Understanding Poverty and Multidimensional Poverty

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What criticism does Jason Hickel express regarding the Sustainable Development Goals (SDGs)?

They prioritize economic growth over sustainability.

The SDG Index inaccurately measures sustainability. (correct)

The goals are not ambitious enough.

They focus too little on climate change issues.

What approach does Bjorn Lomborg advocate for in terms of development goals?

Prioritization based on estimated costs and benefits. (correct)

A detailed list of all proposed goals.

A focus solely on environmental goals.

Implementing all SDGs simultaneously.

What does the Malthusian trap describe in relation to population growth and resource availability?

Population growth outpaces resource availability over time. (correct)

Technological advancements will always overcome resource limitations.

Food supply increases proportionally to population growth.

Resource availability is inversely related to population growth.

Which historical event allowed mankind to escape the Malthusian trap?

The Industrial Revolution. Signup and view all the answers

What is implied about the Sustainable Development Goals when it is stated that they may be too long and unclear?

Their implementation can be overwhelming due to complexity. Signup and view all the answers

What is the primary goal of the state approach to development?

To ensure basic needs and a relatively equal distribution of income Signup and view all the answers

Who were the key figures that advocated for the state approach to development?

Karl Marx and Lenin Signup and view all the answers

Which of the following is NOT a key feature of the state approach?

Market-driven prices for goods and services Signup and view all the answers

What theory explains the view that world poverty is due to unfair trade and colonization?

Dependency theory Signup and view all the answers

What is a common criticism of multinational corporations in relation to developing countries?

They keep poor countries poor. Signup and view all the answers

What is one of the major problems identified by Paul Collier that contributes to resistant poverty?

Conflict trap Signup and view all the answers

According to Jeffrey Sachs, what is a poverty trap?

Inability to invest enough to escape poverty Signup and view all the answers

Which of the following is NOT mentioned as a cause of poverty traps?

Natural disasters Signup and view all the answers

What is the 'big push' suggested by Jeffrey Sachs?

International community's support through development aid Signup and view all the answers

What does the term 'resource curse' refer to in the context of poverty traps?

Wealth from natural resources leading to conflicts Signup and view all the answers

Which countries are primarily affected by the natural resource trap as mentioned by Paul Collier?

Venezuela and Angola Signup and view all the answers

What was the 1970 UN resolution target for Official Development Assistance (ODA) to Gross National Income?

0.7% Signup and view all the answers

What is one suggested instrument to escape poverty traps according to Collier?

Military intervention Signup and view all the answers

What does 'poor governance' refer to as a cause of poverty traps?

Corruption and incompetence Signup and view all the answers

Which of the following accurately describes the impact of geography as a barrier to escaping poverty?

Certain geographical features can worsen poverty conditions. Signup and view all the answers

What is a defining characteristic of state capitalism or the blended approach?

Deep state engagement in the production of private goods through SOEs Signup and view all the answers

What was the trend in extreme poverty since the 1980s?

Extreme poverty has diminished significantly worldwide. Signup and view all the answers

Which region has not experienced a decrease in the number of people living in extreme poverty?

Sub-Saharan Africa Signup and view all the answers

Which country is NOT mentioned as an example of state capitalism or the blended approach?

United States Signup and view all the answers

What role do state-owned enterprises (SOEs) play in a state capitalism model?

They are granted dominant positions due to their reliability Signup and view all the answers

What event caused a notable disturbance in the trend of extreme poverty in recent years?

The COVID-19 pandemic and the war in Ukraine Signup and view all the answers

Which of the following was NOT one of the Millennium Development Goals?

Reduce high school dropout rates Signup and view all the answers

What economic phase might precede a transition to a free market or centrally planned mode?

State capitalism or blended approach Signup and view all the answers

Which of the following statements about governance in state capitalism is true?

Successful systems may have different types of governance, including single-party systems Signup and view all the answers

What was Target 1a under the first Millennium Development Goal?

Reduce by half the proportion of people living on less than a dollar a day. Signup and view all the answers

What is considered crucial for achieving the right balance in development approaches?

Good governance Signup and view all the answers

Which specific measure relates to Target 1b of the MDGs?

Growth rate of GDP per person employed Signup and view all the answers

During what period were the Millennium Development Goals (MDGs) sought to be achieved?

2000-2015 Signup and view all the answers

The shift from which system can lead to the adoption of a blended approach in countries like Vietnam and China?

Communism Signup and view all the answers

Which target under MDG 1 focuses on reducing hunger?

Target 1c Signup and view all the answers

What economic aspect is highlighted as potentially preferable in the early stages of development?

State capitalism focused on infant industry protection Signup and view all the answers

What did Oskar Lange claim about the capabilities of a planned economy?

A state can achieve similar outcomes as a market economy under perfect competition. Signup and view all the answers

What criticism did Friedrich von Hayek have regarding planned economies?

They struggle with the amount of information needed for organizing the economy. Signup and view all the answers

Which of the following is a consequence of a command economy?

Corruption and cronyism. Signup and view all the answers

In practice, what is a common issue found in command economies?

Waste due to lack of incentives. Signup and view all the answers

What is one way a command economy suppresses individual freedoms?

By imprisoning dissenters who criticize the regime. Signup and view all the answers

What often happens to wealth distribution in command economies?

Emergence of stark inequalities between elites and the masses. Signup and view all the answers

What is a potential effect of lacking competition in a command economy?

