definition of poverty

8/8/2019 Definition of Poverty

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Poverty is the lack of basic human needs, such asclean water, nutrition, healthcare, education, clothingand shelter, because of the inability to afford them.

This is also referred to as absolute poverty ordestitution.


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A. Individual

Poverty is explained by individualcircumstances and/or characteristics of poorpeople.

Some examples are: amount of education, skill,experience, intelligence. health, handicaps, age.

work orientation, time horizon, culture ofpoverty. discrimination, together with race,sex, etc.


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B. Aggregate

There are two types of aggregate poverty

theory: case and generic. There is no agreementon which is the correct explanation of mostpoverty.

1. Case.Add up all poverty explained byindividual theories, and that is equal to total oraggregate poverty. In other words, accordingto case theories of poverty, individual and

aggregate explanations are really the same.According to these theories, aggregate povertyis just the sum of individual poverty.


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2. Generic. Poverty is explained by general,

economy-wide problems, such as inadequatenon-poverty employment opportunitiesinadequate overall demand (macro problems,macro policy) low national income (LessDeveloped Country)

If generic theories are correct, poverty is causedby one set of forces (general, economy-wide

problems) but distributed according toindividual theories


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We have all felt a shortage of cash at times. That is an individualexperience. It is not the same as the social problem of poverty.Whilemoney is a measure of wealth, lack of cash can be a measure of lack of

wealth, but it is not the social problem of poverty. See "Principles." Poverty as a social problem is a deeply embedded wound that

permeates every dimension of culture and society. It includessustained low levels of income for members of a community. Itincludes a lack of access to services like education, markets, healthcare, lack of decision making ability, and lack of communal facilitieslike water, sanitation, roads, transportation, and communications.

Furthermore, it is a "poverty of spirit," that allows members of thatcommunity to believe in and share despair, hopelessness, apathy, andtimidity. Poverty, especially the factors that contribute to it, is a socialproblem, and its solution is social.

We learn in these training web pages that we can not fight poverty byalleviating its symptoms, but only by attacking the factors of poverty.This handout lists and describes the "Big Five" factors that contribute

to the social problem of poverty. The simple transfer of funds, even if it is to the victims of poverty,

will not eradicate or reduce poverty. It will merely alleviate thesymptoms of poverty in the short run. It is not a durable solution.Poverty as a social problem calls for a social solution. That solution isthe clear, conscious and deliberate removal of the big five factors ofpoverty.


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Warfare

Agricultural Cycles

Droughts and Flooding

Natural Disasters

Colonial Histories

Centralization of Power

Corruption

Environmental degradation

Social Inequality


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COUNTRY Commercial energy useper capita (kg of oilequivalent)

Commercial EnergyProduction (thousandmetrictones of oil equivalent )

USA 1,687,886 8159

China 1,056,963 868

Bangladesh 14,474 139

India 409,788 482

Commercial energy production and per capita,1999


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Problems of Poverty

Low energy consumption

Low energy efficiency

Higher energy dependence High energy intensity

Higher environmental stress

Dirty environment

Higher Impact on health Lower adaptability

Greater vulnerability to natural calamity


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Indoor air pollution

Lighting Indian Homes

Fuel Index


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The federal poverty level is approximately $16,000 for afamily of three and $19,000 for a family of four. However,research clearly shows that, on average, it takes an incomeof at least twicethe federal poverty level to cover a familysmost basic expenses

Twelve million children live in families with incomes belowthe federal poverty. Perhaps more stunning is that 5 millionchildren live in families with incomes of less than half thepoverty leveland the numbers are rising!

Hunger is defined as the uneasy or painful sensation causedby lack of food.When "hunger in America" is discussed,people are referring to the lack of access to sufficient fooddue to poverty or constrained resources, which caneventually lead to malnutrition.


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Food security refers to assured access at all times to enough food for anactive, healthy life, with no need for emergency food sources or other

extraordinary coping behaviors in order to meet basic food needs. Foodinsecurity refers to the lack of access to enough food to fully meet basicneeds at all times due to lack of financial resources.

Households classified as hungry are those in which adults havedecreased the quality and quantity of food they consume because of lackof money to the point where they are likely to be hungry on a frequent

basis. Households in which the children's intake of food has been reduceddue to lack of family financial resources to the point that children arelikely to be hungry on a regular basis and the adults' food intake isseverely reduced are also classified as hungry.

Even when hunger is not present, households can be classified as foodinsecure. These households are so limited in their resources to buy food

that they are running out of food, or reducing the quality of food theirfamily eats, or feeding their children unbalanced diets, or the adults areskipping meals so their children can eat. These actions occur as anadjustment to the economic problems that threaten the adequacy of theirfamily's diet.

