ECONOMICS DEVELOPMENTS - LECTURE-2 .pptx

ECONOMICS DEVELOPMENTS - LECTURE-2 .pptx

1. POVERTY AND INEQUALITY PREPARED BY: J. LOPEZ

2. “POVERTY IS THE WORST FORM OF VIOLENCE” MAHATMA GANDHI

3. WHAT IS POVERTY? It is a state or situation in which a person or a group of people don’t have enough money or the basic things they need to live (The Economic Times, n.d.)

4. WHAT IS POVERTY? People and families who live in poverty may go without proper housing, clean water, healthy food, and medical attention (Chen, 2023).

5. WHAT IS POVERTY? Each nation may have its own criteria for determining the poverty line and counting how many of its people live in poverty. (Chen, 2023).

6. WHAT IS POVERTY? Poverty is a socioeconomic condition that is the result of multiple factors—not just income. These include race, sexual identity, sexual orientation, and little to no access to education, among others. (Chen, 2023).

7. ABSOLUTE AND RELATIVE POVERTY Absolute poverty incidence—those levels of incomes and expenditures that fall below a level, popularly known as the “ poverty line ”, nominal value of which is adjusted to hold a fixed value of its purchasing power ( Cabudol , 2022).

8. ABSOLUTE AND RELATIVE POVERTY Absolute poverty is a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information . It depends not only on income but also on access to social services (PAWSSD Chapter 2|DISD, n.d.).

9. ABSOLUTE AND RELATIVE POVERTY Relative poverty or sometimes called inequality , is the comparison of the incomes and expenditures of the poor with reference to the rice or some other groups ( Cabudol , 2022).

10. ABSOLUTE AND RELATIVE POVERTY Relative poverty is the level of poverty that changes based on context—it is relative to the economic climate. They do have some money, however, not enough o afford anything above the basics ( Okutoyi , 2023).

11. POVERTY AND THE WORLD It is observed that impoverished countries share common characteristics. Thos who are considered the poorest normally work in the agricultural sector; they are highly uneducated, somehow labeled as illiterate, and mostly considered malnourished ( Cabudol , 2022).

12. POVERTY AND THE WORLD Industrial revolution created a great deal of inequality between countries and was believed to even intensify the gap between the rich and the poor nations ( Cabudol , 2022).

13. POVERTY AND THE WORLD There are economists who suggest that the skill-biased technological change helped the rich countries that are considered more educated and trained. They thrived as the technology basically replaces the unskilled workers that normally comprise the poor ( Cabudol , 2022).

14. POVERTY AND THE WORLD There are some people who mainly attribute poverty to sluggish economic growth and low production and consumption of goods and services. ( Cabudol , 2022).

15. POVERTY AND THE WORLD According to a study published in 2009 by the Asian Development Bank, it is evident in the Philippines that there is a population explosion in the urbanized areas, where labor-intensive work is in high demand, but the government is not able to sufficiently supply their basic needs such as education, health services, and food security ( Cabudol , 2022).

16. POVERTY AND THE WORLD Furthermore, there is the apparent reduced influence of unions in businesses, tax ploicies are becoming more and more favorable to the rich population, the upper-level management of economic organizations are receiving a hefty deal of salary compared to the middle and lower-level management. Plus the worsening gap in races and gender inequality ( Cabudol , 2022).

17. POVERTY AND THE WORLD Poverty is relative to the standard of living of one country. A threshold is set to determine who are below the line and may be considered impoverished or extremely impoverished. Extreme poverty is characterized by those disadvantaged in basic living conditions, such as food, clean water, sanitation, housing, good health, and even information ( Cabudol , 2022).

18. POVERTY AND THE WORLD Globalization may be seen as an avenue of exploitation and oppression. Example: garment shops, coal mines, diamond mines, and such ( Cabudol , 2022).

19. POVERTY AND THE WORLD There is hope in the eradication of global poverty like fair traid . A lot of “developed” countries lead the way in spreading awareness of the condition of a lot of countries that are suffering from poverty and even child abuse ( Cabudol , 2022).

20. POVERTY AND THE WORLD Some labels on the packaging of products that are considered from ethical sources are fair trade certified, fair trade foundation, equal exchange fairly traded, fair for life, and fairminded among others ( Cabudol , 2022).

21. POVERTY AND THE WORLD In the 2019 data by the UN Department of Social and Economic Affairs, young workers are twice as possible to live in extreme poverty as compared to adult workers ( Cabudol , 2022).

22. POVERTY AND THE WORLD Due to the pandemic, the poverty eradication aim was off-track manifesting the first increase in global poverty in decades; more than 71 million are pushed to extreme poverty during this year ( Cabudol , 2022).

23. MEASURING POVERTY Poverty rate is the most common measure of poverty relative to the poverty line. The poverty line is set by the government as the threshold to which the absolute value oof income and expenses is compared to consider a family to be in poverty. The proportion of the population that is below the poverty line is the poverty rate Cabudol , 2022).

24. MEASURING POVERTY The poverty line is constantly adjusted to hold the real purchasing power given changing price levels. In the Philippines, further classification of the part below the poverty line suffering from extreme hunger is called subsistence incidence Filipinos wjpse incomes and expenses fall below the food threshold are also set by the government ( Cabudol , 2022).

