Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Poverty
    Presented By :
         Patel Ketul
         Patel Ronak
         Patel Darshan
         Vyas Kuntal
Poverty is the deprivation of food, shelter, money
and clothing when people can’t satisfy their basic
needs. Poverty can b...
 According to Mobile Orshansky who developed
  the poverty measurements used by the U.S.
  government, “ Poor is to be de...
 Poverty is the other economic problem facing
  most of the nations in the world. There is no
  unique definition of pove...
Types Of Poverty
(1) Absolute Poverty : (Destitution) It refers to the
      state of severe deprivation of basic human
  ...
Lorenz curve
 In economics ,the Lorenz
 curve is a graphical
 representation of the
 cumulative distribution
 function of...
 It is often used to represent income distribution,
 where it shows for the bottom x% of households,
 what percentage y% ...
Greater the curvature of Lorenz line, greater will be
the relative degree of inequality.
Four Possible Lorenz curves
 The concept is useful in describing inequality
  among the size of individuals in ecology, and in
  studies of biodivers...
Facts And Figures
 The world bank estimated that ,
1) Around 1.29 billion people were in absolute
   poverty in 2008.
2) ...
5) Every year 11 million children living in poverty
   die before their 5th birthday.
6) 1.02 billion people go to bed hun...
 The World bank’s “Voice of the poor” , based
 on research with over 20,000 poor people in
 23 countries, identifies a ra...
(4) Gender relationship
(5) Lack of security
(6) Problems in social relationship
(7) Weak community organization
(8) Limit...
Poverty line
 The poverty threshold or poverty line is the minimum
  level of income deemed adequate in a given country.
...
 Determining the poverty line is usually done by
  finding the total cost of all the essential resources that
  an averag...
Gini coefficient
 The Gini coefficient is usually defined
 mathematically based on the Lorenz curve , which
 plots the pr...
Gini Coefficient & Aggregate
measures of inequality
 The Gini coefficient can then be thought
 of as the ratio of the area that lies between
 the line of equality and the Lo...
 The Gini coefficient can theoretically range from
  0 to 1; it is sometimes expressed as a percentage
  ranging between ...
Characteristics of Poverty
 Effects of poverty also be causes and creating a “Poverty
  cycle” operating across multiple
...
 Almost 90% of maternal deaths during childbirth
  occur in Asia and sub-Saharan Africa, compared to
 less than 1% in the...
(2) Hunger : Rises in the living cost making poor
 people less able to afford items. Poor people spend
 most of the portio...
(3) Education : Poor children are suffering from hunger,
  irritability,headache,viral infection, colds. It is safe to
  s...
(4) Housing : Poverty increases the risk of
  homelessness. Slum-dwellers, who make up a
  third of the world's urban popu...
(5) Violence : According to the reports, many
  women become victims of trafficking. The most
  common form of which is Pr...
• E.g. In Zimbabwe, no. of girls are turning to
 prostitution for food to survive because of
 increasing poverty.
Measures of poverty
There are Various measures of the extent of poverty .
 The head count index.
 The poverty gap index....
Head count index
• The most widely used measure is the headcount
  index.
• It simply measures the proportion of the
  pop...
Weaknesses
• It does not take the intensity of poverty into
  account.
• Survey does not indicate how poor the poor
  are,...
Significance
 The most common method of measuring and
  reporting poverty is the headcount ratio, given as the
  percenta...
Poverty gap index
 Poverty gap index is a measure of the intensity of
  poverty. It is defined as the average poverty gap...
Calculation
 Poverty gap index (PGI) is calculated as,




  where is the total population of poor who are living
  at or...
 By definition, poverty gap index is a percentage
  between 0 and 100%.
 Sometimes it is reported as a fraction, between...
Squared poverty gap index
 Squared poverty gap index, also known poverty
  severity index or , is related to poverty gap ...
 Sen index, sometimes referred to , is related to
 poverty gap index (PGI).It is calculated as follows:




