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The End of Poverty

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Krisztina E. Lengyel Almos

on 10 October 2017

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Transcript of The End of Poverty

Thank you for your attention!
And one more thing...
is here
1. Increasing Inequality
Income Difference between people
(measure: the GINI Index)

2. Convergence:
The process of reducing inequality in society and/or among nations (between individuals or groups of people)
Exogenous Factors:
1) Geography
- far from sea, rivers, tropical, landlocked nations - lack of transport & communications, higher temperatures, more disease, lower productivity, higher soil erosion, less agricultural production
-> worse off: tropical & sub-Saharan nations

2) Culture & Religion
- people´s attitude towards trust and cooperation, women, government, legal structure
religious people are less tolerant and more conservative
it depends which is the
dominant religion
in a country

3) Natural Resources:

"the Natural Resources Curse"
distort economy & repress diversification of the economy -> risk for overvaluation & speculation

4) Population Growth:
if it´s high, the investment in each child born is less, the burden is greater on society & women

5) Other structural factors:
natural disasters
(in tropical countries people are 4 times likely to die of natural disaster than in moderate climates!)

1) Extreme Poverty
- <$1.25 per day
in 1970: 1.4 billion people, 1998: 1.2 billion
->declining trend in most parts of the world
2) Absolute Poverty
- <$2.25 per day
in 1970: 2.2 billion people, 1998: 2.8 billion
-> increasing trend (Millennium Goal: 14% in 2015)
3) Relative Poverty
- by household income level
below a given proportion of national income.
(depending on purchasing power of a dollar)
Factors that influence economic growth:
Levels of Poverty
“Fundamentally, poverty is a denial of choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and cloth a family, not having a school or clinic to go to, not having the land on which to grow one’s food or a job to earn one’s living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living on marginal or fragile environments, without access to clean water or sanitation”
(UN Statement, June 1998 – signed by the heads of all UN agencies)
What is poverty?
UN Definition of Poverty
Source: http://www.un.org/esa/socdev/unyin/documents/ydiDavidGordon_poverty.pdf

1) Food Deprivation
– Body Mass Index of 18.5 or below (underweight).
2) Water Deprivation
- access only to unimproved source such as open wells, open springs or
surface water or who have to walk for more than 15 minutes to their water source (30
minutes round-trip).
) Deprivation of Sanitation Facilities
– access only to unimproved sanitation facilities e.g. :
pour flush latrines; covered pit latrines; open pit latrines; and buckets or no access to a
toilet of any kind.
4) Health Deprivation
– Women who did not receive treatment for a recent serious illness or
who did not receive the minimum standard of antenatal care from a person trained in
midwifery or who do not know that a healthy person can transmit HIV/ AIDS or who do
not know that using a condom during sex can prevent HIV/ AIDS transmission.
Men who did not receive treatment for a recent serious illness or who do not know that a
healthy person can transmit HIV/ AIDS or that using a condom during sex can prevent
HIV/ AIDS transmission.
5) Shelter Deprivation
– living in dwellings with 3 or more people per room (overcrowding)
or in a house with no flooring (e.g. a mud floor) or inadequate roofing (e.g. natural roofing
6) Education Deprivation
– youth who did not complete primary school or who are illiterate
7) Information Deprivation
– no access to a radio or television (i.e. broadcast media) at home.
Definitions of Deprivation of Basic Human Need
can be conceptualised as a continuum which ranges from no deprivation through
deprivation to extreme deprivation.
In order to measure absolute poverty , it is necessary to define
the threshold measures of severe deprivation of basic human need for:
1. food
2. safe drinking water
3. sanitation facilities
4. health
5. shelter
6. education
7. information
8. access to services
The Poverty threshold is equal to 2 or more deprivations of basic human need

End Poverty and Hunger
Universal Education
Gender Equality
Child Health
Maternal Health
Environmental Sustainability
Global Partnership
Source: http://www.un.org/millenniumgoals/
How do we measure poverty?
Dehesa: "What do we know about globalization?", 2007, p. 112, based on World Bank data from 2000
Types of poverty:
- Intra-country poverty
between individuals
between regions
(urban, rural, industrial clusters)
- Inter-country poverty
- Inter-regional poverty

1.) Education
(highest correlation with the level of per capita income: improvement in primary & sec. education in 10 years increases by 7% the GDP), Quality matters, too!
2.) Healthcare
- women´s & children medical care
3.) Institutions
- shape human interactions & redistribution of wealth: efficient or corrupt, bureaucratic?
- legal and political framework of power
: how do they work?
Endogenous Factors
that influence economic growth:
"The Dutch Disease"
Easy to exploit & steal
Poverty & Economic Growth
- there is a statistical link between
the reduction of poverty and economic growth
->higher growth

What Do We Know About Globalization?, by Guillermo de la Dehesa, 2007
World Bank official website
The Economist, February 12, 2012
Hard issues of Globalization:
Controversy: it seems to increase inequality
Source: http://en.wikipedia.org/wiki/File:Gini_since_WWII.svg
Also recommended:
De la Dehesa, Guillermo. What Do We Know About Globalization? Issues of Poverty and Income Distribution, Malden, MA, Blackwell Publishing Ltd., c2007, eng.

Sachs, Jeffrey. The End of Poverty: Economic Possibilities for Our Time, Penguin Books; Reprint edition (February 28, 2006)

Stiglitz, Joseph E., Globalization and Its Discontents, New York: W.W. Norton. 2002

“We Can End Poverty 2015”. Millemium Development Goals. The United Nations. 2012. http://www.un.org/millenniumgoals/

“10 Solutions to End Poverty.” The End of Poverty. http://www.theendofpoverty.com/
Percentage population living on less than $1.25 per day 2009
= Talent + Legacy + Opportunity + HARD WORK
Check data on:
Full transcript