Chapter 8 & 9

Chapter 8 & 9

Causes of poverty? Unemployment, low wages, low levels of education, ill-health, discrimination.
1. Or, manifestations?
2. Neoliberalism=caused by distortion of markets and limits on competition - state interference on development of monopolies.
  1. RESIDUAL VIEW
3. Structuralism= unequal distribution of resources, wealth & power and institutions supporting inequality.
  1. RELATIONAL VIEW
4. Intervensionism=unplanned markets creates poverty - benefits of capitalism do not reach everyone. Intervention by the state is needed.
5. People-centred development= result of intentional development - need for economic growth rather than directing it to basic needs.
6. Three writers' positions - all 3 support the role of the markets and economic growth.
  1. 1) Sachs=advisor on MDG's to the UN. 'Ladder of economic development' which all countries can achieve with aid & action. Favourable conditions for technological advances & industrial growth for some impacts on the growth of inequality.
    1. 2) Easterly=professor of economics=critic of Sachs. Role of the state & aid. He thinks colonisation and its effects creates world poverty - as well as bad governance.
      1. 3) Collier= economist. 4 reasons which hold countries back 'the conflict trap, the natural resources trap, trap of having 'bad' neighbouring countries, and trap of bad governance. Gradual measures of change need to be supported by aid programmes & international initiatives.
David Hulme (2010) said that 25% of world's population were living in extreme poverty.
1. He thinks we should be concerned with global poverty as it is a moral case, reducing poverty will reinforce social stability, historical responsibility (colonialism) and issue of climate change.
World poverty was taken more seriously after WW2 - Bretton Woods Institutions.
1. After the failure of SAP's in 1980s - a new focus on poverty was undertaken - with the UNDP producing HDR to address the multiple dimensions of poverty.
Inequalities are increasing - increases in wealth for some while majority held back.
1. Maternal mortality rates, between & within countries - not all a result of GDP, but access to healthcare & racial discrimination.
  1. Differences in SA - different opportunities depending on skin colour or level of education.
2. Inequalities can be based on colour, religion, gender, literacy rates, access to healthcare - and can be between & within countries.
3. Measuring inequality - by using graphs made of income data, shows that the rich are getting richer - equality is widening.
  1. Better ways of measuring inequalities were adapted from graphs into numbers=Lorenz Curve (line on a graph showing cumulative income).
    1. Gini coefficient is the area on a graph between the equality line & the Lorenz Curve - the bigger the area, the bigger the level of inequality.
4. SEN=capabilties are such things as the ability to live to old age, engage in economic transactions & participate in political activities - these reflect what people value. Poverty can be defined as a lack of capability.
5. Anthony Bebbington claims it was the power of social movements & trade unions which pushed the reduction of poverty in industrialised countries.
  1. Growth in the late 20C was linked to neo-liberalism. promoting the idea of the agency of the individual.
Low income is the most commonly used characteristic in conceptualising poverty.
1. SEN - multiple deprivations - poverty is the same as 'capability failure'
2. Changes in how poverty is measured=HDI (Human Development Index), GII (Gender Inequality Index) & MPI (Multidimensional Poverty Index).
  1. Gender & poverty - men & women can experience different levels of inequalities.

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