Reading 1- study sheet.docx

Reading 1 / Page 1 1. **Severe Poverty** - As defined by the World Bank, it is a condition where individuals have less than $1.90 to live on every day. 2. **Poverty Line** - A monetary threshold under which an individual is considered to be living in poverty by the World Bank's standards. 3. **Purch...

Reading 1 / Page 1 1. **Severe Poverty** - As defined by the World Bank, it is a condition where individuals have less than $1.90 to live on every day. 2. **Poverty Line** - A monetary threshold under which an individual is considered to be living in poverty by the World Bank's standards. 3. **Purchasing Power** - The actual goods and services that can be bought with the money individuals have, rather than the mere amount of money itself (implied by the text's explanation that living on $1.90 a day means having access to what that amount can buy, not necessarily having the cash). 4. **Relative Value of Money** - The concept that the value of a specific amount of money varies greatly depending on the country and its economy, as one or two dollars might buy more in some countries compared to others. What does the World Bank's definition of severe poverty signify about the purchasing power of individuals living under this threshold? A) They have exactly $1.90 in cash to spend each day. B) They have access to goods and services equivalent to what can be bought with $1.90 in the local economy. C) They can afford luxury items but choose to live with less. D) They have sufficient funds to meet all their needs and save for the future. **Correct Answer:** B) They have access to goods and services equivalent to what can be bought with $1.90 in the local economy. Reading 1 / Page 2 1. **Minimum Living Standards** - The text implies that living on $1.90 a day is a fraction of the minimum wage in the United States, suggesting that it is far below the minimum living standards. 2. **Basic Needs** - It mentions the struggle to fulfill basic needs, such as food, and the constant uncertainty about being able to provide for oneself and one's family. 3. **Allocation of Income** - The severely poor spend the bulk of their income on food, often of poor quality, leaving little for anything else. 4. **Long-term Reality** - Severe poverty is not a temporary phase but a long-term reality for many, affecting access to education and healthcare. 5. **Vulnerability to Contingencies** - A small emergency can disrupt the entire existence of those living in severe poverty, as they live hand-to-mouth with no safety net. 6. **Lack of Wealth** - Unlike income, wealth is the accumulation of resources, and the global poor have almost nothing in this regard, leaving them with no cushion against emergencies or opportunities to plan for the future. 7. **Social and Political Consequences** - Poverty can lead to stigma, political exclusion, and a lack of social standing, which may influence the quality of life and access to resources. 8. **Employment Risks** - The need to survive may drive individuals in severe poverty to accept any work available, regardless of the dangers or conditions. Which of the following best describes the long-term impact of severe poverty on an individual's life, as outlined in the text? A) It only affects their ability to purchase non-essential goods and services. B) It leads to a comfortable lifestyle as long as basic needs are met. C) It creates a persistent state of vulnerability and lack of security, impacting access to basic needs, education, and healthcare. D) It encourages the accumulation of wealth as a buffer against future emergencies. **Correct Answer:** C) It creates a persistent state of vulnerability and lack of security, impacting access to basic needs, education, and healthcare. Reading 1 / Page 3 1. **Hand-to-mouth existence**: A way of life where people live with only enough money or food to satisfy their immediate needs. 2. **Vulnerable Groups**: The text specifically mentions that most of the world's severely poor are women, who may be particularly vulnerable to control or abuse due to their economic status. 3. **Political Repression and Exclusion**: The poor may face political repression and exclusion based on religion or ethnicity, leading to a vicious cycle of poverty and lack of political voice. 4. **Marginalization of Immigrants**: The poor who migrate to escape their conditions may still face a precarious and marginalized existence in the country they move to. 5. **Poverty as Multifaceted**: Beyond a lack of income, poverty also encompasses a lack of access to education, healthcare, and sanitary living conditions. 6. **Environmental Health Risks**: The poor often suffer from waterborne diseases and exposure to environmental toxins due to poor quality water and living conditions. Which of the following best describes the concept of "hand-to-mouth existence" as used in the text? A) Living with sufficient savings to cover future needs. B) Having enough resources to live comfortably and securely. C) Surviving with only immediate necessities with no guarantee of future provisions. D) Investing in long-term assets for a secure future. **Correct Answer:** C) Surviving with only immediate necessities with no guarantee of future provisions. Reading 1 / Page 4 1. **The True Cost of Basic Needs**: The text discusses how the cost of water, a basic necessity, can consume a significant portion of a family’s income, especially in developing countries. 