UNIT 2 INEQUALITY AND POVERTY

Structure

2.0 2.1 2.2 2.3 2.4

Objectives Introduction Functional Distribution of Income and Implication for Poverty \ ' Poverty Defined Measurement of Poverty
2.4.1 2.4.2

Approaches to Measure Poverty Poverty Indicators

Poverty and Marginalized Groups 2.6 Poverty Estimates 2.7 Poverty and Nutrition 2.8 Poverty and Social Conflict 2.9 Let Us Sum UP 2.10 Key Words 2.1 1 Some Useful BooksIReferences 2.12 AnswersIHints to Check Your Progress Exercises
2.5

2.0 OBJECTIVES
After going through this Unit, you should be in a position to: explain various concepts of poverty; distinguish between poverty line and poverty gap; identify functional implications of poverty eradication measures; and explain social conflicts in the context of poverty and inequalities.
L

2.1 INTRODUCTION
In recent years, the debate on inequality amongst people and nations has become more intense and wide-ranging. While global wealth is on the rise, there is an increase in deprivation and inequality. Africa, for example, has lost out during the past two decades and inequality and poverty has increased in most of the African countries. The rise in inequality has led to a number of deprivations that people across nations have experienced over the decades. A discussion on the levels and pattern of inequality is directly related to the study of poverty. It has been observed that income inequalities are associated with deprivations in other areas like quality of life, availability of health care, education, quality of housing and employment. Poverty can be conceived as absolute or relative. Absolute poverty is defined as lack of income or failure to attain capabilities. It can be chronic or temporary, is sometimes closely associated with inequity, and is often correlated with vulnerabilities and social exclusion. The concepts used to define poverty determine the methods employed to measure it and the subsequent policy and programme packages designed to address it. If defined in broad human deprivation terms, poverty is often viewed as a form of underdevelopment. The Human Development Report 1997 distinguishes between

Society and ~conomic Development: Some Hard Facts

poverty and underdevelopment by associating the former with individuals and the latter with an aggregate perspective. The process of development informs us about the degree of progress made by society but this picture would not be complete unless the advances made by each segment and strata in society are assessed. As mentioned earlier, large numbers of people have not been part of the prosperity which is being experiericed globally. We cannot overlook the negative consequences of development if the process is not just and egalitarian.

2.2 FUNCTIONAL DISTRIBUTION OF INCOME AND IMPLICATIONS FOR POVERTY

Functional distribution of income refers to the returns to labour, land and capital as determined by factor prices, utilization levels, and the consequent share of the .national income that accrue to the owners of each factor. The theory of functional distribution is also known as the theory of factor prices as it deals with factor prices like rent, wages, interest and profits. In the Eighteenth century, Ricardo analysed the income distribution among social classes based on the analysis of the functional distribution as the capitalists and landlords owned the means of production and received profit and rent respectively for using their resources and labour received wages as they had only their labour power to sell. Later, Marxconsidered only profit and wages as two major components of functional distribution of income which would indicate the pattern of income distribution in society. Both Ricardo and Marx argued that the process of economic growth will lead to inequality as the share of landowners (Ricardo's argument) and profits of capitalists (Marx's argument) will go up with progress. The functional distribution of income also considers the decomposition of incomes based on profits and interest, transfer payments, pension rights. The finer decomposition of income distribution provides a correct picture of income distribution, therefore, it is important to study the distribution of other assets like stocks, land, houses and other forms in which wealth is stocked. A long term study of the functional distribution or the decomposition of income would give an accurate assessment of the size distribution of income levels in a country. Size distribution of income is an indicator of the spread of income levels amongst households. A more equal distribution of income occurs when greater share of the incremental income goes to the lower income classes. The implications of functional distribution of income on poverty refer to factor price distortions that enter in economic decision-making as a result of various factors. As economies progress and the levels of economic activities go up, there will be changes in the value of stocks and assets such as land or houses. This would lead to changes in incomes of various households with access to such assets. It could also deal with policy interventions for altering the functional distribution of the share of factors engaged in the development process. Structural distribution of the factors of production particularly land has direct consequences for poverty in developing countries where more than half the population is dependent for livelihood on agriculture and related activities. Rapid rise in land and property prices in India in recent years has distorted the factor prices thus leading to speculative profits in trading of such assets.

