POVERTY.pdf

WHAT IS POVERTY? Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can't be met. Source: https://www.investopedia.com/terms...

WHAT IS POVERTY? Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can't be met. Source: https://www.investopedia.com/terms/p/poverty.asp THEORIES OF POVERTY Classical and neoclassical Classical traditions view individuals as largely responsible for their own destiny, choosing in effect to become poor (e.g. by forming lone-parent families). The concept of ‘sub- cultures of poverty’ implies that deficiencies may continue over time, owing for example to lack of appropriate role models, and that state aid should be limited to changing individual capabilities and attitudes (i.e. the laissez-faire tradition). Neoclassical theories are more wide ranging and recognize reasons for poverty beyond individuals’ control. These include lack of social as well as private assets; market failures that exclude the poor from credit markets and cause certain adverse choices to be rational; barriers to education; immigrant status; poor health and advanced age; and barriers to employment for lone-parent families. Looking at the classical and neoclassical approaches together, their main advantages reside in the use of (quantifiable) monetary units to measure poverty and the readiness with which policy prescriptions can be put into practice. They also highlight the influence of incentives on individual behavior as well as the relationship between productivity and income. Criticism of these approaches highlights their overemphasis on the individual (without, for instance, taking into account links with the community) and the focus on purely material means to eradicate poverty. Keynesian/neoliberal Even though the neoliberal school led by the new-Keynesians also adopts a money- centered, individual stance towards poverty, the importance assigned to the functions of the government allows for a greater focus on public goods and inequality. For instance, a more equal income distribution can facilitate the participation of disadvantaged groups of society in the type of activities that are deemed essential under broader notions of poverty. On the other hand, new-Keynesians are in line with neoclassical economists in their belief that overall growth in income is ultimately the most effective element in poverty removal. Publicly provided capital (including education) has an important role to play, with physical and human capital believed to be the foundation for economic prosperity. Unlike the classical approach, unemployment, viewed as a major cause of poverty, is largely seen as involuntary and in need of government intervention to combat it. Excessive inflation, high sovereign debt and asset bubbles are other macroeconomic factors, besides weak aggregate demand, believed to cause poverty. Marxian/radical By suggesting radical changes in the socio-economic system, Marxian economists and other radical theorists highlight the possibility that economic growth alone may be insufficient to lift poor people out of (relative) poverty, because those who belong to certain classes may not reap any of the benefits of overall income growth. Similarly, by emphasizing the concept of class, it provides a shift in perspective, focusing on group (rather than individual) characteristics, with individuals’ status considered dependent on the socio-economic environment in which they live. Nevertheless, adequacy of income remains a key factor. Within a capitalist system, alleviation of poverty may require minimum wage laws, action to eliminate dual labor markets, and antidiscrimination laws (seen as one of the most effective anti-poverty strategies). The exploitation of the poor by the rich groups in society may also occur via the quality of the environment; for example, the poor tend to suffer most from air pollution (normally generated by the wealthier groups) given their residential location. A further contribution of Marxian/radical economists is the sense that poverty is a moral as well as a technical issue. This is often lacking in more mainstream economic frameworks, except when they (e.g. Sen) integrate political theories of justice in their analytical framework. Social exclusion and social capital Another strand of the literature stresses the interrelation between social exclusion, social capital and the occurrence of poverty and recognizes the importance of the structural characteristics of society and the situation of certain groups. Social exclusion and social capital theories are, among all the reviewed approaches, arguably the ones that focus most on understanding the intrinsic processes that allow deprivation to arise and persist. Nevertheless, the wide definition of poverty considered under these theories comes at the cost of being less precisely defined and more challenging to quantify and address by policy. CAUSES OF POVERTY 1. Inadequate access to clean water and nutritious food Currently, more than 2 billion people don’t have access to clean water at home, while over 800 million suffer from hunger. You might think that poverty causes hunger and prevents people from accessing clean water (and you would be right!), but hunger and water insecurity are also big reasons why people struggle to escape extreme poverty. If a person doesn’t get enough food, they simply don’t have the strength and energy needed to work, while lack of access to food and clean water can also lead to preventable illnesses like diarrhea. And when people must travel far distances to clinics or spend what little money remains on medicine, it drains already vulnerable populations of money and assets, and can