01/03/2019 What is poverty? - Google Docs What is poverty? - - Income poverty is not earning an income at all or earning one that is not sufficient for living safely. Lack of social needs is access to shelter, healthcare or educa on. Absolute poverty - africa where a person earns less than US$1.25 per day, purely economic rather than social. Basic needs such as food, drinking water, clothing and shelter. Rela ve poverty - Birmingham, Poverty when compared to other people living in that society or state. Concerning standard of living. People with an income below 60% of the median income of the state. 10million in the UK What is development? ● The combina on of ac vi es by which a variety of actors in global poli cs a empt to reduce poverty. 4 Different sec ons: ● ● ● ● Economic growth Human development Sustainable development Socio-poli cal development Poverty is measured with economic growth vs Human Development Economic Growth ● The most quan ta ve measure of development – i.e. based on data and sta s cs. ● GDP (gross domes c product) – a measure of the economic ac vity that takes place within a state. (includes foreign companies opera ng in that country, e.g. Nissan in UK). ● GNP (gross na onal product) - a measure of all economic ac vity throughout the world undertaken by individuals or companies from that state. (e.g. Nissan would be counted in Japan’s GNP). https://docs.google.com/document/d/1zj_5VjEk6Y06NwRhXm9RVeCfy6ZaRYS_6daqytxi0Qc/edit 1/5 01/03/2019 What is poverty? - Google Docs ● Most basic indicator of economic development is whether a state’s economy or growing or shrinking. ● If GDP decreases in two successive 3 month periods (quarters), then the state is in recession such as socialist Venezuela ● The Benefit is: easy to measure states against one another… ● The problems: 1. Poor measure of poverty – state might have a high GDP but benefits are not felt by whole popula on. E.g. India 2. Hides inequality of income. E.g. US 3. Doesn’t take into account poli cal development, such as human rights and democracy. E.g. China 4. Economic growth can be misleading. E.g. Pakistan had economic growth but required IMF bailout in 2008. HDI + MPI ● Human Development Index: a composite indicator of poverty, that takes in a range of different indicators (put together and marked out of 100). ● Life expectancy at birth ● Educa on (average years in school) ● Income (GNP per capita) ● Mul -dimensional Poverty Index: extends indicators to 10, including drinking water, sanita on, electricity. UNDP uses this as it is the most comprehensive. Difficul es in measuring poverty ● Censuses: UK, every 10 years. 17 out of 35 Sub-Saharan African countries have not held a census for 20 years. ● Difficult to access remote areas in states that are suffering conflict, natural disaster or poor infrastructure. ● Mass movement of popula ons through refugee camps: Syria, Burma etc. ● Corrupt states some me manipulate or withhold data. https://docs.google.com/document/d/1zj_5VjEk6Y06NwRhXm9RVeCfy6ZaRYS_6daqytxi0Qc/edit 2/5 01/03/2019 What is poverty? - Google Docs Causes of poverty The North South Divide Former W. German Chancellor Willy Brandt published a report in 1980, dividing the world with the ‘Brandt Line’. Brant Report Findings ● Industrialisa on + manufacturing in the North was crea ng sustained wealth for the North only. ● The North shaped free trade agreements (and the Bre on Woods ins tu ons) to their advantage. No level playing field with the South. ● MNC in the North were exploi ng the South for natural resources and cheap labour. Profits sucked out by the North. ● South was dependent on the North for investment, manufactured goods and technology. Is the report s ll relevant? ● Many Global South states have industrialised – Brazil, Malaysia, Philippines. ● China is set to be the world’s largest economy in 2020 (maybe) and is now an investor in Southern states. ● Increased inclusion of Global South states in economic global governance, e.g. G20. The Dependency theory ● The Modern World System, Immanuel Wallerstein (1974). ● Resources flow from a ‘periphery’ of poor and underdeveloped states to a ‘core’ of wealthy states, enriching the la er at the expense of the former. Did colonialism cause poverty Some argue that the colonial period (circa 1500-1960) set the condi ons for contemporary global poverty. Yes: ● Capacity of local popula on was some mes underdeveloped. Africa in par cular had no experience of self government. ● Borders were some mes drawn up with li le regard for ethnic unity – Afghanistan, Kashmir. https://docs.google.com/document/d/1zj_5VjEk6Y06NwRhXm9RVeCfy6ZaRYS_6daqytxi0Qc/edit 3/5 01/03/2019 What is poverty? - Google Docs ● Link to dependency theory – the core states colonised the peripheral states poli cally and economically to keep them in a state of dependency, even a er independence. No: ● Using Western technology, colonialism developed states’ infrastructure that is s ll used today : roads, railways, bridges, dams. ● Educa on systems were set up in colonies that enabled the cul va on of a middle class. ● The rule of law and democracy was introduced in some states that provides the basis of a stable society and a racts foreign investment: India is world’s largest democracy. Can global governance address poverty? Yes: - Globalisa on has seen increased foreign direct investment in developing states, which, if taxed efficiently, can create tax revenues MNCs bring experience and skills as well as modernisa on and be er wages Economic freedom promotes other freedoms, and with freedom comes human development (amartya sen). The emergency of an empowered middle class is linked to democra sa on, which can be a powerful lever for breaking down inequality and widening equality of opportunity. No: - Developing countries are exploited for natural resources and minerals. Skills that will enable industrialisa on are not developed. Wealthy states pay low wages, keeping poor people locked in a low wage economy. Neoliberalism and the washington consensus: the preferred structural adjustment programme method of the world bank, IMF and WTO. Cut public spending, cut tax, deregulate markets, priva sa on, openness to investment, free trade. But a lack of regula on and green leading to large risks. 2008 crisis required government interven on. ● Modernisa on theory/Rostow Model (see p163): https://docs.google.com/document/d/1zj_5VjEk6Y06NwRhXm9RVeCfy6ZaRYS_6daqytxi0Qc/edit 4/5 01/03/2019 What is poverty? - Google Docs 1. Tradi onal society 2. Pre-condi ons for take-off 3. Take-off 4. Drive to maturity 5. Age of high mass consump on 6. Seems to reflect BRICs countries, but doesn’t take into account exis ng wealthy states holding them back. Millenium Development Goals ● Backed by 189 members states and 23 interna onal organisa ons, the MDGs represented a huge interna onal consensus. ● To be measured annually and delivered within a 15 year target. Sustainable Development Goals ● In 2015 the MDGs were replaced by the Sustainable Development Goals (SDGs). ● 17 goals, 169 targets. Greater emphasis on the environment. https://docs.google.com/document/d/1zj_5VjEk6Y06NwRhXm9RVeCfy6ZaRYS_6daqytxi0Qc/edit 5/5
