ECO DEV 3.1

• is as an increase in Gross Domestic Product (GDP),

  either in total GDP or in GDP per capita.

  Economic growth
• ‘we have to promote economic growth’ is

  understood as a suggestion to promote ______ like the

  ones suggested by the IMF and the World Bank.

  neo-liberal policies
• The most common measure of ________ is the Gini coefficient or

  index (G)

  income inequality
• The most common measure of income inequality is the ____ OR _____, named after the Italian statistician ________ (1912).

  Gini coefficient or index (G) and Corrado Gini
• has a value between 0 and 1

  Gini coefficient
• with ___ being perfect equality

  (all have the same income)

  0
• being perfect inequality (all income earned

  by one person).

  1
• In most countries, gini coefficient values ranges between ______

  0.3 and 0.7
• The _________ can

  thus be intuitively interpreted as the share of the total income (GDP) that has

  to be redistributed to hypothetically obtain perfect income equality.

  Gini coefficient
• a country with a relatively high inequality and G = 0.6 must take

  an equivalent of 60 % of its GDP from the rich and give to the poor to make all

  have the same income. T OR F

  TRUE
• This gives the ratio between the average income of the richest and the

  average income of the poorest

  Kuznets ratio
• typically undertaken by focusing on the

  averages of the top and bottom quintiles, i.e., the richest 20 % and the poorest

  20 %.

  Kuznets ratio
• it should be useful in policy debates and formulations, e.g., to define

  the scope of ____ reduction strategies

  poverty
• it should help in targeting and measuring the impact of specific

  poverty alleviation programmes and policies.

  poverty
• it should be useful as an analytical concept to understand and analyze

  poverty, and also measure changes.

  poverty
• FIVE CAPITAL APPROACH

  Natural Capital, Human Capital, Economic or Financial Capital, Physical Capital, and Social Capital
• Natural resource stocks (soil, water air, genetic resource) and environmental services (hydrological cycle, pollution sinks)

  Natural Capital
• skills, knowledge, labour (includes good health and physical capability

  human capital
• capital base (cash, credit/debt, savings, and economic assets)

  economic or financial capital
• infrastructure (buildings, roads), production equipment and technologies.

  physical capital
• special resources (networks, social claims, social relations, affiliations, associations).

  social capital
• can help us better

  understand the causes of poverty-related processes, especially in specific local contexts.

  five capital approaches
• FIVE-CAPITAL APPROACH

  natural capital, human capital, economic or financial capital, physical capital, and social capital