Poverty Inequality and Development Report
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Development of Economics
Poverty Inequality and Development Report
- 1. Poverty, Inequality, and Development Chapter 3 Dr. Sarah C. Alvarez Subject Professor GRADUATE SCHOOL
- 2. Distribution and Development: Seven Critical Questions What is the extent of relative inequality, and how is this related to the extent of poverty? Who are the poor? Who benefits from economic growth? Does rapid growth necessarily cause greater income inequality? Do the poor benefit from growth? Are high levels of inequality always bad? What policies can reduce poverty?
- 4. The Multidimensional Poverty Index (MPI)
- 6. Interaction of the deprivations? Building the index from household measures up to the aggregate measure (rather than using already- aggregated statistics), MPI approach takes account of multiplied or interactive harm (complementarity) done when multiple deprivations are experienced by the same individual or family The MPI approach assumes an individuals lack of capability in one area can only to a degree be made up by other capabilities capabilities are treated as substitutes up to a point but then as complements.
- 7. Key findings 2021 MPI https://hdr.undp.org/en/2021-MPI Worldwide, across 109 countries and 5.9 billion people: 1.3 billion people are multidimensionally poor. About half (644 million) are children under age 18. Nearly 85 percent live in Sub-Saharan Africa (556 million) or South Asia (532 million). More than 67 percent live in middle-income countries. But what is the day-to-day reality of life for multidimensionally poor people? The data paint a grim picture: 1 billion each are exposed to solid cooking fuels, inadequate sanitation and substandard housing. 788 million live in a household with at least one undernourished person. 568 million lack improved drinking water within a 30-minute roundtrip walk.
- 10. Economic Characteristics of High-Poverty Groups Rural poverty Women and poverty Ethnic minorities, indigenous populations, and poverty
- 11. Summary and Conclusions: The Need for a Package of Policies Policies to correct factor price distortions Policies to change the distribution of assets, power, and access to education and associated employment opportunities Policies of progressive taxation and directed transfer payments Policies designed to build capabilities and human and social capital of the poor
- 12. Reference Economic Development by Todaro and Smith
Editor's Notes
- #7: Multidimensional poverty measures allow us to see how many households are experiencing deprivations at the same time. At a glance the measure shows an integrated picture of the situation. The MPI can also be used to examine whole populations, sub-groups or specific deprivations to see the impact of poverty on different communities. The multidimensional measurement is rigorous, easy to use, flexible, and adapts well to different contexts. Theglobal Multidimensional Poverty Index(global MPI) is a poverty measure that reflects the multiple deprivations that poor people face in the areas of education, health, and living standards. The Global MPI reflects both the incidence of multidimensional poverty (the proportion of people in a population who are multidimensionally poor) and its intensity (the average number of deprivations that each poor person experiences). It can be used to create a comprehensive picture of people living in poverty and allows for comparisons between countries, regions and the world, as well as within countries by ethnic group, urban/rural location, and other characteristics of households and communities.