knock a family from poverty into extreme poverty. Even if clean water sources are available, they’re often located far from poor, rural communities. This means that women and girls collectively spend some 200 million hours every day walking long distances to fetch water. That’s precious time that could be used working, or getting an education to help secure a job later in life. 2. Little or no access to livelihoods or jobs This might seem a bit like a “no brainer.” Without a job or a way to make money, people will face poverty. But it’s easy to assume that if someone wants a job, they could have one. That just isn’t true, particularly in developing and rural parts of the world. Dwindling access to productive land (often due to conflict, overpopulation, or climate change), and overexploitation of resources like fish or minerals is putting increasing pressure on many traditional livelihoods. In the Democratic Republic of Congo (DRC) for example, most of the population lives in rural communities where natural resources have been plundered over centuries of colonialism — while conflict over land disputes has forced people from the land they relied upon for food and money. Now, more than half of the country lives in extreme poverty. While inconsistent work and low paying jobs can land a family in poverty, absolutely no work means that a family can’t get by without assistance. 3. Conflict Conflict can cause poverty in several ways. Large scale, protracted violence that we see in places like Syria can grind society to a halt, destroy infrastructure, and cause people to flee, forcing families to sell or leave behind all their assets. In Syria, around 70% of the entire population now lives below the poverty line — this in a country where extreme poverty was once very rare. Women often bear the brunt of conflict: during periods of violence, female-headed households become very common. And because women often have difficulty getting well-paying work and are typically excluded from community decision-making, their families are particularly vulnerable. But even small bouts of violence can have huge impacts on communities that are already struggling. For example, if farmers are worried about their crops being stolen, they won’t invest in planting. Women are particularly vulnerable in these kinds of conflicts, too, as they often become the targets of sexual violence while fetching water or working alone in the fields. 4. Inequality There are many different types of inequality in the world, from economic to social inequalities like gender, caste systems, or tribal affiliations. But no matter the inequality, it generally means the same thing: unequal or no access to the resources needed to keep or lift a family out of poverty. Sometimes inequalities are obvious, but in other situations, it can be subtle — for example, the voices of certain people or groups might not be heard in community meetings, meaning they don’t get a say in important decisions. Regardless, these inequalities mean that the people affected don’t have the tools they desperately need to get ahead, and for already vulnerable families, this can mean the difference between being poor or living in extreme poverty. 5. Poor education Not every person without an education is living in extreme poverty. But most of the extremely poor don’t have an education. And why is that? There’s a lot of barriers stopping children from going to school. Many families can’t afford to send their children to school and need them to work. More still don’t see a benefit in educating girls. Education is often referred to as the great equalizer, and that’s because education can open the door to jobs and other resources and skills that a family needs to not just survive, but thrive. UNESCO estimates that 171 million people could be lifted out of extreme poverty if they left school with basic reading skills. And, with even more education, world poverty could be cut in half. 6. Climate change You might be stunned to learn that the World Bank estimates that climate change has the power to push more than 100 million people into poverty over the next ten years. As it is, climate events like drought, flooding, and severe storms disproportionately impact communities already living in poverty. Why? Because many of the world’s poorest populations rely on farming or hunting and gathering to eat and earn a living. They often have only just enough food and assets to last through the next season, and not enough reserves to fall back on in the event of a poor harvest. So when natural disasters (including the widespread droughts caused by El Niño) leave millions of people without food, it pushes them further into poverty, and can make recovery even more difficult. 7. Lack of infrastructure Imagine that you have to go to work, or to the store, but there are no roads to get you there. Or heavy rains have flooded your route and made it impassable. What would you do then? A lack of infrastructure — from roads, bridges, and wells to cables for light, cell phones, and internet — can isolate communities living in rural areas. Living “off the grid” means the inability to go to school, work, or market to buy and sell goods. Traveling farther distances to access basic services not only takes time, it costs money, keeping families in poverty. Isolation limits opportunity, and without opportunity, many find it difficult, if not impossible, to escape extreme poverty. 