Poverty is the scarcity or lack of a certain amount of material or money. Poverty is a multifaceted concept, which may include social, economic, and political elements. Absolute poverty, extreme poverty, or poverty refers to the lack of necessary tools to meet basic personal needs such as food, clothing and shelter.
The threshold at which absolute poverty is defined is considered to be almost identical, independent of a person's location or permanent era. On the other hand, relative poverty occurs when a person living in a country does not enjoy a certain minimum level of "standard of living" compared to the rest of the population. Therefore, the threshold at which relative poverty is defined varies from country to country, or from one society to another.
Providing basic needs can be limited by the constraints on the ability of governments to provide services, such as corruption, tax avoidance, debt and loan terms and by the brain drain of health care and educational professionals. Income-generating strategies to make basic needs more affordable usually include welfare, economic freedom and financial services.
Poverty reduction is still a big problem (or target) for many international organizations such as the United Nations and the World Bank.
Video Poverty
Global prevalence
The World Bank estimates by 2015 that 702.1 million people live in extreme poverty, down from 1.75 billion in 1990. Of the 2015 population, approximately 347.1 million people (35.2%) live in Sub-Saharan Africa and 231 , 3 million (13.5%) live in South Asia. According to the World Bank, between 1990 and 2015, the percentage of the world's population living in extreme poverty fell from 37.1 percent to 9.6 percent, falling below 10 percent for the first time.
In 2012 it is estimated that, using the poverty line of $ 1.25 a day, 1.2 billion people live in poverty. Given that the current economic model, built on GDP, takes 100 years to bring the world's poorest person to the $ 1.25 a day poverty line.
Extreme poverty is a global challenge; it is observed in all parts of the world, including developed countries. UNICEF estimates that half of the world's children (or 1.1 billion) live in poverty. It has been suggested by some academics that neoliberal policies promoted by global financial institutions such as the IMF and the World Bank actually exacerbate inequality and poverty.
Another estimate puts the actual poverty scale much higher than the World Bank, with an estimated 4.3 billion people (59% of the world's population) living on less than $ 5 a day and unable to adequately meet basic needs.
Maps Poverty
Etymology
Poverty is the scarcity or lack of a certain amount (material) of property or money.
The word poverty comes from the ancient French word povertÃÆ' © (French modern: pauvretà ©), from the Latin paupert? S from the poor (poor).
The English word "poverty" through the Anglo-Norman povert. There are several definitions of poverty depending on the context of the situation it occupies, and the view of the person providing the definition.
Measure poverty
Definition
Income Poverty: family income fails to meet the threshold set by different federal governments in each country.
The United Nations: Basically, poverty is the inability to have choices and opportunities, violations of human dignity. This means a lack of basic capacity to participate effectively in the community. This means not having enough to feed and clothe the family, not having a school or clinic to go, no land to grow food or work to earn a living, not having access to credit. This means insecurity, helplessness and exclusion of individuals, households and communities. This means vulnerability to violence, and often implies living in marginal or fragile environments, with no access to clean water or sanitation.
World Bank: Poverty is deprivation in well-being, and consists of many dimensions. These include low incomes and inability to acquire the basic goods and services necessary for survival with dignity. Poverty also includes low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunities for a better person's life.
Poverty is usually measured as absolute or relative (the latter is actually an income inequality index).
In the United Kingdom, Cameron's second service was attacked for redefining their poverty; poverty is no longer classified based on family income, but whether the family is working or not. Given that two thirds of people who find employment receive wages that are under living wage (according to Joseph Rowntree Foundation), this is criticized by anti-poverty activists as an unrealistic view of poverty in Britain.
Absolute poverty
Absolute poverty refers to established standards that are consistent over time and between countries. First introduced in 1990, the dollar poverty line measures absolute poverty by the standards of the world's poorest nations. The World Bank defined the new international poverty line as $ 1.25 a day in 2008 for 2005 (equivalent to $ 1.00 per day in 1996 US prices). In October 2015, they rearrange it to $ 1.90 a day.
Absolute poverty, extreme poverty, or poverty are "conditions characterized by deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information, not only depending on income but also on access. " to the service. "The term 'absolute poverty', when used in this mode, is typically synonymous with 'extreme poverty': Robert McNamara, former president of the World Bank, describes absolute or extreme poverty as," a condition severely restricted by malnutrition, illiteracy, , filthy environment, high infant mortality, and low life expectancy as being under the reasonable definition of human reason. "Australia is one of the richest countries in the world.In an article published in Australian Online Policy, Robert Tanton notes that," While this amount is appropriate for third world countries, in Australia, the amount needed to meet this basic need will be far higher because the price of this basic need is higher. "
However, since the amount of wealth needed for survival is not the same in all places and time periods, especially in highly developed countries where few people will fall below the World Bank Group poverty line, countries often develop their national poverty line own.
The absolute poverty line was calculated in Australia for Henderson's poverty investigation in 1973. It was $ 62.70 a week, which was the disposable income needed to support the basic needs of the families of two adults and two dependent children at the time. This poverty line has been periodically updated by the Melbourne Institute in line with the increase in average incomes; for one employed person, it was $ 391.85 per week (including housing costs) in March 2009. In Australia, OECD poverty would be equivalent to "disposable income of less than $ 358 per week for a single adult (higher for a home larger ladders to account for greater costs.) By 2015, Australia applies Individual Measurement Measures that address the gender gap in poverty.