2. **Amartya Sen's Capabilities Approach**: Economist and philosopher Amartya Sen's theory that what truly matters for assessing poverty is what people are able to do—their "capabilities"—and not just their income level. 3. **Multidimensional Poverty Index**: A tool that measures poverty by considering multiple factors, including access to healthcare and education, and basic utilities like water and electricity, to provide a more comprehensive understanding of poverty. 4. **Critique of Income-Based Poverty Line**: The critique that the World Bank’s $1.90 poverty line is too simplistic and fails to capture the multifaceted nature of poverty. 5. **Complex Models of Poverty**: The notion that more complex models of poverty can provide better insights and inform more effective responses to global poverty challenges. Which of the following statements aligns with Amartya Sen's capabilities approach to poverty? A) Poverty is best measured by the dollar income of individuals. B) The severity of poverty can be determined by comparing GDP per capita across nations. C) Poverty should be assessed based on the range of things that people can do and be in their lives. D) The main indicator of poverty is the lack of access to clean water only. **Correct Answer:** C) Poverty should be assessed based on the range of things that people can do and be in their lives. Reading 1 / Page 5 1. **Multidimensional Poverty**: This concept goes beyond income to include access to healthcare, education, and other basic services like water and electricity. It's suggested by the criticism of the World Bank's $1.90 poverty line as too simplistic. 2. **Capabilities**: Introduced by economist and philosopher Amartya Sen, this concept shifts the focus from what people have (income) to what they are able to do and to be – their 'capabilities' or opportunities to lead the kind of lives they value. 3. **Multidimensional Poverty Index (MPI)**: This is an index that measures poverty by considering various factors including healthcare, education, and living standards. 4. **Political Marginalization and Inequalities of Status**: Poverty is also characterized by lack of political influence and social status, which are integral to the lived experience of the poor. 5. **Resilience and Coping with Poverty**: The text highlights the resilience and ingenuity of those living in poverty and their expertise in coping with uncertainty. 6. **Poverty-Related Deaths**: An alarming statistic is provided that fifty thousand people die from poverty-related causes daily, many of whom are children who could have been saved with resources readily available in wealthier countries. According to Amartya Sen's capabilities approach, what does a more complete understanding of poverty include? A) Solely the lack of money and financial resources. B) Only the political marginalization and lack of social status. C) The opportunities and freedoms that individuals have to lead lives they value. D) The success in reducing aviation accidents over the years. **Correct Answer:** C) The opportunities and freedoms that individuals have to lead lives they value. Reading 1 / Page 6 1. **Gender Disparities in Poverty**: The text notes that most of the world's poor are female, with women typically working longer hours for less pay and having poorer access to financial services. 2. **Vulnerability of Specific Demographics**: Older women, unmarried mothers, and children are highlighted as particularly vulnerable groups within the poor population. 3. **Rural Poverty**: A significant proportion of the world's poor live in rural areas and work in agriculture. 4. **Ethnic and Racial Disparities**: There's an acknowledgment of the racial and ethnic dimensions of poverty, with non-white individuals disproportionately represented among the poor. 5. **Legacy of Colonialism**: The text suggests that colonialism has played a role in the development and security of countries, implying a link between historical colonization and current poverty levels. 