 Where H is ...
Poverty Reduction
 Increasing supply of basic needs.
 Increasing supply of food and other goods.
 Increasing supply of ...
Poverty
Poverty
Upcoming SlideShare
Loading in …5
×

of

Poverty Slide 1 Poverty Slide 2 Poverty Slide 3 Poverty Slide 4 Poverty Slide 5 Poverty Slide 6 Poverty Slide 7 Poverty Slide 8 Poverty Slide 9 Poverty Slide 10 Poverty Slide 11 Poverty Slide 12 Poverty Slide 13 Poverty Slide 14 Poverty Slide 15 Poverty Slide 16 Poverty Slide 17 Poverty Slide 18 Poverty Slide 19 Poverty Slide 20 Poverty Slide 21 Poverty Slide 22 Poverty Slide 23 Poverty Slide 24 Poverty Slide 25 Poverty Slide 26 Poverty Slide 27 Poverty Slide 28 Poverty Slide 29 Poverty Slide 30 Poverty Slide 31 Poverty Slide 32 Poverty Slide 33 Poverty Slide 34 Poverty Slide 35 Poverty Slide 36 Poverty Slide 37 Poverty Slide 38 Poverty Slide 39
Upcoming SlideShare
Ppt on poverty, poverty, poverty in india, poverty in world, world poverty, poverty in india and world
Next
Download to read offline and view in fullscreen.

