Poverty & Inequality

T4 CC6 (keywords)

Absolute poverty

A condition where individuals lack the resources to meet basic survival needs such as food, water, sanitation, health, shelter, and education. The World Bank defines absolute poverty as living on less than $1.90 per day (PPP) at 2011 constant prices.

Capitalism

An economic system where private individuals or businesses own and control the means of production and operate for profit, with minimal government intervention.

Conditional Cash Transfer (CCT)

A program that provides cash payments to low-income households, contingent on specific actions like children attending school or receiving vaccinations.

Decile

Any of the nine values that divide a data set into ten equal parts. For example, the first decile represents the lowest 10% of data.

Development Economics

A branch of economics focused on improving the economic, social, and political conditions in developing countries.

Disposable Income

The amount of income available to an individual or household after taxes and other mandatory deductions.

Economic Growth

The increase in a country’s production of goods and services over time, typically measured as the percentage increase in GDP.

Extreme Weather Shock

Severe and unexpected weather events, such as floods, droughts, or storms, that significantly impact human welfare and economic conditions.

Gini Coefficient

A statistical measure of inequality within a population, ranging from 0 (perfect equality) to 1 (maximum inequality). It is often expressed as a percentage.

Globalisation

The process of increased interconnectedness and interdependence among countries, primarily in terms of trade, investment, and cultural exchange.

Human Development Index (HDI)

A composite index measuring average achievement in key dimensions of human development: health, education, and income.

Income Inequality

The unequal distribution of income across a population. It measures disparities in how income is shared among individuals or households within an economy.

Industrialisation

The transition of an economy from primarily agricultural to one based on manufacturing and industry.

Inequity

A lack of fairness or justice in the distribution of resources or opportunities, distinct from inequality, which is a measurable difference.

Kuznets Curve

A hypothesized relationship between economic development and inequality. It suggests that inequality initially increases during industrialization but decreases as economies develop further and adopt redistributive policies.

Lorenz Curve

A graphical representation of income or wealth distribution in a society. The curve plots the cumulative share of income (or wealth) against the cumulative share of the population, highlighting disparities.

Malnutrition

A condition resulting from a diet lacking in essential nutrients or the inability to absorb nutrients properly, often associated with poverty.

Material Deprivation

A condition where individuals or households lack basic goods and services considered essential for an adequate standard of living.

Mean Income

The average income, calculated by dividing the total income of a population by the number of individuals or households.

Median Income

The middle value of income distribution, with 50% of the population earning less and 50% earning more.

Persistent Poverty

A situation where individuals or households experience poverty over an extended period, typically defined as living below the poverty line for several consecutive years.

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a specific country.

Progressive Taxation

A tax system where the tax rate increases as the taxable amount rises. It is designed to redistribute wealth by imposing higher taxes on higher-income earners.

Quintile

Any of the four values that divide a data set into five equal parts. For instance, the bottom quintile represents the lowest 20% of the data.

Redistribution of Income

The transfer of income through taxation and government spending, aimed at reducing income inequality and supporting disadvantaged groups.

Relative Poverty

Poverty measured in relation to the standards of living within a specific country. Individuals are considered relatively poor if their income is below a certain threshold, often set at 60% of the median income in their country.

Rural-Urban Disparity

Differences in income, infrastructure, and quality of life between rural and urban areas.

Social Cohesion

The strength of relationships and the sense of solidarity among members of a community or society.

Social Mobility

The ability of individuals or families to move up or down the economic ladder within a society, often measured across generations.

Technology Gap

The disparity in access to and use of technology between different groups or countries.

Universal Basic Income (UBI)

A government program where every individual receives a set amount of money regularly, regardless of income or employment status.

Urbanisation

The process by which an increasing proportion of a population lives in urban areas, often leading to economic and social changes.

Wealth Inequality

The unequal distribution of assets, such as property, stocks, and savings, among individuals or households within a society.