8. Limited capacity of the government Many people living in the United States are familiar with social welfare programs that people can access if they need healthcare or food assistance. But not every government can provide this type of help to its citizens — and without that safety net, there’s nothing to stop vulnerable families from backsliding further into extreme poverty if something goes wrong. Ineffective governments also contribute to several of the other causes of extreme poverty mentioned above, as they are unable to provide necessary infrastructure or ensure the safety and security of their citizens in the event of conflict. 9. Lack of reserves People living in poverty don’t have the means to weather the storms of life. So when there is a drought, or conflict, or illness, there is little money saved or assets on hand to help. In Ethiopia for example, repeated cycles of drought have caused harvest after harvest to fail, causing a widespread hunger crisis. To cope, families will pull their children from school, and sell off everything they own to eat. That can help a family make it through one bad season, but not another. For communities constantly facing climate extremes or prolonged conflict, the repeated shocks can send a family reeling into extreme poverty and prevent them from ever recovering. Source: https://reliefweb.int/report/world/top-9-causes-global-poverty EFFECTS OF POVERTY Poverty stretches across the globe affecting almost half of the world’s population. Its effects reach deeper. Uniquely connected to different causes, the effects of poverty are revolving—one result leads to another source leads to another consequence. To fully understand the effects of poverty, the causes have to be rooted out to develop strategies to end hunger and starvation for good. Let’s discuss some of the top effects of poverty. Poor Health Globally, millions suffer from poverty-related health conditions as infectious diseases ravage the lives of an estimated 14 million people a year and are of the top effects of poverty. These diseases are contracted through sources like contaminated water, the absence of water and sanitation, and lack of access to proper healthcare. The list is broad and long. Here are the top diseases commonly linked to poverty. Malaria: Malaria is urbanely referred to as the poor man’s disease, as more than a million people living in poverty die from it each year. Caused by a parasite, malaria is contracted through mosquito bites. Most prevalent in sub-Saharan Africa, malaria affects the lives of many in 97 countries worldwide. Tuberculosis: Often referred to as TB, tuberculosis is a bacteria-borne disease. The bacterium, Mycobacterium tuberculosis, targets the lungs. It also affects the kidneys, brain, and spine. When discussing the effects of TB worldwide, it must be broken down by burden—high burden TB and low burden TB—all of which has to do with the number of cases that impact a country. High burden TB affects more than 22 countries, as low burden TB accounts for 10 cases per 100,000 people in a geographical location. HIV/AIDS: HIV stands for human immunodeficiency virus. This infection attacks the immune system and is contracted by contact with certain fluids in the body. If HIV is left untreated, certain infections and diseases can take over the body and cause a person to develop AIDS (Acquired Immune Deficiency syndrome). Thirty-six million people in the world have HIV/AIDS. In countries like Zambia and Zimbabwe, one in five adults live with HIV or AIDS. Continuing the fight against poverty through economic expansion will help eliminate poverty-related illnesses and raise the value of health in poor communities. Crime There’s an old adage that says, “If a man don’t work, he don’t eat.” That’s not the case for a large number people living in poverty. Lack of economic opportunity leads to impoverishment which then leads to crime. Global unemployment is at a high point. One hundred ninety-two million people around the world are jobless. In some parts of the world, mainly poor parts, unemployment standings will drive this number higher. In a study done on youth in the Caribbean, it was determined that joblessness fueled criminal activity in those aged 15 through 24. Because of the struggles in the Caribbean job market, the murder rates are higher there than in any other region in the world. The crime rate affects 6.8 percent of the Caribbean population against the world average of 4.5 percent, calculating the global rate per 100,000 people. People who live below the poverty line and don’t have access to sufficient economic opportunity, live by any dangerous means necessary. Lack of Education There is a direct correlation between low academic performance and poverty. Children who are exposed to extreme levels of poverty have difficulty with cognitive development, speech, and managing stress, which leads to adverse behavior. In the country of Niger—the most illiterate nation in the world—only 15 percent of adults have the ability to read and write. Eritrea follows on the heels of Niger: with a population of 6 million, the average person only achieves four years of school. In these poor locations, young adults and children have to leave school to work to help provide additional income for their families. Other children don’t have access to education due to decent schools being too far for them to travel to. On the other hand, schools nearby don’t have enough materials and resources to properly educate children. The conditions of the schools are just as poor as the children’s living conditions. Where there’s poverty, there’s lack of education, joblessness, and poor health. The key to destroying the top effects of poverty is to attack the causes. More funding is needed for programs such as Child Fund International—a program that brings resources to children in poor communities. The