Transcript Growth, Poverty, and Income Distribution

Growth, Poverty, and Income
Distribution
Chapter 5
The Growth Controversy: Five
Critical Questions
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What is the extent of relative inequality,
and how is this related to the extent of
poverty?
Who are the poor?
Who benefits from economic growth?
Does rapid growth necessarily cause
greater income inequality?
What policies can reduce poverty?
Some Basic Concepts
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Size distributions
Some Basic Concepts
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Size distributions
Lorenz curves
Some Basic Concepts
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Size distributions
Lorenz curves
Dualistic development: some stylized
typologies
Some Basic Concepts
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Size distributions
Lorenz curves
Dualistic development: some stylized
typologies
Gini coefficients
Some Basic Concepts
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Size distributions
Lorenz curves
Dualistic development: some stylized
typologies
Gini coefficients
Functional distributions
Inequality and Absolute Poverty
in Third World Countries: A
Review of the Evidence
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Inequality: variations among countries
Inequality and Absolute Poverty
in Third World Countries: A
Review of the Evidence
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Inequality: variations among countries
Absolute poverty: extent and magnitude
Inequality and Absolute Poverty
in Third World Countries: A
Review of the Evidence
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Inequality: variations among countries
Absolute poverty: extent and magnitude
The human poverty index
Economic Characteristics of
Poverty Groups
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Rural Poverty
Economic Characteristics of
Poverty Groups
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Rural poverty
Women and poverty
Ethnic minorities, indigenous
populations, and poverty
Income Levels, Growth, and the
Extent of Poverty
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The Kuznets hypothesis
Income Levels, Growth, and the
Extent of Poverty
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The Kuznets hypothesis
Economic growth and inequality
Redefining Development Goals:
Growth With Improved Income
Distribution
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Growth is necessary, but not sufficient
for poverty reduction
Objective: the generation of broadbased income growth while targeting
the incomes of particular groups
The Role of Economic Analysis:
Redistribution From Growth
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Growth versus income distribution
GNP growth as a biased index of
national development and well-being
Constructing a poverty-weighted index
of social welfare
The Role of Economic Analysis:
Redistribution From Growth
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Growth versus income distribution
GNP growth as a biased index of
national development and well-being
Constructing a poverty-weighted index
of social welfare
Combining the economics of growth and
distribution
The Range of Policy Options
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Areas of intervention
Policy options
– changing relative factor prices
– asset redistribution
– progressive taxation
– transfer payments and public provision of
goods and services
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The need for a “package” of policies
Concepts for Review
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Absolute poverty
Asset ownership
Character of
economic growth
Deciles
Disposable income
Distributive share
index
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Equal-weights index
Factor-price
distortions
Factor share
distribution of income
Factors of production
Functional distribution
of income
Concepts for Review, cont’d
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Gini coefficient
GNP growth rate
index
Headcount index
Human Poverty
Index
Income inequality
Indirect taxes
Kuznets curve
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Land reform
Lorenz curve
Personal distribution
of income
Poverty gap
Poverty-weighted
index
Progressive income
tax
Concepts for Review, cont’d
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Public consumption
Quintiles
Redistribution
policies
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Regressive tax
Size distribution of
income
Subsidy