Measuring poverty

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Poverty can and is measured in different ways by governments, international organizations, policymakers and practitioners. Increasingly, poverty is understood as being multidimensional consisting of social, natural and economic factors situated within a wider socio-political process. The capability approach also argues that capturing the perception of the poor is fundamental to understanding and measuring poverty.

Video Measuring poverty

Kemiskinan absolut vs relatif

When measured, poverty can be either absolute or relative. Absolute poverty refers to established standards that are consistent over time and between countries. An example of absolute measurement is the percentage of the population who consume less food than is necessary to maintain the human body (about 2000-2500 calories per day).

Relative poverty, on the other hand, views poverty as socially defined and depends on the social context. One relative measure is comparing the total wealth of one-third of the poorest inhabitants with a total wealth of the richest 1% of the population. In this case, the number of people counted as poor can increase while their income rises. There are different revenue inequality metrics; one example is the Gini coefficient.

Although absolute poverty is more common in developing countries, poverty and inequality exist throughout the world.

Maps Measuring poverty

Measurement

The main poverty line used in the OECD and the EU is a measure of relative poverty based on "economic distance", the income level is usually set at 60% of the average household income.

In contrast, the United States uses the absolute measure of poverty. The US poverty line was created in 1963-1964 and is based on the dollar cost of the US Department of Agriculture's "economic food plan" multiplied by a factor of three. The multiplier is based on research showing that food costs then account for about a third of money income. This one-time calculation has been updated annually for inflation.

The US line has been criticized as too high or too low. For example, the Heritage Foundation, a US conservative think tank, objected to the fact that, according to the US Census Bureau, 46% of those defined as poor in the US have their own homes (the average house of the poor has three bedrooms, with one half bath, and garage). Others, like economist Ellen Frank, argue that poverty measures are too low because families spend less than their total budget for food than they did when the measure was set in the 1950s. Furthermore, federal poverty statistics do not take into account broad regional differences in non-food costs such as housing, transportation, and utilities.

Both absolute and relative poverty measures are usually based on a person's annual income and often do not take into account the total wealth. Some argue that this ignores a key component of economic well-being. Major developments and research in this field show that a standard one-dimensional poverty measure, which is primarily based on wealth or calorie consumption, is lacking. This is because poverty often involves shortcomings in some areas, which are not always correlated well with wealth. Access to basic needs is an example of measurement that does not include wealth. Access to basic needs that can be used in poverty measurement is clean water, food, shelter and clothing. It has been established that people may have enough income to meet basic needs, but do not use them wisely. Similarly, very poor people may not be deprived if a strong social network, or a social service system exists. For a deeper discussion, see. See also Wikipedia article on Multidimensional Poverty.

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Definition

The World Bank defines poverty in absolute terms. The Bank defines extreme poverty as living on less than US $ 1.90 per day & gt; (PPP), and moderate poverty of less than $ 3.10 per day. It is estimated that in 2008, 1.4 billion people had consumption levels below 1.25 US dollars per day and 2.7 billion live on less than $ 2 per day. The proportion of the world's developing population living in extreme poverty has fallen from 28 percent in 1990 to 21 percent in 2001. Many improvements have taken place in East and South Asia. In Sub-Saharan Africa GDP/capita shrank by 14 percent, and extreme poverty increased from 41 percent in 1981 to 46 percent in 2001. Other regions have seen little or no change. In the early 1990s the transition economies of Europe and Central Asia saw a sharp decline in income. The poverty rate increased to 6 percent by the end of the decade before it began to recede. There is criticism from this measurement.

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Non-monetary indicators

Some economists, such as Guy Pfeffermann, say that other non-monetary indicators of "absolute poverty" are also increasing. Life expectancy has been greatly improved in developing countries since World War II and is beginning to close the gap to developed countries where the increase is smaller. Even in Sub-Saharan Africa, the least developed region, life expectancy increased from 30 years before World War II to a peak of about 50 years - before the HIV pandemic and other diseases began to force it down to the current level of 47 years.. Child mortality is declining in every developing region of the world. The proportion of the world's population living in countries where food supplies per capita less than 2,200 calories (9,200 kilojoules) per day decreased from 56% in the mid-1960s to below 10% in the 1990s. Between 1950 and 1999, global literacy increased from 52% to 81% of the world. Women make up most of the gaps: Women's literacy as a percentage of male literacy has increased from 59% in 1970 to 80% in 2000. The percentage of children not in the labor force also increased to over 90% in 2000 out of 76 % in 1960. There is a similar trend for electric power, cars, radios, and telephones per capita, as well as the proportion of people with access to clean water.

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Poverty Gap Index

The Poverty Gap Index is the average distance below the poverty line as the proportion of the poverty line in which the average is taken over by the entire population, calculating the non-poor people having zero poverty gap.

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Statistics

Even if poverty may be reduced to the world as a whole, it continues to be a big problem:

• One-third of deaths - about 18 million people per year or 50,000 per day - are due to poverty-related causes. That's 270 million people since 1990, the majority of women and children, more or less the same as the population of the United States.
• Every year nearly 11 million children die before their fifth birthday.
• In 2001, 1.1 billion people had consumption levels below $ 1 per day and 2.7 billion live on less than $ 2 per day.
• 800 million people go to bed hungry every day.

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Other factors

The World Bank's Poor Voice Initiative, based on research with more than 20,000 poor people in 23 countries, identifies the various factors that the poor perceive as elements of poverty. The most important thing is that which is necessary for the welfare of matter, especially food. Many others deal with social problems rather than matter.

• dangerous life
• excluded locations
• gender relations

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References

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External links

• Graph of poverty line across E.U. countries
• Definition of poverty line in OECD
• World poverty map

Source of the article : Wikipedia