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Meaning of Poverty
 Poverty is a multidimensional concept that can be viewed
in terms of income and non-income dimensions.
 Non-income poverty
 Lack of access to basic needs & social services, e.g. food,
health, safe water, shelter etc.
 Lack of personal justice & freedom, empowerment to
participate in the political process & in decisions
 Poor relations
 Income poverty
 Involves lack of savings
 Predominantly rural
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Gallen P. Mlenge MUST-RUKWA

Meaning of Poverty
 Generally, poverty can be viewed as deprivations
that keep an individual from leading the kind of
life that everyone values (decent life).
 This manifests in:
Lack of adequate food and shelter, education,
health services and clothing;
Vulnerability to ill health, economic crisis/
shocks, natural disasters etc.
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Meaning of Poverty
 It is an economic state where people are
experiencing scarcity or the lack of certain
commodities that are required for the lives of
human beings like money and material things.
 Therefore, poverty is a multifaceted concept
inclusive of social, economic and political
elements.
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Classification of Poverty
 It is complex to define poverty. Because it is
depend on multifaceted and multidimensional
elements like region, era, geographical condition,
circumstances and many more.
 On the basis of social, economical and
political aspects, there are different ways to
identify the type of Poverty:
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 Absolute Poverty Vs Relative Poverty
 Situational Poverty Vs Generational Poverty
 Rural Poverty Vs Urban Poverty
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 Absolute Poverty: Also known as extreme poverty
or abject poverty, it involves the scarcity of basic
food, clean water, health, shelter, education and
information. Those who belong to absolute
poverty tend to struggle to live and experience a
lot of child deaths from preventable diseases like
malaria, cholera and water-contamination related
diseases. Absolute Poverty is usually uncommon
in developed countries.
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"It is a condition so limited by malnutrition, illiteracy,
disease, squalid surroundings, high infant mortality,
and low life expectancy as to be beneath any
reasonable definition of human decency." Said by
Robert McNamara, the former president of the
World Bank
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 Relative Poverty: It is defined from the social
perspective that is living standard compared to
the economic standards of population living in
surroundings. Hence it is a measure of income
inequality. For example, a family can be
considered poor if it cannot afford vacations, or
cannot buy presents for children at Christmas, or
cannot send its young to the university.
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 A condition in which basic needs might be met
but where there is an inability to meet perceived
needs and desires in addition to basic needs.
 It takes into account the welfare distribution of
the whole society/living standards of the broader
community.
 Usually, relative poverty is measured as the
percentage of the population with income less
than some fixed proportion of median income.
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 Situational Poverty: It is a temporary type of
poverty based on occurrence of an adverse event
like environmental disaster, job loss and severe
health problems. People can help themselves
even with a small assistance, as the poverty
comes because of unfortunate event.
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 Generational Poverty: It is handed over to
individual and families from one generation to the
one. This is more complicated as there is no escape
because the people are trapped in its cause and
unable to access the tools required to get out of it.
“Occurs in families where at least two generations
have been born into poverty. Families living in this
type of poverty are not equipped with the tools to
move out of their situation” (Jensen, 2009).
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 Rural Poverty: It occurs in rural areas with
population below 50,000. It is the area where
there are less job opportunities, less access to
services, less support for disabilities and quality
education opportunities. People are tending to
live mostly on the farming and other menial work
available to the surroundings.
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 Urban Poverty: It occurs in the metropolitan
areas with population over 50,000. These are
some major challenges faced by the Urban Poor:
Limited access to health and education.
 Inadequate housing and services.
 Violent and unhealthy environment because of
overcrowding.
Little or no social protection mechanism.
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Principles Measuring of Poverty
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Absolute Poverty Measurements
1.Poverty Line ( Poverty Threshold)
i. Food Poverty Line
ii. Non Food Poverty Line
iii. National Poverty Line
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 Food Poverty Line
Minimum amount of food an individual must
consume to stay healthy.
 In Tanzania the food poverty line was TZS 33,748
in 2018.
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 Non Food Poverty Line
Average per capita non-food expenditure of
households whose per capita total expenditure is
close to the food poverty line.
 Hungriest country in the world? Africa? How
about Tanzania? (In 2022)
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 National Poverty Line
This is the percentage of people living below the
national poverty line.
 In Tanzania the national poverty line as in 2022 is
1.90 U.S. dollars a day.
 How many people below the threshold?
Percentage? (2022 National Census report)
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Criticisms on Poverty Line
 Poverty Line is a measure based solely on the
cost of food.
It is needed to measure poverty through multiple
factors such as housing, transportation, and
regional economic differences.
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 The thresholds are low.
Current poverty thresholds were established in
the 1960s. Thresholds should vary geographically
to reflect variations in the costs of meeting the
needs in the thresholds.
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 The analytical data is low to find the solution to
reduce the poverty.
It is essential to have the categories (sex, age etc)
what affect from poverty more. Then the
solutions can be used to that affected group.
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1.Human Poverty Index.
Human poverty index The Human Poverty Index
(HPI) was an indication of the standard of living in
a country, developed by the United Nations.
Not only poor countries but also but also
industrial countries also are suffering from the
human poverty . So economists introduced
separate two indexes to measure the poverty.
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Human poverty index for developing countries.
(HPI 1)
Percentage of people who are living more than
40 years.(Longevity)
Adults percentage with illiteracy .(Knowledge)
Percentage of people who are impossible to
access for pure water.
Percentage of low weight infants below 5 year
old.(Decent standards of Poverty)
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Human poverty index for developed countries. (HPI 2)
 Percentage of people who are not living more than
60 years from the total population.
 Percentage of people who are inability to read and
write in day today activities from the total
population.
 Segment of people who suffer from income
poverty. Group of population suffer from the

