Poverty Inequality and Development Report

Development of Economics

1. Poverty, Inequality, and Development Chapter 3 Dr. Sarah C. Alvarez Subject Professor GRADUATE SCHOOL

2. Distribution and Development: Seven Critical Questions What is the extent of relative inequality, and how is this related to the extent of poverty? Who are the poor? Who benefits from economic growth? Does rapid growth necessarily cause greater income inequality? Do the poor benefit from growth? Are high levels of inequality always bad? What policies can reduce poverty?

3. https://data.worldbank.org/topic/poverty

4. The Multidimensional Poverty Index (MPI)

5. Interaction of the deprivations? Building the index from household measures up to the aggregate measure (rather than using already-aggregated statistics), MPI approach takes account of multiplied or interactive harm (complementarity) done when multiple deprivations are experienced by the same individual or family The MPI approach assumes an individual’s lack of capability in one area can only to a degree be made up by other capabilities – capabilities are treated as substitutes up to a point but then as complements.

6. Key findings 2021 MPI https://hdr.undp.org/en/2021-MPI Worldwide, across 109 countries and 5.9 billion people: 1.3 billion people are multidimensionally poor. About half (644 million) are children under age 18. Nearly 85 percent live in Sub-Saharan Africa (556 million) or South Asia (532 million). More than 67 percent live in middle-income countries. But what is the day-to-day reality of life for multidimensionally poor people? The data paint a grim picture: 1 billion each are exposed to solid cooking fuels, inadequate sanitation and substandard housing. 788 million live in a household with at least one undernourished person. 568 million lack improved drinking water within a 30-minute roundtrip walk.

7. Economic Characteristics of High-Poverty Groups Rural poverty Women and poverty Ethnic minorities, indigenous populations, and poverty

8. Summary and Conclusions: The Need for a Package of Policies Policies to correct factor price distortions Policies to change the distribution of assets, power, and access to education and associated employment opportunities Policies of progressive taxation and directed transfer payments Policies designed to build capabilities and human and social capital of the poor

9. Reference Economic Development by Todaro and Smith