L4 Ending Global Poverty Flashcards
Are these the 3 key ingredients (Indicator of economic wellbeing, selection of poverty line and aggregation to single summary index) for measuring global poverty? True or false?
True
What do more countries do when collecting data for welfare indicators?
A) They use a comprehensive consumptions measure
B) They collect income rather than consumption data
B) they collect income rather than consumption data
In what poverty lines depend?
Poverty lines depend on our notion of poverty
•Subjective poverty lines – are based on peoples’ perception of poverty
•Relative poverty lines – are an increasing function of the “average” standard of living
•Absolute poverty lines – command a fixed standard of living (e.g. bundle of goods and services)
When measuring poverty we can use the Headcount (H=q/N; q=number of people considered poor and n= population size). What are the disadvantages of using the headcount?
It is insensitive to distribution below the poverty lines (if poor person becomes poorer, nothing happens to H)
When measuring poverty there’s also the alternative of using the Poverty Gap. What are the advantages of using it?
PG reflects depth of poverty
What are the advantages and disadvantages of using the squared poverty gap?
Advantage: sensitive to differences in both depth and severity of poverty
Disadvantage: difficult to interpret
Where more than half of the world’s poor are?
In Sub-Saharan Africa
What is shared prosperity?
(World Bank definition): Boosting the per capita income consumption growth of the poorest 40 percent in a given country)
What are the sources of uncertainty about progress towards the ending poverty?
Global warming and extreme weather patterns; economic and financial crises, food price shocks; state fragility, political, social, and armed conflict; global disease rick (pandemics)
Poverty increases risk of infection for covid, notably in developing countries but what is the advantage that developing countries have in comparison to the developed ones?
Developing countries do have demographic advantage
Poverty increases risk of infection for covid, notably in developing countries but what is the advantage that developing countries have in comparison to the developed ones?
Developing countries do have demographic advantage
What are being the consequences of the Covid-19 pandemic for the developing world?
No savings, limited food stocks, dependence on casual labor.
Breakdown of markets are leading to famines
Migration from the countryside to the city
Admin. capabilities and information systems are weak
Financial means are severely limited
