INTRODUCTION In this paper I tried to argue that how growth does not lead to proper reduction of poverty. There are other factors also which helps us to understand poverty broadly. Among the factors I have talked about inequality and its relation with poverty. First part of the paper tries to give an overview of how to measure poverty and define it. It also talks about importance of considering all factors in determining the poverty line.
“ They distinguish between those aspects of the social system that define and secure the equal liberties of citizenship and those that specify and establish social and economic inequalities.” (p.8). Basically, the interests to be distributed by justice are only those that we can assume everyone will want such as liberties, opportunities, wealth, rights, income etc. The principle of equal liberty is for “each person to have an equal right to the most extensive basic liberty compatible with similar liberty for others” (p.7). For example providing incentives which will generate more wealth for everyone.The difference principle is the “social and economic inequalities are to be arranged so that they are both reasonably expected to be to everyone’s advantage, and attached to positions and offices open to all”(p.7). For example the freedom of speech and personal property.
The functioning according to him are various things that a person can do and can value in life. The valued functions can be simple one such as being adequately nourished and being free from diseases and it can be complex functions such as taking part in the life of communities and having self
He was just at the turning point, which would change his thought from humanism to Marxism while writing this book, though not still reached Marxism then. Nevertheless, he didn’t agree with the theory of classical economics that came after Adam Smith, especially with the standpoint that it would accept selfhoods at least. It was because that he had an awareness of a problem keenly, what is called ‘a poverty within a poverty’, in other words, it was main issues of the same age over the world that poor people even were increasing, not decrease on the contrary along with the economic development, and because how these problems could actually be solved. “It was surprised that people out of number were currently living in poverty in civilized countries.” “Although the civilized main Western countries and a few other ones achieved prosperity indeed, but the
Empowerment strategies are necessary for those with limited resources and limited avenues to economic opportunities. Sometimes there are social or cultural factors that hold back a country’s economy, where the overall productivity of the country can suffer. Macroeconomics teaches you to correlate factors that affect the growth of a country, hence correlation between the factors measuring social wellness and economic growth should be done by analyzing financial, political, cultural, legislative aspects and so on. This report makes you spot the significance of survey data and an
ABSTRACT The concept of ‘welfare’ and ‘welfarism’ existed from the understanding of community based services. It states the notion of benefitting the larger mass, providing them all sort of necessities for a better standard of life. However, in order to analyse welfare states or, for that matter, public, fiscal, occupational welfare, and societies’ total welfare, it is important to be clear about what welfare is as that has consequences for our understanding of what a welfare state is and how welfare can be measured especially in context of dealing with inequality and poverty. Inequality and poverty as social issues have coexisted for far long. Inequalities that prevail across various factors like income distribution and access to productive resources, basic social services, opportunities, markets, and information have been on the rise worldwide, simultaneously causing and exacerbating poverty across globe.
For thinking about appropriate forward-looking anti-poverty interventions, the critical need then is to go beyond a cataloging of who is currently poor and who is not, to an assessment of households’ vulnerability to poverty (Chaudhuri, 2003). In the extant literature either income or consumption expenditures as measured over short periods of time has been regarded as a proxy for the material well-being of households. However, economists have long recognized that a household’s sense of well-being depends not just on its average income or expenditures, but also on the risks it faces and its ability to deal with these risks. Indeed, the inability to respond to risks may lead as far as social exclusion and deprivation (Jha, R and Dang, T., 2009).
Nonetheless, other economists argue that the disincentive effect is highly unlikely to occur. Known as the income effect, increased progressive tax will in fact “reduce incomes and this may encourage people to work more, to maintain their income” (Economics Help). This assumption is trustworthy in that workers are known to have adjustment skills at working environments because of the motivation that they have to earn their
This example shows how “the simple is the source of the complex” . Whilst on the other hand, simple components such as demand and supply side policies, unemployment, inflation, distribution of income and so on, are actually integrated in order to create a complex whole known as macro-economics. The statement made previously could be supported by the internal assessment we are required to do for our Economics higher-level course. In order to complete the task we have to find a complex whole such as pollution, and explain the simple components that make up this problem and the several ways to find a solution to the complex whole. Both economic examples happen to illustrate the fact that the area of knowledge of social
From various empirical studies that have been done, there seems to be different results on the impact of growth on poverty reduction. Generally speaking, these results can be classified into three views: Firstly, some views assume that growth is not sufficient for reducing poverty. According to World Bank (2014), economic growth is needed to reduce poverty, but rapid and high performance of growth in developing countries is not sufficient in fostering poverty reduction under 3 percent globally by 2030, without additional policies to support the poor. In every country but particularly in developing country, economic growth is more sufficient to encourage poverty reduction and broader prosperity if the scheme of growth becomes more labour intensive and if poor people can work productively. As a result of the labour productivity, the sectoral content of growth and its impact on job creation may reduce the poverty rate.