2.3 POVERTY DEFINED

Poverty is often defined in terms of income levels of a set of population. The income criteria are preferred as an indicator of poverty as it is easy to establish the income earned by a person or a household. A number of other indicators can be added to these measurements based on their money value to arrive at a compreheiisive

measurement of poverty. Money values denote objective standards of poverty measurement. Let us look into some poverty concepts available in thc literature. Poverty refers to different forms of deprivation that can be expressed in a variety of terms (i.e., income, basic needs, human capabilities).

Inequality and Poverty

Per Capita Income Concept

Per capita income can be used as a measure of household welfare. A threshold level of income is used to differentiate the poor from the non-poor. There are three deficiencies with this approach. First, the level of income of a household may vary considerably during the course of a year under study. Second, income of households during a particular year may not be representative income over an extended number of years. Third, the self-employed and informal sector may pose a problem as households may not report their true income for fear of being taxed.
In addition to the above, there are certain other limitations associated with the income indicators of poverty particularly in the context of price and commodity differentials, the exclusion of non-cash and "free" items (such as publicly provided goods and services), and the omission of other factors, such as time required to obtain a commodity. In spite of these limitations, income indicators continue 'to be the most widely used means of measuring poverty, partly because of the relative abundance of data and partly because of its simplicity.

Basic Needs Concept

This approach measures welfare of individuals or households on the basis of certain basic needs such as food, clothing, housing, education and simple medical treatment. The basic needs concept of poverty defines poverty as the deprivation of requirements, mainly material for meeting basit human needs. The poverty measurement based on this approach includes access to such necessities as food, shelter, schooling, health services, potable water and sanitation facilities, employment opportunities, and even touches on opportunities for community participation. Inclusion of these indicators increases the magnitude and scope of poverty estimates. The advantage of the basic needs approach over the per capita income approach is that they measure goods and services directly in terms of human welfare. For example, a rise in housing or essential transport costs would be counted as a decline in well-being using basic needs indicators, while per capita GDP would record this as an increase. There are problems i n adding up or aggregating the consequences of decline in well being as a result of increase in transport costs or healthcare facilities. Cross-country comparisons also have to be done using this data very carefully.

Food Ratio Concept

'The Engel coefficient, derived from the Engel curve (see MEC-001: Microeconomic Analysis), proposes that the ratio of food to non-food expenditure could serve as a useful welfare indicator. Studies have shown that households with higher levels of income usually spend a smaller fraction of their total income on food while the reverse applies to households with lower incomes. It is also noted that the ratio of food to non-food expenditure increases with family size. This approach, however, needs to be qualified by the findings that the poorest households in developing countries do not necessarily spend a higher fraction of their budget on food items.

Per Capita Food Consumption

'This approach hinges directly on a household's propensity to consume food items. In this approach welfare is measured strictly in terms of per capita food consumption. An advantage of this approach is that data requirements for poverty estimation under

Society and Economic Dtve'Opment: Some Hard Facts

this approach are limited. A serious weakness of this approach, however, is that nonfood consumption items, such as clothing and shelter, are ignored.

Calories Concept
This definition of poverty focuses on calorie intake instead of expenditure on food items and therefore is based on nutritional requirements of human beings. Once there is an agreement on the acceptable calorie intake, the measure allows for comparisons across time and space. This concept is based on the premise that every individual must satisfy certain basic nutritional requirements for survival. A basket of goods is selected in such a way as to maximize one's nutrient intake at the lowest possible cost. The market cost of the selected basket is then derived and the monetary value of purchasing the selected basket of basic food is calculated. Households unable to meet the cost of obtaining the basket of food items are categorized as critically poor, or indigent, underprivileged and deprived. The market cost of the basic food basket represents the lower limit of poverty and is the critical poverty line. 'This method, like the per capita food consumption concept mentioned above, ignores non-food requirements of households.

Medical Data Concept

Medical indicators and data on nutrition can also be used as an indicator of welfare. This approach is especially important when the focus of the study is on young children. This approach can however be misleading because although health status is strongly correlated to household welfare, it is not identical with it. Under-nutrition of children in a household, leading to low weight and height for age, and low birth weight may be an indicator of inequality in the household rather than of the incapacity of the household to provide adequate needs of all its members.