25. MEASURING POVERTY Inequality is oftentimes associated with poverty. There are two major types of inequality—wealth (net worth) and income (salary and wages) ( Cabudol , 2022). 1-POOREST; 2-POORER; 5-POOR; 12-RICH; AND 80-RICHEST***

26. MEASURING POVERTY

27. POVERTY INCIDENCE The Philippines like Thailand and Malaysia use income-based measure of poverty, per individual and per household, and consider gender and age distribution. This is important to note when the government’s way of interacting short-term implications of poverty is the adjustment of income ( Cabudol , 2022).

28. POVERTY INCIDENCE The poverty incidence is the percentage of families or individuals with per capita income or expenditure less than the per capita poverty threshold to the total number of families or individuals ( Cabudol , 2022).

29. POVERTY INCIDENCE The poverty rate and poverty line change over time, so are the moving up and down the ladder of the people due to technological progression, a general rise of standard of living, introduced new consumption items. ( Cabudol , 2022).

30. LORENZ CURVE

31. POVERTY TRAP Poverty is a fluid idea with different meanings in different places. It generally represents earning or living off less money than adequate, as deemed by a particular country or region ( Cabudol , 2022).

32. POVERTY TRAP Poverty trap is a spiraling mechanism which forces people to remain poor. It is so binding in itself that it doesn’t allow the poor people to escape it. Poverty trap generally happens in developing and under-developing countries, and is caused by a alack of capital and credit to people (The Economic Times, n.d.).

33. POVERTY TRAP Poverty trap can be broken by planned investments in the economy and providing people the means to earn and be employed. A series of poverty alleviation programs can be enforced to raise individuals out of poverty by providing monetary aid for a period of time (The Economic Times, n.d.).

34. POVERTY TRAP But if the plan fails, people will become dependent on such programs forever and may even go deeper down in the poverty spiral. However, poorer countries find this to be difficult, leading to the over-exploitation of natural resources and land (The Economic Times, n.d.).

35. POVERTY REDUCTION The government plays an important role in reducing poverty in the country through its policies to improve the welfare of the people. This eventually benefits the country in the long run as it is believed that the poor is more vulnerable to experiencing health issues, unemployment, drug dependency, illiteracy, and homelessness as compared to those who have sufficient financial resources ( Cabudol , 2022.).

36. POVERTY REDUCTION Those in poverty are more likely to be the victims of crimes, or worse, they are those who commit crimes ( Cabudol , 2022).

37. POVERTY REDUCTION The government plays an important role in reducing poverty in the country through its policies to improve the welfare of the people. This eventually benefits the country in the long run as it is believed that the poor is more vulnerable to experiencing health issues, unemployment, drug dependency, illiteracy, and homelessness as compared to those who have sufficient financial resources ( Cabudol , 202.).

38. POVERTY REDUCTION Cash Transfers or Conditional Cash Transfers—in the Philippines, we have the Pantawid Pamilyang Pilipino program (4Ps) that resembles the same CCT in Latin America and African countries. It is aimed to help the poorest of the poor improve health, nutrition, and education of children aged 0-18 by giving monetary support and social development programs to break the poverty rate.

39. POVERTY REDUCTION In-Kind Transfers—another way is to directly provide goods and services as social safety nets through specialized welfare programs such as social pension or indigent senior citizens, supplementary feeding programs, temporary shelter for the homeless an those who are displaced by natural calamities pr casualties of battles, and free medicines for the vulnerable and indigent members of the population.

40. POVERTY REDUCTION Work Incentives—these commonly happen when a natural disaster occurs, and those who are displaced in their workplace are given incentives to work and help rebuild the place of adversity in exchange for a reasonable wage to bring home and spend on those affected.

41. POVERTY REDUCTION Minimum Wage Law—it is an act of Congress or the Senate that imposes a minimum payment of wage to workers in specific location, duration of work, and nature of the industry to ensure that a reasonable amount of income is provided to a specific group of employees.

42. POVERTY REDUCTION Adjust Tax Code—it is intended not to collect any form of tax from individuals who earn a specific amount or less in one year, reflected on a graduated income tax. The notion is to collect more taxes from those who are earning more, as the basis of the computation of the tax is the net income in a certain period of time.

43. INCOME GROUPS

44. References: Cabudol , E.G. (2022). Economic Development (First). Rex Book Store, Inc. Chen, J. (2023, December 11).  What's Poverty? Meaning, Causes, and How to Measure . Investopedia. https://www.investopedia.com/terms/p/poverty.asp Okutoyi , P. (2023, March 2). Relative Poverty vs. Absolute Poverty - endPoverty . endPoverty . https://endpoverty.org/relative-poverty-vs-absolute- poverty/#:~:text=%241.90%20per%20day.-, Relative%20Poverty,afford%20anything%20above%20the%20basics. PAWSSD Chapter 2 | DISD. (n.d.). https://www.un.org/development/desa/dspd/world-summit-for-social- development-1995/wssd-1995-agreements/ pawssd -chapter- 2.html#:~:text=Absolute%20poverty%20is%20a%20condition,20. What is Poverty? Definition of Poverty, Poverty Meaning - The Economic Times . (n.d.). The Economic Times. https://economictimes.indiatimes.com/definition/poverty

45. THANK YOU