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.