Theme 4: Poverty

Question 1

Absolute poverty

Answer 1

Global measurement of poverty. Daily less than $1.90 PPP 2005 GDP.

Question 2

What is Purchasing power parity? (PPP)

Answer 2

How much of one currency is required to purchase a basket of goods compared to another country.

Question 3

How many people were estimated to be living in absolute poverty in 2013?

Answer 3

More than 767 million people. 96% in developing countries.

Question 4

Relative poverty

Answer 4

Earnings less than 60% of average income in the UK so £16,320.
Varies between countries as Australia it is less than 50%.

Question 5

What are the 3 main factors influencing poverty?

Answer 5

1. Infrastructure
2. Education and training
3. Aid

Question 6

How does infrastructure impact poverty?

Answer 6

Poor infrastructure leads to decreased productivity which leads to decrease income and so increase poverty.

Question 7

What is an example of how improved infrastructure improved poverty?

Answer 7

New community movement 1970s South Korea. Provided raw materials helping them to build their own irrigation, roads, bridges and other infrastructure.

Question 8

How can education and training influence poverty?

Answer 8

Fall in standards of education may lead to a decrease in skills which will likely lower productivity and therefore reduce incomes. This can significantly increase absolute poverty.

Question 9

How can aid impact poverty?

Answer 9

If aid goes to healthcare and education it will likely increase productivity and so increase income and decrease poverty.

Question 10

What can go wrong with international aid?

Answer 10

May go to corrupt politicians eg Somalia given aid of £1.3B and 70% disappeared.