158 Likes

Share

Download to read offline

Poverty

Download to read offline

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Poverty

  1. 1. Poverty Presented By : Patel Ketul Patel Ronak Patel Darshan Vyas Kuntal
  2. 2. Poverty is the deprivation of food, shelter, money and clothing when people can’t satisfy their basic needs. Poverty can be understood simply as a lack of money or more broadly in terms of barriers to everyday human life.
  3. 3.  According to Mobile Orshansky who developed the poverty measurements used by the U.S. government, “ Poor is to be deprived of those goods, services and pleasures which others around us take for granted.”  According to David Kurten , Poverty also involve social disintegration and environmental degradation which he describe as forming the threefold human crisis in the world today.
  4. 4.  Poverty is the other economic problem facing most of the nations in the world. There is no unique definition of poverty.  This is based on the national definition as well as the international standards of US $1/day/person and US $2/day/person. Lately poverty definition is changed to US $4/day/person.
  5. 5. Types Of Poverty (1) Absolute Poverty : (Destitution) It refers to the state of severe deprivation of basic human needs. (2) Relative Poverty : It is defined contextually as Economic inequality in location or society in which people live.
  6. 6. Lorenz curve  In economics ,the Lorenz curve is a graphical representation of the cumulative distribution function of the empirical probability distribution of wealth; it is a graph showing the proportion of the distribution assumed by the bottom y% of the values.
  7. 7.  It is often used to represent income distribution, where it shows for the bottom x% of households, what percentage y% of the total income they have. The percentage of households is plotted on the x- axis, the percentage of income on the y-axis.  It can also be used to show distribution of assets. In such use, many economists consider it to be a measure of social inequality. It was developed by Max O. Lorenz in 1905 for representing inequality of the wealth distribution.
  8. 8. Greater the curvature of Lorenz line, greater will be the relative degree of inequality.
  9. 9. Four Possible Lorenz curves
  10. 10.  The concept is useful in describing inequality among the size of individuals in ecology, and in studies of biodiversity, where cumulative proportion of species is plotted against cumulative proportion of individuals. It is also useful in business modeling.  E.g. In consumer finance, to measure the actual delinquency Y% of the X% of people with worst predicted risk scores.
  11. 11. Facts And Figures  The world bank estimated that , 1) Around 1.29 billion people were in absolute poverty in 2008. 2) About 400 million people in absolute poverty in India and 173 million people in china. 3) Sub-saharan Africa at 47% had the highest incidence rate of absolute poverty in 2008. 4) Between 1990 and 2010, about 663 million people moved above the absolute poverty level.
  12. 12. 5) Every year 11 million children living in poverty die before their 5th birthday. 6) 1.02 billion people go to bed hungry every night.
  13. 13.  The World bank’s “Voice of the poor” , based on research with over 20,000 poor people in 23 countries, identifies a range of factors which poor people identify as part of poverty are : (1) Precious livelihoods (2) Excluded location (3) Physical limitation
  14. 14. (4) Gender relationship (5) Lack of security (6) Problems in social relationship (7) Weak community organization (8) Limited capabilities
  15. 15. Poverty line  The poverty threshold or poverty line is the minimum level of income deemed adequate in a given country.  In practice, like the definition of poverty, the official or common understanding of the poverty line is significantly higher in developed countries than in developing countries.  The common international poverty line has in the past been roughly $1 a day. In 2008, the World Bank came out with a revised figure of $1.25 at 2005 purchasing-power parity (PPP).
  16. 16.  Determining the poverty line is usually done by finding the total cost of all the essential resources that an average human adult consumes in one year.  The largest of these expenses is typically the rent required to live in an apartment, so historically, economists have paid particular attention to the real estate market and housing prices as a strong poverty line affector.
  17. 17. Gini coefficient  The Gini coefficient is usually defined mathematically based on the Lorenz curve , which plots the proportion of the total income of the population (y axis) that is cumulatively earned by the bottom x% of the population. The line at 45 degrees thus represents perfect equality of incomes.
  18. 18. Gini Coefficient & Aggregate measures of inequality
  19. 19.  The Gini coefficient can then be thought of as the ratio of the area that lies between the line of equality and the Lorenz curve over the total area under the line of equality .
  20. 20.  The Gini coefficient can theoretically range from 0 to 1; it is sometimes expressed as a percentage ranging between 0 and 100. In practice, both extreme values are not quite reached.  A low Gini coefficient indicates a more equal distribution, with 0 corresponding to complete equality, while higher Gini coefficients indicate more unequal distribution, with 1 corresponding to complete inequality.
  21. 21. Characteristics of Poverty  Effects of poverty also be causes and creating a “Poverty cycle” operating across multiple levels, individual, national, global. (1) Health : one third of deaths are due to poverty related causes. . Those living in poverty suffer from life expectancy.  According to the World Health Organization, hunger and malnutrition are the single gravest threats to the world's public health and malnutrition is by far the biggest contributor to child mortality , present in half of all cases.
  22. 22.  Almost 90% of maternal deaths during childbirth occur in Asia and sub-Saharan Africa, compared to less than 1% in the developed world.
  23. 23. (2) Hunger : Rises in the living cost making poor people less able to afford items. Poor people spend most of the portion of their budget on to food than richer person.
  24. 24. (3) Education : Poor children are suffering from hunger, irritability,headache,viral infection, colds. It is safe to state that children who live at or below the poverty level will have far less success educationally than children who live above the poverty line. • Poor children have a great deal less healthcare and this ultimately results in many absences from the academic year. • Additionally, poor children are much more likely to suffer from hunger, fatigue, irritability, headaches, ear infections, flu, and colds. These illnesses could potentially restrict a child or student's focus and concentration.
  25. 25. (4) Housing : Poverty increases the risk of homelessness. Slum-dwellers, who make up a third of the world's urban population, live in a poverty no better, if not worse, than rural people, who are the traditional focus of the poverty in the developing world , according to a report by the United Nations. There are over 100 million street children worldwide.
  26. 26. (5) Violence : According to the reports, many women become victims of trafficking. The most common form of which is Prostitution as a mean of survival and economic desperation. • Deterioration of living conditions can often compel children to abandon school in order to contribute family income. E.g. Slavery and Human trafficking.
  27. 27. • E.g. In Zimbabwe, no. of girls are turning to prostitution for food to survive because of increasing poverty.
  28. 28. Measures of poverty There are Various measures of the extent of poverty .  The head count index.  The poverty gap index.  The squared poverty gap (poverty severity) index.
  29. 29. Head count index • The most widely used measure is the headcount index. • It simply measures the proportion of the population that is counted as poor. Head count index = No. of poor /Total no. of population
  30. 30. Weaknesses • It does not take the intensity of poverty into account. • Survey does not indicate how poor the poor are, and hence does not change if people below the poverty line become poorer. • The poverty estimates should be calculated for individuals and not the households.
  31. 31. Significance  The most common method of measuring and reporting poverty is the headcount ratio, given as the percentage of population that is below the poverty line.  One of the undesirable features of the headcount ratio is that it ignores the depth of poverty; if the poor becomes poorer, the headcount index does not change.  Poverty gap index provides a clearer perspective on the depth of poverty.
  32. 32. Poverty gap index  Poverty gap index is a measure of the intensity of poverty. It is defined as the average poverty gap in the population as a proportion of the poverty line.  The poverty gap index is an improvement over the poverty measure headcount ratio which simply counts all the people below a poverty line, in a given population, and considers them equally poor.  Poverty gap index estimates the depth of poverty by considering how far, on the average, the poor are from that poverty line.
  33. 33. Calculation  Poverty gap index (PGI) is calculated as, where is the total population of poor who are living at or below the poverty line and is the income of the poor household . • In this calculation, all households whose income is above the poverty line are not considered, because PGI is a measure of depth of poverty below the poverty line .
  34. 34.  By definition, poverty gap index is a percentage between 0 and 100%.  Sometimes it is reported as a fraction, between 0 and 1. A theoretical value of zero implies that all the extremely poor people are exactly at the poverty line.  A theoretical value of 100% implies all the extremely poor people have zero income. In some literature, poverty gap index is reported as while headcount ratio is reported as .
  35. 35. Squared poverty gap index  Squared poverty gap index, also known poverty severity index or , is related to poverty gap index.  It is calculated by averaging the square the poverty gap ratio. By squaring each poverty gap data, the measure puts more weight the further a poor person's observed income falls below the poverty line.  The squared poverty gap index is one form of a weighted sum of poverty gaps, with the weight proportionate to the poverty gap.
  36. 36.  Sen index, sometimes referred to , is related to poverty gap index (PGI).It is calculated as follows:  Where H is the headcount ratio and Gz is the income Gini coefficient of only the people below the poverty line.
  37. 37. Poverty Reduction  Increasing supply of basic needs.  Increasing supply of food and other goods.  Increasing supply of healthcare and education, water and energy utilities.  Removing constraints on govt. services  Reversing brain drains.  Controlling overpopulation.  Increasing personal income.
  • mail2bindusajith