For several years beginning in 1990, the World Bank used the absolute poverty line as $ 1 per day. This was revised in 1993, and until 2005, absolute poverty was $ 1.08 a day for all countries on the basis of purchasing power parity, adjusted for inflation to the US dollar in 1993. In 2005, after extensive study of living costs across the board world, the World Bank raised the gauge for the global poverty line to reflect higher observed living costs. By 2015, the World Bank defines extreme poverty as living on less than US $ 1.90 (PPP) per day, and moderate poverty is less than $ 2 or $ 5 per day (but note that a person or families with access to subsistence resources, for example, subsistence farmers, may have low cash income without low living standards - they do not live "in" their cash income but use it as a top up). It is estimated that "in 2001, 1.1 billion people had consumption levels below $ 1 per day and 2.7 billion living on less than $ 2 per day." One 'dollar a day', in countries that do not use US dollars as a currency, does not translate to live a day on the equivalent amount of local currency as determined by the exchange rate. On the contrary, this is determined by the level of purchasing power parity, which will see how much local currency is required to buy the same goods that dollars can buy in the United States. Typically, this will translate into local currencies less than exchange rates in poor countries because the United States is a relatively more expensive country.
The poverty line threshold of $ 1.90 per day, as defined by the World Bank, is controversial. Each country has its own threshold for the absolute poverty line; in the United States, for example, the absolute poverty line is US $ 15.15 per day in 2010 (US $ 22,000 per year for a family of four), while in India it is US $ 1.0 per day and in China the absolute poverty line is US $ 0.55 per day, respectively based on PPP in 2010. These different poverty lines make comparisons of data between official reports of each country qualitatively difficult. Some experts argue that the method of the World Bank sets the standard too high, others argue that it is low. Others argue that the poverty line is misleading because it measures everyone under the same poverty line, when in fact someone living on $ 1.20 a day is in a different poverty condition than someone living on $ 0.20 a day. In other words, the depth and intensity of poverty varies across the world and in every regional population, and $ 1.25 per day of poverty line and head number are inadequate measures.
The share of the world's population living in absolute poverty fell from 43% in 1981 to 14% in 2011. The absolute number of people in poverty fell from 1.95 billion in 1981 to 1.01 billion in 2011. Economist Max Roser estimates that the number of poor people is therefore about the same as 200 years ago. This is the case because the world's population is just a little over 1 billion in 1820 and the majority (84% to 94%) of the world's population live in poverty. The proportion of the developing world population living in extreme economic poverty fell from 28 percent in 1990 to 21 percent in 2001. Most of these improvements occur in East and South Asia. In East Asia, the World Bank reported that "The poverty rate of $ 2 per day is estimated to drop to about 27 percent [in 2007], down from 29.5 percent in 2006 and 69 percent in 1990." In Sub-Saharan Africa, extreme poverty increased from 41 percent in 1981 to 46 percent in 2001, combined with population growth increasing the number of people living in extreme poverty from 231 million to 318 million.
In the early 1990s several transition economies of Central and Eastern Europe and Central Asia experienced a sharp decline in income. The collapse of the Soviet Union resulted in a large decline in GDP per capita, about 30 to 35% between 1990 and last year 1998 (when it was minimum). As a result, the poverty rate also increased although in subsequent years per capita income recovered, the poverty rate decreased from 31.4% of the population to 19.6%.
World Bank data shows that the percentage of people living in households with consumption or income per person below the poverty line has declined in every region of the world since 1990:
According to Chen and Ravallion, about 1.76 billion people in developing countries live above $ 1.25 a day and 1.9 billion people live below $ 1.25 a day in 1981. World population rose by 25 years ahead. In 2005, some 4.09 billion people in developing countries lived above $ 1.25 a day and 1.4 billion people live below $ 1.25 per day (data from 1981 and 2005 based on adjusted inflation). Some experts caution that this trend is subject to assumptions and uncertainty. In addition, they note that poverty reduction is not uniform across the world; economically affluent countries like China, India and Brazil have made more progress in absolute poverty reduction than countries in other regions of the world.
The absolute poverty rate trends mentioned above are supported by human development indicators, which have also increased. Life expectancy has greatly improved in the developing world since World War II and began closing the gap into developed countries. 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. Similar trends can be observed for literacy, access to clean water and electricity and basic consumer goods.
Relative poverty
Relative poverty sees poverty as socially defined and depends on the social context, then relative poverty is a measure of income inequality. Typically, relative poverty is measured as a percentage of the population with incomes less than some fixed proportion of the average income. There are different income inequality metrics, for example, the Gini or Theil Index coefficients.
Relative poverty is "the most useful measure to ensure poverty in rich rich countries". Relative poverty measures are used by the United Nations Development Program (UNDP), the United Nations Children's Fund (UNICEF), the Organization for Economic Co-operation and Development (OECD) and Canadian poverty researchers. In the European Union, "a measure of relative poverty is the most prominent and most cited indicator of EU social inclusion".
"Relative poverty reflects the cost of social inclusion and equality of opportunity in time and space."
