Understanding Poverty, Development, and Inequality: A Global Perspective
1. Poverty and Economic Development
This section explores various approaches to defining and measuring poverty, including monetary, capability, social exclusion, and participatory approaches. It delves into concepts like absolute and relative poverty, extreme poverty, and the distribution of poverty across different regions.
Key Concepts and Facts
- Absolute Poverty: Lack of resources to meet basic needs, often used in developing countries.
- Relative Poverty: Disadvantage compared to the society of reference, commonly used in developed countries.
- Extreme Poverty: Living on less than $1.90 a day.
- Sub-Saharan Africa: Region with a rising number of people living in extreme poverty.
Measuring and Classifying Poverty
The document discusses various organizations and their methods for classifying countries based on economic development and poverty levels, including the United Nations, World Bank, and Least Developed Countries (LDCs) criteria. It introduces indices like the Human Assets Index (HAI) and Economic Vulnerability Index (EVI) to assess human capital and structural vulnerabilities.
Sustainable Development Goals (SDGs)
The section highlights the 17 SDGs adopted by the United Nations, emphasizing their role in promoting sustainable development and eradicating poverty. It explores how businesses can align their strategies with the SDGs to create positive social and environmental impact.
Development and Future Trends
The concept of development is discussed, extending beyond economic growth to encompass improvements in living standards and well-being. The document examines future trends such as climate change, technological divides, and the concentration of extreme poverty in Africa.
2. Development Indicators
This section introduces various indicators used to measure development and assess progress towards achieving sustainable development goals.
Key Indicators
- Poverty Line: Minimum income level considered adequate for basic needs.
- Poverty Gap Index (GPI): Measures the intensity of poverty.
- Human Development Index (HDI): Assesses average achievement in health, education, and living standards.
- Multidimensional Poverty Index (MPI): Measures deprivation in health, education, and living standards.
- Genuine Progress Indicator (GPI): Measures sustainable economic welfare, considering environmental and social factors.
- Social Progress Index: Evaluates a society’s ability to meet basic needs and enhance quality of life.
- Inclusive Wealth Index: Measures a nation’s capacity to create and maintain human well-being over time.
3. Inequality
The document addresses the issue of global inequality, highlighting disparities in income, wealth, and access to resources and opportunities. It explores the causes and consequences of inequality, including its impact on well-being and social progress.
Understanding Inequality
- Lorenz Curve: Graphical representation of income distribution.
- Gini Coefficient: Numerical measure of income inequality.
- Accidental Situations: Factors like place of birth and family background that can lead to unequal opportunities.
- Categorical Inequalities: Disparities based on race, gender, disability, or other categories.
The document concludes by emphasizing the importance of addressing inequality to achieve sustainable development and improve the well-being of all individuals and societies.