unemployment more than 12 months.
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 Tanzania HPI?
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Relative Poverty Measurements
 Gin Coefficient and Lorenz Curve
Discuss in groups for presentation
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Indicators of Poverty
Income/monetary indicators
Monetary poverty measurement may use income,
consumption or expenditure data
Income levels
Determine purchasing power and expenditure
Low savings – less expenditure
Unemployment - increases income poverty
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Non-monetary indicators
(i) Education indicators
Years of schooling
Child school attendance - low net enrolment ratio,
small proportion of individuals with access to school
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(ii) Health care indicators
Child mortality - death of infant and under-five,
inadequate child immunization, low life
expectancy (depends on the level of HIV
prevalence)
Nutrition – malnutrition/poor nutritional status,
food insecurity
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(iii) Living standard indicators
Drinking water
 Lack of access to improved drinking water (according to SDG
guidelines) or safe drinking water is at least a 30-minute walk
from home, round trip
Electricity
 Household (hh) without electricity
Assets
 HH doses not own more than one of these assets:
 Radio, TV, telephone, bicycle, motorbike, or refrigerator and
does not own a car or truck etc.
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Living standard indicators……
Housing
 Housing materials for at least one of roof, walls and floor are
inadequate: the floor is of natural materials and/or the roof
and/or walls are of natural or rudimentary materials
Cooking fuel
 Lack of clean cooking fuel
 HH cooks with dung, wood or charcoal
Sanitation
 Lack of improved sanitation facility (latrines/toilets) or
improved but shared with other hhs
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Internal Causes of Poverty
1.Low levels of productivity – caused by
Insufficient support to the agricultural sector
e.g. poor infrastructure, lack of subsidies to
farm inputs, post harvest losses etc.
Low level of production technology especially.
in agric. sector, which provides most of the
employment and a large share of GDP
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2. Diseases (SDG3)
16,000 children die each day from preventable diseases such
as measles and tuberculosis
AIDS is now the leading cause of death among teenagers in
SSA
A lot of money is used to combat the diseases e.g. buying
retroviral drugs
HIV&AIDS effects
 material well being (decline in productivity)
 bodily well being, security (fear and anxiety to patients,
caretakers and others)
 social well being - victims avoid to go into public places
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3. Poor governance & political instability
Results into conflict in some countries e.g. Rwanda, Burundi,
Somalia, DRC, South Sudan, Zimbabwe etc.
4. Large household size (Big Family)
Household (hh) size becomes an impoverishing force when
most of the individuals in the hh depend on the hh head as
the major breadwinner
5. Laziness and irresponsibility
Corruption, bribery, theft and tax evasion cost developing
countries US$1.26 trillion per year
More than 204m people were unemployed in 2015
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6. Internal conflict
Unrests caused by conflicts result in massive loss of
human lives, diseases, hunger, violence, destruction of
property & infrastructure, etc.
7. Income inequality (SDG10)
 Unequal distribution of income globally
The richest 10% earns up to 40% of total global income
On average, income inequality increased by 11% in
developing countries between 1990 and 2010.
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8. Culture/traditions
Traditional ceremonies like marking puberty, burial rituals etc.
(use people’s time & income)
Bride price –increase poverty & vulnerability through
impoverishment of the husband or husbands family, increased
tendency for abuse for women, impoverishing young, newly
married couples etc.
Taboos – e.g. restricting pregnant mothers to eat certain kinds of
food
Affects their health and makes them vulnerable to death
Increases mortality rate of infants as they are poorly nourished in
the mothers’ womb
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9. Gender inequality (SDG5)
Women are vulnerable in various spheres:
-Inequality in the labour market
 Globally, women earn only 77 cents for every dollar that
men earn doing the same work
-Lack of control over economic resources (e.g. land,
household income)
 Less than 20% of the world's landholders are women
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-Lack of access to social services like education
 Two thirds of countries in the developing world have
achieved gender parity in primary education
-Poor gender division of labour (unpaid care and
domestic work)
 Females have triple roles, among which is the
reproductive role - not counted for in the labour market
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External Causes of Poverty
1.Unequal exchange in international trade
Low prices for agric. products vs industrial products
Trade barriers like high taxation on import goods &
services
2.Problem of refugees
Destruction of schools & health centres, increased
burden to the host country, conflicts with indigenous
people, environmental degradation, depletion of
food & natural resources etc.
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3. Debt burden
Inhibits the govt. to adequately provide social & other
services to the public (infrastructure, education, health
care services etc.
4. Frequent natural disasters (SDG13)
 For example floods, droughts, hurricanes etc.
Since 1970, the number of natural disasters worldwide has
more than quadrupled to around 400 a year
The annual average losses from tsunamis, tropical cyclones
and flooding amount to hundreds of billions of dollars
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5. World conflict and insecurity
Every day in 2014, an average of 42,000 people had to
abandon their homes due to conflict
Every minute, nearly 20 people are displaced as a result
of conflict or persecution. At the end of 2016, the total
number of forcibly displaced persons was 65.6 million
The problem of insecurity (e.g. terrorism):
Hinders the flow of aids to poor countries
Causes destruction of resources & physical structure
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6. Impact of colonialism
The structure of economy, inherited from colonial
masters is based on monoculture system
mainly agric. products like coffee, cocoa, cotton etc.
The prices of the products are very low
people get low income
Colonialism created dependency
makes people feel inferior in decision-making
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Vicious Cycle of Poverty
 A state whereby it is absolutely impossible for a
household (a family) to break out of poverty
without external intervention.
 Illustrates how poverty causes poverty and traps
people in poverty, unless an external intervention
is applied to break the cycle.
 A phenomenon where poor families become
impoverished for at least three generations.
 Victims are deprived of a dignified/precious life.
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General illustration of vicious cycle of poverty
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Low productivity
Low income
Inadequate diet
Low
consumption,
little food
Malnutrition
Vicious cycle of poverty – at individual level

