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TABLE OF CONTENTS۞ Introduction
۞ Definitions
۞ History
۞ Kinds of Poverty
۞ Methods of Measuring Poverty
۞ Causes of Poverty
۞ Effects Of Poverty
۞ Current Situation
i -Global
ii -Pakistan
۞ Measures/Removals of Poverty
۞ Poverty In Pakistan
۞ Poverty Reduction Strategies/Solutions
۞ Govt. Policies about Reduction of Poverty
۞ Summing up
۞ References
INTRODUCTION
HISTORY
DEFINITIONS OF POVERTYDEFINITIONS OF POVERTY
₪ PovertyPoverty is deprivation of those things that determine the quality is deprivation of those things that determine the quality of life, including food, clothing, shelter and safe drinking water of life, including food, clothing, shelter and safe drinking water but also such "intangibles" as the opportunity to learn, to engage but also such "intangibles" as the opportunity to learn, to engage in meaningful employment, and to enjoy the respect of fellow in meaningful employment, and to enjoy the respect of fellow
citizenscitizens. . ₪ State of being poorState of being poor: : the state of not having enough money to the state of not having enough money to
take care of basic needs such as food, clothing, and housing.take care of basic needs such as food, clothing, and housing.
₪ Lack : a deficiency or lack of something poverty of Lack : a deficiency or lack of something poverty of emotionemotion
₪ Infertility of soil: lack of soil fertility or nutrients.Infertility of soil: lack of soil fertility or nutrients.
FAMOUS QUOTATIONS
1- Economic Poverty
2 - Bodily Poverty
3 - Mental Poverty
TYPES OF POVERTYFollowing are the types of poverty
5 - Cultural Poverty
6 - Spiritual Poverty
7 - Political Poverty
4 - Societal Poverty
METHODS OF MEASURING POVERTY
1) Per capita monthly expenditures Method
2) Per capita calories Method
3) The per capita income approach
4) The measure of head count ratio
1) Per capita monthly expenditures measures
This criterion was presented by Dr. Hussain Malik (A late professor of Quad e Azam
University). Poverty can be measured on the basis of per capita monthly expenditures.
If the expenses made by any individual are above 748 RS a month then he is
considered not poor,
Below this level is considered to be poor.
2) Per capita calories MethodThis criterion was also presented by Dr. Hussain Malik. According to this measure :
The person who at average gets 2550 calories per day he is living above the poverty
line
The person who is not getting per day calories 2550 he is living below poverty line.
Food Deficient Population = 69.69%
3) The measure of head count ratio
In this method ratio of poor to the total population is represented.
This approach does not make estimation of poverty.
However, this can be known how many poor are there in the country
And what is there future trend?
Poverty Headcount in Transition Regions
Poverty Line For 2001 And 2006-07
The inflation rate of 21.45 percent between the PIHS 2000-01 and PSLMS
2006-07 is used to inflate the per capita per month poverty line of Rs. 723.4 to
get Rs. 878.64 as the poverty line for 2006-07.
While calculating the inflation rate between the two surveys, monthly
Consumer Price Index in different months during the survey period.
4) The per capita income approach
In this criterion the income level is set for a person.
A person earns more than 748 RS per day then he is considered not poor.
A person having income below this point is considered poor.
Comparison of poverty estimates Estimates by Headcount Poverty gapSeverity of povertyRegion 2000-01 2004-05 2000-01 2004-05 2000-01 2004-05
Urban22.69 14.94 4.55 2.87 1.35 0.84
Rural 39.26 28.13 8.04 5.64 2.44 1.77
Overall 34.46 23.94 7.03 4.76 2.13 1.48
0
10
20
30
40
Estimatesby
Headcount Severity ofpoverty
CURRENT SITUATIONOverview of Existing Poverty Trends
Θ Population 152.53 million
Θ Poverty Line based on caloric consumption presently, Rs.878.64 per adult
Θ Population below the poverty line 23.9 percent (2004-05)
Θ Absolute no. of poor 36.45 million (2004‑05)
Θ Percentage of population living below the poverty line in rural areas 28.10 percent
and in urban areas14.9 percent.
POVERTY 1996-97 TO 2004-05
people in absolute poverty by 7.1 million to 3.1 million
Pensioners in absolute poverty 2.1 million to 700,000
Children in absolute poverty 2.4 million to 1.9 million
CAUSES OF POVERTY Poverty has many causes, some of them very basic. Some major causes of
Poverty are as follows :
A) Overpopulation
₪ Overpopulation the situation of having large numbers of people with too few
resources and too little space is closely associated with poverty.
₪ It can result from high population density or from low amounts of resources or
from both.
₪ Excessively high population densities put stress on available resources.
