Slide 1

Sara Hsu

Slide 2

Poverty measurement has changed from one of relative income gaps to multidimensional indices of poverty. Poor are socially constructed phenomenon. Transient poor are those who can be classified as poor in some periods and not in others. Ravallion (1988) finds an expected value of a poverty measure which results from changes in a welfare indicator. Inequality persists due to credit market imperfections. Quality of institutions impact distribution and vice versa.

Slide 3

Home to 20% of worlds poorest Found in rural areas, lower castes Child malnutrition Farmer suicides Agricultural policies Land redistribution Poverty reduction hard to determine from data

Slide 4

Slide 5

Growth has been concentrated in skilled sectors Rural casual labor Gini coefficient

Slide 6

Slide 7

Problem with reported statistics Rural phenomenon Urban phenomenon (rural migrants) Thin land markets

Slide 8

Communism and equality Issue in nineties with privatization Inland-coastal disparity Government policies

Slide 9

Slide 10

Slide 11

No official poverty line Fifth highest poverty rate in OECD Unemployment as strong cause Homeless cannot receive public assistance with no home!

Slide 12

Slide 13

Increasing inequality, early 20 th century Lagging productivity in rural sector Relatively equal from WWII through 1970s Increase in inequality in 1980s Aging society

Slide 14

Slide 15

India: Integrated Rural Development Program Swarnjayanti Gram Swarozgar Yojana (SGSY) National Rural Employment Program Rural Landless Employment Guarantee Programs National Social Assistance Program China Households responsibility System Targeting poor counties Food for Work Grain for Green Minimum Living Standard Japan Public Assistance

Slide 16

Poverty in India is highest, second highest in China, and low but significant in Japan Poverty alleviation policies have sought to reduce poverty in all three countries, with varying levels of success.

Slide 17

Indias poorest state is Bihar in the North. Most of the population lives in rural areas and focuses on agriculture. Industry is very small. The state is attempting to get over its image as a failed state in the eyes of many.

Slide 18

Questions?