Poverty Flashcards
(17 cards)
How does the World Bank define poverty?
Lacking the resources needed to meet basic needs.
What are the monetary dimensions of poverty?
Income and consumption.
What are the non-monetary dimensions of poverty?
Health, nutrition, education, and subjective well-being.
What is absolute poverty?
Inability to meet basic survival needs; defined as living on less than $1.90/day.
What is relative poverty?
Being significantly poorer than others in society; e.g., UK poverty line is £152/week for a single adult.
Has global extreme poverty declined since 1990?
Yes, but unevenly across countries.
Which countries have led in reducing extreme poverty?
China and India.
Where is extreme poverty increasingly concentrated?
Sub-Saharan Africa.
What is a poverty trap?
A situation where the poor cannot escape poverty due to low income growth and lack of resources.
What are examples of poverty traps?
Poor nutrition
Poor health
Inability to save
Frequent natural disasters
What does Sachs (2005) argue about poverty traps?
Poor countries need large initial investments (foreign aid) to escape poverty.
What do Banerjee and Duflo (2011) suggest about poverty research?
Focus on specific interventions using randomized control trials (RCTs).
What is the “big push” theory?
Small interventions can have large, lasting effects if a poverty trap exists.
What do Easterly (2006) and Moyo (2009) argue about aid?
Aid can be harmful—undermines local institutions and creates dependency.
Do people buy bed nets if they must pay full price? (Dupas, 2014)
No—purchase rates drop as price increases.
Do people use bed nets if they get them for free? (Dupas, 2014)
Yes—usage is not affected by price.
Do free bed nets discourage future purchases? (Dupas, 2014)
No—free nets may increase future willingness to pay.
