Poverty and Income
inequality
Economics

Presented By
• Sameel Ahmed
• Fassih Bin Tariq
• Subhan Razzaq
• Alishba Amjad
• Shahwaar Mughal
• Humna Majeed
• Aafiya Abid

Income Distribution
What is Income Distribution?
Who is distributing it?
Perfect Income Distribution
Imperfect Income distribution
Do Perfect Income Distribution exists?

Urban Areas
Development
Accessible Markets
Contribution In State's GDP
Skill Learning & Education
Better resources and opportunities

Rural Areas
• Income distribution among inhabitants of rural
areas is less then that of urban areas. Why this
is so ?
• Lack of development
• Less GDP contribution
• Lack of Investment
• Lack of Education and opportunities
• Urbanization

Definition of
Poverty
• There is a certain level of ambiguity
regarding the usage of the term
poverty. This ambiguity arises from the
influences of different world views,
ideologies and approaches.
• When it comes to comparing the
poverty of different countries,
historically, the convention of
measuring poverty relative to the
poverty line (a fixed level of income)
has been used
• Recently however, different
approaches have been used to
conceptualize poverty.

Definition of Poverty
Poverty definitions have been classified into 4
groups by Chamber (2006):
Income poverty / Consumption Poverty.
Material lack or want: shelter, food, furniture,
clothes, services etc.
Deprivation of capability: skills, abilities,
social status
Multidimensional Poverty: encompasses the
different dimensions of poverty as listed above.

Types of poverty:
Absolute poverty: Poverty that is measured in relation to the poverty line. Independent of time and place.
Relative Poverty: Poverty measured in relation to other people / communities.
Approaches to Poverty:
Income approach
Basic needs approach
Capabilities approach
Participatory Approach
Multi-dimensional poverty index (MPI)

Income
Approach
• Current extreme poverty line for developing
countries: $1.90 USD per person per day.
• SDGs (Sustainable Development Goals):
adopted by the UN General Assembly in 2015:
• Consists of 17 long-term goals and 169 targets.
• Target 1.1: Eliminating extreme poverty ($1.24
USD per day < ) by 2030.
• Its aim is also cut in half the number of
individuals living in poverty with respect to any
and every aspect of poverty, as defined by
national norms.

Poverty in
Pakistan
According to an analysis, poverty has
increased roughly from 30% to 40%
during the past decade.

Causes of Poverty
Corruption
Lack of
Education
Privatization
Low Level of
Income
Increase in
Population
Public Dishonesty
and Irresponsible
Behaviour of
People

How to combat
poverty?
• By Controlling Population.
• By Creating Jobs.
• By Increasing Access to Education.
• By Establishing NGOs
• By Increasing Exports and Decreasing Imports.

Labor Intensive
• The term “labor-intensive” refers to a process or
industry that requires a large amount of labor to
produce its goods or services. The degree of
labor intensity is typically measured in
proportion to the amount of capital required
to produce the goods or services: the higher the
proportion of labor costs required, the more
labor-intensive the business.

Labor
Intensive
Investment
Employment-intensive investments, link
infrastructure development with employment
creation, poverty reduction and local economic
and social development. In using local labour and
resources they create much needed employment
and income, reduce costs, save foreign currency,
and support local industry while increasing the
capacity of local institutions.
Why basic needs, education and training of
employees/ workers is important?

Social Action
Plans (SAP’s)
WHAT IS SOCIAL ACTION?
WHY ENGAGE IN SOCIAL
ACTION?
WHEN SHOULD YOU
ENGAGE IN SOCIAL ACTION?
WHO SHOULD BE INVOLVED
IN SOCIAL ACTION?
HOW DO YOU ENGAGE IN
SOCIAL ACTION?

Human
Resources
• Human resources (HR) are the
division of a business that is
charged with finding, screening,
recruiting, and training job
applicants, as well as administering
employee-benefit programs.

Human Resource
Development
• "Human resource development is a series
of organised activities, conducted within a
specialised time and designed to produce
behavioural changes." Leonard Nadler
• Human resource development is set of
planned and systematic activities designed
by an organization to provide opportunities
to its members to learn skills necessary for
the present and future job requirements.
• The three main functions of HRD are:
• Training and development
• Organizational development
• Career development

• Challenges:
Nepotism and use of references to
influence hiring process.
Low attention from top management
toward labour related issues is another
challenge.
Non-availability of talented and skilled
staff.
Inadequate salaries and poor reward
system for employees at different levels.

