Introduction to the Challenges of Studying the Social World

• Discussion begins with the difficulties in scientifically studying the social world compared to physical objects.

• Highlights the differences in the measurement and conceptualization of social phenomena.

  • Example: Measuring physical characteristics (e.g., height, weight) is straightforward and agreed upon.

Conceptualizing and Measuring Social Phenomena

• The challenges arise in defining concepts such as poverty, inequality, and development.

• Different methodologies exist for measuring social phenomena, with no single approach dominating as more accurate.

  • Importance of understanding that different conceptualizations can yield different answers.

Focus on Poverty

Defining Poverty

• Poverty is complex and varies based on how it is defined and measured.

  • Essential to engage with the concept of how poverty is defined by different organizations.

The World Bank's Definition of Poverty

• The World Bank views poverty as an absolute concept.

  • Defined in terms of basic consumption needs essential for survival (food, water, shelter).

• Establishes a monetary line for poverty measurement.

• As of 2025, the extreme poverty line is established at:

  • $3 per day in purchasing power parity (PPP terms).

• Individuals consuming less than $3 are considered extremely poor.

  • This method is designed for international comparison across countries and over time.

  • World Bank counts the number of people in each country below this threshold to provide a global total.

Measuring Global Poverty Trends

• Discussion of the global trends from 1990 to 2024 regarding extreme poverty:

  • Hypothetical show of hands in class on whether extreme poverty has increased or decreased reveals mixed opinions.

  • The expectation sets up for data-driven results.

• Key statistics:

  • In 1990, approximately $2.3 billion people lived on less than $3 a day.

  • By 2024, that number is reduced to about $839 million.

• Ultimate key finding:

  • Decrease of 1.46 billion people in extreme poverty is significant.

• Proportionally, the world's population also shows change:

  • In 1990, 44% of the global population lived on less than $3 a day.

  • By 2024, it decreases to 10.31%.

  • Implication is that globalization may be a contributing factor to this reduction in extreme poverty.

Poverty in Canada

Application of the World Bank's Metrics

• Investigates the implications of using the World Bank's metric within Canada.

  • Extreme poverty in Canada would be defined under the same $3 per day metric.

• Statistics reveal that only 0.25% of Canadians (approximately 100,000 people) would be classified as extremely poor by this definition.

Actual Poverty Statistics in Canada

• Statistics Canada provides alternative data suggesting:

  • In 2020, 3.2 million Canadians were identified as living in poverty (including 560,000 children).

  • By 2023, an estimated 10.9% of Canadians (around 4 million people) are living below the poverty line.

Discrepancy Between Definitions

• Analysis reveals:

  • The World Bank conceptualizes poverty based on absolute needs.

  • Statistics Canada utilizes a relative measure involving a basic standard of living approach.

Definition by Statistics Canada

• A family is considered to be living in poverty if they cannot afford a threshold of a specific basket of goods and services,

  • This basket includes expenditure categories such as food, clothing, transport, shelter, etc.

• The poverty threshold for a family of four in Hamilton m is established at:

  • $57,534.

• Key takeaway:

  • Different operational definitions lead to variable poverty statistics across contexts, highlighting the non-uniform nature of poverty measurement.

Adjusted Poverty Lines and Global Trends

Examining Poverty Lines

• The World Bank also evaluates other extreme poverty lines to consider a broader perspective on poverty:

  • $4.20 per day raises the number of individuals classified as poor to 1.51 billion (approx. 18.92% of the population).

  • $8.30 per day increases it to 3.74 billion individuals (approx. 46.28% of the global population).

• Understanding that poverty definitions greatly influence the outcomes, deriving conclusions can be challenging depending on the established thresholds.

Conclusion on Global Poverty and Inequality

• The discussion emphasizes the continuous need to reassess and critically analyze how measures of poverty and economic conditions are applied globally.

• Inequality, though related, is a separate concept that requires distinct scrutiny and cannot merely be conflated with poverty.