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What is « poverty » ? Outline 28.02.2012. Poverty – the foundations European sociology (19 th century) Basic needs (1970s) From basic needs to human development (1980-90s) Poverty - main approaches Well-being Capabilities Exclusion Human-Rights based approach
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What is « poverty » ?Outline 28.02.2012 • Poverty – the foundations • European sociology (19th century) • Basic needs (1970s) • From basic needs to human development (1980-90s) • Poverty - main approaches • Well-being • Capabilities • Exclusion • Human-Rights based approach • Well-being approach: indicators IHEID - DE033 - 28.02.2012
1. The foundations IHEID - DE033 - 28.02.2012
1.1. Sociology of Poverty (European) • Sociology of Poverty developed in relation to economic development (industrial revolution, urbanisation) poverty can not be disconnected from wealth • Poverty is defined as a social status • The poor are those who receive assistance (Tocqueville, Simmel) • Industrialization generates poverty (Marx) • Industrialization creates a group who cannot get jobs (reserve army) • Unemployed people are in competition and therefore contribute to maintain salaries low (« poverty trap ») IHEID - DE033 - 28.02.2012
Tocqueville (1835), Memoir on Pauperism • Approach: contrast between rich England with many poor (1/6 inhabitants benfit public charity) and poor Portugal with few poor (1/90 to 1/25) • Parallel rise of well-being and poverty • Definition: Poverty itself does not mean anything (if it is not related to overall development and to the non-poor) • Tocqueville calls for the need • to elaborate on “needs” • to focus on property regime IHEID - IA009 - 24.02.2011
Simmel, 1908, Der Arme • Approach: Poverty is relative (to general economic development) • Definition : Being poor is being assisted, which is different from another category – the excluded • Consequence: the poor are « devalued » as they are assisted (poor, that’s all !) • The poor are part (component) of the system • Recommandation to analyse how and to what extent the various social groups influence / interact with society as a whole • Influence on social norms • Lobbying IHEID - DE034 -25.02.2011
Social function of the poor and of the assistanceto the poor • Marx: Competition among workers maintains wages low • Simmel: The poor may be a danger • Tocqueville: risk of too much assistance L. Chevalier (1958), Classes laborieuses et classes dangereuses H. Gans (1971), The Uses of Poverty: The Poor Pay All IHEID - IA009 - 24.02.2011
1.2. Basic needs • Maslow’s Pyramid of needs (1940) • Basic needs (UN):food and clean water • The most basic needs (WB, 1975): nutrition, housing, health, education and employment • Basic needs (ILO, 1976): housing and decent clothes, basic tools (e.g. for cooking), basic services provided by the community IHEID - DE033 - 28.02.2012
Maslow Pyramid Self- transcendence Self-actualization Esteem Love and belonging Safety needs Physiological needs IHEID - DE033 - 28.02.2012
1970s: Human needs Pyramid of needs, Abraham Maslow (1940) • Physiological needs: to eat, drink and sleep • Security: physical, of employement, health, of property • Social needs: love, friendship, belonging to community • Need of esteem: confidence, respect of et from others, self-esteem • Need to be involved, to participate, to achieve • Need to develop/change/progress IHEID - DE033 - 28.02.2012
Absolute Poverty / UN Absolute poverty is the absence of any two of the following eight basic needs: • Food: Body Mass Index must be above 16. • Safe drinking water: Water must not come from solely rivers and ponds, and must be available nearby (30 min. walk) • Sanitation facilities: Toilets or latrines must be accessible in or near the home. • Health: Treatment must be received for serious illnesses and pregnancy. • Shelter: fewer than four people living in each room. Floors must not be made of dirt, mud, or clay • Education: Everyone must attend school or otherwise learn to read • Information: Everyone must have access to newspapers, radios, televisions, computers, or telephones at home • Access to services: undefined, used to indicate the complete panoply of education, health, legal, social, and financial (credit) services. David Gordon, "Indicators of Poverty & Hunger", 2005, United Nations IHEID - DE033 - 28.02.2012
1.3. From human needs to Human Development Thinking … • … From the supply of goods and values ((ODA) … To what those goods enable to do and achieve (e.g. agricultural tools) • … About structural constraints and populations limited options … and not only their needs • … About beneficiaries … who are also actors IHEID - DE033 - 28.02.2012