"Once economic development has progressed beyond a certain minimum level, rubbing poverty - from the point of view of both the poor and the communities in which they live - is not so much the effect of poverty in any absolute form but the contrasting effect, perceived daily, between the lives of the poor and the lives of the people around them.For practical purposes, the problem of poverty in industrialized countries today is the problem of relative poverty (page 9). "
In 1776 Adam Smith in the Wealth of Nations argued that poverty is an inability to buy, "not only is the commodity indispensable to life support but whatever the customs of the state make it obscene to those who can be credited, even from the lowest, order, without ".
In 1958 J. K. Galbraith argued that "The poor when their incomes, even if enough to survive, fall real behind their community."
In 1964 in the economic report of the joint committee of the President in the United States, the Republicans supported the concept of relative poverty. "There is no objective definition of poverty... This definition varies from place to place and from time to time.In America as our standard of living increases, so does our notion of what is beneath the standard."
In 1965 Rose Friedman argued for the use of relative poverty which claims that the definition of poverty changes with the standard of public life. Those labeled as poor in 1995 will have a "higher standard of living than many who are not labeled poor" in 1965.
In 1979, the English sociologist Peter Townsend published his famous definition, "individuals... can be said to be in poverty when they lack the resources to get the kind of diet, participate in activities and have customary living conditions and facilities, or at least be widely encouraged or approved, in the communities in which they are located (page 31) ". The definition and measurement of poverty is closely linked to the idea that poverty and community participation are closely linked.
Peter Townsend changed the conception of poverty, seeing it not only as a lack of income but as a configuration of economic conditions that prevented people from becoming full members of society (Townsend, 1979, Ferragina et al., 2016). Poverty reduces people's ability to participate in society, effectively denying them full citizenship (as suggested by T.H. Marshall). Since there is no universal principle to set minimum minimums of participation equal to the full membership of the community, Townsend argues that appropriate measures will be relative to a particular cultural context. He suggested that in every society there must be an empirically determined 'breakpoint' in the income distribution below which individual participation collapses, providing a scientific basis for improving the poverty line and determining poverty levels (Ferragina et al., 2016).
Brian Nolan and Christopher T. Whelan from the Irish Institute of Economic and Social Research (ESRI) explained that "Poverty should be seen in terms of living standards of the people concerned."
Relative poverty measures are used as official poverty levels by the EU, UNICEF, and OEDC. The main poverty line used in the OECD and the EU is based on "economic distance", the income level set at 60% of the average household income.
Other aspects
The economic aspect of poverty focuses on material needs, usually including daily living needs, such as food, clothing, shelter, or safe drinking water. Poverty in this sense can be understood as a condition in which a person or community is lacking in basic needs for minimum standards of well-being and life, especially as a result of the lack of continuous income. Increased poverty runs parallel with higher unemployment, hunger, and crime rates.
The social aspect analysis of poverty connects the condition of scarcity with the aspect of the distribution of resources and power in society and recognizes that poverty can be a function of the "ability" of the diminished person to live the kind of life they cherish. The social aspects of poverty may include lack of access to information, education, health care, social capital or political power.
The poverty level is a snapshot image at a time that removes the transition dynamics between levels. Mobility statistics provide additional information about fractions that leave the poverty level. For example, one study found that in the sixteen years (1975 to 1991 in the US) only 5% of those under the fifth income level were still at that level, while 95% switched to higher income categories. The poverty rate can remain the same while those who get out of poverty are replaced by others. The poor and poor are chronically different while in each society. In the nine-year period ending in 2005 for the US, 50% of the poorest quintiles were diverted to the higher quintiles.
Poverty can also be understood as aspects of unequal social status and unequal social relations, experienced as social exclusion, dependence, and reduced capacity to participate, or to develop meaningful relationships with others in society. Such social exclusion can be minimized through mainstream reinforced connections, such as through the provision of relational care for those who experience poverty.
The World Bank's "Voices of the Poor", based on research with more than 20,000 poor people in 23 countries, identifies the factors identified by the poor as part of poverty. These include:
- Harassment by those in power
- An empowering institution
- Excluded locations
- Gender relationship
- Lack of security
- Limited capabilities
- Physical limitations
- Malicious livelihood
- Issues in social relationships
- Weak community organizations
- Discrimination
David Moore, in his book The World Bank, argues that some poverty analyzes reflect the degrading, sometimes racial, stereotypical attitude of the poor as helpless victims and recipients of passive assistance programs.
Ultra-poverty, a term apparently coined by Michael Lipton, connotes among the poorest of the poor in low-income countries. Lipton defines ultra-poverty as receiving less than 80 percent of the minimum caloric intake while spending more than 80 percent of income on food. Alternatively, a 2007 report published by the International Food Policy Research Institute defines ultra-poverty as living on less than 54 cents per day.
Asset poverty is a more persistent and general economic and social condition than income poverty. This can be defined as the inability of the household to access sufficient wealth resources to provide basic needs for a period of three months. Basic needs refer to the minimum standards for consumption and acceptable needs. Natural resources consist of home ownership, other real estate (second house, rental property, etc.), net value of agricultural assets and business, stocks, check and savings accounts, and other savings (money in savings bonds, cash value of insurance policy soul, etc.) Wealth is measured in three forms: net worth, net worth minus home equity, and liquid assets. Net worth consists of all aspects mentioned above. The net worth minus home equity is the same unless it excludes home ownership in the asset account. Liquid assets are available resources such as cash, check and savings accounts, stocks, and other sources of savings. There are two types of assets: tangible and intangible. Tangible assets are most similar to liquid assets because they include stocks, bonds, property, natural resources, and hard assets not in the form of real estate. Intangible assets are access to credit, social capital, cultural capital, political capital, and human capital.
