ch 3 poverty Flashcards
does economic growth automatically mean poverty reduction?
no
growth models do not have poverty reduction component
what does it mean that economic growth can lead to wealth inequality?
income to capital owners grows faster than income for labourers
what is the basic concept of monterary poverty?
low incomes and the inability to acquire the basic goods and services necessary for survival with dignity
what are three other dimensions other than health and eduction that is part of multidimensional poverty?
access to clean water/sanitation
bad physical security
no opportunities to better life
think of maslows hierarchy
physiological - sanitation- security
what are the three steps to measure poverty?
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
what two types of welfare indicators are chosen the most often?
consumption and income of a household
what do you need to do to adjust either welafaire indicator(income or consumption of a household?)
account for price differences (PPP)
and
normalize on the size of the household
what are two ways to economically/statistically describe poverty?
relative and absolute poverty
what are some socially defined ways to explain poverty?
access to healthcare and education
isolation to community
powerlessness feeling
hoplessness feeling
respect
what is the absolute poverty line
cost of basic needs
how does world bank define absolute poverty
1.9 us dollars per day
how can the absolute poverty line be understood comprare to US?
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
what was the criticism of the 1.9 dollars
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
the world bank put the poverty line for LAtin america and asia where?
2.5 dollars or 4 dollars
basically both are higher than the internationally determined one
how are national measures defined for the absolute povertty line ?
like how do you find ou the absolute poverty line per country
based on daily caloric requirement of 2100 kcal per day per capita and how much that costs
what is relative poverty and how do you define it ?
(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$
where is relative poverty used?
in developing countries- focuses on inequality-
the head count ratio is the most popular poverty measurement , what is it ?
percentage of the population that is below the defined poverty line
what are the three things you can find out through the foster greer thorbecke poverty indicators?
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
what is the difference between static vs dynamic dimensions of poverty?
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 )
for america and germany how does the size of the household or the number of kids influence the absolute poverty lines per child?
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
what are the three main things - and their weighting of the multidimensional poverty index?
health
education
living standard
all weighted 1/3 importance
what are the two indicators for health for MDPI?
nutrition
child mortality
what are the two indicators for education for MDPI?
years of schooling
school attendance