    Dec. 6, 2021
  • LoveforSPORTS

    Dec. 1, 2021
  • AshwiNK57

    Nov. 22, 2021
  • PaulWalker319295

    Nov. 15, 2021
  • MeljunDeAsisRefe1

    Nov. 12, 2021
  • SakshiSharma737031

    Oct. 28, 2021
  • ritikachoudhary25

    Aug. 26, 2021
  • RajKahlon1

    Jun. 24, 2021
  • HumairAli11

    Jun. 20, 2021
  • MohanrajMohanraj17

    Jun. 13, 2021
  • SMARTWANI2011

    May. 14, 2021
  • HayatGull

    May. 2, 2021
  • SHREVIJAYRAJMMECH

    Apr. 14, 2021
  • MadhusmitaMekap

    Mar. 27, 2021
  • PoojaRaheja5

    Feb. 25, 2021
  • GadisaHaqaa

    Jan. 3, 2021
  • balyejusamohamadi

    Dec. 14, 2020
  • AatikaAsad

    Dec. 11, 2020
  • SohilMalik

    Aug. 20, 2020
  • EngilaShere

    Jun. 14, 2020

Views

Total views

156,878

On Slideshare

0

From embeds

0

Number of embeds

105

Actions

Downloads

4,983

Shares

0

Comments

0

Likes

158

×