Poverty Essay

analytical Essay
2978 words
2978 words

More than $3billion people in the world which is nearly half of the world’s population are living on less than $2.50 a day and more than $1.3 billion live in extreme poverty which is less than$1.25 a day. (Unicef 2013). One third of deaths a year are cause by poverty. An estimate of 600 million children live in absolute poverty, every year more than 10 million innocent children die of hunger and PREVENTABLE diseases, such as diaorreah, pneumonia and malaria 19 million kids worldwide remain unvaccinated, even a simple net would prevent malaria. During 2011, 165 million kids under the age of 5 were stunted( reduced rate of growth and development) due to chronic malnutrition 870 million people worldwide do not have enough to eat. More than half a million women die in pregnancy and child birth every year… one death a minute. Why do we have cases of poverty in 2014? “Overcoming poverty is not a task of charity, it’s an act of justice. Like slavery and apartheid, poverty is not natural. It is man made an it can be overcome and eradicated by the actions of human beings”. Mandela (2005). It’s heart breaking that in this day and age there are children dying of hunger, and easily preventable diseases. Poverty reduction is one of the most dominant themes in current scholarship, policy formation and international discussion on economic development. A sign of it importance is shown by the fact that the very first target of the millennium development goals (MDG) is in fact to reduce the people living under $1 a day by half by 2015. Relative to this dissertation the role of economic growth in in poverty reduction is of high importance. Substantial and lasting reductions, if not complete eradication of poverty has been and will continue to b...

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...e when calculating the income elasticity of poverty but According to Heltberg, (2002) in many cases , growth is more important for poverty reduction than changes in inequality, but this does not label inequality as unimportant Heltberg (2002). Heltberg and Ravillion(2002) discover that growth does not alter inequality. Inequality can be held constant as ram does ram (2006,2011,2013) or the gini coefficient can be added to the regression as it is seen on Adams study (2004) where growth elasticity of poverty in developing countries is calculated to be -2.79, a decrease in the proportion of a population living in in poverty to 2.79% for every 1% growth, which is consumption based rather than income based. Regression is used where the rate of poverty reduction(p) is regressed on the rate of growth in GDP per capita and the rate of income inequality (gini coefficient).

In this essay, the author

  • Opines that poverty is not a task of charity, but an act of justice. it can be overcome and eradicated by the actions of human beings.
  • Argues that the relationship between growth, distributional change, and poverty reduction must be studied in a way that allows for country heterogeneity but remains tractable.
  • Explains the simplification of the poverty line in relation to mean incomes.
  • Explains that income elasticity of poverty (iep) measures the relationship between income and the effects it has on poverty rates in countries selected.
  • Analyzes the relationship between income growth and poverty reduction, stating that the poor are the ones who suffer from economic contraction.
  • Argues that there are irreconcilable positions regarding the proportion of the world's poorest get pleasure from economic process fuelled by larger openness to foreign trade and investment.
  • Explains that poverty tends to fall with growth in mean household income. the horizontal axis is the annualized change in real income value in the survey mean.
  • Defines income elasticity of poverty (iep) as the percentage reduction in poverty rates associated with a percentage change in mean per capita income.
  • Explains that among african countries where the lack of growth appears to have been the main culprit, there are substantial disparities in terms of the ability of countries to translate growth to poverty reduction.
  • Opines that as an alternative to the current 7 percent average annual gdp growth that is generally accepted as the required rate for many developing countries to attain mdg1, poverty could be achieved.
  • Explains that inequality is a majour issue when calculating the income elasticity of poverty, but growth is more important for poverty reduction than changes in inequality.
  • Concludes that absolute poverty in developing countries tends to fall with growth, which is supported by bruno et al (1998) empirical relationship survey.
  • Explains that bourguignon (2002) states that there is an overall declining relationship between poverty and income, but this isn't always the case.
  • Analyzes how nigeria is one of the most corrupt countries in the world, with the rich exploiting the poor.
  • Explains that brazil cut the poverty rate from 17.1 percent to 7.8 percent over the same period. costa rica's gdp growth was more than twice that of brazil.
  • Explains that the country's poverty rate rose from 4.0 percent to 19.6 percent over the same period.

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