Characteristics
The impact of poverty can also be caused as mentioned above, thus creating a "cycle of poverty" that operates at various levels, individually, locally, nationally and globally.
Impact on health and mortality
One third of deaths - about 18 million people per year or 50,000 per day - are caused by causes of poverty. Colored people, women and children, over-represented among the global poor and the severe consequences of poverty. Those living in poverty suffer disproportionately from hunger or even starvation and disease. Those living in poverty suffer lower life expectancy. According to the World Health Organization, hunger and malnutrition are the single most severe threats to public health and malnutrition in the world, by far the largest contributor to child mortality, present in half of all cases.
Nearly 90% of maternal deaths occur in Asia and sub-Saharan Africa, compared with less than 1% in developed countries. Those living in poverty are also shown to have far greater possibilities to have or cause disability in their lives. Infectious diseases such as malaria and tuberculosis can perpetuate poverty by diverting health and economic resources from investment and productivity; malaria reduces GDP growth by 1.3% in some developing countries and AIDS reduces Africa's growth by 0.3-1.5% every year.
Poverty has been shown to inhibit cognitive functioning. One way in which this can happen is that financial concerns weigh on one's mental resources so that they are no longer fully available to solve complicated problems. The reduced ability to solve problems can lead to suboptimal decisions and further perpetuate poverty. Many other avenues of poverty to compromised cognitive capacity have been noted, ranging from poor nutrition and environmental toxicity to the effects of stress on parenting behavior, all of which lead to a less than optimal psychological development. Neuroscientists have documented the effects of poverty on brain structure and function throughout life.
Infectious diseases continue to undermine the lives of poor people around the world. An estimated 40 million people are living with HIV/AIDS, with 3 million deaths in 2004. Every year there are 350-500 million cases of malaria, with 1 million deaths: Africa accounts for 90 percent of malaria and African children's deaths over 80 percent of malaria victims in the whole world.
Hungry
Increasing the cost of living makes the poor less able to buy goods. The poor spend a larger portion of their budget for food than the rich. As a result, poor households and those close to the poverty threshold can be particularly vulnerable to rising food prices. For example, at the end of 2007 the increase in grain prices caused food riots in some countries. The World Bank warns that 100 million people are at risk of sinking deeper into poverty. Threats to food supplies may also be caused by droughts and water crises. Intensive farming often leads to a vicious circle due to exhaustion of soil fertility and declining agricultural yields. About 40% of the world's agricultural land is seriously degraded. In Africa, if current land degradation trends continue, the continent may be able to feed only 25% of its population by 2025, according to the United Nations University Institute for Natural Resources in Africa. Every year nearly 11 million children living in poverty die before their fifth birthday. 1.02 billion people go to bed hungry every night.
According to the Global Hunger Index, Sub-Saharan Africa has the highest child malnutrition rate in the world over the period 2001-2006.
Efforts to end hunger and malnutrition
As part of the Sustainable Development Goals, the global community has made the elimination of hunger and malnutrition a priority for years to come. While Goal 2 of SDGs aims to achieve this goal by 2030 a number of initiatives aim to achieve the objectives of the previous 5 years, by 2025:
- The Compact2025 partnership, led by IFPRI with the involvement of UN organizations, NGOs and private foundations develops and disseminates evidence-based advice to politicians and other decision makers aimed at ending hunger and malnutrition within the next 10 years, at 2025. It bases its claim that hunger may be terminated in 2025 on reports by Shenggen Fan and Paul Polman who analyze experiences from China, Vietnam, Brazil, and Thailand.
- European Union and Bill & amp; The Melinda Gates Foundation has launched a partnership to combat malnutrition in June 2015. The program will start in Bangladesh, Burundi, Ethiopia, Kenya, Laos and Niger and will help these countries improve information and analysis on nutrition so they can develop nationally an effective nutrition policy.
- The UN Food and Agriculture Organization has created partnerships that will act through an African Union CAADP framework aimed at ending hunger in Africa by 2025. These include interventions including support for increased food production, strengthening social protection and integration of the right to food in national legislation.
Education
Research has found that there is a high risk of lack of education for children coming from low-income housing conditions. This is often a process that begins in elementary school for some disadvantaged children. Instructions in the US education system, as well as in most other countries, tend to be directed to students from more profitable backgrounds. As a result, children in poverty are at a higher risk than children who benefit from retention in their classes, special destructive placements during school hours and not even completing their high school education. Profits give birth to excellence. There are indeed many explanations as to why students tend to drop out. One of them is the condition in which they attend school. Schools in poverty-stricken areas have conditions that prevent children from learning in a safe environment. Researchers have developed a name for areas like this: urban war zones are poor, crime-ridden districts where conditions are worsening, violence, even like war and underfunding, most ineffective schools promote lower academic performance , including irregular and disturbing presence or disobedient classroom behavior. Due to poverty, "Students from low-income families are 2.4 times more likely to get out of middle-income children, and are more than 10 times more likely than high-income colleagues to get out"
For low-resource children, risk factors are similar to others such as juvenile delinquency, higher teenage pregnancy rates, and economic dependence on low-income parent or parent. Families and communities proposing low-level investments in education and development of disadvantaged children end up with disadvantageous outcomes for children who see a life of reduced parental work and low wages. A higher early birth rate with all risks associated with family, health and wellbeing is an important issue that must be addressed because education from preschool through high school has the same meaning in life.
