ECODEV M2

• According to Amartya Sen, a Nobel Prize Winner in Economics, poverty is a complex, multifaceted world that requires a clear analysis in all of its many dimensions.

  1. Geographical
  2. Biological
  3. Social
• POVERTY is a general scarcity, dearth, or the state of one who lacks a certain amount of material possessions or money.
• TWO MAIN ASSETS THAT THE POOR DERIVE THEIR INCOME

  1. Own labor- largely unskilled labor
  2. Agricultural land

   
• ABSOLUTE POVERTY refers to the lack of means necessary to meet basic needs such as food, clothing, and shelter.

   
• RELATIVE POVERTY takes into consideration individual social and economic status compared to the rest of society.
• Those who are considered the poorest normally work in the agriculture sector; they are highly uneducated, somehow labeled as illiterate, and mostly considered malnourished.
• Industrial revolution created a great deal of inequality and to even intensify the gap between rich and poor nations.

   
• Technological change helped the rich countries, thus replacing unskilled workers that normally comprise the poor.

   
• EXTREME POVERTY is characterized by those disadvantaged in basic living conditions, such as food, clean water, sanitation, housing, good health, and even to information.

   
• The POVERTY LINE is set by the government as the threshold to which the absolute value of income and expenses is compared to consider a family to be in poverty.
• The proportion of the population that is below the poverty line is the POVERTY RATE.
• The poverty line is constantly adjusted to hold the real purchasing power given changing price levels. In the Philippines, further classification of the part below the poverty line suffering from extreme hunger is called SUBSISTENCE INCIDENCE.
• Economic inequality, also known as income inequality and wealth inequality, is the difference found in various measures of economic well-being among individuals in a group, among groups in a population, or among countries.
• WEALTH INEQUALITY is the uneven distribution of accumulated assets after deducting the liabilities
• INCOME INEQUALITY is income distributed in an uneven manner.
• Indonesia, Vietnam, Cambodia, and Laos use expenditure-based measures of poverty that are considered to be more in line with the economic theory that is more relative to household well-being.
• POVERTY INCIDENCE (PI) is the percentage of families or individuals with per capita income or expenditure less than the per capita poverty threshold to the total number of families or individuals.

  Hence: P = (Q/n) x 100
• As the poverty rate and poverty line change over time, so are the moving up and down the ladder of the people due to technological progression.
• The LORENZ CURVE was developed by American economist Max O. Lorenz in 1905.
• LORENZ CURVE is a curve showing the relationship between population in percentile ranking and the national income
• Perfect inequality of income distribution is graphed with the line of quality– 45-degree line– and the graph underneath it is the estimation of the income distribution. In a curve, the inequality gap is called the GINI COEFFICIENT.
• POVERTY is a fluid idea with different meanings in different places. It generally represents earning or living off of less money than adequate, as deemed by a particular country or region.
• A lot of poverty reduction programs are likely discouraging people to work, as employment may not be available.
• In the 2019 report of the PSA, in addition to the thresholds and incidence, other measures such as income gap, poverty gap, and severity of poverty are used as metrics to measure poverty in the country.
• The existence of the poverty trap is seen to be inevitable where there is a system of means-tested social security benefits, the situation where a slight increase in earnings leads to an individual or family being worse off overall as a consequence of losing entitlement to other benefits.
• The government plays an important role in reducing poverty in the country through its policies to improve the welfare of the people.
• CONDITIONAL CASH TRANSFER (CCT) ARE programs aid families who are considered poor.
• In the Philippines, we have the PANTAWID PAMILYANG PILIPINO PROGRAM (4PS) that aimed to help the poorest of the poor to improve health, nutrition, and education of children aged 0-18 by giving monetary support and social development programs to break the poverty cycle.
• IN-KIND TRANSFERS

  Another way is to directly provide goods and services as social safety nets through specialized welfare programs such as social pension for indigent senior citizens, supplementary feeding programs, temporary shelter for the homeless and those who are displaced by natural calamities or casualties of battles, and free medicines/vaccines for
• WORK INCENTIVES

  These commonly happen when a natural disaster occurs, and those who are displaced in their workplaces are given an incentive to work and help rebuild the place of adversity in exchange for a reasonable wage to bring home and spend on those afflicted.
• MINIMUM WAGE LAW

  It is an act of Congress or the Senate that imposes a minimum payment of wage to workers in a specific location, duration of work, and nature of the industry to ensure that a reasonable amount of income is provided to a specific group of employees.
• ADJUST TAX CODE is intended not to collect any form of tax from individuals who earn a specific amount or less in one year, reflected on a graduated income tax.
• SDG - Improving access to sustainable livelihoods, entrepreneurial opportunities, and productive resources
• SDG - Providing universal access to basic social services
• SDG - Progressively developing social protection systems to support those who cannot support themselves
• SDG - Empowering people living in poverty and their organizations
• SDG - Addressing the disproportionate impact of poverty on women
• SDG - Working with interested donors and recipients to allocate an increased share of Official Development Assistance (ODA) to poverty reduction
• SDG - Intensifying international cooperation for poverty eradication