Per Adult Equivalence Consumption

This approach to defining poverty uses total consumption expenditure, adjusted for household equivalent scales, as a measure of household welfare. Equivalent scales control for differences in household composition based on age and gender. 'This definition of poverty is particularly attractive, because it systematically includes the nutritional requirements appropriate to the respective members of the household, that is, it allows the poverty criterion to be household specific.

Check Your Progress 1

1)

What are the implications of functional distribution of income for poverty?

2)

How do you define poverty? Compare different approaches to define poverty.

................................................................................................

2.4 MEASUREMENT OF POVERTY

'The approach to study the population in poverty is based on the perceived causes of poverty based on various types of deprivations. These can be in the realm of physiological needs, economic and sociological needs. These needs are mostly interrelated and can also be termed as the vicious circle of poverty. People are poor because they lack income, food, clothing and shelter and they cannot improve their skills and income earning capacity as they lack the essential needs for survival. The income and basic needs concepts of poverty focus on physiological deprivations. However, the concept of poverty needs to be wider to include all other deprivations. Accordingly, it is important to focus on increasing the income/consumption of the poor and their attainment of basic needs, such as health and education.

Inequality and Poverty

2.4.1 Approaches to Measure Poverty

There has been a lot of research on poverty in the past five decades. Various measures based on income levels, food consumption, expenditure data and large scale surveys are used to measure the percentage of population in a country who can be identified as poor. People who live below a specified minimum level of real income can be characterized as living in absolute poverty. The World Bank uses both food and non-food expenditure for constructing 'poverty line'. Food requirements are derived based on nutritional requirements set by th'e indigence line, while nonfood expenditures are set on the basis of a relative measure, namely, the average nonfood expenditure of the poorest 40% of the population. The Indian government conducts large-scale sample surveys which are done by the National Sample Survey Organisation (NSSO) to collect information on consumption expenditure. The population surveyed is divided into expenditure-based groups to study their calorific consumption.

The Poverty Line

The poverty line is a monetary measure of the minimum~consumption of goods and services that a household should obtain in order to ensure that its basic needs are adequately met. The monetary measure of US$ 1 per day is used to make global comparison of population living below the poverty line. The poverty line, therefore, represents a minimum budget that a household should spend over a defined period if it is to meet its basic food and non-food requirements. In India the poverty line is defined on the basis of calorie intake of a person. The calorie intake has been placed at 2250 calories per capita per day in urban areas and 2400 calories per person per day in rural areas. In Section 2.6 we will give details of the empirical evidence of the head count measure of poverty in India.

Table 2.1 : Poverty Line in India

(Rupees Per Capita per Month)

Category
Rural Urban

1993-94
21 1.30

1999-2000

335.46 451.19

274.88

In effect, the population, which is considered to be in absolute poverty, is limited to the expenditure levels of Rs. 1 1 to Rs. 15 per day per person in 1999-2000. Anybody else classified in a higher expenditure bracket is not considered as poor.

The Poverty Gap

The poverty gap is the average of the differences between the income of each individual poor and the poverty line. Poverty gap measures the total amount of

Society and Economic Development: Some Hard Facts

income necessary to raise everyone who is below the poverty line up to that line. To put it in a simple manner, the total poverty gap can be considered as the amount of money per day it would take to bring every poor person in an economy up to our defined minimum income standards.

Human Capability
The human capability approach, developed by Amartya Sen, attempts to measure poverty in terms of outcomes or "ends". This approach defines poverty as the absence of basic human capabilities to function at a minimally acceptable level within a society. An emphasis is placed on people's abilities and opportunities to enjoy long, ,healthy lives, to be literate, and to participate freely in their society. The capability indicators generally used are: life expectancy, literacy rates, malnutrition, and housing. The capability indicators measure well-being in terms of final outcomes rather than the proxies (such as income, consumption and nutrition) for those outcomes. Availability of national level data on several capabilities indicators has made it possible to estimatk poverty level through capabilities approach. The United Nations Development Programme (UNDP) regularly brings out the Human Development Report that provides comparative analysis on global trends in economic and social development. The Planning Commission of India has also initiated a process to bring out national and state level reports on similar lines. Broadly, the capability indicators used by the UNDP and the Planning Commission of India can be grouped as the capability to meet the basic needs, self-esteem and the ability to choose.

