|
| |
poverty gap |
|
| |
|
|
| |
Poverty is conventionally measured in terms of an Absolute Poverty Line expressed in monetary terms: it is the income or expenditure below which a minimum nutritionally adequate diet plus essential non-food requirements are no longer affordable (for example spending per capita of less than US$1.00 per day which is the World Bank absolute poverty line). A poverty line distinguishes, then, the poor from the non-poor (Ravallion, 1995; UNDP, 1998). Poverty estimates are typically based on data from actual household budget or income/expenditure surveys. In this way a proportion of a country\'s population or an absolute number of persons or households can be designated as living in absolute poverty; this is the Head Count Index. Currently, for example, it is estimated that 47 per cent of the population of Yemen live in absolute poverty. Using this absolute poverty line it is possible to calculate what proportion of the GDP of a country would be required to lift those in absolute poverty above the poverty line (i.e. what proportion of Nigeria\'s GDP will it require to lift the millions who are absolutely poor to a condition in which their basic needs are fulfilled). This is the Poverty Gap: the poorer the country and the larger the number of people in poverty, the greater the Gap (i.e. the resources which must be devoted to raise those in poverty). The Poverty Gap Index refers to additional money the average poor person would have to spend (in aggregate or as a proportion of total consumption) in order to reach the poverty line. The Poverty Gap for India is currently 4 per cent, for China 1 per cent and for eastern Europe 0.1 per cent. The Poverty Severity Index measures the distribution of welfare of those below the poverty line (i.e. between the poor and the ultra-poor). (MW)
References Ravallion, M. 1995: Poverty comparisons. London: Harwood. UNDP 1998: Human development report 1998. London: Oxford University Press. |
|
| |
|
|
| |
Bookmark this page:
|
|
| |
|
|
| |
<< former term |
|
next term >> |
|
|
|
|
|
| |
|
|
|
