unit 4d- poverty and development

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Poverty and
Developmen
t
Defining and measuring poverty
Poverty is a contested and complex concept.
On one side of it, poverty means being deprived of the
necessities of life; i.e. food, shelter and clothing. This
bsolute poverty.
is called a
This means that for instance, the adult male must eat
20002500 calories per day in order to maintain body
weight.

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According to this view, countries such as Australia, the
USA, Canada and UK live better than much of the
world's population.
Another explanation of poverty is Relative poverty.
This is where poverty is a social rather than
physiological phenomenon; as it is based on people's
relative position in the social order.
Relative poverty defines the poor as the `less welloff'
than needy.…read more

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The World Bank which has assumed a growing
responsibility for global poverty reduction, takes a
standard of extreme poverty, an income level of
$1 dollar a day, calculated at the purchasing power
parity (PPP).
Based on its recalculation in 2004, it now uses
$1.25 dollars a day and the Bank estimated that
in 2012, 1.29 billion people were living at or
below the international line of poverty.
However, there has been growing dissatisfaction
with the narrowly incomebased measure of
poverty.…read more

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UN's annual Human
development reports.
The Human development
The human development is a standard of human
wellbeing that takes into account people's ability
to develop their full potential.
Human Development Indicators (HDI) has been
used since 1993 to rank countries in the UN's
development reports. These are:
Access to resources ­ e.g.…read more

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Orthodox view of development
The orthodox view is rooted in economic liberalism.
In this view, poverty is defined purely in economic
terms, as a failure through a lack of income or
resources, to satisfy basic material needs.
The reduction or elimination of poverty is linked with
the ability to stimulate economic growth, traditionally
calculated on the basis of gross domestic product per
head of population.
The best way to stimulate economic growth is through
the freemarket system.…read more

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The market is the only reliable means of
generating wealth, providing the possibility of
unlimited economic growth.
Underdeveloped societies are therefore destined
to be transformed into modern or developed ones.
The view of development is reflected in
modernisation theory which states that there is a
linear path to development, reflected in the
transformation of westerncountries to from
traditional preindustrial, agricultural societies to
modern, industrial and mass consumption ones.…read more

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Drive to maturity ­ characterised by economic
diversification, greatly reduced poverty and rising
living standards.
High mass consumption: affluence is widespread,
and at this stage, the economy is orientated
around the production of modern consumer
goods.
The orthodox view has dominated thinking on issues
such as poverty and development since the 1945.…read more

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Zapatista movement in Mexico, UN strategies
and the development of NGOs.
However, there is no single alternative package or
ideas about development compared to the
orthodox method.
Radical reformist ideas are strongly antiwestern,
anticorporate and place a heavy emphasis on
environmentalism and selfreliance.…read more

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Latin America, Africa
and Asian society.
Those who support alternative stances advocate
for a growthorientated economic policies that is
sensitive to local needs, placing stress of culture,
selfreliance and ecological interests.
This is sometimes called the `Southern consensus'
which allowed for a greater role of state
intervention that would be acceptable for
economic liberalism.…read more

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Global Inequality
In the perspective of relative poverty, the ideas of
poverty and inequality are linked.
The UN's 1999 Human Development Report
noted the assets of the world's richest 3
individuals exceeded the combined GDP of
countries designated of the worlds `least
developed' ­ compromising of a total of 600
million people.
The debate about global inequalities is plagued with
difficulties:
Lack of clarity about what is being measured e.g.
income, life expectancy, educational
opportunities and access to clean water.…read more

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