Poverty

• What is absolute poverty?


  An global measure of poverty. Those in absolute poverty are unable to afford basic necessities such as food, clean water and shelter. The World Bank defines absolute absolute poverty as living below $2.15 a day
• What does PPP tell us

  how much of one currency is needed to purchase a basket of goods compared to another currency
• What is relative poverty

  60% below average income of the UK. does not challenge survival but excludes them from society
• What are the most important factors that influence poverty rates


  1) Infrastructure

  2) Education & Training

  3) Aid
• How can infrastructure influence poverty rates?


  Infrastructure will increase productivity as goods can be moved from one place to another more easily or creating more jobs, this will increase incomes and reduce absolute poverty
• How can education and training affect poverty rates?


  Lack/low standard of education and training means low skills/qualifications/human capital - this means workers cannot take of high-skilled jobs. Reducing incomes and increasing absolute poverty
• How can aid affect poverty rates?


  Aid can be used by government to invest in the economy through supply-side policies such as education and healthcare, both of which will increase productivity and incomes and decrease absolute poverty
• Why might Aid not affect poverty

  Corrupt government officials may take the money for themselves, limiting funds to be invested in the economy