₪ Only a certain number of people can be supported on a given area of land and that
number depends on how much food and other resources the land can provide.
B) Vicious Cycle Of Poverty
“A condition in which a disorder or disease gives rise to another that
subsequently affects the first.”
VCP is the main cause of under development in Poor Countries
DEMAND SIDE OF VCP SUPPLY SIDE OF VCP
C) Unequal distribution of resources in the world economy
₪ Many experts agree that the legacy of colonialism accounts for much of the
unequal distribution of resources in the world economy.
₪ In many developing countries, the problems of poverty are massive and
pervasive.
₪ In recent decades most of these countries have tried to develop their economies
with industry and technology with varying levels of success.
₪ Some nations have become fairly wealthy.
₪ Many developing countries, however, lack essential raw materials and the
knowledge and skills gained through formal education and training.
In many developing countries, the problems of poverty are massive and
pervasive &
many experts agree that the legacy of colonialism accounts for much of the
unequal distribution of resources in the world economy.
§ In recent decades most of these countries have tried to develop their economies
with industry and technology with varying levels of success.
§ Some nations have become fairly wealthy.
§ But many of them lack essential raw materials and the knowledge and skills
gained through formal education and training.
D) Global Distribution of Resources
F) High Standards of Living and Costs of Living
₪ People in developed nations have more wealth and resources than those in
developing countries, their standard of living is also generally higher.
₪ Thus, people who have adequate wealth and resources in developing countries
may be considered poor in developed countries.
₪ Illiteracy and lack of education are common in poor countries. Govts. of developing
countries often cannot afford to provide for good public schools, especially in rural
areas.
₪ Poor people also often forego schooling in order to concentrate on making a minimal
living. In addition, developing countries tend to have few employment opportunities,
especially for women. As a result, people may see little reason to go to school.
E) Inadequate Education and Employment
G) Environmental Degradation
Country Life ExpectancyInfant Mortality
RateMortality Rate
underPopulation Avg. Annual
Year 2007** per 1000** 5 per 1000 (%) GrowthYear 2007 Year 2007** Year 2007** M F
Pakistan 63.263.6 70^ 10 11.8*
India 62.165.3 62 85 1.5
Sri Lanka 71.777.0 12 14 1.3
Bangladesh62.5
64.2 56 77 1.7
Nepal 61.662.4 59 76 2.2
China 70.273.7 26 31 0.7
Thailand 66.774.0 18 21 0.7
Philippines 68.672.8 26 34 2.0
Malaysia 71.175.8 10 12 2.0
Indonesia 65.369.2 30 38 1.3
Social Indicators
Periods of economic recession tend to particularly affect young and less-educated
people, who may have difficulty finding jobs that pay enough to support
themselves.
G) Economic and Demographic Trends
In the 1950s and 1960s, most people in the U.S experienced strong income
growth. Because of inflation average family income almost doubled during this
period.
However, between the early 1970s and the early 1990s typical incomes, adjusted
for inflation, grew little while the cost of living increased.
H) Individual Responsibility and Welfare Dependency
There are differing beliefs about individual responsibility for poverty.
Θ Some people believe that poverty is a symptom of societal structure and that
some proportion of any society inevitably will be poor.
Θ Others feel that poverty results from a failure of social institutions, such as the
labor market and schools.
Θ These people feel that poverty is beyond the control of those who experience
it, but might be remedied if appropriate policies were enacted.
EFFECTS OF POVERTYEFFECTS OF POVERTY
Poverty has wide-ranging and often devastating effects.
A) Malnutrition and Starvation
Malnutrition is one of the most common effects of poverty.
Θ In developing countries, the poorest people cannot obtain adequate calories to
develop or maintain their appropriate body weight.
Θ In Ethiopia, it is estimated that almost half of all children under the age of 5
suffer from malnutrition.
Θ Poor children in developing countries often suffer the most, commonly from a
deficiency known as protein-energy malnutrition.
B) Infectious Disease and Exposure to the Elements
In addition to the effects of malnutrition, the poor experience high rates of infectious
disease.
Θ Inadequate shelter or housing creates conditions that promote disease.
Θ Without decent protection, many of the poor are exposed to severe and dangerous
weather as well as to bacteria and viruses carried by other people and animals.
Θ In the tropics, monsoons and hurricanes can destroy the flimsy shelters of the poor.
Θ Once exposed, people are vulnerable to fluctuations in temperature that lower their
resistance to disease.
Θ They also are more likely to become infected with diseases carried by insects or
rodents.
C) Mental Illness and Drug Dependence
Θ In most developed countries, rates of mental illness are highest among the poor.
Θ The most common disorders associated with poverty are depression and anxiety
disorders.
