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WELCOME TO MY PRESENTATION Course Title: Rural Poverty Studies PRESENTED TO RAFIQUN NESSA ALI Professor Department of Rural Sociology Bangladesh Agricultural University Mymensingh-2202 PRESENTED BY MD. SAHED KHAN ID: 15RS JD-01M Reg: 37769 MS in Rural Sociology (2 nd semester) Department of Rural Sociology BAU, Mymensingh-2202

Poverty senses types and measures sahed khan

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WELCOME TO MY PRESENTATIONCourse Title: Rural Poverty Studies

PRESENTED TO

RAFIQUN NESSA ALIProfessorDepartment of Rural SociologyBangladesh Agricultural UniversityMymensingh-2202PRESENTED BY

MD. SAHED KHANID: 15RS JD-01MReg: 37769MS in Rural Sociology (2nd semester)Department of Rural SociologyBAU, Mymensingh-2202

Outline and ObjectiveOutline of the presentation:Sensing povertyTypology of povertyMeasurements of poverty

Objectives:To comprehend the meaning of PovertyTo identify the typology of PovertyTo demonstrate the measurements of Poverty

POVERTY?

Poorness Hunger Homelessness

Definition of PovertyThe word poverty comes from old French poverte (Modern French: pauvrete), from Latin paupertas and from pauper (poor).Refers to general scarcity or dearth, or the state of lacking a certain amount of material possessions or moneySociological definition of Povertythe state of one who lacks a usual or socially acceptable amount of money or material possessionsis a condition in which people lack what they need to livePoverty is HUNGER

CONTDPoverty is a situation in which a person or household lacks the resources necessary to be able to consume a certain minimum basket of goods.

According to United Nations,Fundamentally, poverty is a denial of choices and opportunities, a violation of human dignity

According to World Bank,Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity...

Types of Poverty

CONTDAbsolute Poverty-Extreme case of poverty-Individuals annual income falls below the national poverty line (USD 1.25 at 1993 purchasing power parity)-Individuals life/health is threatened/compromised due to lower economic positionRelative Poverty-Relative poverty defines people are relatively impoverished if the customary (average) standard of living in their society requires more spending than the income they have available-A person or household, even though have access to government support for food, water, medicine and free housing, can be considered as poor if it Cant afford to go to vacations, or Cant afford to buy presents for children at Christmas, or Cant afford to send its young to university, and so on. They are considered poor because the rest of the community have access to superior services and amenities.

CONTDGenerational or Chronic PovertyMore complicated type When poverty is handed over to individuals and families from generations before them. There is usually no escape from itExperience multiple deprivation, including HungerUnder nutritionIlliteracyLack of access to safe drinking water and basic health servicesSocial discriminationPhysical insecurity and political exclusion

CONTDSituational Poverty (Transitory)-People or families can be poor due to some adversities like EarthquakesFloods A serious illness and so on-Sometimes, people can help themselves out of this situation quickly if they are given a bit of assistanceCollective poverty:-Affects a population collectively-A whole country can be classified as poverty-stricken due to insufficiency of basic materials and services

Other forms of povertyThe disadvantagedWho own nothingLack everything that is exteriorThe unfortunate and accident victimsNew poor victims of the economical crisis or unemploymentThe isolatedThe absence of relationships The result of broken relationships, e.g. the poverty of divorceLack of acquaintances or of friends Those who have no futureWho cannot foresee how the future will be, e.g. prisoners, the unemployed, workers who are hired on a day to day basis The unwellWho have poor health: the sick, the disabled, the blind, the deaf, the paralyzed, the amputees, the mentally ill, etc

CONTDThe ignorant, the incompetent, the inexperiencedWho have little culture, little knowledge, little learning, little education, little trainingUsually more serious than the preceding forms of poverty in LDCsThe unlovedLack affection, who do not receive a minimum of recognition or no ties of love.Unloved as children are handicapped for the rest of their lives.Those who lack willpower or loveThe bottom of the scaleWithout will power, the person himself/herself is affected during mental depressionWithout desire, without willpower, without love, one cannot change, cannot evolve. The persons vital strength is non-existent.

To allow oneself to be touched by this immense cancer that is present at the heart of humanity is to take a tremendous risk. It is to touch the very reason why Christ gave his life: to restore to our deep dignity as Children of God.

