Group 3 - Topic 6 - Poverty Inequality and Development
Group 3 - Topic 6 - Poverty Inequality and Development
Group 3 - Topic 6 - Poverty Inequality and Development
DEVELOPMENT
Poverty
• Definition - it is a pronounced deprivation in well-
being.
• Approach of poverty - poverty can either be
curative or preventive.
• Measures of poverty - measured by the number or
headcount of those whose income fall below the
absolute poverty line.
Inequalities
• Definition - it is fundamentally about relational
disparities, denial of fair and equivalent enjoyment
of rights, and the persistence of arbitrary
discrepancies in the in the worth, status, dignity and
freedoms of different people;
Introduction
• Measuring inequality - the two principal measures:
the personal/size distribution of income and the
functional/distributive factor share distribution of
income.
Development or Economic Development
• Definition - is defined as the process by which a
nation improves the economic, political and social
well-being of its people. TREY 2
research
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EXTREME POVERTY
REMAINS BOUNDLESS
TREY 3
research
World Bank
Estimate
1.2 billion people lived with 1.25 US
Dollars or 65 pesos purchasing
power a day in 2013
TREY 4
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• Development
• Gross National Income
TREY 5
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Pioneer achievement includes:
• Reduction in extreme poverty
for the past 25 years
• 36% dropped in the percentage
Millenium of people living with a less than
Development Goals 1.25 US dollars per day
(from 50% 14%)
One of their goals is to eradicate
extreme hunger and poverty
TREY 6
research
Definition of Terms:
• Personal Distribution of Income • Multidimensional Poverty Index
The distribution of income according to size class of A poverty measure that identifies the poor using dual
persons. cutoffs.
• Income Inequality • Disposable Income
The disproportionate distribution of total national income. The income that is available to households for spending
• Functional Distribution of Income and saving.
The distribution of income to factors of production. • Asset Ownership
• Factors of Production The ownership of land, physical capital, human capital,
Resources or inputs required to produce a good or service. and financial resources
• Absolute Poverty • Redistribution Policies
The situation of being unable to meet the essential needs. Policies geared to reducing income inequality and
• Headcount Index expanding economic opportunities.
The proportion of a country’s population living below the • Land Reform
poverty line. A deliberate attempt to reorganize and transform
• Total Poverty Gap (TPG) existing agrarian systems.
The sum of the difference between the poverty line and • Public Consumption
actual income levels All current expenditures for purchases of goods and
• Character of Economic Growth services by all levels of government.
The distributive implications of economic growth • Workfare Program
A poverty alleviation program. TREY 7
research
Review of Related
Literature
• Poverty can be viewed in many contexts
as the desires of the society can be
expressed from diverse backgrounds.
• It is a global phenomenon which is
increasing day by day.