POVERTY AND INCOME DISTRIBUTION

Poverty is the state of one who lacks a certain amount of material possessions or money. To compute a poverty measure, three ingredients are needed: 1. 2. One has to define the relevant measure. One has to select a poverty line

TYPES OF POVERTY

1. Absolute Destitution refers to being unable to afford basic human needs, which commonly includes clean
and fresh water, nutrition, health care, education, clothing and shelter.

2.

Relative poverty refers to lacking a usual income as compared with others within country. Relative poverty is a measure of income inequality.

3. Other aspects is economic aspects of poverty focus on material needs, typically including the necessities of
daily living, such as food, clothing, shelter, or safedrinking water. Poverty in this sense may be understood as a condition in which a person or community is lacking in the basic needs for a minimum standard of well-being and life, particularly as a result of a persistent lack of income. Causes of poverty

Environmental: drought, tropical storms, earthquakes, deforestation, etc Economic: Unemployment, increase of food+fuel prices, land reforms, etc Health care: lack of access, diseases, substance abuse, etc Governance: weak rule of law, poor management of resources, corruption, etc Demographics and social factors: overpopulation, crime, brain drain, war, discrimination, etc

Income distribution is how a nations total economy is distributed amongst its population. The distribution of income lies at the heart of an enduring issue in political economythe extent to which government should redistribute income from those with more income to those with less. To compute a poverty measure, three ingredients are needed: 3. 4. 5. One has to define the relevant welfare measure. One has to select a poverty line that is a threshold below which a given household or individual will be classified as poor. One has to select a poverty indicator which is used for reporting for the population as a whole or for a population subgroup only.

Income inequality. Many people would find such an outcome unjust, but even more important to many economists is that such inequality sets up perverse incentives. Effect of poverty

1. Health 2. Hunger 3. Education

4. Housing 5. Violence

Reduction of poverty

1. Providing basic needs 2. Removing constraints on government services 3. Controlling overpopulation 4. Reversing brain drain 5. Income grant

GRADING POLICY CLASS PARTICIPATION REPORTING Poverty and Income Distribution References/Resources: http://en.wikipedia.org/wiki/Poverty http://businesstips.ph/how-to-end-poverty-in-the-philippines/

Name of student HERNAN PARROCHA

SCORE Organization of Subject Matter 1. 2. Oral Presentation Written Summary/notes 10% 15% 10% 50% 15%

Contents/Substance Ability to answer the Question Total