Human Development • Different priority: People-centered approach (the aim is not economic growth) • Live long and healthy • Getting educated, skilled • Decent living conditions • Participate to social/community life and decision-making • Economic growth • GDP structure • Foreign Direct Investment • World market shares IHEID - DE034 -25.02.2011
Human Development 2. Definition and focus • Well-being is multidimensional (HDI: Income, Education, Health) • Dimensions of development: economic (enrichment), social (achievement) and political (governance institutions) 3. A theory • Economic growth does not lead mechanically to human development / well-being (different from trickle-down theories) • Need for public policy to support/compensate market-led development (different from SAPs) IHEID - DE033 - 28.02.2012
Human Development 4. A right, to work, to leisure, to decent life, to education, etc. • H.R. Universal Declaration (1948) • Déclaration on the Right to Developpement (UN General Assembly - 4 December 1986) • Economic, Cultural and Social Rights (e.g. Right to Food) “One person is in a multidimensional poverty situation when the performance of at least one of its rights to social developmenthas NOT been guaranteed, and if their income is insufficient to acquire its basic needs” CONEVAL, Mexico National Council for the Evaluation of Social Development Policy IHEID - DE033 - 28.02.2012
Mexico “One person is in a multidimensional poverty situation when the performance of at least one of its rights to social developmenthas NOT been guaranteed, and if their income is insufficient to acquire its basic needs” Poverty is measured in terms of income and social deprivation Social deprivation = deprivation of social rights, i.e. lack of access to (1) social security, (2) health services, (3) food, (4) basic services available to the dwelling, (5) schooling, (6) housing quality of construction and space, (7) income and (8) social cohesion. CONEVAL, Mexico National Council for the Evaluation of Social Development Policy IHEID - DE033 - 28.02.2012
Human Development 5. A process (not only a situation) : enlarging opportunities, increasing capacity Population and communities are actors (stakeholders), not only beneficiaries / target populations IHEID - DE033 - 28.02.2012
Human Development - Key readings • Giovanni A., Jolly R. and Stewart F. (1987),Adjustment with a Human Face, Oxford University Press • Mehrotra S. and Jolly R. (1997), Development with a Human Face: Experiences in Social Achievement and Economic Growth, Oxford University Press • S. Alkire (2010), Human Development: Definitions, Critiques, and Related Concepts, Human Development Research Paper 2010/01 • Journal of Human Development and Capabilities IHEID - IA009 - 24.02.2011
2. Main approaches to poverty IHEID - DE033 - 28.02.2012
Three main approaches • Well-being – human needs approach: those who do not have • Capability approach: those who cannot • Exclusion/destitution approach: those who do not enjoy/benefit Rights-based approach • Human Rights-based The Unheard Truth: Poverty and Human Rights, Irene Khan, 2009 • Economic Social and Cultural Rights (to Food, to sanitation, not to migrate, etc.) Participative approach/method: those who say they are poor IHEID - DE033 - 28.02.2012
2. Well-being approach IHEID - DE033 - 28.02.2012
Well-being Indicators Poverty lines, incidence, depth, severity IHEID - DE033 - 28.02.2012
Food Poverty • The first of the ‘basic’: daily caloric intake • 2100 Kcal / adult in urban area • 2400 Kcal / adult in rural area • 1800 Kcal (FAO) Measurement: Income needed to purchase the equivalent of 2100 Kcal WHO and FAO IHEID - DE033 - 28.02.2012
Poverty • List of the basic needed goods (and services) • Value of these items / person / day Poverty line • How to compare ? • Rural / urban • Remote areas • Exchange rate • PPP • International Poverty Lines : 1,25 $ & 2 $ US / person / adult Vietnam Rural, Mountainous: < 55.000 VND Rural, Low land: < 70.000 VND Urban: < 90.000VND IHEID - DE033 - 28.02.2012
Poverty Line Income 666 g. (rice eq.) Vietnam, 2000 Poverty 2 $ 2 US$ / day / person 1,8 1,6 1,4 Food Poverty 2100 Kcal / day / person 434 g. (rice eq.) Vietnam, 2000 1,25 1 $ 0,9 0,8 0,7 0,6 0,5 IHEID - DE033 - 28.02.2012
National Poverty Line Income 22,11 Real / head / month Brazil, 1999 National poverty line 83’000 FCFA / adult / year Burkina Faso, 2007 200’000 VND / head / month Vietnam, rural, 2006 IHEID - DE033 - 28.02.2012