Poverty often drastically affects the success of children in school. "House activities, preferences, behavior" of children must be in harmony with the world and in cases that they do not do, students are harmed at school and, most importantly, the classroom. It is therefore safe to state that children living at or below the poverty level will have a much lower level of education than children living above the poverty line. Poor children have far less health and this eventually results in a lot of absenteeism from the academic year. In addition, poorer children are more likely to suffer from hunger, fatigue, irritability, headaches, ear infections, flu, and colds. These diseases potentially limit the focus or concentration of children or students.
In order for a child to grow emotionally healthy, children under the age of three require "a strong and reliable primary nurse, providing consistent, unconditional love, guidance and support, a safe, predictable, stable environment. 20 hours per week of harmonious, reciprocal, interaction This process, known as attunement, is most important during the first 6-24 months of infant life and helps them develop more healthy emotions, including gratitude, forgiveness, and empathy. activities that are personalized and increasingly complex ".
Adverse shopping habits mean that the poor usually spend about 2 percent of their income to educate their children but the percentage of alcohol and tobacco is greater (For example, 6 percent in Indonesia and 8 percent in Mexico).
Participation
Poverty is also regarded as a real social phenomenon that reflects more consequences of lack of income than a lack of revenue per (i) Ferragina et al., 2016). According to Townsend: humans are social animals trapped in a network of relationships, which use complex and changing pressures, as much in the consumption of their goods and services as in other aspects of their behavior (Townsend 1979). This idea has received theoretical support of experts and extensive testimony from people who experience poverty around the world (Walker 2014). Participation and consumption have become an increasingly important mechanism by which people build and communicate their identity and position in society, increasing the inherent premiums on resources needed to participate (Giddens 1991). In addition, the concept of social exclusion has been added to the lexicon of poverty-related terms, describing the process by which people, especially those with low incomes, can become socially and politically separated from the mainstream community and associated resources and opportunities (Cantillon 1997). Western societies have also become more complex with a diversity of ethnic, multi-cultural and lifestyle choices that increase the likelihood that a single concept of poverty contained in the past may no longer be valid (Ferragina et al., 2016).
Sheltered
Poverty increases the risk of homelessness. Slum dwellers, who make up one third of the world's urban population, live in poverty no better, if not worse, than rural people, which is the traditional focus of poverty in developing countries, according to a report by the United Nations.
There are more than 100 million street children worldwide. Most of the children living in institutions around the world have surviving parents or close relatives, and they most often enter the orphanage because of poverty. It is speculated that, watering with money, orphanages is increasing and encouraging children to join even though demographic data show that even the poorest big families usually take children whose parents have died. Child experts and advocates argue that orphanages are expensive and often endanger the development of children by separating them from their families and will be more effective and cheaper to help close relatives who want to take orphans.
Utilities
Water and sanitation
In 2012, 2.5 billion people do not have access to sanitation services and 15% practice in vain. The drinking water subsidy tends to subsidize water consumption with those connected to the supply network, which typically lean toward the richer urban and urban segments and those outside informal housing. As a result of heavy consumption subsidies, water prices declined by as little as 30%, on average, from the cost of provision in developing countries covered. This has resulted in a lack of incentives to maintain the delivery system, which causes losses from an annual leak that is sufficient for 200 million people. This also led to a lack of incentives to invest in expanding the network, resulting in the great majority of the poor not connected to the network. Instead, the poor buy water from a water vendor for, on average, about five to 16 times the metered price. However, subsidies to install new connections to the network rather than for consumption have shown more promise for the poor.
Electricity
Similarly, one fifth of the poor receive 0.1% of world illumination but pay a fifth of total expenditure on light, which accounts for 25 to 30 percent of their income. Indoor air pollution from burning fuels kills 2 million, with nearly half the deaths from pneumonia in children under 5. Bamboo fuel burns cleaner and also much faster than wood, thus reducing deforestation. In addition, using solar panels is promoted as being cheaper over the lifetime of the product even if the upfront cost is higher. Thus, payment schemes such as loan-to-own programs are promoted and up to 14% of Kenyan households use the sun as their primary source of energy.
Violence
According to experts, many women are victims of trafficking, the most common form of which is prostitution, as a means of survival and economic despair. The deterioration of living conditions can often force children to leave school to contribute to family income, putting them at risk of being exploited. For example, in Zimbabwe, some girls turn to sex in exchange for food to survive because of increasing poverty. According to research, when poverty declines, there will be fewer and fewer examples of violence.
In one survey, 67% of children from disadvantaged inner cities said they had witnessed a serious attack, and 33% reported witnessing the killings. 51% of fifth graders from New Orleans (average income for households: $ 27,133) have been found to be victims of violence, compared to 32% in Washington, DC (average income for households: $ 40,127).