6. **The Daily Reality of Poverty**: There is an emphasis on understanding poverty as a lived experience, not just a collection of statistics. Based on these points, here is a sample test question: Which of the following statements is supported by the text's discussion of poverty? A) Rural areas have less poverty than urban areas due to agricultural opportunities. B) Poverty affects all demographics equally regardless of gender or age. C) The historical effects of colonialism have no significant impact on current poverty levels. D) Poverty disproportionately affects women and is often characterized by racial and ethnic disparities. **Correct Answer:** D) Poverty disproportionately affects women and is often characterized by racial and ethnic disparities. Reading 1 / Page 7 1. **Global Distribution of Poverty**: It acknowledges that the majority of the world's poor do not live in the affluent West and that most live in what is termed the 'developing world,' particularly in India and other poor states in Asia. 2. **Shifts in Poverty Trends**: The text indicates a shift, with severe poverty increasingly becoming concentrated in Africa, while many Asian economies have seen significant numbers of their citizens rise above the poverty line. 3. **State Assistance in Developed Countries**: In 'developed countries,' even the poor typically have some access to state assistance such as free education, healthcare, and out-of-work benefits, which distinguishes their experience of poverty from that in developing countries. 4. **Poverty Measurement**: The World Bank's poverty line is discussed, suggesting that if used in Europe or the US, it would identify a very small fraction of the population as living below it. 5. **Insight into Poverty**: The Dollar Street website is mentioned as a resource that provides insights into the lives of poor families around the world. Based on these points, here is a sample test question: According to the text, how has the global distribution of severe poverty shifted in the twenty-first century? A) Severe poverty has remained constant in both Asia and Africa. B) Severe poverty has decreased in the West but increased in Asia. C) Severe poverty is increasingly concentrated in Africa, while many Asian countries have seen reductions. D) Severe poverty has been eradicated in developed countries due to state assistance programs. **Correct Answer:** C) Severe poverty is increasingly concentrated in Africa, while many Asian countries have seen reductions. Reading 1 / Page 8 1. **Insights into Extreme Poverty**: The reference to the Dollar Street website suggests a resource that provides a glimpse into the lives of extremely poor families, highlighting the day-to-day conditions of their existence. 2. **Geographical Distribution of Poverty**: It is noted that severe poverty is predominantly found outside of the affluent West, with a large concentration in developing countries, particularly in Asia and increasingly in Africa. 3. **Trends in Global Poverty**: The text mentions a significant reduction in global poverty over recent decades, with the number of people living in severe poverty decreasing from approximately two billion in 1990 to eight hundred million. 4. **Persistent Challenges Despite Reductions**: Despite the reduction in the number of people living in severe poverty, the text emphasizes that poverty is multidimensional, involving more than just income, and includes access to healthcare, education, and safe living conditions. 5. **Public Perception and Pessimism**: There is a mention of a disconnect between public perception and reality, where many in the West believe that poverty is not decreasing, which can lead to pessimism regarding efforts to tackle the problem. 6. **Multidimensional Nature of Poverty**: The text reiterates that escaping poverty is not just about crossing the World Bank's poverty line since many who do are still faced with inadequate access to essential services and may live in hazardous conditions. What does the reduction in the global number of people living in severe poverty over the last few decades suggest? A) Efforts to alleviate poverty have been completely successful and no further action is needed. B) The situation of the world's poor has not improved since people's income levels remain largely unchanged. C) While there has been significant progress, multidimensional challenges of poverty persist, demanding comprehensive solutions. D) Poverty has primarily shifted from Asia to the West, with most poor now living in developed countries. **Correct Answer:** C) While there has been significant progress, multidimensional challenges of poverty persist, demanding comprehensive solutions. Reading 1 / Page 9 1. **Measurement Beyond the Poverty Line**: There's an emphasis on not just whether people have escaped poverty but also how far and how securely they have done so. 2. **Global Inequality**: The text points out that while some parts of the world have seen significant progress, others have not, and this disparity is stark. 3. **Societal Health and Success**: Western societal leaders often gauge the health or success of a society by its treatment of the most vulnerable, as exemplified by initiatives like 'No Child Left Behind' and 'Every Child Matters'. 4. **Global Standards and Human Progress**: There's a call for a global standard that would consider the quality of life of the poorest as a benchmark for human progress. 