Food Poverty Incidence / Extreme Poverty Food Poverty Incidence (or Rate) = Percentage of the population suffering Food Poverty Food Poverty Line 6,7 % Vietnam 7,5 % Brasil Nicaragua 45 % R.C.A. 66 % 27,2 % Burkina Bangladesh 41 % IHEID - DE033 - 28.02.2012
Food Poverty Map IHEID - DE033 - 28.02.2012
Food Poverty Indicators (1) • Indicators related to nutrition needs • Number of meals per day • Frequency of food intake for specific items (meat, fruits, vegetables) over the last two weeks (7 days) • Body-Mass Index (BMI) • Food availability – self-sufficiency • Self-sufficiency in cereals • Number of months (self-sufficiency with own product) « Alternative food-security indicators … », Maxwell D. and al., 1999 IHEID - DE033 - 28.02.2012
Food Poverty Indicators (2) • Adaptation / coping strategies: (1) change in/of diet • Reduction of the number of meals • Reduction of volume • Change in the structure (less meat, no fruits, etc.) • Change in the ‘schedule’ (soup at night, etc.) • Change in preparation (rice soup rather than plain rice) • Eating seeds • Change in budget allocation (reducing other expenses) IHEID - DE033 - 28.02.2012
Food Poverty Indicators (3) • Adaptation / coping strategies : (2) People turn to the ‘community’ (seeking for assistance) • Buying food • Borrowing • Looking for food outside the household (sending kids, pawning …) IHEID - DE033 - 28.02.2012
Food Poverty Indicators (4) • Adaptation / coping strategies : (3)Increased effort • Work for food • ‘Decapitalization’ (using your own productive assets) • Eating seeds • Selling crops in advance • Sub-renting plots of land • Selling land, tools, cattle, … IHEID - DE033 - 28.02.2012
Poverty Incidence / Poverty Rate Povetrty Incidence (or Rate) = Percentage of the population suffering Poverty (2 $) Seuil 2 $ 10 % 20 % 16 % Vietnam 21,2 % Brésil 30 % 40 % 50 % Nicaragua 45 % 60 % R.C.A. 84 % 71,8 % Burkina 70 % Bangladesh 84 % IHEID - DE033 - 28.02.2012
Poverty Incidence World Map IHEID - DE033 - 28.02.2012
Poverty Transition (change over time) Vietnam Food Poverty Incidence (or Rate) 1996 1999 2002 2006 Food Poverty Line 2 % Out of Falling in Remaining 4 % 6 % 6,9 % 8 % 10 % 9,9 % 12 % 13,3 % 14 % IHEID - DE033 - 28.02.2012 15,7 %
Poverty TransitionGetting out of - Falling into – Staying in • Russia (end 1990s): -16 +18 = +2 • Poverty incidence: little change (+2) • Many changes indeed ! • Urban poverty in Vietnam • Urban population getting out of poverty • Migrants from rural areas enter into urban poverty IHEID - DE033 - 28.02.2012
Incidence and density Poverty incidence : Percentage of poor people in a given space (country, province) Poverty density : Number of poor people in a given space (country, province) - per km² (such as population density) - 1 dot = 1’000 poor IHEID - DE033 - 28.02.2012
Incidence and density - Vietnam IHEID - DE033 - 28.02.2012
Poverty Depth • Incidence / rate: limited indicator... • If a poor person becomes poorer ... incidence does not change • Two countries ... same poverty rate … but one with ‘poorer poor’ 1 $ 0,7$: Average Income of the Poor Poverty Depth = 1 – 0,7 = 0,3 [(1-0,9) + (1-0,7) + (1-0,5)] / 3 0,9 0,8 Average Poor 0,7 0,6 0,5 0,4 0,3 0,2 0 0,1 IHEID - DE033 - 28.02.2012
Poverty Severity Poverty Depth does not say anything about inequalities among the poor Poverty Severity: index of inequality among the poor = [(1-0,9)² + (1-0,7)² + (1-0,5)²] / 3 = [0,1² + 0,3² + 0,5²] / 3 = 0,1166 1 $ 0,9 0,8 = [(1-0,99)² + (1-0,7)² + (1-0,4)²] / 3 = [0,01² + 0,3² + 0,6²] / 3 = 0,1500 Average Poor 0,7 0,6 0,5 0,4 Min = 0,09 Max. = 0,49 0,3 0,2 0,1 IHEID - DE033 - 28.02.2012
Vulnerability: Income and Assets • % of households with income less than 10% below poverty line (1$ 1,1$) • % of households who do not have any assets to cope with « choc » • Assets: • Savings, belongings (cash, animals, etc.) • Social capital: people, organizations people can turn to for assistance Devereux, 2003, Conceptualizing destitution, IDS WP 216 IHEID - DE033 - 28.02.2012
Poverty and income Vulnerability Income 1,5 1,4 1,3 1,2 1,1 $ / day / person Vulnerability (+ 10%) 1 $/ day / person Poverty line 0,9 0,8 0,7 0,6 0,5 IHEID - DE033 - 28.02.2012
Vulnerability: Social aspirations • People who are neither poor (less than $2) nor in all likelihood secure middle class (meaning zero probability of falling back into poverty) (ADB, 2010). • ‘in-between’ group may indicate a substantial group of people who suffer frustrated aspirations in terms of attaining the consumption and security of the upper middle classes and elite most notably in their desire for social insurance (such as health insurance) from shocks sending them falling back into poverty IHEID – DE033 - 28.02.2012