International Economic Development Council supports economic developers by helping them create, retain, and expand jobs in their communities. And then there are the international efforts of the World Health Organization that fights to bring vaccinations and health-related resources to impoverished communities suffering from the infectious diseases of poverty. With these efforts along with other strategies, we can continue making strides to end the effects of poverty. Source: https://borgenproject.org/5-effects- poverty/#:~:text=Where%20there's%20poverty%2C%20there's%20lack,to%20children %20in%20poor%20communities. SOL UT IO NS TO REDUC E POVERT Y Nearly half of the world’s population lives at or below the poverty line; out of the 2.2 billion children in the world, one billion of them live in poverty. Though this issue may not be as prevalent or visible in the U.S., it is an issue that affects everyone. Small steps can be taken to better this problem, leading to possible solutions to global poverty. Properly Identifying Issues One of the largest issues involving poverty is the inability to properly identify contributing factors at the micro and macro level. Many organizations assume that local aid alone will better the problem, but it is only with the combined efforts of local, state and national governments that poverty will lessen. Allocating Proper Time and Resources Preventable diseases such as pneumonia claim the lives of nearly two million children per year. Without proper planning, which includes allocating enough time, money and volunteer work, global poverty will continue to exist. Currently, the U.S. spends only about one percent of the federal budget on foreign aid. By creating detailed plans and projects aimed at helping other nations, global poverty will begin to lessen. Creating organizations and communities to work locally Enacting policy is not the only solution to global poverty, as policy often does not affect those suffering directly. As previously stated, efforts must come from both local and federal domains. Essentially, while policy is created to change legislation, local organizations enact the changes, directly helping those in need. On top of that, working with entire communities instead of specific individuals has been proven to be more effective. Creating Jobs Creating jobs in poverty-ridden communities allows individuals to pull themselves out of poverty. This solution to global poverty is arguably one of the most effective. Federal governments can achieve this by rebuilding their infrastructures, developing renewable energy sources, renovating abandoned housing and raising the minimum wage. By raising the minimum wage in existing jobs, companies would combat recent inflation in both developed and developing countries. This change in the states (in places such as Seattle and Washington) has been shown to reduce poverty. Providing Access to Healthcare Unpaid medical bills are the leading cause of bankruptcy. Having access to free or affordable healthcare would allow families to allocate the money they would normally spend on healthcare elsewhere.  Empowering Women Female empowerment in developing countries often comes from organizations that work to reduce poverty by allowing them to take leadership positions and advance socially and economically. Microfinancing Microfinancing provides improvements to socioeconomic status by providing access to more, larger loans, providing better repayment rates for women, as they are less likely to default on their loans than men and extending education programs for loan-payers’ children. It can also improve health and welfare by providing access to clean water and better sanitation, create new jobs and teach developing countries to be more sustainable. Microfinancing continues to prove that even the smallest amounts of credit can be one of the many solutions to global poverty. Provide paid leave and paid sick days Paid maternal and paternal leave allows families to save money after childbirth, as having a child is a leading cause of economic hardship. Furthermore, giving workers paid sick days allows them to properly get over their illness without worrying about missing a paycheck or receiving a paycheck with fewer funds than normal. Supporting equal pay for men and women Closing the wage gap between men and women would reduce 50 percent of poverty experienced by women and their families. This would also add money to the nation’s gross domestic product. PROGRAMS OF THE GOVERNMENT TO ALLEVIATE POVERTY As of 2015, 22 million Filipinos are still living in the depths of poverty. That equates to one-fifth of the population. Poverty presents itself in a vicious cycle affecting mainly the uneducated population who tend to live in large family units. These family units usually have only one head of the household who provides income for the entire family. The Filipino government is actively trying to speed up its poverty reduction plan. Their long-term goal is to be able to provide more economic prospects, which in turn would help many of their citizens earn a higher and more stable income. A report by the World Bank shows how this economic growth helped decline the rate of poverty. Poverty in the Philippines dropped by 26.6 percent in 2006 to 21.6 percent in 2015. Key Programs to Help Reduce Poverty in the Philippines Some factors that resulted in the drop-in poverty are the expansion of jobs outside the agriculture sector, government transfers and getting qualified Filipinos to help through the Pantawid Pamilyang Pilipino Program. This particular program which is a government cash-handout project has helped reduce poverty by 25 percent. Most