5. **Advancements in Global Health and Life Expectancy**: The text contrasts the improvements in life expectancy and disease control with the continuing struggles of the world's poor. What does the text suggest as a more appropriate measure of societal health and progress in addition to the reduction of poverty numbers? A) The depth and security of the escape from poverty for those who are no longer classified as severely poor. B) The ability to maintain consistent economic growth rates over a decade. C) The number of successful education reforms enacted in developed countries. D) The increase in life expectancy across all segments of society without consideration of quality of life. **Correct Answer:** A) The depth and security of the escape from poverty for those who are no longer classified as severely poor. Reading 1 / Page 10 1. **Human Progress**: It mentions that humanity has only recently made a 'Great Escape' from the miserable conditions that were common throughout most of human history. People today are generally healthier, taller, and better nourished than their ancestors. 2. **Democratization**: There has been a significant increase in the number of democratic countries between 1970 and 2000, which has allowed ordinary citizens a greater say in the decisions that affect them. 3. **Expansion of Suffrage**: The franchise within democratic countries has expanded to include not just the upper classes but also the middle and working classes, as well as women and ethnic minorities. 4. **Continuing Challenges**: Despite these advances, the text notes that progress in material rates and growth in developed countries has become less certain, especially for younger generations. What does the text suggest about the nature of progress in human societies? A) It has been uniform across all regions and demographics. B) It has been substantial but uneven, with significant advancements in health and democracy but ongoing economic uncertainties. C) It has been largely confined to economic growth without significant social or political change. D) It has eliminated poverty and inequality across the globe. **Correct Answer:** B) It has been substantial but uneven, with significant advancements in health and democracy but ongoing economic uncertainties. Reading 1 / Page 11 1. **Economic Austerity**: Post-recession austerity policies have led to cuts in social services, making housing and higher education unaffordable for many. 2. **Wage Stagnation**: There has been a stagnation or decline in inflation-adjusted wages for middle-income workers since the 1970s, and a decrease for those on low incomes. 3. **Income Distribution**: The share of national income going to labor has decreased, while the share going to capital owners has increased. 4. **Wealth Creation and Inequality**: Despite austerity, substantial wealth continues to be created, with a growing number of millionaires and billionaires. 5. **Philanthropy and Wealth**: Some of the wealthy have become philanthropists with significant personal power over decisions affecting many lives, but not all engage in such endeavors. 6. **Lifestyles of the Wealthy**: Publications like the Financial Times' 'How To Spend It' provide insights into the lives of the very rich, highlighting disparities in lifestyle. 7. **Poverty vs. Inequality**: The text makes a distinction between poverty and inequality, pointing out that we live in a world of both enduring poverty and significant national and global inequality. Based on these concepts, here is a sample test question: **Sample Test Question:** What does the text suggest about the relationship between economic trends and wealth distribution in developed countries? A) Austerity measures have uniformly improved the economic well-being of all citizens. B) Wage growth has kept pace with the cost of living since the 1970s. C) There has been a shift in national income from labor to capital, contributing to increased inequality. D) The rise in the number of millionaires and billionaires has eliminated economic inequality. **Correct Answer:** C) There has been a shift in national income from labor to capital, contributing to increased inequality. Reading 1 / Page 12 1. **Wealth Distribution**: The text highlights that significant income growth has been disproportionately captured by the top 1% of earners compared to the poorest 50% of the world's population. 2. **Political Recognition of Inequality**: Movements like Occupy Wall Street have brought attention to the '1 percent', making it a recognized political category. 3. **Concentration of Wealth**: Wealth, as well as income, has become more concentrated, with a small number of individuals owning a large share of wealth. 4. **Inheritance and Wealth Persistence**: There is an increasing trend of wealth being passed down through generations, suggesting a resurgence of inherited wealth as a source of economic disparity. 5. **Globalization and Inequality**: The benefits of globalization have not been evenly distributed, with the wealthy continuing to do exceptionally well while the lower and middle classes in developed countries have not seen proportional gains. 