Personality
Max Weber and several school theories of modernization show that cultural values ​​can influence economic success. However, researchers have gathered evidence suggesting that not-so-ingrained values ​​and changing economic opportunities explain most of the movements in and out of poverty, as opposed to shifting values. Research has shown that poverty changes the personality of the children who live in it. The Great Smoky Mountains Study is a ten-year study capable of showing this. During the study, about a quarter of families saw dramatic and unexpected increases in income. This study shows that among these children, examples of behavioral and emotional disorders decline, and awareness and approval increase.
Discrimination
Cultural factors, such as various types of discrimination, can negatively impact productivity such as age discrimination, stereotypes, discrimination against persons with physical disabilities, gender discrimination, racial discrimination, and caste discrimination. Women are the group that suffers the highest poverty rate after the children; 14.5% of women and 22% of poor children in the United States. In addition, the fact that women are more likely to be caregivers, regardless of income level, whether for prior or subsequent generations, exacerbates the burden of their poverty. Marking the International Day for Poverty Eradication, UN Special Rapporteur on extreme poverty Philip Alston warned in a statement that, "The world's poor have a disproportionate risk to torture, arrest, premature death and domestic violence, but they are civil and political rights is being disseminated from the picture. "... people in lower socioeconomic classes are far more likely to be killed, tortured or subjected to their privacy violations, and much less likely to realize their right to vote, or participate in the political process. "
Poverty Reduction
Various poverty reduction strategies are broadly categorized here based on whether they make more basic human needs available or whether they increase the disposable income needed to purchase those needs. Some strategies such as road building can bring access to basic needs, such as fertilizers or health care from urban areas, as well as increased incomes, by bringing better access to urban markets.
Increase the supply of basic needs
Food and other stuff
Agricultural technologies such as nitrogen fertilizers, pesticides, new seed varieties and new irrigation methods have dramatically reduced food shortages in modern times by increasing yields through previous constraints.
Before the Industrial Revolution, poverty was largely accepted inevitably because the economy produced little, making wealth scarce. Geoffrey Parker writes that "In Antwerp and Lyon, the two largest cities of Western Europe, in 1600 three quarters of the total population is too poor to pay taxes, and therefore may need help in times of crisis." The early industrial revolution led to high economic growth and eliminated the absolute poverty of the masses in what is now considered a developed country. Mass production of goods in places like rapidly industrialized China has made what was once considered luxury, such as vehicles and computers, cheap and thus accessible to many too poor people to buy it.
Even with new products, such as better seeds, or larger volumes of them, such as industrial production, the poor still need access to these products. Improving road and transport infrastructure helps to overcome this massive traffic jam. In Africa, it is more expensive to move fertilizer from African ports 60 miles inland than to send them from the United States to Africa because of the rare and low-quality roads, resulting in a cost of fertilizer two to six times the world average. Microfranchising models such as door to door distributors who earn commission-based income or a successful Coca-Cola distribution system are used to disseminate basic needs to remote areas at prices below market prices.
Health and education care
Nations do not need wealth to get health. For example, Sri Lanka has a maternal mortality rate of 2% in the 1930s, higher than any other country at present. It reduces to 0.5-0.6% in the 1950s and 0.6% today while spending less each year on maternal health because it knows what works and what does not. Knowledge of cost-effectiveness of health care interventions can be difficult to understand and educational measures have been made to disseminate what works, such as the Copenhagen Consensus. Cheap water filters and promoting hand washing are some of the most cost-effective health interventions and can reduce deaths from diarrhea and pneumonia.
Strategies to provide educational costs effectively include administering worm medicines in children, which cost about 50 cents per child per year and reduced the absence of anemia, illness and malnutrition, while only twenty-five as expensive as school attendance increases by building schools. Schoolgirl attendance can be cut in half by simply providing a free sanitary towel. Fortification with micronutrients was ranked the most cost-effective aid strategy by the Copenhagen Consensus. For example, iodized salt costs 2 to 3 cents per person per year, while moderate iodine deficiency in pregnancy reduces 10 to 15 IQ points. Paying for school meals is considered an efficient strategy in improving school enrollment, reducing absenteeism and increasing student attention.
Desired actions such as enrolling children in school or receiving vaccinations may be encouraged by a form of assistance known as conditional cash transfers. In Mexico, for example, dropout rates from 16 to 19 years in rural areas are down 20% and children reach half an inch in height. The initial fear that the program will encourage families to stay at home rather than work to collect benefits has proved unfounded. Conversely, there is little reason for such inattentive behavior, for example, children stop begging on the streets instead of going to school because it can lead to suspension of the program.
Removing constraints on government services
Government revenue can be diverted from basic services by corruption. Funds from aid and natural resources are often sent by government people to money laundering to overseas banks that insist on bank secrecy, rather than spending on the poor. The Global Witness report called for more action from Western banks as they proved capable of channeling the flow of funds associated with terrorism.
The illegal capital flight of developing countries is estimated to be tenfold of the amount of aid received and twice the payment of the debt it pays, with one estimate that much of Africa will be developed if the tax payable is paid. About 60 percent of the illicit capital flight from Africa comes from mispricing transfers, where subsidiaries in developing countries sell to subsidiaries or other shell companies in tax haven at low artificially low prices to pay taxes. The AU report estimates that about 30% of sub-Saharan African GDP has been transferred to tax havens. Solutions include "state-by-country reporting" of companies in which the company discloses activities in each country and thus prohibits the use of tax haven in which no effective economic activity occurs.