Worker apathy towards job performance. Signup and view all the answers

Which phrase best describes cronyism in the context of a command economy?

Favoritism shown to friends despite lack of competence. Signup and view all the answers

What is one significant impact of lower educational attainment in poverty-stricken areas?

Higher unemployment rates. Signup and view all the answers

What type of programs are considered crucial in addressing immediate needs of individuals living in poverty?

Social protection programs. Signup and view all the answers

How does poverty contribute to societal problems such as crime and violence?

By exacerbating existing inequalities. Signup and view all the answers

Which strategy is essential for fostering long-term solutions to poverty?

Investment in community development projects. Signup and view all the answers

Consider the role of international development efforts; what is a primary goal?

To empower countries with high poverty rates. Signup and view all the answers

In the context of poverty, what does 'human capital' refer to?

Investment in education and skills development. Signup and view all the answers

What is a significant characteristic of regions experiencing high poverty rates?

Diverse social and economic challenges. Signup and view all the answers

How can policies promoting income inequality reduction impact poverty sustainably?

By ensuring equitable wealth distribution. Signup and view all the answers

What does poverty primarily result from?

Structural issues and individual circumstances Signup and view all the answers

Which of the following is NOT a common method for determining the poverty line?

Calculating average income across households Signup and view all the answers

Which dimension of poverty refers to the lack of social inclusion and opportunities?

Social deprivation Signup and view all the answers

Which factor serves as an indicator of poverty beyond income levels?

Education levels Signup and view all the answers

What tends to exacerbate poverty levels in a community?

High unemployment rates Signup and view all the answers

What is a key consequence of poverty related to health?

Poor health outcomes Signup and view all the answers

Which of the following statements best encapsulates poverty's impact on individuals and communities?

Poverty affects many life aspects including health and education. Signup and view all the answers

What factors can influence the measurement of poverty within a society?

Cultural norms and regional cost of living Signup and view all the answers

Study Notes

Poverty

Poverty is defined in terms of income or consumption
If income or consumption is below a threshold (poverty line), a person is considered poor
Absolute poverty: minimum needed to survive
Relative poverty: 60% of median income
Extreme poverty is defined by an international poverty line: $2.15 per day (PPP adjusted) in 2017
Purchasing power parity (PPP) adjusts for price differences between countries

Multidimensional Poverty

Poverty is also measured via non-monetary dimensions
Includes health, education, and living standards
Reflected in the MDGs and SDGs

Extreme Poverty Trends

Income poverty has decreased significantly since the 1980s, both in number and percentage of people affected
Decrease is largely in Asia
Sub-Saharan Africa shows less significant decrease
COVID-19 pandemic and war in Ukraine disrupted downward trend in some parts, potentially increasing the number of people living in extreme poverty

Millennium Development Goals (MDGs) (2000-2015)

Eight goals ratified by 189 UN member states
Goal 1: Eradicate extreme poverty and hunger
Goal 2: Achieve universal primary education
Goal 3: Gender equality and empowering women
Goal 4: Reduce child mortality
Goal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria, and other diseases
Goal 7: Ensure environmental sustainability
Goal 8: Develop global partnership for development

Sustainable Development Goals (SDGs) (2015-2030)

Replace the MDGs
17 goals, 169 targets, and 304 indicators
Focus on broader range of issues, including sustainability
Aims to achieve more than just eradication of poverty
Some criticism about too many goals, making them harder to achieve

Criticism of MDGs and SDGs

Criticism that the number of goals is too high, making it harder to achieve them all
Issues with targets being too relative, not considering starting points of different countries
Concerns on lack of focus on sustainability
Some suggestions to improve focusing on the most impactful goals

Malthusian Trap and Industrial Revolution

Malthusian trap: population growth outpacing resource growth, leading to poverty
Industrial Revolution: an escape from the Malthusian trap, enabling increased food production and economic growth

Poverty Traps

Poverty traps refer to situations where poor countries struggle to escape poverty due to various factors:
Bad economic policies
Financial insolvency or poor governance
Adverse geographic conditions (landlocked, mountainous)
Cultural barriers
Geopolitical instability
Lack of investment

Aid and Assistance

Developed nations have a responsibility to assist developing countries
Official Development Assistance (ODA) is insufficient, not reaching the 0.7% target set by the UN
Issues of effectiveness and corruption are sometimes raised.

Global Income Evolution

Global income and GDP per capita have grown, but inequality persists
In 1800, most of the world lived in extreme poverty; this has decreased significantly over time
Current distribution appears as a single-humped graph (more people in middle income categories)

Differences between Rich and Poor Countries

Gap in terms of purchasing power parity (PPP) is narrower compared to exchange rates
Relative GDP per capita (PPP) of high-income countries is decreasing

Global Income Inequality

Global income inequality decreased in recent decades due to strong economic growth in countries like China and India.
Inequality increased within certain rich countries since the 1980s.
Geographical location is important for economic opportunities.
There is recognition that issues such as access to technology, trade, and governance are important factors in development.

Approaches to Development

Market approach: Limited government intervention, focus on free markets, and private property
State approach: Significant government intervention to control resources and redistribute wealth
Blended approach: Combines aspects of both market and state approaches, aiming to find a balance, particularly helpful for countries with specific needs in initial stages.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores the definitions and measurements of poverty, including both absolute and relative poverty. It also covers the impact of factors like the COVID-19 pandemic on poverty trends and the significance of the Millennium Development Goals. Test your knowledge on these crucial global issues.