

Answer 11

1.9 us dollars per day

Question 12

how can the absolute poverty line be understood comprare to US?

Answer 12

should be understood as having a daily consumption of goods and services of comparable to the amoujnt of goods and services that can be bought in the us for 1.9 dollars per day

Question 13

what was the criticism of the 1.9 dollars

Answer 13

asia complained bc 1.9 is just not relevant - as the statistic is based on the 15 poorest countries globally, and for asia this line is too low and irrelevant to policy makers

Question 14

the world bank put the poverty line for LAtin america and asia where?

Answer 14

2.5 dollars or 4 dollars
basically both are higher than the internationally determined one

Question 15

how are national measures defined for the absolute povertty line ?

like how do you find ou the absolute poverty line per country

Answer 15

based on daily caloric requirement of 2100 kcal per day per capita and how much that costs

Question 16

what is relative poverty and how do you define it ?

Answer 16

(often 50%) of the mean of the living standards of the country
so if mean is 50,000$ in country, then how many are less than 25,000$

Question 17

where is relative poverty used?

Answer 17

in developing countries- focuses on inequality-

Question 18

the head count ratio is the most popular poverty measurement , what is it ?

Answer 18

percentage of the population that is below the defined poverty line

Question 19

what are the three things you can find out through the foster greer thorbecke poverty indicators?

Answer 19

1) indicator = headcount ratio (those below the line / how many in total)

2) indicator = poverty gap index ( thats how FAR the people below the the poverty line are - if its 1-4 then very close on average to poverty line , yay! if 20-30 it means the average is very far away from the poverty line

3) = weighted sum of poverty gaps ( squared poverty gap index) this just the same as povery gap index but squared, but still if its 0-3 its good and its its 10-20 its bad

Question 20

what is the difference between static vs dynamic dimensions of poverty?

Answer 20

static is ex - post (after the veil of uncertainty has been lifted , based on history /results) like income vs population ( time independant)

dynamic - transient vs chronic poverty (if it gets less or more over time )

Question 21

for america and germany how does the size of the household or the number of kids influence the absolute poverty lines per child?

Answer 21

the more children, the poverty line increases bc one child you need to spend more money on so its normal that for one singel person the poverty line is lower than the poverty line for a 3 kid family

Question 22

what are the three main things - and their weighting of the multidimensional poverty index?

Answer 22

health
education
living standard

all weighted 1/3 importance

Question 23

what are the two indicators for health for MDPI?

Answer 23

nutrition
child mortality

Question 24

what are the two indicators for education for MDPI?

Answer 24

years of schooling
school attendance

Question 25

what are the 5-6 indicators for living standard for MDPI?

Answer 25

cooking fuel, sanitation, water, electricity, flooring, assets (TV bike etc.)

Question 26

how does multidimensional poverty show a different story than income poverty?

Answer 26

in latin america, they are worse in multidimensional povertx than in income poverty

Question 27

why are women, children, or indigenous people more poor?

Answer 27

women are paid less, less education, cant won property,

children from poverty need to work, or live on the street, are exploited, criminality

indigenous are more poor

Question 28

what are some good policies to alleviate poverty?

Answer 28

correct factor price distortions (if we know absolute poverty line - then dont make basic needs above that price)

change distribution and lower inequality , through access to emplyoemnt or education

build capabilities and humancapital of the poor