Income Distribution and
Undernutrition
Text extracted from
The World Food Problem
Leathers & Foster, 2004
ttp://www.amazon.com/World-Food-ProblemToward-Undernutrition/dp/1588266389
Poorest of the Poor
• Live in third world
• Mostly landless
• Work for others, menial
http://archives.zinester.com/60514/143124/232308_slum.JPG
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•
•
•
•
•
•
jobs
Poorly educated
Illiterate
Superstitious
Squatters who live in huts
Almost no food
Fragmented household
Debt to relatives or lenders
Per capita incomes differ
• Democratic Republic
Congo: $80/yr
• Switzerland: $38,330
• Average person in
Switzerland makes 500X
more than in
Mozambique.
• If compute purchasing
power parity, difference
between richest and
poorest countries is 80X
http://faculty.washington.edu/wgold/family%20on%20crinnenhorn.jpg
http://news.bbc.co.uk/media/images/38542000/jpg/_38542715_family300bbc.jpg
Purchasing Power Parity
2003
http://en.wikipedia.org/wiki/File:PPP2003.svg
Global Incomes
Distribution of World GNP
1989
2011
http://i.unu.edu/media/ourworld.unu.edu-en/article/13169/gdp-graph.jpg
Human Development Index
• Measures quality of life
• High HDI
– High income countries
• Low HDI
– Low income countries
• HDI not perfectly
correlated with income
http://bp0.blogger.com/_vxIox6Dacw/R0yJQ0c_8YI/AAAAAAAAAO4/jCG1CPQfBb0/s1600-h/HDI+map.JPG
Gini Coefficient
• Gini coefficient:
– Based on area of crescent made
by Lorenz curve
– measures inequity of wealth
– = A/A+B
• Gini index = Gini coefficient x 100
• Lowest inequity is in Japan
– Gini coefficient = .249
• Gini index = 24.9
– Richest 20% controls 35% of
income
• Highest inequity is in Brazil
– Gini index= 60.7
– Richest 20% controls 64% of
income
Global Gini Coefficients
http://upload.wikimedia.org/wikipedia/commons/thumb/a/aa/Gini_Coefficient_World_Human_Development_Report_2007-2008.png/800pxGini_Coefficient_World_Human_Development_Report_2007-2008.png
Kuznets Curve
• As a country develops,
rich must get richer first
• Therefore inequity will
increase initially
• Later, inequity will drop
as prosperity increases
Data from 75 countries
Wealthy out-compete poor for food
• Can outbid poor for
food
• Also purchase more
livestock
– Herd becomes more
dependent on grain
– Price of grain is bid up
– Harder for the poor to
buy grain
Overall inequity declining slowly
after rise starting in 1980s
http://www.bbc.co.uk/radio4/today/gallery/media/poverty2.jpg
https://pslarson2.files.wordpress.com/2013/10/worldgini.png
Child Labor
• 250 million children work worldwide
– 22% of workforce in Asia
– 17% of workforce in Latin America
– 1/3 of children in sub-Saharan Africa
• Jobs
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–
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Agriculture
Textiles
Maids and services
Construction and manufacturing
Prostitution
• Many sold into debt bondage
– To pay parent’s debt or as collateral
– Advance on wages
http://uzbekistan.neweurasia.net/wp-content/images/june-2007/01_02a.jpg
U.S. Poor are Wealthy
• Poverty income
–
$9,359/yr
• Person at poverty line in U.S.
– has higher income than
80% of people in the world
• 97% poor households in U.S.
have color TV
U.S. Middle Class Decline
http://big.assets.huffingtonpost.com/MiddleClass_6.png
U.S. Inequity increasing
• Gini coefficients:
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–
–
–
–
http://www.visualizingeconomics.com/wp-content/uploads/us_income_inequal_5_15_2006.jpg
1968: 38.6:
1970: 39.4
1980: 40.3
1990: 42.2
2000: 46.2
2007: 47.0
Rich in U.S. getting richer
http://online.wsj.com/public/resources/images/P1-AL265_COMPAR_20080420183003.gif
Hunger in the U.S.A.
• 49 million people live in
households that experience
hunger
– or the risk of hunger
– Includes 15 million children
– One in 6 households in the United
States
• 1/5 of U.S. food ends up in the
landfill
•
http://www.endhunger.org/images/u_s_hunger.png
Source: Feeding America (2015)
http://www.bendib.com/newones/2006/november/large/End%20of%20Hunger%20in%20US.jpg