Developing state debt services to banks and governments from rich countries can limit government spending to the poor. For example, Zambia spent 40% of its total budget to pay off foreign debt, and only 7% for state-run services in 1997. One of the proposed ways to help poor countries is debt relief. Zambia began offering services, such as free health care even when it flooded the health care infrastructure, due to savings generated from debt relief in 2005.
The World Bank and International Monetary Fund, as the main holder of emerging-market debt, binds the requirements of structural adjustment in return for loans that are generally directed to loan payments with austerity measures such as the abolition of state subsidies and the privatization of state services. For example, the World Bank is pressuring poor countries to eliminate subsidies for fertilizers even while many farmers can not afford them at market prices. In Malawi nearly five million of the 13 million inhabitants need emergency food aid but after the government changed policies and subsidies for fertilizers and seeds were introduced, farmers produced record-breaking corn harvests in 2006 and 2007 when Malawi became a major food exporter.. Most aid from donor countries is bound, requiring the recipient country to spend on products and expertise originating only from the donor country. The US law requires food aid to be used to buy food at home, rather than in hungry homes, and as a result, half of what is spent on transportation.
Depressed security funds, also known as vulture funds, buy cheap country debts cheaply and then demand a country with full value of debt plus interest that can be ten or 100 times what they pay. They may pursue any company that does business with their target country to force them to pay to the fund. Substantial resources are diverted to expensive court cases. For example, a Jersey court ordered Congo to pay US speculators $ 100 million in 2010. Now, Britain, the Isle of Man and Jersey have banned the payments.
Reverse brain flow
The loss of basic providers emigrating from poor countries has a destructive effect. In 2004, there were more doctors trained in Ethiopia living in Chicago than in Ethiopia. Proposals to reduce the problem include mandatory government services for medical school graduates and public nursing and promoting medical tourism so that personal health care has more incentive to practice in their home country.
Control overpopulation
Some argue that overpopulation and lack of access to birth control leads to an increase in population to exceed food production and other resources. Better education for men and women, and greater control over their lives, reduces population growth due to family planning. According to the United Nations Population Fund (UNFPA), by providing better education to men and women, they can earn money for their lives and can help them to strengthen economic security.
Increase personal revenue
Here is a strategy used or proposed to increase personal income among the poor. Increasing agricultural income is described as the core of anti-poverty efforts because three-quarters of the poor are farmers today. Estimates show that growth in agricultural productivity of small farmers, on average, is at least twice as effective in benefiting the poorest half of the country's population as growth generated in the nonagricultural sector.
Grant revenue
A guaranteed minimum income ensures that every citizen will be able to purchase the desired level of basic needs. Basic income (or negative income tax) is a social security system, which periodically gives every citizen, rich or poor, with enough money to live. Studies of large cash transfer programs in Ethiopia, Kenya and Malawi show that the program can be effective in increasing consumption, schooling and nutrition, whether they are bound to such conditions or not. Advocates argue that basic income is more economically efficient than minimum wages and unemployment benefits, since minimum wages effectively impose high marginal taxes on employers, causing losses in efficiency. In 1968, Paul Samuelson, John Kenneth Galbraith, and 1,200 other economists signed a document calling for US Congress to introduce an income guarantee system. Nobel Prize Winners in Economics, with diverse political convictions, who support basic income include Herbert A. Simon, Friedrich Hayek, Robert Solow, Milton Friedman, Jan Tinbergen, James Tobin and James Meade.
The debated revenue grants will be much more efficient in expanding the basic needs for the poor than subsidizing the supply of effectiveness in poverty alleviation diluted by non-poor who enjoy the same subsidized price. With cars and other equipment, Egypt's 20% richest uses about 93% of the country's fuel subsidies. In some countries, fuel subsidies are a larger part of the budget than health and education. A 2008 study concluded that the money spent on domestic goods transfers in India within a year could lift all poor Indians out of poverty for the year if transferred directly. The main obstacle debated by direct cash transfers is that it is impractical for poor countries to transfer such large and direct transfers. In practice, payments determined by complex iris scans are used by the war-torn Democratic Republic of Congo and Afghanistan, while India gradually stops its fuel subsidies for direct transfers. In addition, in the aid model, hunger relief models are increasingly being used by relief groups to provide cash or cash vouchers to the hungry to pay local farmers rather than buying food from donor countries, often required by law, for wasting money for transportation costs.
Economic freedom
Corruption often causes many civil services to be treated by the government as a labor agent for loyal supporters and so it could mean going through 20 procedures, paying $ 2,696 in fees and waiting 82 business days to start business, in Bolivia, while in Canada it takes two days , two registration procedures, and $ 280 to do the same. Such expensive obstacles benefit large companies at the expense of small companies, where most jobs are created. Often, businesses must bribe government officials even for routine activities, which are, in effect, taxes for businesses. Poverty reduction in recent decades has occurred in China and India largely as a result of the abandonment of collective farming in China and the end of a central planning model known as Raj License in India.
The World Bank concludes that the government and feudal elites extend to the poor the right to the land they occupy and use is the 'key to reducing poverty' on the grounds that land rights greatly increase the wealth of the poor, in some cases doubling it. Although the approach varies, the World Bank says that the main issues are security of ownership and ensuring low land transaction costs.