Human Development Index

This is a composite index based on per capita GNP and the level of educational attainment and life expectancy of a population. A series has been generated by the UNDP with the basic index and data are now regularly published on the performance of countries over time. The UNDP brings out an annual Human Development Report, which covers a number of indicators, and countries are ranked on the basis of an index.

2.4.2 Poverty Indicators

The data sources used for measuring poverty are a study of income distribution, disaggregation of other indicators by subgroups and time-use studies. Various studies use all of the following or a few of these indicators to measure the extent of poverty levels in a country. 1)
2)

Proportion of population below minimum level of dietary energy consumption (indigent) Poverty gap ratio (incidence multiplied by depth of poverty) Share of poorest quintile in national consumption Prevalence of underweight children (under five years of age) Proportion of population below $1 per day (PPP-values)

3)
4)
5)

Most of the national governments conduct sample surveys to implement poverty alleviating programmes. The World Bank has conducted several studies called the Living Standards Measurement Survey (LSMS). lnformation on the poverty levels of specific groups can be arrived at by disaggregating poverty indicators based on gender, caste, age, race and location. Similarly, time-use data can be used to study sub-groups of population in terms of the economic value of their work (i.e., paid or unpaid), types of activities performed, and intensity of activities. This data is often used for measuring gender equity and intra-household divisions of labour.

2.5 POVERTY AND MARGINALIZED GROUPS

Though there are several causes of poverty, the common one is structural. 'The ownership of assets particularly land, is a primary reason for poverty in rural areas. In most cases it is observed that poverty in a household stems out either from unemployment or unproductive employment. Social discrimination, apart from lack of asset base is another cause of poverty. In India, caste division leads to restrictions on occupational mobility of people, thus they are forced to earn their livelihood from their traditional occupations. Eden in a developed nation such as the US, for example, the Blacks are found to earn less than the whites in similar jobs. It is observed that there are specific groups of population where poverty is endemic. The level and pattern of poverty depends on the level of per capita income and the unequal distribution of the prevailing level of income. Under such circumstances, it is important for policy makers to study the spread of population which is poor.

Inequality and Poverty

Gender and Poverty

Women make a substantial proportion of poor people. Studies have shown that women headed household in rural areas are the poorest. The income disparity between men and women is evident due to vast differentials in wages paid to men and women. Women are increasingly employed in the unorganized sector as unskilled labour. They are also engaged in home-based work where they get piece wages. Female-headed households are often poor, as women do not get jobs or credit to set up their own businesses. In recent years, the term 'feminisation of poverty' is used to denote the specific characteristics of poverty where women are directly affected adversely as a result of development process.

Rural Poor
In most of the developing world, large proportion of population work in rural areas and are engaged in low wage agriculture or allied activites. Though most often, the governments of these countries are aware of the imminent rural poverty, the path of development followed by them is in favour of urban areas. This bias in favour of urban areas in terms of healthcare facilities, educational institutions, housing and other infrastructure has put the rural population further into poverty.

Caste and Poverty

In India, specifically, caste hierarchy has often been closely associated with poverty. l'here are a number of castes, which have stayed at the lowest rung of economic hierarchy for generations as they are associated with low paying menial tasks. There has been a clear example of social and economic exclusion of these sections from the fruits of the development process in the country.

Ethnic Minorities and Indigenous Population

In several countries and in lndia as well, large segments of indigenous population (known as adivasis in India) are poorer than the rest of the population. The scheduled tribes in lndia largely inhabit in their natural surroundings and engage themselves in traditional occupations. They have been displaced from their natural habitat without being settled in other places or vocations.

2.6 POVERTY ESTIMATES

Globally, the decade of 1990s is considered a decade of jobless growth, which mean economic growth has taken place, but employment growth has stagnated. This has

Society and Economic Development: Some Hard Facts

forced a large number of people to stay unemployed or take up low paying jobs in the unorganised sectors. We have been witnessing a paradox of poverty with growth. This brings into focus the need for effective policies for equitable distribution of national wealth so that various kinds of deprivations faced by people can be removed. The strategy of removing poverty has to be a comprehensive one and should not be restricted to taking note of only some of its more visible features.

