Poverty Analysis PDF

V- poverty + poverty reduction A- Poverty definition = state or condition in which an individual or a household lacks the financial resources and essentials for a basic standard of living. Susan Kuivalainen, National institution for health and welfare Finland : concept of poverty is elusive, th...

V- poverty + poverty reduction A- Poverty definition = state or condition in which an individual or a household lacks the financial resources and essentials for a basic standard of living. Susan Kuivalainen, National institution for health and welfare Finland : concept of poverty is elusive, there is no straightforward definition, nor generally accepted way of measurement. In most poverty studies, a person is fined as poor if he or she lacks enough resources to reach an ‘’acceptable standard of living’’ but this is subjective. Définition of the OECD/EU Poverty measures Poverty = a household income of under 50% (or 60%) of a country’s median income. The OECD/EU poverty rate is an average size family whose income is less than half (or 60%) of the médian household income of the total population. Advanteges of the OECD/EU poverty rates : allows for whole households (students included) + it’s linked to each country’s average income Disadvantages of the OECD/EU poverty rates: not allowance for regional price variations within a country (ex: Paris vs Surgère) doesn’t take food requirements or social inclusion into account only measures income, not subsistence farming, it has two variables : family size + a country’s median household income Only used in OECD countries (Europe) The world bank poverty line (WBPL) Poverty = average cost of the minimum nutritional, clothing + housing needs in each region of the 15 poorest countries 1990 - $US1 per day per person (ppp Purchasing Power Parity) 2001 - $US1.08 per day 2008 - $US1.25 per day (with a larger sample of countries) 2015 - $US1.90 per day 2022 - $US2.15 2023 – multi rates Two more drawbacks with the WB Poverty Level - It only measures income, not education, nor the benefits of subsistence farming. - It can be adjusted for different countries’ prices, but there is no allowance for different countries’ needs. The base sample (the world’s 15 poorest countries) is mostly composed of sub- Sahara African countries (13/15) where clothing needs reflect its tropical climate, heating isn’t necessary, culinary practices don’t require fuel, housing is inexpensive compared to many other parts of the world. The WBPL = more widely uses poverty rate measurement. > the OECD uses the world bank method in the Asia-Pacific region. Measures of poverty : 1- relative poverty = refers to poverty of people in comparison to other people, regions or nations 2- absoute poverty = refers to the total number of people living below poverty line) B- world poverty (En 2022, en fr, 9,1 millions de per vivent sous le seuil de pauvreté monétaire. Taux de pauvreté = 14,4%) Poverty rate in France = 15,60% of pop in 2021 Extreme poverty in the world = 700 million people (8,5% of the global population) live in extreme poverty (less than 2,15$ per day) > half of the total (368 million) lived in just 5 countries Poverty in Europe = more than 122 million people (25% of EU citizens) are at risk of poverty + social exclusion The pacific is the world’s 3rd poorest region, after Africa and South Asia Study from International Work Group for Indigenous affairs (IWGIA) = one-fifth of the population of french Polynesia was living below poverty line in 2022 Social welfare = sécurité sociale Social security = les aides sociales C- Melanesian poverty Pacific island people are mostly very poor but they don’t live in extreme poverty, WHY ? : -subsistence fishing -subsistence framing lessens poverty = less malnutrition > puts fresh food on every table, every day -As an exercise, in 2001, Fiji factored subsistence farming into its GDP (PIB) and found that 70% of the workforce was employed in subsistence farming and that it accounted for 18% of GDP. -In Tuvalu, 3 out of 4 workers are ‘employed’ in subsistence or fishing activités -Remittances = national aid are a large part of pacific economies > A remittance is money that people working abroad send back to their home country to support their families and communities. These transfers are typically made by migrants working in other countries, often sending funds to their families for living expenses, healthcare, education, or investments in businesses. Remittances can be a significant part of the income for families in poorer countries and are considered a major source of external funding for many developing economies. > poverty is reduced but Remittances -poverty is reduced bu international aid (international aid / NGOs / Charity / debt cancellation)  Poverty rate : Melanesian countries : 16,1% Vanuatu : 10,8% The Solomon Islands : 18,7% Timor-leste : 30% PNG: 38% In Melanesia, wealth is measured in items like pigs, yams, and shells, not money. This works well for local communities, but it makes it harder to pay for things like healthcare or education, which need cash. With globalization, people need money more, but many don’t have regular jobs. Climate change also makes farming and fishing harder, adding to the problem. Poverty here is about more than just money—it’s a mix of traditional life and modern challenges. Defining + measuring poverty is always a problem : The UN says 35% in Fiji, but the CIA fact book says 31% D- causes of poverty School cause poverty ? 1- lack of quality education (unuseful lessons) 2- lack of connections between lessons and the labour market 3- untrained teacher 4- students living in remote regions 5- poorly-educated parents (usually synonymous with low-income families- 6- different education for boy and girls Causes of poverty (a very partial answer) : 35% of unemployed people 35% of single-parent families 72% of unemployed single woman with families 23% of farmers, entrepreneurs and craftsmen 18% of workers / employees 8% of retired people 3% of executives The Causes of Ruth’s Poverty Ruth, is a female, like 56% of people living in extreme poverty. Ruth lives in Temor-Leste, a poor country. Ruth lives in a mountain community Ruth rarely goes to school because she has to work or look after sick family members Ruth’s house has no electricity, clean tap water, internet and a doctor nearby. Ruth’s dad and brother have been caught up in wars. Causes of poverty institutions > police, education, transport, health Culture > religion = less self-betterment (more religion = more poverty) Geography > agriculture, soil, climate, diseases (tropical climate = poverty) Natural resources = intensifiers > positive for poverty in countries with good institutions but negative in countries with corrupt institutions