Poverty part 1 Lesson 2 lecture

Poverty and Global Inequality

Introduction

• Overview of the content: This presentation aligns with the recorded lecture "Poverty part 1" with added tasks.

Key Features of Global Inequality (Week 22)

• F1: Explain key features of global inequality including:

  • Income and wealth

  • Education

  • Health

  • Gender

• F2: Explain absolute and relative poverty.

• F3: Explain impacts of poverty with evidence/examples from various countries.

• F4: Explain how global inequality is measured.

• F5: Explain terminology related to global inequality and its associated problems.

• F6: Analyze measurements of global inequality with examples.

Global Population and Economic Growth

• Globalization has led to the rapid accumulation of wealth globally.

• Despite wealth accumulation, inequality is widespread, even in wealthy nations.

• The world's population has nearly doubled in 70 years, leading to increased economic opportunities and vast living condition differences worldwide.

Understanding Inequality

• Definition: Inequality refers to the uneven distribution of resources and opportunities among individuals and countries.

• Aspects of Inequality:

  • Income and Wealth: Disparities in earnings and asset ownership.

  • Education: Differences in access to educational resources.

  • Health Care: Variances in health care access and quality.

  • Gender Inequalities: Disparity in opportunities based on gender.

• Inequality is relative, best understood by comparing resources between different contexts.

Task on Inequality Interpretation

• Reflect on personal interpretations of various forms of inequality.

• Consider real-world examples, including local contexts, that demonstrate these inequalities.

Income and Wealth

• Income: Total earnings from labor and wealth (e.g., investments).

  • Global average income: $23,380 per annum.

• Wealth: Total value of all assets.

• In the global economy, income distribution examples show:

  • In a perfectly equal world, the bottom 50% earns 50% of total income.

  • In a completely unequal scenario, the bottom 50% earns 0% while the top 10% earns 100%.

Reality of Income and Wealth Distribution (2021)

• Income Distribution:

  • Top 10%: 52% of total income.

  • Bottom 50%: 8% of total income.

• Wealth Distribution:

  • Top 1% holds 76% of the world's wealth.

  • Middle 40% holds 19%.

  • Bottom 50% holds only 2%.

Absolute vs. Relative Poverty

• Relative Poverty: Based on comparative circumstances among populations.

  • Example: In the UK, relative poverty is defined as earning less than 60% of median income.

• Absolute Poverty: Defined by living below a global threshold, currently set at $1.90 per day by the World Bank.

• In the UK, absolute poverty is defined similarly, measuring against adjusted median income levels.

Education and Inequality

• Access to education enhances economic opportunities.

• Disruptions like the COVID-19 pandemic have significantly reversed educational progress:

  • Reading proficiency dropped from 54% to 45% (2010-2020).

Health Inequality

• Access to health care varies significantly by geographical region, with many lacking basic health services.

• High-income and poor nutrition directly impact health outcomes, even in wealthy nations.

• Vaccination statistics show global gaps in disease prevention coverage, emphasizing disparities.

Gender Inequality

• Unadjusted Gender Pay Gap: The overall difference in average income between men and women.

• Adjusted Gender Pay Gap: Accounts for similar employment levels.

• Gender discrimination remains a key driver of poverty, affecting societal health and economic stability.

Measuring Inequality

• GDP: The total value of all goods and services produced in an economy.

• GDP per capita: Average economic output per person, illustrating productivity.

• GNP/GNI: Measures total incomes earned by residents and businesses, including foreign investments.

Human Development Index (HDI)

• Ranks countries based on average life health, education, and income levels.

• Top-ranked countries (2020):

  • Norway, Ireland, Switzerland, Hong Kong.

Exploration of Data and Tasks

• Tasks include exploring GDP or Human Development Index ratings to analyze trends in development.

• A key historical perspective with the Brandt line suggests a division based on economic status between the Northern and Southern Hemispheres.

• Reflection on how inequality has changed since the 1970s and the appropriateness of terms used to describe development situations.