6. **Global Elite**: The '1 percent' has become a more diverse group with new billionaires emerging from countries like China, India, Nigeria, and Latin America, indicating a shift in the global wealth landscape. According to the text, how has globalization affected economic inequality? A) It has reduced economic inequality by distributing wealth more evenly across the globe. B) It has mostly benefited the lower and middle classes in developed countries. C) It has disproportionately benefited the wealthy, contributing to greater global inequality. D) It has completely eliminated the concentration of wealth among the '1 percent'. **Correct Answer:** C) It has disproportionately benefited the wealthy, contributing to greater global inequality. Reading 1 / Page 13 1. **Global Wealth Concentration**: Over half of the global top 1% are from the US and the UK, indicating a high concentration of wealth in these countries. 2. **Global Top 10%**: In the US, around 60% of the population falls into the global top 10% income category, which is a stark contrast to countries like China and India where a significantly smaller percentage of the population falls into this category. 3. **Influence of Country of Birth**: The text argues that one's country of birth has a massive impact on life prospects, even more than factors like class, race, or gender. 4. **Inequalities Between vs. Within Countries**: The disparities in income and wealth between countries are described as being greater than those within countries. 5. **Resource Consumption and Environmental Impact**: The lifestyle in developed countries is more resource-intensive, and this is exemplified by the carbon dioxide emissions per capita, which are significantly higher in countries like the US compared to poorer countries. According to the text, which factor is most influential in determining an individual's economic prospects? A) The individual's level of education and professional occupation. B) The economic policies of the individual's country of residence. C) The individual's country of birth and its relative wealth. D) The global market trends and economic growth rates. **Correct Answer:** C) The individual's country of birth and its relative wealth. Reading 1 / Page 14 1. **Environmental Impact of Wealth**: The text compares the carbon footprint and energy consumption of citizens from various countries, illustrating vast differences based on wealth and development levels. 2. **Global Inequality Trends**: While there is agreement that global inequality increased up to the 1980s, recent decades have seen some countries, such as China, making significant progress, which has affected the global income distribution. 3. **Role of Emerging Economies**: The emergence of a substantial middle class in countries like China has narrowed the gap in global income distribution, suggesting that the rise of emerging economies has had a complex impact on global inequality. 4. **Questioning the Causes of Inequality**: The text challenges the notion that inequality is simply the result of individual effort versus laziness, or good versus bad choices, pointing out that evidence does not support this view. 5. **Work and Wealth**: It is noted that in wealthier countries, citizens tend to work fewer hours, contradicting the idea that greater wealth is always the result of working harder. Based on these concepts, here is a sample test question: **Sample Test Question:** What does the text imply about the relationship between a country's wealth and the working hours of its citizens? A) Citizens in wealthier countries tend to work longer hours than those in poorer countries. B) There is no clear relationship between a country's wealth and the working hours of its citizens. C) Citizens in wealthier countries often work fewer hours than those in less affluent countries. D) The working hours of citizens are uniformly distributed regardless of a country's wealth. **Correct Answer:** C) Citizens in wealthier countries often work fewer hours than those in less affluent countries. Reading 1 / Page 15 1. **Working Hours**: Individuals in countries like Bolivia, China, Egypt, and Turkey work significantly longer hours than those in countries like Australia, Canada, and France, suggesting that effort is not the issue behind economic disparities. 2. **Productivity and Migration**: When people from poorer countries migrate to richer countries, their productivity often increases, indicating that productivity is more influenced by the environment and opportunities available than by personal characteristics. 3. **Access to Education**: In many developing countries, especially in sub-Saharan Africa, access to education is limited, with a small percentage of children attending secondary school or university. 4. **Access to Credit**: The text notes that access to credit is a major obstacle for those in poorer countries, especially in rural areas. Without the ability to borrow money, it is challenging for people to start businesses and for economies to grow. 5. **Financial Services**: Two billion people worldwide lack access to regulated financial services like banks and credit agencies, which hinders economic development. 