Θ Without meaningful, well-paying work and the resources and social affirmation that
come with it, many poor people develop low self-esteem and feelings of
worthlessness.
Θ People who are stressed by the uncertainty of where they will get their next meal or
spend the night often develop high anxiety.
Θ Because the poor experience high rates of severe mental illness, they also
have high rates of suicide.
D) Crime and Violence
Some experts believe that Some experts believe that
,poverty leads people to commit acts of violence and crime, Anger ּמ
desperation, and the need for money for food, shelter, and other necessities
may all contribute to criminal behavior among the poor.
Other experts caution that the link of cause and effect between poverty ּמ
and crime is unclear.
,In some cases, poverty undoubtedly motivates people to commit crimes ּמ
although it may not be the only factor involved.
.Other problems associated with poverty are often linked to crime ּמ
E) Long-Term Effects
People who grow up in poverty may experience lifelong problems because of it.
ΘLack of food , shelter , clothing and deprivation of health etc. are some
common features of poverty.
ΘThey are at a disadvantage in things such as education because they have
limited income and resources.
ΘAll children also need adequate nutrition and health care for good physical and
mental development, and poor children are often malnourished and sick from a
young age.
Poverty In Developing Countries
Many developing nations experience severe and widespread poverty, which
often leads to disease epidemics, starvation, and deaths.
In the past few decades, millions of people have starved and died as a result of
famine in such countries as Bangladesh, Ethiopia, North Korea, Somalia, and
Sudan.
As recently as 1998, almost one person in four (23 percent) residing in
developing countries lived on less than $1 a day.
Throughout the developing world, ethnic and racial minorities
experience prejudice from majority groups and have difficulty
attaining an average standard of living.
Migrants and refugees, who have left their native land and settled
elsewhere, also experience high degrees of poverty.
Migrants commonly lose the immediate economic support of their
families and enter into societies in which they may have difficulty finding
good work, especially if they do not speak the language .
A) AFRICA
B) South and East Asia
C) LATIN AMERICA
D) EASTERN EUROPE & CENTRAL ASIA
Poverty Lines Used in the Region
Country National Rural Urban
Pakistan 2350* 1410* 940*
India - 2400 2100
Bangladesh 2112 1267.2 844.8
Sri Lanka 2250* - -
China 2150 - -
Vietnam 2100 - -
Philippines 2000 1200 800
Thailand 1978 - -
Indonesia 2100 - -
Nepal 2250* 1450* 800*
0
500
1000
1500
2000
2500
National Rural Urban
Pakistan
India
Bangladesh
Sri Lanka
China
Vietnam
Philippines
Thailand
Indonesia
Nepal
Θ Poverty rates in some developed countries are higher among racial
minorities.
Example : U.S.A , U.K , AUSTRALIA etc…
Θ Indigenous people in developed countries also tend to suffer from very high
rates of poverty.
Θ In the United States, many Native Americans live and work on
economically depressed .
Θ Native American reservations and experience high rates of joblessness and
alcoholism.
Θ In Australia, many Aboriginal people live in similar conditions.
Latin America and
Carrabian 0.5%
Europe and Central Asia
2%
Middle East and North Africa
6.5%
East Asia & Pacific 23.2%
Sub-SaharanAfrica 24.3%
South Asia 44.5%
Where The Poor Live
Measures/Removals of Poverty
Θ How people and institutions portray and try to cope with poverty
depends to a considerable extent on how poverty is measured.
Θ The differences between relative poverty (having less than others)
and absolute poverty (not having enough to survive) are great.
Θ There are a wide variety of options for measuring wealth and well-
being and for establishing lines that separate the poor from the no
poor.
A) International Measurements
Pakistani Poverty Measurements
Θ Poverty is one of the major economic problems in Pakistan.
Θ It has been an economic problem ever since Pakistan came into being.
Θ After the time of independence Pakistan’s economy moved at a very
slow pace.
