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The End of Poverty

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Krisztina E. Lengyel Almos

on 13 September 2018

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Transcript of The End of Poverty

How to Get Out of Poverty?
Thank you for your attention!
PLEASE WATCH THE MOVIE
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 Resource Curse
"
-
distorts economy & represses diversification of the economy -> risk for overvaluation & speculation, & CORRUPTION

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
- <$1.90* per day

->declining trend in most parts of the world
2) Absolute Poverty
-

3) Relative Poverty
-

-> Multidimensional Poverty Index (MPI, Oxford, 2018)

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).
3
) 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
materials)
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
Deprivation
can be conceptualised as a continuum which ranges from no deprivation through
mild
,
moderate
and
severe
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
Combat HIV/AIDS
Environmental Sustainability
Global Partnership
MILLENNIUM DEVELOPMENT GOALS
Source: http://www.un.org/millenniumgoals/
http://www.uniosil.org/development-goals.html
Poverty
How do we measure poverty?
Sources: https://ourworldindata.org/extreme-poverty
https://www.tutor2u.net/economics/reference/difference-between-absolute-and-relative-poverty
http://povertydata.worldbank.org/poverty/home/
Dehesa: "What do we know about globalization?", 2007, p. 112, based on World Bank data from 2000
TWO TRENDS TAKE PLACE
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
: rule of law
- government efficiency
4) Economic Policies
- efficiency, communism/protectionist
policies, fiscal policy, social policy
5) Geopolitics
- allies, foes, international relations
Endogenous Factors
that influence economic growth:
"The Dutch Disease"
Easy to exploit & steal
-> plus, distorts the economy!
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
http://www.economist.com/node/21537909
Sources:
Hard issues of Globalization:
Controversy: it seems to increase inequality
Source: http://en.wikipedia.org/wiki/File:Gini_since_WWII.svg
Also recommended:
Sources:
Extreme Poverty, World Bank, 2018. available at: https://ourworldindata.org/extreme-poverty
Monitoring Global Poverty, World Bank, 2017. available at: https://openknowledge.worldbank.org/bitstream/handle/10986/25141/9781464809613.pdf
What are Poverty Lines, World Bank, 2018. available at: http://www.worldbank.org/en/news/video/2017/04/14/what-are-poverty-lines
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”. Millennium Development Goals. The United Nations. 2012. http://www.un.org/millenniumgoals/
Sustainable Development Goals, UN, 2018. Available at: http://www.un.org/sustainabledevelopment/sustainable-development-goals/
Moya, Dambisa. Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa. Farrar, Straus and Giroux, 2010.
“10 Solutions to End Poverty.” The End of Poverty. http://www.theendofpoverty.com/
A Georgist Perspective. 2018. Available at: http://povertythinkagain.com/
Rosen, M. & Ospina-Ortiz, E., Global Extreme Poverty. 2018. Available at: https://ourworldindata.org/extreme-poverty
Policy – A multidimensional approach, Oxford Poverty and Human Development Initiative (OPHI). 2018. Available at: https://ophi.org.uk/policy/multidimensional-poverty-index/
Source: https://ourworldindata.org/extreme-poverty
Percentage population living on less than $1.90 per day 2014
Success

=
Talent
+
Legacy + Opportunity

+
HARD WORK
(10,000 hrs)
https://ourworldindata.org/world-poverty/
Check data on:
https://en.wikipedia.org/wiki/Poverty_in_Mexico
http://www.coneval.org.mx/coordinacion/entidades/Queretaro/Paginas/pobreza-2014.aspx
https://en.wikipedia.org/wiki/Extreme_poverty
https://en.wikipedia.org/wiki/Gini_coefficient#/media/File:2014_Gini_Index_World_Map,_income_inequality_distribution_by_country_per_World_Bank.svg
"Poverty and inequality are not originated nor natural conditions, but are constituted through relations of power, domination and social struggles."
Dr. Heloise Weber, UK
Thank you!
(2001-2015)
-> several advances, but not all achieved
2016 -2030
SUSTAINABLE DEVELOPMENT GOALS (17)
QUANTIFIABLE, MEASURABLE, ATTAINABLE

Goal 1.1
: By
2030, eradicate extreme poverty for all
people everywhere, currently measured as people living on less than $1.25 a day.
Goal 1.2:
By 2030,
reduce at least by half the proportion
of men, women, and children of all ages living i
n poverty in all its dimensions
according to national definitions.
Goal 1.3:
Implement nationally appropriate social protection systems and measures for all, including poors, and by 2030 achieve substantial coverage of the poor and the vulnerable.
Goal 1.4:
By 2030, ensure that all men and women, in particular the poor and the vulnerable,
have equal rights to economic resources
, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and nancial services, including micro nance.
Goal 1.5:
By 2030,
build the resilience of the poor and those in vulnerable situations
and reduce their exposure and vulnerability to climate-related extreme events and other economic, social, and environmental shocks and disasters.

SDG1 - NO POVERTY
GOALS
Source: World Bank, 2017, p13, https://openknowledge.worldbank.org/bitstream/handle/10986/25141/9781464809613.pdf
in 1970: 1.4 billion people
in 1998: 1.2 billion
in 2015: 700 million
THE
POVERTY TRAP
-
low income->no capital /credit
- no infrastructure (transport)
- no properly functioning government
- no healthcare services->poor health
- poor education-> no skills
->
very low productivity
- malnutrition/hunger
-> high infant mortality
->
many children => POVERTY persists
1) Forgive
Debt
(of poor countries)
3) Rich countries->
AID programs
(1% of the GDP to be transferred)
4) South-South trade ->
foment & increase FTAs
, trading blocks
5) North-South trade -> less dependence,
fair trade, tech. transfer
6) Nationalize
natural resources
until 51% (49% private ownership)
7)
Tax Assets
& Capital Movements, not Income (progressive taxes!)
8)
Land & agrarian reforms
- > ownership to farmers
9)
Borrow
-> invest in infrastructure (amounts & terms of loan!)
10)
ODA
(Official Development Aid) - not prolonged!
11)
Microcredits
& Crowdfunding
UN programs:
http://povertythinkagain.com/poverty/
Charity vs. Justice
Does AID work at all???
a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends
not only on income but also on access to services.
by
household income level
below a given proportion of
national income in a country
(e.g. 50 or 60% below the national median income.
https://www.ted.com/talks/dan_ariely_how_equal_do_we_want_the_world_to_be_you_d_be_surprised/up-next#t-517877
How equal do we want the world to be? You'd be surprised
Watch Dan Ariely´s TED Talk:

Governments can INFLUENCE greatly income distribution by FISCAL POLICY
The Resource Curse->
ASSESSING POVERTY & DEPRIVATION
ASSESSING INEQUALITY IN SOCIETY....
(* depending on purchasing power of a dollar, base year 2011)
See at: https://ophi.org.uk/policy/multidimensional-poverty-index/
Full transcript