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By Evelyn Awa
&
Group

Introduction
Concepts of Poverty and Poverty Line
Measurement of Poverty
Cause of poverty
Measures to remove poverty
Coverage

Introduction
Poverty is the lack of basic
necessities that all human
beings must have: food and
water, shelter, education,
medical care, security, etc. A
multi-dimensional issue,
poverty exceeds all social,
economic, and political
boundaries. As such, efforts to
alleviate poverty must be
informed of a variety of
different factors.

 Two basic ingredients in measuring poverty:
 (1)Poverty Line: definition of threshold income or
consumption level
 (2)Data on size distribution of income or
consumption (collected by a sample survey
representative of the population)
Concepts of Poverty and
Poverty Line

 Relative PL defined in relative terms with reference
to level of living of another person; or, in relation to
an income distribution parameter.
Examples: 50% of mean income or median, mean
minus one standard deviation.
 Absolute PL refers to a threshold income
(consumption) level defined in absolute terms.
Persons below a pre-defined threshold income are
called poor.
Poverty Line (PL):
Absolute vs. Relative

 In India, the concept of poverty line is used as a
measure of poverty. Poverty line refers to the cut-off
point(in terms of per capita expenditure ) that
divides people of a region as poor and not poor. In
India, persons who spend Rs 816 on consumption in
rural areas and Rs 1000 in urban areas per month are
treated as those below the poverty line.
Measurement of Poverty

Today’s scenario

 Low Level Of National Product
 Low Rate Of Growth
 Heavy Pressure Of Population
 Inflationary Pressure
 Chronic Unemployment And Underemployment
 Capital Deficiency
 Paucity Of Able And Efficient Entrepreneurs
 Outdated Social Institutions
Cause of poverty

 Combating poverty by accelerating the pace of
economic growth.
 Combating inequality of income through fiscal and
legislative measures.
 Combating poverty through population control.
 Other measures enhancing quality of life of the poor.
Measures to remove
poverty

Thank you
For your patience….

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Poverty

  • 2.  Introduction Concepts of Poverty and Poverty Line Measurement of Poverty Cause of poverty Measures to remove poverty Coverage
  • 3.  Introduction Poverty is the lack of basic necessities that all human beings must have: food and water, shelter, education, medical care, security, etc. A multi-dimensional issue, poverty exceeds all social, economic, and political boundaries. As such, efforts to alleviate poverty must be informed of a variety of different factors.
  • 4.   Two basic ingredients in measuring poverty:  (1)Poverty Line: definition of threshold income or consumption level  (2)Data on size distribution of income or consumption (collected by a sample survey representative of the population) Concepts of Poverty and Poverty Line
  • 5.   Relative PL defined in relative terms with reference to level of living of another person; or, in relation to an income distribution parameter. Examples: 50% of mean income or median, mean minus one standard deviation.  Absolute PL refers to a threshold income (consumption) level defined in absolute terms. Persons below a pre-defined threshold income are called poor. Poverty Line (PL): Absolute vs. Relative
  • 6.   In India, the concept of poverty line is used as a measure of poverty. Poverty line refers to the cut-off point(in terms of per capita expenditure ) that divides people of a region as poor and not poor. In India, persons who spend Rs 816 on consumption in rural areas and Rs 1000 in urban areas per month are treated as those below the poverty line. Measurement of Poverty
  • 8.   Low Level Of National Product  Low Rate Of Growth  Heavy Pressure Of Population  Inflationary Pressure  Chronic Unemployment And Underemployment  Capital Deficiency  Paucity Of Able And Efficient Entrepreneurs  Outdated Social Institutions Cause of poverty
  • 9.   Combating poverty by accelerating the pace of economic growth.  Combating inequality of income through fiscal and legislative measures.  Combating poverty through population control.  Other measures enhancing quality of life of the poor. Measures to remove poverty
  • 10.  Thank you For your patience….