6. **Gender Disparities**: Women are often at a disadvantage when it comes to accessing credit and financial services. What does the text suggest as a significant factor contributing to the lack of economic development in poorer countries? A) The inherent lack of productivity among the population of poorer countries. B) The longer average working hours compared to wealthier countries. C) Limited access to education and formal financial services that hinder entrepreneurial activities. D) The high level of informal work and the associated punitive interest rates. **Correct Answer:** C) Limited access to education and formal financial services that hinder entrepreneurial activities. Reading 1 / Page 16 1. **Government Policy and Opportunity**: While limited opportunities in the poorest countries are acknowledged, the text argues that this does not absolve these countries of all responsibility for their levels of prosperity. 2. **Success Stories**: Some countries, particularly in East Asia, have successfully lifted millions out of poverty, highlighting the impact of effective politics and policies. 3. **Quality of Political Institutions**: The text emphasizes that inclusive societies with respect for the rule of law and democratic institutions are more likely to experience economic growth and poverty reduction. 4. **Individual Responsibility**: It questions the extent to which individuals in developing countries can be held responsible for their poverty, considering the role of political institutions and the complexity of initiating institutional reform from a starting point of poverty. 5. **Colonial Legacy**: The text notes that colonialism has left some countries with borders and state institutions that do not resonate with local populations, complicating the assignment of responsibility for poverty. 6. **Development Strategies**: For countries at the bottom of the global income ladder, development may require borrowing from international lenders, suggesting that internal opportunities alone may not be sufficient for economic development. Based on these points, a possible test question could be: **Sample Test Question:** What does the text suggest about the relationship between political institutions and economic development? A) Political institutions have no significant impact on a country's economic development. B) Quality political institutions and inclusive policies can greatly enhance a country's prospects for economic growth and poverty reduction. C) Institutional reform is easily achieved in countries starting from a position of grinding poverty. D) Success in economic development is purely a result of individual effort, regardless of political institutions. **Correct Answer:** B) Quality political institutions and inclusive policies can greatly enhance a country's prospects for economic growth and poverty reduction. Reading 1 / Page 17 1. **Policy and Loans**: The text suggests that policies recommended by major lending institutions like the IMF and World Bank, often accompanying loans, have not always led to sustained growth. Some East Asian countries have ignored such advice and prospered by following their own strategies. 2. **Development Opportunities**: There is a suggestion that opportunities for 'catch-up' development for poor countries might have narrowed in the present century. 3. **Individual vs. Collective Responsibility**: The text highlights the difference between individual and collective responsibility. It asserts that assessing whether people 'deserve' to be rich or poor requires looking at the responsibility of individual citizens for the circumstances they find themselves in. 4. **Government Policy Influence**: It is noted that individual citizens in poor countries cannot always be held responsible for the consequences of government policies, especially when they have little opportunity to influence those policies. 5. **Freedom and Democracy**: Approximately 40% of the world's population lives in countries not considered free or democratic, which affects people's ability to influence political decisions and, by extension, their economic conditions. 6. **Corruption and Influence**: The text mentions that many poor people live in countries with significant government corruption and minimal influence over political decisions, which implies that their responsibility for poverty is limited. Based on these points, a possible test question could be: **Sample Test Question:** What does the text imply about the role of individuals in developing countries in shaping their economic conditions? A) Individuals in developing countries are fully responsible for the economic conditions they experience. B) Government policies that individuals cannot influence play a significant role in determining economic conditions in developing countries. C) Developing countries have just as many opportunities for development as wealthy nations if they follow international advice. D) Corruption in government is not a significant factor in the economic development of poor countries. **Correct Answer:** B) Government policies that individuals cannot influence play a significant role in determining economic conditions in developing countries. Reading 1 / Page 18 1. **Role of Luck**: The text suggests that being born into poverty or wealth is often a matter of luck rather than a result of personal choices or effort. 