Remedies:
Effective utilization, strategic planning and execution of
human resources is the need of hour.
Recruitment and selection, reward and recognition, an HR
plan, training and development, and organizational
policy development would all be adapted to reach the
corporate objectives.
Close collaboration between HR and the
top/senior management, is required for the development of
organization.
HR Personnel should also actively develop themselves
by seeking new knowledge, improving their skills, and
connecting with the latest researches in the field.
This Photo by Unknown author is licensed under CC BY.

Child Labour
The term “child Labour” is often
defined as work that deprives children
of their childhood, their potential and
their dignity, and that is harmful to
physical and mental development.
It refers to work that is mentally,
physically, socially or morally
dangerous and harmful to children.
This Photo by Unknown author is licensed under CC BY-SA.

Child Labour in Pakistan
About 3.3 million of Pakistani children are trapped in child labour, depriving them of
their childhood, health and education. Only 34% of children under five are
registered at birth nationally.
In Sindh Province, 21.5 percent of children ages 5 to 14 are working. Due to the
prevalence of poverty, only 60.6 percent of children in Sindh Province between the
ages of 5 to 14 attend school with 11.6 percent combining work and school.
Regardless of Pakistan’s introduction of the Bonded Labour System (Abolition) Act
1992, bonded labour still exists due to the country not having enough resources to
enforce child labour laws.

Remedies
• Strengthening the capacity and
enhancing awareness of rural
communities to end child labour and
bonded labour.
• To reduce child labour, economic
growth should be enhanced.
• Stake holders and organizations must
take the responsibility.
• Supporting the ILO constituents develop
community-based child and bonded
labour monitoring system.

Poverty of Participatory Index (POPI)
• Poverty of Index Participatory is a method of studying and decreasing
poverty that incorporates the poor's perspectives.
• POIP seek to better understand the poor, offer the poor more say over
decisions that affect their lives, and improve the effectiveness of poverty-
reduction initiatives.

History
• The term was coined within the World Bank in
1992
• Early experiences were in sub-Saharan
Africa in the early 1990s
• It rose to prominence in the 1990s. Three
applications for their utilization emerged
throughout time:
• Poor people have the right to be involved in
the design of policies that affect them.
• It resulted in new insights about poverty.
• Its procedures created opportunities for poor
people to influence policy.
This Photo by Unknown author is licensed under CC BY-SA.

Advantages
• The process of implementing a
POIP resulted in the formation of
new partnerships between the
government, assistance players,
civil society organizations (CSOs),
and ordinary citizens.
• POIPs are not only used to design
appropriate policies, but can also
help in implementing and
monitoring them, providing a
baseline for follow-up studies.

PRODUCTIVITY
Productivity is commonly defined as a ratio between the output volume and the
volume of inputs.
This is usually stated as:
Productivity can also be defined as the relationship between results and the time it
takes to accomplish them
Importance
Productivity is important to individuals (workers and consumers), business leaders,
and analysts (such as policymakers and government statisticians).

PRODUCTIVITY
ISSUES IN
PAKISTAN
• Low productivity is one of the major
issues that Pakistan's economy has
been facing for decades. This issue
is affecting the output in every
sector, including agriculture,
manufacturing, trade, education,
health and other services

CAUSES OF
LOW
PRODUCTIVIT
Y
⦁ Multitasking. ...
⦁ Workplace Stress. ...
⦁ Lack of Sense of Belonging. ...
⦁ Lack of Recognition. ...
⦁ Toxic Workplace Behavior. ...
⦁ Damaged Organizational Structure. ...
⦁ Too Many Meetings.
• Poor Management

Factors
Affecting
Productivity
⦁ Man Power:
Selection i.e. selection
of right man for a
specific job Applying
well known saying
division of labour.
⦁ Equipment and
Machines
⦁ Input Materials ⦁ Time.
⦁ Floor Area or Space. ⦁ Power or Energy.
⦁ Finance.
⦁ Movement of Man
and Materials

FACTORS THAT
EFFECT
PRODUCTIVITY
• Change in the Work Force
• Change in Industrial Composition
• Change in Capital-Labour Ratio
• Decrease in Research and
Development Spending
• Government Regulation

WHAT TO DO
TO ENHANCE
PRODUCTIVIT
Y
Hard factors
⦁ Product
⦁ Plant and equipment
⦁ Technology
⦁ Materials and energy
Soft factors
⦁ People
⦁ Organisation and systems
⦁ Work methods
⦁ Management styles

Thank You