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Approaches To Poverty

The document discusses several approaches to analyzing poverty, including absolute income/consumption poverty lines, relative poverty, the capability approach using human development indicators, social exclusion, and holistic poverty analysis. It notes that while income-based analysis is important, poverty is a multidimensional issue that varies between places and over time, so other approaches are needed to fully understand deprivation and how the poor themselves define poverty.

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Sona Hermosa Maynila
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42 views23 pages

Approaches To Poverty

The document discusses several approaches to analyzing poverty, including absolute income/consumption poverty lines, relative poverty, the capability approach using human development indicators, social exclusion, and holistic poverty analysis. It notes that while income-based analysis is important, poverty is a multidimensional issue that varies between places and over time, so other approaches are needed to fully understand deprivation and how the poor themselves define poverty.

Uploaded by

Sona Hermosa Maynila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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APPROACHES TO POVERTY

ANALYSIS

10/11/2019 1
• Understanding poverty is important for
an organization in the business of
eradicating them. Knowing your enemy
is an important weapon in the war
against poverty.

10/11/2019 2
• But poverty is a very elusive and difficult
enemy. It wears different faces at different
times in different places.

10/11/2019 3
Why is poverty analysis
important?
• Raise questions about how we allocate
resources and identify priorities.
• Better understand what is happening in the
countries and regions where we work
• Improve institutional transparency and
accountability
• Identify area for increased specialization and
investment

10/11/2019 4
What poverty analysis cannot
do is answer the basic
questions about political
choice

10/11/2019 5
• Avoid technical fixes

• Avoid reductionism

10/11/2019 6
Absolute poverty is anchored on
a specified welfare level, a level
of living below which one can be
considered poor in an absolute
sense

10/11/2019 7
Relative poverty acknowledges that a society
may place a value on equity as well as the
attainment of absolute living standards;
poverty is not only a matter of deprivation
against some absolute standard but that the
experience of being poor is rooted in the
perception of where individuals stand in
relation to a social average.

10/11/2019 8
The issue of inequality in the
concept of relative poverty

10/11/2019 9
How poor people
themselves define poverty

10/11/2019 10
• Material deprivation (of income and
productive assets)

• Low social status (in terms of gender,


class, caste, race or ethnicity)

• Vulnerability (to sickness and to adverse


external shocks)

10/11/2019 11
• Isolation (including distance to markets,
and inadequate access to public services)

• Powerlessness (or inability to shape the


forces which influence life opportunities)

• Limited human capital (in terms of health


and education)

10/11/2019 12
“Without any gender-specific
analysis, income-expenditure
poverty lines are likely to
understate the deprivation
suffered by women and girl
children.”

10/11/2019 13
Approaches to Poverty Analysis

Absolute
income/ Relative Holistic
Capability
consumption poverty/ poverty
deprivation
poverty ($1 social (PRA)
(HDI)
per day) Exclusion

10/11/2019 14
Income consumption poverty lines

– Absolute poverty is linked to the


consumption of goods and services;
minimum basket of essential consumption
items

• Minimum line based on food basket for meeting


the most basic nutritional requirement
• Higher poverty line for good and other basic
needs (clothing and shelter)
• Universal poverty line is needed to make cross-
country comparison

10/11/2019 15
– Absolute poverty line is advantageous in

• Establishing transparent indicators for


absolute want
• Identifying target population for poverty
reduction initiatives
• Capturing the income-consumption
dimension of poverty which is important
for almost all poor households

10/11/2019 16
Human development indicators

10/11/2019 17
– Indicators going beyond income

– Also called the capabilities approach


developed by Amartya Sen

– Incorporates proxy indicators for access to


health and education

10/11/2019 18
– Advantages in using the HDI

• Capture the non-income dimensions of poverty


• Identify specific areas of deprivation
• Make comparisons between income and non-
income dimensions of poverty across different
regions and countries
• Identify gender gaps
• Identify difference between regions of the same
countries

10/11/2019 19
Social Exclusion
– “Poverty is a standard of living so low that it excludes
and isolates people from the rest of the community.”
– This approach looks at poverty as exclusive where
economic, political, social and cultural factors are
combined
– Being multi-faceted and dynamic, it can draw
attention to causal connections
– It enables one to identify the different structures of
deprivation behind the poverty of specific groups

10/11/2019 20
Holistic poverty (participatory analysis)

– This approach seeks to capture the


perception of poor people themselves about
their poverty
– Participatory assessments illustrate the multi-
dimensionality of poverty and disadvantage
as poor people experience, rather than as
analysts categorize them
– It can also help eliminate the gender
dimensions of poverty

10/11/2019 21
Dimensions of gender deprivation include:

• Income: women are paid less than men in


labour
• Time: women’s labour time is not given a
monetary value
• Access to resources: there are wide
gender discrepancies in access to food,
health, education and other basic services
• Social and legal status: institutionalized
discrimination
10/11/2019 23
Income Powerlessness Interpersonal
Capability
poverty Voice Poverty Poverty
Poverty
Social Provision
Economic Civic Interpersonal
Integration
(Having a job, a Integration Integration
(Able to access
valued economic (An equal citizen (Strong
services that
function; able to in a democratic social/kinship
correspond to
“pay one’s way’ system) networks)
needs)

Women (especially poor) Immigrants


Long-term unemployed Immigrants
Poor regions Migrant Labour
Low-paid Racial minorities
Geographically isolated Labour mobile
Welfare dependents Indigenous communities
Poor people Widows
Elderly Low-caste Single women
Homeless Homeless
Single women Tribal
Disabled
Disabled Ethnic minorities
Precarious employment Homeless
Asset-poor rural producers
Landless labourers
Urban informal sector
Geographically remote/ isolated

10/11/2019 24

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