2. **Children in Poverty**: It is argued that children born into poverty are facing an additional misfortune and that holding them responsible for their circumstances would be unjust. 3. **Advantages of Birth**: The text acknowledges that people in the developed world are born with certain advantages that are not the product of their own efforts. 4. **Wealthy Nations and Power**: Wealthy countries are said to maintain their advantages by excluding immigrants or through their influence within international institutions. 5. **Feudal Society Analogy**: Canadian philosopher Joseph Carens is cited, comparing the contemporary world to a feudal society where social roles were assigned at birth and social mobility was extremely difficult. 6. **Equality of Opportunity**: There's a critique of the notion that liberal democratic societies have achieved equality of opportunity when in fact, the circumstances of one's birth continue to have a profound impact on life outcomes. According to the text, what is the primary factor that determines whether a person is born into poverty or wealth? A) The economic policies of the country where they are born. B) The hard work and resilience of the individual's parents. C) The random chance or 'luck' of being born into certain circumstances. D) The efforts made by individuals to escape poverty in their own lives. **Correct Answer:** C) The random chance or 'luck' of being born into certain circumstances. Reading 1 / Page 19 inequality. Key points include: 1. **Complicity in Global Systems**: The text suggests that we might be complicit in perpetuating a global system where the place of birth is a powerful determinant of life prospects. 2. **Local vs. Global Problems**: While there is a tendency to view the disadvantages in developing countries as local issues, the text argues that these are global problems. 3. **Shared Impact of Global Economy**: Poverty and inequality affect the global economy, and when it only works for a few rather than many, everyone is impacted. 4. **Global Economy and Wealthy Countries**: The text points out that the stalling of progress in the global economy affects not just the poor but also ordinary citizens in wealthy countries. 5. **Global Poverty and Inequality**: These are framed as challenges intertwined with other global issues, requiring collective engagement and action. 6. **Climate Change**: The text introduces climate change as an example of a global problem that is widely recognized and must be addressed in conjunction with issues like poverty and inequality. What does the text imply about the nature of poverty and inequality in the context of global issues? A) Poverty and inequality are strictly local issues that do not impact global economic systems. B) Global poverty and inequality are separate from other global challenges and should be addressed independently. C) Poverty and inequality are global problems that are intertwined with issues like climate change, affecting both poor and wealthy nations. D) The global economy is unaffected by poverty and inequality in developing countries. **Correct Answer:** C) Poverty and inequality are global problems that are intertwined with issues like climate change, affecting both poor and wealthy nations. Reading 1 / Page 20 1. **Impact on the Poor**: Climate change will have the most severe impact on the world's poor because they have the least capacity to adapt to its effects. 2. **Adaptability**: Wealthier individuals can afford to move to safer areas or adapt their living conditions in response to climate change, while those living day-to-day have fewer options and resources to do so. 3. **Amplifying Effects**: Inequality in income and wealth not only amplifies the effects of climate change but also makes tackling the issue more difficult. 4. **Understanding Climate Change**: The text suggests taking a step back to understand the fundamental problem of climate change, which involves the burning of fossil fuels and deforestation, leading to increased greenhouse gases in the atmosphere. 5. **Solutions to Climate Change**: Identifying alternative energy sources such as wind, solar, or wave power is presented as a straightforward solution to climate change. According to the text, why is climate change a particularly severe problem for the world's poor? A) They are more responsible for greenhouse gas emissions and thus are more affected by climate change. B) They have a greater number of resources to adapt to changing environmental conditions. C) They are less able to adapt to the effects of climate change due to limited financial and material resources. D) Climate change does not significantly impact the living conditions of the world's poor. **Correct Answer:** C) They are less able to adapt to the effects of climate change due to limited financial and material resources. Reading 1 / Page 21 1. **Availability of Renewable Energy**: Technological advancements have made renewable energy sources like solar panels and wind turbines more efficient and affordable. 