For more information please visit the Food Research and Action Center


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Food is a fundamental human need. The 2001 Hunger andHomelessness Survey released by theU.S. Council of Mayorsshowed that the economic slowdown has led to an increase indemand for food assistance across the country. The cities included

in the survey reported an average increase of 23% in requests foremergency food assistance. Slightly over half of the peoplerequesting emergency assistance were members of families. About37% of the adults asking for food assistance were employed.

Households participating in a telephone survey were asked if they

had enough money for food in the 12 months prior to the survey.Paying for food was a major problem for 2%, and a minor problemfor 15%.

The housing costs in Monroe County are among the highest in thestate. About 56% of Monroe County households spend more than30% of their income on rent each year. For some individuals, alack of adequate education and job skills limits their employmentoptions and earning capability. About 36% of the individualsconsidered low income in the SCAN report completed no morethan a high school education or GED equivalency; an additional25% in this category had less education.


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Finding a job that pays enough to make ends meet, and payingfor rent or mortgage were the two most prevalent economicchallenges for families in Monroe County identified through theSCAN report.

The median household income (2000) for Monroe County is$33,311. (87th of 92 counties in Indiana)

There are 401 Monroe County families receiving TANF in 2001(16th in the state), and 4,423 Food Stamp recipients (17th in state).

The unemployment rate (June 2003) was 3.1% (88th in state).

The percentage of children under 18 living in poverty (2000) was11.8% (35th in state).


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90% of households in small villages rely onfuels like firewood, animal dung and cropresidue

88% of rural women population used thesefuels for their daily cooking.


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FUEL TYPE WEIGHT

Dung 1.00

Saw dust 0.97

Crop residue 0.96

Fuel wood 0.82

Coal 0.46

Charcoal 0.31

Kerosene 1.00

Liquid Petroleum Gas 0.05

Biogas 0.04

Electricity 0.08


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Taxes and Tariffs reduce consumption

and competitiveness and efficiency

Poor are most vulnerability to natural calamity

Lighting Bulbs to CFLs taxes, tariff,procurement policy

Automobile 180% import duty, 50% taxes,

Fuel 30-40% taxes on petroleum product

Refrigerator CFC and frost free, energy efficient,but

Floods annually 1000s die in South Asia, inFlorida toll ranges in 10s


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Debate on global warming, shifts focus fromproblems of today to day after tomorrow

Concerns about sea level rise in future, but

thousands die each year due to floods today Millions die today from preventable diseases of

poverty, but focus is on diseases of the future


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Higher energy consumption

Higher energy efficiency

Lower dependence on energy resources

Lower energy intensity

Lower environmental stress

Cleaner environment

Lower impact on health

Higher adaptability

Lower vulnerability to natural calamity


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Development is the Key that unlocks thepotential of increased consumption

Economic freedom creates the competitiveenvironment for harnessing human creativity

leading to efficiency gains


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A. What difference does it make whether poverty iscaused by case or generic causes?

Answer: It makes a lot of difference.

Example #1: Suppose somehow we significantlyreduce racial discrimination.Will total poverty fall?

Case answer: Yes.

Generic answer: No. Poverty will only be redistributed.

Example #2: Suppose we give poor people effective

skill trainingand compensatory education.Will totalpoverty fall?

Case answer: Yes.

Generic answer: No. Poverty will only be redistributed


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B. What can you do about poverty?

1. If case theories are correct: Address theindividual cause of poverty. For example, if

poverty is caused by inadequate skills oreducation, then the solution is skill training orcompensatory education. If poverty is causedby discrimination, then the solution is

antidiscrimination policies. 2. If generic theories are correct: Improve the

quantity and quality of jobs.


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C. How can you tell which is correct--case or generictheories?

1. Remember that the things that cause poverty in case

theories explain its distribution in generic theories. Becauseof this, both theories are consistent with the same facts(statistics). Therefore, it is very difficult, maybe impossible,to determine which is correct through direct test.

2. There's some indirect evidence pointing to generictheories: For example, there is the failure of poverty to fall

during periods of large training programs, and the failure ofpoverty to fall with rise in general educational level ofpopulation. Further indirect evidence later on in the course.

3. Most people assume case theories are correct.Why? Micro experience (fallacy of composition -- assuming that

what's true of the part must be true of the whole). Poverty scholars study the poor instead of the economy. Antipoverty policy would be too hard (expensive) if generic

theories were true. Blaming the victim. A desire to help the poor. (P.S. If generic theories are true,

how can you help the poor?)

definition of poverty

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