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Poverty and
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…

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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…

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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…

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development, as reflect in the 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.…

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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…

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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…

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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
The orthodox view has dominated thinking on issues
such as poverty and development since…

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the 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.
The main themes of the Alternative…

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development particularly in 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

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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…


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