2. **China's Shift**: Evidence of this shift is seen in China's cancellation of new coal-burning power stations due to the affordability of wind and solar power. 3. **Fossil Fuel Subsidies**: The continued problem of climate change is partly due to the political power of the fossil fuel industry, which benefits from government subsidies that make it artificially competitive. 4. **Capital for Green Energy**: Many countries, especially the least-developed ones, lack the capital necessary to transition to green energy, despite the desire to do so for industrialization. 5. **Dependency on Coal**: In the absence of capital for renewable energy, many countries resort to the cheapest available energy sources, often coal, which is carbon-intensive and environmentally damaging. Based on these points, a potential test question could be: **Sample Test Question:** Why do many countries continue to use coal as a primary energy source despite the availability of renewable technologies? A) They are unaware of the benefits of renewable energy. B) Renewable technologies are not yet efficient enough to meet their energy needs. C) They lack the capital and technical know-how required to transition to renewable energy. D) Coal provides a cleaner energy alternative compared to renewable options. **Correct Answer:** C) They lack the capital and technical know-how required to transition to renewable energy. Reading 1 / Page 22 1. **Public Health Problems**: The burning of coal is not only carbon-intensive but also poses significant public health problems. 2. **Global Wealth and Renewables**: There is enough money globally to invest in renewable energy, but the allocation is not optimal for addressing climate change. 3. **Stand-off between Rich and Poor Countries**: Wealthy countries argue against poor countries following a carbon-intensive industrial path, while poor countries prioritize addressing their immediate poverty over climate concerns. 4. **Industrialization as a Priority**: For many poor countries, rapid industrialization, even with its environmental downsides, is seen as the best way to progress out of poverty. 5. **Sharing Technology and Funding**: There is a widespread belief that rich countries should share clean technology and help fund its rollout in developing countries. 6. **Mechanisms for Funding**: Initiatives like the UN’s Green Climate Fund exist to support clean energy projects, but they are often underfunded due to rich countries not committing sufficient resources. 7. **Global Solution for Climate Change**: The principle that climate change demands a global solution is highlighted, indicating that it should not solely be the responsibility of poorer nations to address it. 8. **Interlinked Issues of Poverty and Climate Change**: The text concludes that the problems of climate change and poverty are interconnected and must be tackled together. What does the text suggest as a reason for the lack of progress in funding clean energy technology in developing countries? A) Developing countries prefer to invest in coal rather than renewable energy. B) There is insufficient global wealth to invest in renewable energy projects. C) Rich countries have not committed sufficient funds or followed through on their financial commitments. D) The UN’s Green Climate Fund has decided against funding renewable energy projects. **Correct Answer:** C) Rich countries have not committed sufficient funds or followed through on their financial commitments. Reading 1 / Page 23 1. **Interconnected Challenges**: The problems of poverty and climate change are deeply intertwined. Effective solutions must address both the environmental challenges and the development needs of the world's poorest populations. 2. **The Unfinished Business of Global Poverty**: Despite the progress made in some areas, the fight against global poverty remains an ongoing concern. 3. **Global Affluence and Poverty**: The text highlights the stark contrast between the affluence that many people in the world now take for granted and the severe poverty that still exists. 4. **Global Problems**: Poverty and inequality are not just issues for the poor but are part of larger global challenges that are more difficult to solve in isolation. 5. **Upcoming Content**: The text promises to explore reasons for objecting to poverty and inequality and to discuss potential remedies at a global level in subsequent chapters. According to the conclusion of the text, what is necessary for an international agreement on climate change to be effective? A) It must focus solely on reducing carbon emissions to be accepted by the global community. B) It needs to be enforced by sanctions to ensure compliance from all countries. C) The agreement should address development needs alongside environmental concerns, particularly for the world's poorest. D) It should prioritize the development needs of wealthy countries to maintain global economic stability. **Correct Answer:** C) The agreement should address development needs alongside environmental concerns, particularly for the world's poorest.