of the Philippines are hit with massive typhoons and still have an armed conflict. These scenarios are a real struggle to the everyday worker who, even after a long day, still goes back home poor. Due to these factors, many citizens end up leaving behind farm work and go find work in manufacturing hubs in the urban areas of the country. These jobs outside the agricultural dome have accounted for two-thirds of the progress in reducing poverty in the Philippines. One of the key strategies to help bring down poverty in the Philippines is providing birth control to the poor. In a radical move for the heavily populated Catholic country, the President made readily available birth control to nearly 6 million women who cannot afford it. Providing birth control is a powerful tool for families who now have full control over family planning. The hope is by giving the women and family units more control, they will have fewer children. This, in turn, will mean that families can provide more responsibly. This new policy will help the government reach its goal of reducing poverty by 13 percent by 2022. The current Filipino population is at 104 million and continues to rise at an alarming rate of 1.7 percent each year. This new law will enable families to control how many children they want. It will also hopefully take down the population rate to 1.4 percent each year once the law is fully executed. S&T Innovations for the Base of the Pyramid in Southeast Asia (iBoP Asia) In partnership with Canada’s International Development Research Centre (IDRC-CRDI) iBoP Asia is a pioneering effort in Southeast Asia that aims to promote and mainstream “base of the pyramid” (BoP) and science and technology (S&T) approaches to alleviating poverty. The base of the pyramid is a socio-economic designation for the roughly 4 billion people who live on less than US$4 a day. Through this Project, the School has taken on a key role in furthering the BoP initiative in the region, and serves as a venue for interaction and collaboration among research partners and key actors in government, business, the academe and civil society. The Project maintains an online portal to facilitate information-sharing and dialogue among partners. Gawad Kalinga Builders’ Institute (GKBI) The School is spearheading the efforts to build capacities for Gawad Kalinga (GK) staff, volunteers, and partners through the GK Builders’ Institute. This partnership produced the first GK Field Manuals for executive committees, volunteers, and caretakers, copies of which have been distributed in the Philippines, Singapore, the United States and Australia. The GKBI also designed the GK Caretaker Training Program and was also involved in crafting Bayan-Anihan (BA), GK's food sufficiency program. The GKBI in the School of Government has also been instrumental in attracting more LGU's to partner with GK through its Township Development Program. It is currently designing and piloting more training modules and new programs in response to GK's growing needs. Child and Family Development Program (CFDP) In partnership with Child Fund-Japan Established in 2001, the Program works with the communities of barangays 598, 599, 600, and 601, which are located in the densely populated district of Old Sta. Mesa in the City of Manila. With 522 children as beneficiaries, CFDP utilizes a holistic approach to address the children’s intellectual, physical, psycho-social, emotional and spiritual needs. The Program also addresses development issues involving the children’s immediate support structures such as their families and their community. Assessing Local Government Capacity to Manage Natural Disaster Risks in the Philippines In partnership with the World Bank This is a project of ASoG with the Earthquakes and Megacities Initiative (EMI) and the Institute for International Rural Reconstruction (IIRR). It aims to support LGUs in the Philippines in reducing their vulnerabilities to the impacts of natural disasters, in managing related risks, and in improving access to financing for risk mitigation and post‐disaster recovery efforts. The Project has produced a ranking of disaster-prone provinces in the Philippines and developed a disaster risk management (DRM) assessment framework for LGUs. Service Delivery Assessment 2 – Plan-to-Budget Link In partnership with Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) The Plan-to-Budget Link Project is helping the municipality of Barugo in the province of Leyte to harmonize the local government’s planning, programming, budgeting, monitoring and evaluation activities, and link development plans to current programs and budgets. The Project is implemented under the guidance of the Department of the Interior and Local Government (DILG). The ASoG provides technical assistance to strengthen citizen group engagement with the LGU in the plan-to-budget link process. Likewise, the LGU also receives support in providing an enabling environment for citizen engagement. Regulatory Simplification Project In partnership with the World Bank-International Finance Corporation (IFC) The School and the IFC currently work with progressive city governments to showcase the positive results of business regulation reform and provide a demonstration effect for other LGUs. Marikina City and Quezon City have started to simplify their new business registration processes under this project, and steps in forming the Simplification Project Team in the City of Manila have been initiated. The expected overall benefit is increased economic activity, as a result of more new businesses registered, and higher private sector savings owing to reduced transaction costs.