Poverty and Development Review PDF

Poverty and Development A Review Outline What is development? What is poverty? The MDGs The SDGs Challenges to Sustainability What is Development? Traditional Development is marked by a distinct history History of what? https://industrialrevolutionheath.weebly.com/blog/industr...

Poverty and Development A Review Outline What is development? What is poverty? The MDGs The SDGs Challenges to Sustainability What is Development? Traditional Development is marked by a distinct history History of what? https://industrialrevolutionheath.weebly.com/blog/industrial-revolution-meme Industrial and Societal Revolutions https://www.japanindustrynews.com/2017/08/japans-society-5-0-going-beyond-industry-4-0/ https://www.keidanren.or.jp/en/policy/2016/029_outline.pdf Industrial and Societal Revolutions https://www.oecd-ilibrary.org/sites/9789264271036-5-en/index.html?itemId=/content/component/9789264271036-5-en Industrial and Societal Revolutions https://www.forbes.com/sites/bernardmarr/2016/04/05/why-everyone-must-get-ready-for-4th-industrial-revolution/?sh=437e433d3f90 Source: World Economic Situation and Prospects 2024 (UN-DESA) Traditional economics has transcended State planning and foreign aid (Sachs) Work with NGOs and impact evaluation (Easterly) Use traditional economic instruments (Collier) Inclusive institutions (Acemoglu and Robinson) Understand the behavior of the poor (Banerjee and Duflo) Countries need to identify binding constraints (Rodrik) Competitiveness and employment in SMEs (Karnani) What is Development? Enhancement of human well-being (De Janvry and Sadoulet) Wellbeing is a multidimensional concept implying priorities and trade- offs, with the consequence that defining development is a national and personal choice reflecting the social needs and aspirations of the corresponding individual, group, class, or nation. Exercise of the imagination (Dela Cruz) What is Development? DEV105: Adequate income Quality entitlements Capability freedom Social inclusion Managed risk Sustainable Moving forward What is Poverty? Opposite of development The depravity of human well-being Inability to imagine Absolute Poverty A situation of being unable to meet the minimum levels of income, food, clothing, health care, shelter, and other essentials. Who are the impoverished? Economically, people who fall below a poverty line Relative Globally: US$ 2.15 Philippines by the numbers (PSA, 2023): Income poor: 10.9% among families = 3 million families 15.5% among individuals = 17.54 million people Food poor: 2.7% among families = 740,000 families 4.3% among individuals = 4.84 million people Philippines: Income Breakdown National poverty line (2023): Php 33,296 (annual income per capita threshold) Monthly: Php 2,774.67 Weekly: Php 640.31 Daily: Php 91.22 Philippines: Subsistence Breakdown National subsistence line (2023): 22,995 (annual income per capita threshold) Monthly: Php 1,916.25 Weekly: Php 442.21 Daily: Php 63.0 Comparing Statistics: 2021 2023 Threshold Income Food Income Food (% increase) (% increase) Annual 33,296 22,995 28,871 20,111 (15.3%) (14.3%) Monthly 2,405.92 1,675.92 2,774.67 1,916.25 Weekly 555.21 386.75 640.31 442.21 Daily 79.09 55.1 91.22 63.0 Per Meal1 - 18.37 - 21.0 Note. Threshold data taken from the Philippine Statistics Authority (2023). 1Meals are assumed to be divided by three major meals for a day. Where are the impoverished? (Global MPI 2023) Where are the impoverished? (Global MPI 2023) Where are the impoverished? (Global MPI 2023) When are people poor? Chronic poverty Long-term poverty Persistent or situational poverty Insistent movement from poor to non-poor Poverty caused by sudden or temporary shocks When are people poor? (Global MPI 2023) How and why is there poverty? DEV105 Income deprivation Severe entitlements deprivation Capability failure Social exclusion Vulnerability Exhibiting ‘poor’ livelihood or life outcomes Being left behind Millennium Development Goals (MDG) 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve mental health 6. Combat HIV/AIDS, malaria and other diseases 7. Ensure environmental sustainability 8. Develop a partnership for development MDG Report Card Generally successful but largely diversified across countries Most successful: MDG 1: Halving poverty→ only 14% live on $1.25 a day MDG 3a: Eliminating gender disparity in primary education MDG 7: Environment → elimination of ozone-depleting substances from products, 91% of the world have improved drinking water sources, vast improvement in sanitation MDG Report Card Needed greater progress: MDG 2: primary school completion → 90% as of 2012 MDG 3: improving gender equality MDG 4 and 5: Reducing infant, child, and maternal mortality MDG 7: Sustainable access to basic sanitation What have we learned from the MDGs? Economic growth is effective in reducing extreme poverty Economic growth is not enough, especially for those further away from the poverty line Greater focus on vulnerabilities (e.g., conflict, sudden losses) Facing the reality of climate change, globalization, global competition Need for political stability, good governance, and cooperation from all sectors and social classes  From 2023-2030, annual pathway costs are estimated between $5.4 trillion to $6.4 trillion About $1,179 and $1,383 per person each year Challenges to Sustainability Impact of climate change Hunger and malnourishment still exist in many developing nations Income inequality is rising Rapid urbanization Energy needs unmet Financing sustainable development Politics of it All How can we bring together the right stakeholders at the right time in the right place? How do we make difficult trade-offs? How do we build in accountability for action?