Greater access to the market brings more income to the poor. Road infrastructure has a direct impact on poverty. In addition, migration from poor countries generated $ 328 billion sent from rich countries to poor countries in 2010, more than doubling $ 120 billion in official aid flows from OECD members. In 2011, India got $ 52 billion from diasporanya, more than needed in foreign direct investment.
Financial services
Microcredit, known by Grameen Bank, is where small amounts of money are lent to farmers or villages, mostly women, who can then acquire physical capital to increase their economic rewards. However, microlending has been criticized for making hyperprofits from poor people even from its founder, Muhammad Yunus, and in India, Arundhati Roy affirms that about 250,000 debt-laden farmers have been driven to suicide.
Those in poverty are very important to have a safe place to save money, much more than receiving a loan. In addition, most microfinance loans are spent not on investment but on products that would normally be paid with a current or savings account. Transplants are designed to make savings products available to the poor, which make small deposits. Mobile banking takes advantage of the wide availability of mobile phones to tackle severe regulatory issues and the maintenance of costly savings accounts. This usually involves a network of agents that most shopkeepers, rather than bank branches, will take deposits in cash and translate them to virtual accounts on subscriber phones. Cash transfers can be made between calls and are returned in cash with small commissions, making money transfer more secure.
Wealth Concentration
Poverty can also be reduced as improved economic policies are developed by regulatory authorities to facilitate a more equitable distribution of state property. Oxfam has called for an international movement to end the concentration of extreme wealth as a significant step towards improving global poverty. The group claims that $ 240 billion added to the richest billionaire wealth in the world by 2012 is enough to end extreme poverty fourfold. Oxfam argues that "the concentration of resources in the upper hand of 1% suppresses economic activity and makes life more difficult for others - especially those who are under economic ladder." It has been reported that only 1% of the world's population controls 50% of the current wealth, and the other 99% only have access to the remaining 50%, and the gap has risen sharply in the past.
JosÃÆ' © Antonio Ocampo, professor at Columbia University and former finance minister of Colombia, and Magdalena SepÃÆ'ººlveda Carmona, formerly the UN Special Rapporteur on Extreme Poverty and Human Rights, argue that global tax reform is an integral part of human development and the fight against poverty, as corporate tax evasion has disproportionately impacted those mired in poverty, noting that "human impacts are so real.When profits are shifted out, tax revenues from profits that can be available to finance health care, schools, water sanitation and other public goods disappear from led books, leaving women and men, boys and girls without a path to a better future. "
Raghuram G. Rajan, former governor of the Reserve Bank of India, former chief economist at the International Monetary Fund and finance professor at the University of Chicago Booth School of Business has blamed the ever-widening gap between the rich and the poor especially in the United States into one < i> Fault Lines leading to financial institutions pumping money into subprime mortgages - on political orders, as palliative and not drug, for poverty - led to the financial crisis of 2007 -2009. In Rajan's view, the main cause of increasing the gap between high-income and low-income earners is the lack of equal access to higher education for the latter.
Business solutions for poverty
Serving bad market
The business concept of serving the poorest of four billion people has become popular since CK Prahalad introduced the idea through his book Fortune Under the Pyramid: Eradicating Poverty Through Profit in 2004, among many business firms and business schools. Kash Rangan, John Quelch and other faculty members at the Global Poverty Project at Harvard Business School "believe that in pursuit of their own interests in opening and expanding the BoP market, businesses can generate profits while serving the poorest consumers and contribute to development." Rangan "For businesses, most of the emerging markets around the world are at the bottom of the pyramid so it makes good business sense - not a sense of doing-kindness - to pursue it."
In their 2013 book, "Business Solutions for Poverty," Paul Polak and Mal Warwick directly respond to criticisms raised against the Prahalad concept. They note that big business often fails to create products that really meet the needs and wants of customers who live in the bottom-pyramid. Their answer is that the business that wants to succeed in that market must spend time talking and understanding the customer. Polak previously promoted this approach in his earlier book, "Out of Poverty," which describes the work of the International Development Enterprises (iDE), which he formed in 1982. Polak and Warwick provide practical advice: a product needed to affect at least one billion people that is, having universal appeal), it must be delivered to a live customer where there is no FedEx office or even a road, and it should be "radically affordable" to attract someone who earns less than $ 2 a day.
Creating an entrepreneur
Rather than encouraging multinational businesses to meet the needs of the poor, some organizations such as the iDE, the World Resources Institute, and the United Nations Development Program are beginning to focus on working directly by helping the bottom-pyramid population be local, small-scale Entrepreneurs. Because so many people are involved in agriculture, these NGOs have overcome the market gap that allows small-scale farmers (ie, planning less than 2 hectares) to increase their production and find markets for their crops. This is done by increasing the availability of agricultural equipment (eg pumps, seedlings, seedlings) and better quality seeds and fertilizers, and expanding access to training in agricultural best practices (eg, crop rotation).
Creating entrepreneurship through microfinance can result in undesirable outcomes: Some entrepreneurial borrowers mediate informally between microfinance initiatives and poorer micro-entrepreneurs. Those who are more easily eligible to divide microcredit into smaller credits even to poorer borrowers. Informal intermediation ranges from ordinary mediators at the end of a good or benign spectrum to 'loan sharks' in u
Source of the article : Wikipedia
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