global inequality Flashcards
is global inequality increasing and causing higher risks? think about it
?
how are hybrid risks produced?
by interactions between the economy and the environment
why do some believe there is no such thing as a natural disaster?
the interaction between many severe risks is predictable and understandable.
what does inequality shape?
shapes the distribution of effects and affects the outcomes.
what does global warming and urbanization show in coastal regions?
financial shock, recessions undermine livelihood, economic shocks, and changes, undermining livelihood.
what is the risk of poverty?
being born in the wrong place, risk of place of birth is a very high risk.
what counts as extreme poverty?
1.9 dollars to spend a day.
how many people live in extreme poverty?
750 million
which country has declined the most in extreme poverty?
East Asia and Pacific
what are factors in shaping risk exposure?
wealth and living standards.
what are strong links to other poverty dimensions?
clean water, sanitation, education, housing, disease.
why are the poor more valuable?
they are totally dependent on natural resources.
what is resilience to do with the poor?
how they come back up from a shock or natural disaster.
why does inequality lower resilience?
as they don’t trust the government, there is a lack of trust and hence social networks can hinder resilience.
why might inequality be beneficial?
if it can encourage economic growth. absolute level of income is one key to understand vulnerability and resilience.
what happens if you increase vulnerability?
lowers demands and consumptions, lowers opportunities. countries less likely to invest in public services. erodes trust in societies, less pressure on political situation.
how do you measure inequality?
Gini coefficient, income shares of top X percent, or income ratios.
what is the Gini coefficient?
an index that takes everyone’s income/wealth, and measures inequality, varies between 0 and 1. 0 means everyone earns identical income, perfect equality, 1 means 1 person has all the income- perfect inequality.
what is the income ratio?
measure inequality. the ratio of the average income of the top 10 percent against top 10 of bottom.
what are the 3 measures of inequality?
between (inter), within (intra), and global.
what is between (inter) inequality?
compare average income across countries, all people in a country assume to be identical.
what is within (intra) inequality?
distribution of income within a country, does the distribution change over time? the reversal in inequality trends. inverted U in the relation between regional inequality and economic development.
what is global inequality?
takes each person as a point in a global pool. lines up least to most income.
what is the elephant graph?
its a graph which shows the global inequality, percentiles of global income distribution, and the years.
who are the losers in the elephant graph?
the very poor, in sub-saharan Africa, and elsewhere. where income remains almost unchanged over this period.
also, citizens of rich countrues with stagnating incomes, pus much of the population of former communist countries.
who are the winners in the elephant graph?
the middle class in emerging economies, China and India. also, the very ricj, about top 12% of US citizens and 3-6% from UK, Japan, France, Germany and the top 1% from BRaxil, Russia and South Africa.
what is the squeezed bottom?
bottom 90% in US and Europe. doesnt cahnge over time. class and location are equal.