The Human Development IndexThe HDI provides a composite measure of three dimensions of human development:
i.Living a long and healthy life
ii.Being educated
iii.Having a decent standard of living
HDI valueLife expectancy at birth
(years)
Adult literacy rate (% ages 15 and older)
Combined primary, secondary and tertiary gross enrolment ratio
(%)
GDP per capita(PPP US$)
1. Iceland (0.968) 1. Japan (82.3) 1. Georgia (100.0) 1. Australia (113.0) 1. Luxembourg (60,228)
134. Comoros (0.561) 121. Bhutan (64.7) 122. Mauritania (51.2) 156. Ethiopia (42.1)125. Papua New Guinea (2,563)
135. Ghana (0.553) 122. Bolivia (64.7) 123. Timor-Leste (50.1)157. Papua New Guinea (40.7)
126. Ghana (2,480)
136. Pakistan (0.551) 123. Pakistan (64.6) 124. Pakistan (49.9) 158. Pakistan (40.0) 127. Pakistan (2,370)
137. Mauritania (0.550) 124. Comoros (64.1)125. Côte d'Ivoire (48.7)
159. Senegal (39.6) 128. Angola (2,335)
138. Lesotho (0.549) 125. India (63.7) 126. Nepal (48.6)160. Côte d'Ivoire (39.6)
129. Guinea (2,316)
177. Sierra Leone (0.336)
177. Zambia (40.5)139. Burkina Faso (23.6)
172. Niger (22.7) 174. Malawi (667)
Pakistan’s human development index 2007
Human Poverty Index (HPI-1) 2004
Probability of not surviving past age 40 (%) 2004
Adult illiteracy rate (%ages 15 and older) 2004
People without access to an improved water source
(%)2004
Children underweight for age (% ages 0-5) 2004
1. Chad (56.9) 1. Zimbabwe (57.4) 1. Burkina Faso (76.4) 1. Ethiopia (78) 1. Nepal (48)
30. Malawi (36.7)54. Solomon Islands (16.1)
14. Nepal (51.4) 86. Nepal (10) 13. Ethiopia (38)
31. Rwanda (36.5) 55. Bolivia (15.5) 15. Côte d'Ivoire (51.3) 87. Cuba (9) 14. Burkina Faso (38)
32. Pakistan (36.2) 56. Pakistan (15.4) 16. Pakistan (50.1) 88. Pakistan (9) 15. Pakistan (38)
33. Eritrea (36.0) 57. Comoros (15.3) 17. Timor-Leste (49.9)89. Trinidad and Tobago (9)
16. Chad (37)
Selected Indicators Of Human Poverty For Pakistan
CAUSES OF POVERTY IN PAKISTAN
Poverty Reduction Strategies/Solutions
Since the second half of the
Twentieth Century, governmental
and non-government organizations
have proposed or attempted to
reduce global poverty through a
number of strategies. As global
poverty has such detrimental
effects upon societies and
communities, the relative merits of
these strategies remain source of
great controversy.
1) Free Market
2) Improved agricultural system
Θ Today 70% of nation links directly or indirectly with agriculture so its needs
Quick steps for improvement.
Θ Proper price of crops should be given.
Θ Exports should be encouraged in a calculated & systematic way not like wheat
this year.
Θ Canals and other water channels must be properly made so water should not be
wasted & incentive should be given to farmers.
3) Rural development
A big Giant for the nation is undeveloped rural HR and
infrastructure Programs like Khushaal Pakistan must be Continued
& encourage more technical based institution must be Started, IT
institution must be started new markets should be made for proper
Marketing.
4) More Economic zones, Industrial parks,ITparks
Θ Govt. must initiate the IT parks
Θ India has an IT EXPORT of $16 billion
Θ We must focus on it.
Θ More industrial states likeSUNDAR,M2 Faisalabad must be made.
5) Improving the social environment & abilities
ΘSubsidized housing development and urban regeneration.
ΘSubsidized education.
ΘSubsidized health care.
ΘAssistance in finding employment.
ΘSubsidized employment (see also Workfare).
ΘEncouragement of political participation and community organizing.
ΘCommunity practice social work.
6) Development Aid
Most developed nations give some development aid to
developing nations. The UN target for development aid is 0.7%
of GDP currently only a few nations achieve this. Some think
tanks and NGOs have argued, however, that Western monetary
aid often only serves to increase poverty and social inequality,
either because it is conditioned with the implementation of
harmful economic policies in the recipient countries or because
it's tied with the importing of products from the donor country
over cheaper alternatives or because foreign aid is seen to be
serving the interests of the donor more than the recipient.
7) 7) Employment OpportunitiesEmployment Opportunities
Proper implementation ZAKAT system.Fair distribution of wealth. Pakistan is a country having an average GDP growth at 7% during last 5
years . It got tremendous opportunity for the future.We must focus on political stability .We must overcome this energy crisis as soon as possible . Improved agriculture system.Small ,medium & foreign investors should be encouraged. Improved educational system.Awareness of family planning.HR developmentProper utilization of resources.More employment opportunities.
SUGGESTIONS SUGGESTIONS
References
Θ Economic survey of Pakistan 2006/07
Θ HDR 2006-07
Θ www.worldbank.com
Θ MSN Encarta
Θ Poverty - Wikipedia, the free encyclopedia
Θ www.Poverty.com
Θ Policy Wing, Finance Division
Θ www. Finance.org
Θ www. Finance.gov
Θ WDI 2006-07, World Bank
Θ www.World Bank.org
Θ www.poverty.org
