[经济学]Econ__ 222-F10_PovertyInequality_Updated.pptVIP

Poverty and Inequality Poverty Measures: How is poverty measured? Extent of Poverty: trends of poverty in Latin America Reasons behind poverty changes: Economic Growth-Inequality-Poverty Migration – Remittances Inflation Unemployment What can be done to reduce poverty in the region? References Franko: Chapter 11 Additional Readings Quentin T. Wodon, Poverty and Policy in Latin American and the Caribbean, World Bank 2000 (Summary) Latin American Economic Outlook 2010, OECD Report. Poverty Measures How to define the poor?The poor are individuals/households unable to meet basic needs such as food, health care, education, and shelter. The definition of basic needs might differ from place to place ? standardized poverty measures. Poverty Measures: Poverty line Headcount index of poverty (H) Poverty Gap (PG) Square Poverty Gap (SPG) Foster-Greer-Thorbecke: FGT Poverty Line Poverty Line: min income needed to purchase socially determined essentials for living (i.e. basic food needs other basic needs). The WB definitions: Poverty ? live on $2 x day x person Extreme Poverty ? live on $1 x day (inability to pay for food needs). Note about data Poverty data is collected and analyzed by national governments and international agencies. Most developing countries: census + WB hh surveys (national, rural or urban surveys) ECLAC – CEPAL WB: LAC poverty group Headcount Ratio Headcount index of poverty (H): proportion of the population living below the poverty line. It gives us a sense of the number living in poverty at any point in time It does not measure the extent of inmiseration (a person making $45 and a person making $20 a month would each count as one poor person despite tragically different realities). Extent of LA Poverty (In millions and Headcount index) According to ECLAC: In 2002, 44% of Latin Americans lived in poverty. In 2007 it was 34.1% Lost decade: # of people living in poverty increased from 136 to 200 million of poor people