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Vicious cycle of poverty – at household level
Poor household
No schooling
High child births
No skills, knowledge
More dependents

Vicious cycle of poverty – at community level
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Low production
Diseases/Malnutrition
Low income
Lack of health
facilities
Poor health, low
productivity
Low taxation

Strategies for Poverty Reduction
 Implementing strategically targeted programmes.
 Improving social safety net (SSN) programs.
SSNs are programs comprising of non-contributory transfers in
cash or in-kind, designed to provide regular and predictable support
to poor and vulnerable people - also known as “social assistance”
or “social transfers,” (World Bank, 2014).
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 For example cash & food transfers to poor & other vulnerable people.
 In Tanzania:
 National Economic Survival Program (NESP)
 Structural Adjustment Program (SAP)
 Economic Recovery Program (ERP)
 Economic and Social Action Program (ESAP)
 Poverty Reduction Strategy (PRSP 2001 – 2025)
 NATIONAL STRATEGY FOR GROWTH AND REDUCTION OF POVERTY
(MKUKUTA I&II) 2005-2010 & 2010-2015
 Millennium Development Goals (MDGs – 2000 to 2015)
 Kilimo Kwanza Initiative.
 Tanzania Social Action Fund (TASAF I,II AND III)
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 Improving human capital through quality
education (SDG4)
 Improving the delivery of health care services,
public resources (SDG3) and enhancing
accountability by both state and social institutions
 Govt should strive for more integration into global
economy (SDG17)
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 Increasing investments in the manufacturing sector (SDG9)
 Enacting laws that enforce environmental protection &
preservation (SDG6&14)
 Improvement of rural infrastructure (SDG9)
 to make it easy for goods and services and farm produce to
move to and from the farming communities
 Facilitating empowerment and eradicating gender
discrimination (SDG5)
 Providing a co-ordinating mechanism for the
implementation of poverty eradication strategies
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THE END
All the best on your
Breather Vacation
11/19/2024 58

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BMH 07102 DS 8101 - Topic 2 Poverty.pptx

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