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Slide 1

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Defining and measuring
Poverty and inequality.…read more

Slide 2

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What is poverty?
There are two types of poverty; relative and absolute.
Absolute: The minimal requirements necessary to afford
minimal standards of food, clothing, health care, food
and shelter.
Relative: A standard of living or income that is high
enough to satisfy basic human needs, but still
significantly lower than the majority of the
population under consideration.…read more

Slide 3

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How is poverty measured - Hdi
HDI stands for Human Development Index.
It is a composite measure of health, wealth and economics.
0 1
Less More
developed developed…read more

Slide 4

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How is poverty measured - Hdi
HDI (a composite measure) is better at measuring poverty than a
single development measure as it takes more than just income
into account. It takes health, wealth and education and creates
a score from 0-1, this makes it comparable and it can be used on
an international scale. Education is split into expected and
mean years at school, the higher this number the more developed
a country. This along with GNI and life expectancy creates a
realistic number.
However, the numbers for all the measures may not be accurate as
it is an average and some proportion of a country is above/below
this line. Also it is difficult to compare the very rich and
very poor with this indicator.…read more

Slide 5

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How is poverty measured - HPI
Human Poverty Indicator.
There are two types of HPI. (HPI AND HPI)
HPI is used in developing countries (%under weight
children+lack of access to safe water)
HPI is used in high income, OECD (Organisations for
Economic Co-operation and Development) countries (50% of
median disposable household income)
(there are 34, OECD's such as the UK and USA.…read more

Slide 6

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How is poverty measured - HPI vs HDI
Similarities: Differences:
Both composite HPI use literacy rates
Use L.E HDI uses mean years of education
International comparisons HPI is split in 2 to make it more
Rankings…read more


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