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Causes of povertyUnequal distribution of resourcesUnproductive human resourcesInadequate employment opportunitiesRapid population growthLack of educationNatural disastersLack of moneyPoverty is also caused by DRUGS & ALCOHOL as some people spendall their money on addictions

Measurements of poverty

PovertyAbsolute PovertyRelative PovertyHuman Poverty Index Poverty LineFood Poverty LineNon food Poverty LineLorenz Curve ( Gini index)National Poverty Line

CONTD Measures of absolute poverty: Human poverty indexDeveloped by the United NationsNot only poor countries but also industrial countries are suffering from the human poverty So economists introduced separate two indexes

Human poverty index for developing countries (HPI 1)

Percentage of people who are living more than 40 years (Longevity)Adults percentage with illiteracy (Knowledge)Percentage of people who are impossible to access for pure waterPercentage of low weight infants below 5 year old (Decent standards of Poverty)

CONTDHuman poverty index for developing countries (HPI 2 )Percentage of people who are not living more than 60 years from the total populationPercentage of people who are inability to read and write in day today activities from the total populationSegment of people who suffer from income povertyGroup of population suffer from the unemployment more than 12 months

CONTDPoverty line:A critical threshold of income, consumption, or more generally, access to goods and services below which individuals are declared to be poorA minimum level of acceptable economic participation in a given society at a given point of timeThose with incomes or expenditures equal to or above the line are not poorA person is considered poor if his or her income or consumption level falls below a given minimum level necessary to fulfill basic needs. What is necessary to satisfy basic needs is different at different times and in different countriesTherefore, poverty line may vary with time and place

CONTDFood poverty line:Minimum amount of food an individual must consume to stay healthy Non food poverty line Average per capita non-food expenditure of households whose per capita total expenditure is close to the food poverty lineNational poverty LineThis is the percentage of people living below the national poverty line

Criticisms on Poverty LineA measure solely based on the cost of foodNeeded to measure poverty through multiple factors such as HousingTransportationRegional economic differencesThe thresholds are lowCurrent poverty thresholds were established in the 1960s. It should vary geographically to reflect variations in the costs of meeting the needsThe analytical data is low to find the solution to reduce the povertyEssential to have the categories (sex, age etc.) what affect from poverty more. Then the solutions can be used to that affected group

Measures of relative povertyThe Lorenz CurveMax O. Lorenz: 1905- inequality of the wealth distributionA graphical representation of the proportionality of distributionTo map the Lorenz curve, the cumulative income share is plotted on the vertical axis and distribution of the population on the horizontal axisAlways bowed to the right of the line of equalityThe more curved a Lorenz curve is, and the further it lies below the line of equalityA linear Lorenz curve is evidence of perfect equality

CONTD

CONTDThe Sen index:

The weighted Sen index by the gini coefficient of the poor:

Formula:

Where, Gpp = The gini coefficient of the poverty gap ratios of the poorP1P = The poverty gap index

CONTDThe Sen-Shorrocks-Thon index: The product of The headcount index, The poverty gap index and The Gini coefficient of poverty gap ratios for the population Formula:PSST= P0P1P(1+P)P1P = The poverty gap indexP = The Gini coefficient of the poverty gap ratios

Primary Measurements of povertyDirect Calorie Intake (DCI)If its per capita calorie intake is less than the standard per capita nutritional requirement (2,122 kcal per day)Best used to measure under-nourishmentFood Energy Intake (FYI)Normally derived through regression of the relationship between calorie intake and expenditureCost of Basic Needs (CBN)Since 1995-96, BBS is using itLower poverty line: Total expenditures on food and non-food combined are equal to or less than the food poverty lineUpper poverty line: Estimated by adding together the food and non-food poverty lines

Other measurements of poverty Head Count Index: the proportion of the population that is counted as poorFormula:

Np = Number of poor N = Total population

Rewrite as:

I is an indicator function that takes the value of 1 if the bracketed is true and o otherwiseExpenditure Yi is less than poverty line zDrawback: Fails to capture the extent to which individual income falls below poverty line

CONTDPoverty Gap Index: Measure of the intensity ofpovertyAverage of the ratio of the poverty gap to the poverty lineExpressed as a percentage of the poverty line for a countryA percentage between 0 and 100%Formula:PGI = 1/N (Z-Yj.1 (Yj < Z)/Z)WhereN = Total populationq = Population of poor who are living at or below thepoverty lineZ = The poverty line andYj = Income of the poor individual j

CONTDFoster, Greer and Thorbecke set:P = 1/n (1-yi / yx )a Where The poverty measure (p) is a function of the total number (n) of households and the incomes of that sub-set whose income (yi) is below the poverty line (yx) Varying the parameter (a) from 0 to 1 to 2 provides estimates respectively of the numbers of poor people and the intensity and severity of their poverty

Other Poverty Indexes used by the World BankThe Human Suffering Index (HSI)The Physical Quality of Life Index (PQLI) The Human Development Index (HDI)Depth of poverty: How far below the poverty line the poor population lives; also called the poverty gapPoverty severity (squared poverty gap): Measures how poor the poor areAlso measures how far below the poverty line individuals and households are, with more consequence given to those at the very bottom

Effects of poverty

POVERTY

THANKS FOR YOUR KIND PATIENCE