Transcript of Sara Hsu. If you're totally illiterate and living on one dollar a day, the benefits of...
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- Sara Hsu
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- If you're totally illiterate and living on one dollar a day,
the benefits of globalization never come to you. -- Jimmy Carter We
must ensure that the global market is embedded in broadly shared
values and practices that reflect global social needs, and that all
the world's people share the benefits of globalization. -- Kofi
Annan
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- The monetary dimensions of well-being are income and
consumption. Non-monetary indications of poverty include health and
nutrition poverty and education poverty. Poverty lines may be
relative to the overall distribution of income, or absolute.
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- Incidence of poverty (headcount index). This is the share of
the population whose income or consumption is below the poverty
line. Depth of poverty (poverty gap). This provides information
regarding how far off households are from the poverty line. Poverty
severity (squared poverty gap). This takes into account not only
the distance separating the poor from the poverty line (the poverty
gap), but places a higher weight on those households further away
from the poverty line.
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- Larger households than average with a high ratio of dependent
members Women disproportionately represented as head of poor
households Lack of ownership of productive assets Often residing in
rural areas Linked with undernutrition
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- With increased growth have come accelerated industrialization,
deforestation and intensified farming, which present major
challenges such as: rising disparities between urban and rural
areas the spread of unemployment degradation of the environments
(both coastal and inland) and the natural resources on which poor
rural people depend Living conditions of large sections of the
populations of poor people in Cambodia, Lao Peoples Democratic
Republic and the Philippines, in particular, still lag far behind
those in neighboring countries.
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- http://www.youtube.com/watch?v=B7U0 qaKRnbE
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- The Equality Issue in World Development Perhaps the most
important effect of World War II was the rapid dissolution of that
power structure... In turn, as a subsequent effect of that
political change the general public in the Western countries were
suddenly forced to become aware of the huge income gap as between
the poor majority of mankind and the rich minority, as well as the
further fact that this income gap is continually widening, as
indeed it had been doing for more than a century. An isolating wall
of inattention, and an ignorance made possible by that
opportunistic bent of mind, had been broken through.
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- Utilitarian equality: The utilitarian objective is to maximize
the sum total of utility irrespective of distribution, but that
requires the equality of the marginal utility of everyone. Rawlsian
justice: Rawlss two principles of justice characterize the need for
equality in- primary social goods. These are things that every
rational man is presumed to want, including rights, liberties and
opportunities, income and wealth, and the social bases of
self-respect.
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- Basic Capability Equality: Can we not construct an adequate
theory of equality on the combined grounds of Rawlsian equality and
equality under the two welfarist conceptions? It is arguable that
what is missing in all this framework is some notion of basic
capabilities: a person being able to do certain basic things. The
ability to move about, the ability to meet ones nutritional
requirements, the wherewithal to be clothed and sheltered, the
power to participate in the social life of the community.
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- Gini Coefficient: The Gini coefficient measures the inequality
among values of a frequency distribution (for example levels of
income). A Gini coefficient of zero expresses perfect equality
where all values are the same (for example, where everyone has an
exactly equal income). Theil Index: The Theil index is a statistic
used to measure economic inequality. The basic Theil index is the
same as redundancy in information theory which is the maximum
possible entropy of the data minus the observed entropy.
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- Over the past decade the sudden explosion of growth and rapid
enrichment of many people has seen the rich-poor divide grow. The
ADB estimates that currently in most Asian countries the wealthiest
5% of the population now account for 20% of total expenditure.
Experts say governments need to expand social spending, especially
in health and education, as well as work toward more transparent
policy implementation.
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- http://www.youtube.com/watch?v=1k7y
pBocrKQ&feature=related
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- The growth of the worlds two most populous nations, India and
China, is often cited as the largest contributor to the reduction
in global poverty levels in the last fifteen years. With an average
annual growth rate of 9.5 percent, China has lifted over 400
million of its 1.3 billion citizens out of poverty in the last
twenty years. Indias 7.5 percent average growth has brought an
estimated 100 million out of its 1.1 billion people out of poverty
since 1991.
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- Globalization is creating pressures that tend to increase
inequality. In poor countries that are otherwise identical, the
income shares of the poor will be less in countries that trade more
than in countries that trade less.
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- Enhance comparative advantages in unskilled labor Build
institutional capacity Three institutions can help: 1) Education;
2) Non-fragmented labor markets; 3) Social safety nets
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- What do you think is a solution to reducing poverty and
inequality? Will the current trajectory of globalization eliminate
poverty and inequality? Why or why not? Questions?