Poverty Inequality And Economic Growth - 1466 Words

The purpose of this essay is to investigate the extent in which poverty, inequality and economic growth are related. These three dimensions are regularly perceived as indices of the complex and multidimensional concept of ‘economic development’. This term is not black and white however: it is a concept that is more than just merely income analysis. Poverty can be broken down into two separate definitions: absolute and relative. Absolute poverty describes the position of an individual who is living on less than $2 per day and is incapable of obtaining the ‘minimum levels of income, food, clothing healthcare, shelter and other essentials’ (Todaro Smith, 2015). Relative poverty on the other hand compares individuals’ means of living in different societies. Subsequently, levels of relative poverty will differ from country to country, for example, the United Kingdom and China. Inequality represents the uneven distribution of income within a region or coun try. Finally, economic growth is typically measured by gross national income (GNI). GNI is both the total domestic and foreign output declared by the inhabitants of a country (Todaro Smith, 2015). If there is an increase in the output of a nation, this growth should cause GDP per capita to increase simultaneously. With this expansion in incomes, individuals theoretically should move out of the absolute poverty level of $1.25 per day. Although this would hypothetically occur, these parties may only emerge from the ‘povertyShow MoreRelatedImpact Of Trade Liberalization On African Countries Essay1627 Words   |  7 Pagestrade liberalization (henceforth refers to as economic globalization) impacts poverty levels is limited. This essay examines the relationships between economic globalization and poverty levels in African countries. For instance, a 2006 UNDP report illustrates that just 7.2 percent of Bayelsa and Rivers State (Nigeria) residents were poor in 1980, but in 2004, the poverty index figures rose exponentially to 44.3 percent; Nigeria’s national rural poverty index jumped from 28.3 percent in 1980 to 48Read MoreTo What Extent Do Democracies Affect A Nation s Poverty?1578 Words   |  7 Pages To what extent do democracies affect a nation’s poverty? My question was inspired by the article â€Å" The Life of the Peasants†. This article informs readers how bad the conditions were for peasants and the detrimental impacts that occurred on the peasants. Poverty is a serious topic that needs to be re-evaluated and analyzed some more. â€Å"Globally, about 21,000 people die every day of hunger or hunger-related causes†, according to the United Nations. This is one person every four seconds and unfortunatelyRead MoreIndustrialization And Poverty1445 Words   |  6 PagesPoverty is the greatest challenge for the least developed countries. Industrialization is one of the effective ways to reduce poverty. Poverty can be reduced by economic growth and equality. Industrialization is a process where primary goods are used to produce manufacturing goods, sometimes human labor is replaces by machines and robots. Income per capita increases because of industrialization. The industrial revolution of 18th and 19th century has occurr ed because of major industrial shift in westernRead MoreEconomic and Social Costs of Inequality in Australia785 Words   |  4 PagesAnalyse the economic and social costs and benefits of inequality in distribution of income in Australia. Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most people receive only a small share of the total. There are many advantages and disadvantages associated with the inequitable distribution of income. Income inequality can leadRead MoreIndi Poverty And Inequality1308 Words   |  6 PagesInequality is defined as the wide gap between a low and a high income within an economy. Poverty is defined as being in the state of extremely poor. India is well renowned for having two classes, those living well above the poverty line, and those living well below. Currently, India is promoting strategies to decrease their percentage of people living under the poverty line. In 2012 the World Bank conducted some research to find out that 21.9% of the countries 1.295 billion, are living under theRead MoreTrade and Income Inequality693 Words   |  3 Pagesplace, living conditions and economic growth must be the ultimate goal. Trade and economic growth that does not establish a reduction in poverty can generate problems that did not exist before. If rapid growth is accomplished at the expense of misdistribution of resources, then it will create social tensions or class warfare. Rapid growth has be en shown in different countries that raises gap of income inequality and raise the poverty rate. In India, the slow economic growth has been steady for a periodRead MorePoverty And Poverty1487 Words   |  6 PagesGlobally, poverty is a prevailing social and economic concern. In pure economic terms, the United Nations Educational, Scientific and Cultural Organisation (UNESCO, 2017) defines income poverty as a failure of a family’s income to meet a federally established threshold. The World Bank’s definition of extreme poverty is living on less than US$1.90 per day (World Bank, 2017), which was decided on using the purchasing power parity exchange rates to convert the line into the US dollar, and into the currenciesRead MoreInequality Between Poverty And Poverty1139 Words   |  5 Pageslast two decades in ending the terms of inequalities and poverty. Many countries are determined to improve their economy, and become fully developed just like the United States. In my home country, Kuwait, poverty do not exist, however, inequalities do. Some of the countries that have done well in the recent past include China, India, Brazil, and South Korea. However, poverty and inequalities are still being realized in the wealthy nation. Poverty and inequalities in the society are the two main factorsRead MoreThe Inequality Of Poverty And Deprivation Throughout The World1368 Words   |  6 Pagesfrom no drug addiction, nor mental or physical disability— holds a cup to passersby each day for money. When most people see these kinds of poverty – and there are many different levels and layers of poverty and deprivation throughout the world -- they think first about the glaring inequalities of income and wealth, both within and between countries. But inequality is only part of the story, and depending on the place and the time period in question, it may not be the most important part of the storyRead More Income Distribution and Economic Growth in LDCs Essay1673 Words   |  7 PagesIncome Distribution and Economic Growth in LDCs INTRODUCTION In recent years, one of the major concerns of economic development is the study of poverty, the income distribution and growth in the less developed countries (LDC’s) or Third World countries. Economists from all over the world have been doing researches and studies on how to induce a growth in those underdeveloped countries. However, countries differentiate in historical backgrounds, cultural believes and natural resources.