In recent decades, a lot of literature on poverty has emerged from all the countries. Developed countries have been trying to tackle the issue of poverty in their economies. Though the extent of poverty is not the same as in the developing countries, there are pockets of poverty and deprivation in developed countries as well. The poverty levels are extremely high and endemic in the continent of Afiica which appears to have faced decline in growth in the past two decades. South Asia also has vast sections of population in absolute poverty. In recent years, it has been observed that large sections of people in developing countries are facing increased joblessness, lack of health care facilities and food security. Malnutrition, illiteracy and lack of livelihood appear to have become crucial issues to resolve the problem of deprivation and poverty.
Table 2.2: Population below Poverty Line in India No. of persons in lakhs States
198788 1993-94 19992000

Poverty Ratios (% of Population)

1987 -88 1993 -94 19992000

Poverty Reduction
87-88 to 93-94 93-94 to 99-00

Punjab Himachal Pradesh Haryana Andhra Pradesh Kerala Gujarat Rajasthan Assam Karnataka
All India

25.2 7.5 25.4 160.4 88.5 122.4 142.9 75.8 158.6

3070.5

25.1 15.9 43.9 154.0 76.6 105.2 128.5 96.4 156.5

3203.7

14.5 5.1 17.3 119.0 . 41 O 67.9 81.8 94.6 104.4

2602.5

13.2 15.5 16.6 25.9 31.8 31.5 35.2 36.2 37.5

38.9

11.8 28.4 25.1 22.2 25.4 24.2 27.4 40.9 33.2

36.0

6.2 7.6 8.7 15.8 12.7 14.1 15.3 36.1 20.0

26.1

1.4 -12.9 -8.5 3.7 6.4 7.3 7.8 -4.7 4.2

2.9

5.6 20.8 16.4 12.1 6.3 6.8 7.5 4.8 13.2

9.9

Maharashtra Uttar Pradesh Madhya Pradesh Tamil Nadu West Bengal Bihar Orissa

296.3 536.5 264.3 231.1 283.6 420.9 165.9

305.2 604.5 298.5 202.1 , 254.6 493.4 160.6

228.0 529.9 298.5 130.5 213.5 425.6 169.1

40.4 41.5 43.1 43.4 44.7 52.1 55.6

36.9 40.9 42.5 35.0 35.7 55.0 48.6

25.0 31.2 37.4 27.0 42.6 47.1 17.1

3.5 0.6 0.6 8.4 9.0 -2.9 7.O

11.9 9.7 5.1 13.9 8.7 12.4 1.5

Note: States have been arranged in the ascending order of poverty ratio in 1987-88.

Source: Planning Commission of India

Poverty Level in India

The prevalence of a large proportion of population which can be called absolute poor is overwhelming in India. The process of development as implemented over the past

two decades does not appear to have benefited these people. As a result, the rural and urban poor exist in large numbers. This has been accentuated by a decline in the growth of job availability particularly in the organized sector. In fact, the jobless growth of the 1990s has increased the intensity of deprivation and poverty amongst the rural and urban poor. According to the World Resources Report 2005, published by the World Resources Institute, in the year 1999-2000 the percentage of population living on less than $1 per day in India is 8 per cent. If we consider $2 per day then the percentage of population living on less than $2 per day constitute 35 per cent.

Inequality and Poverty

2.7 POVERTY AND NUTRITION

The basic requirement for survival is sufficient nutrition which not only enables a person to live a healthy life but also enables himther to participate actively in improving his economic and social well being. Chronic diseases due to lnalnourishment put a heavy toll on creative abilities of people. In particular, childhood malnutrition hampers proper growth of children, which finally becomes an impediment to their physical, intellectual and emotional development.

Table 2.3: Calorie Intake at Different Expenditure Level (1999-2.000) Rural Cumu- Calorie lative Intake1 YO capital day Urban Cumul- Calorie ative % intake

Expenditure Class IMPCEJ Rs.

Proportion of perso ns %

'

Expendit- Expendure on iture food % Class

Proportion of persons
YO

Expenditure on food
YO

1398 5.1 5.1 1388 67 0-225 5O . 5. O 64 0-300 225-255 255-300 5.0 10.1 10.0 10.3 9.7 10.2 9.3 10.3 9.9 5.0 5.0 99.9 10.1 20.2 30.2 40.5 50.2 60.4 69.7 80.0 89.9 94.9 100.0 1609 67 66 65 65 64 63 62 60 58 55 46 300-350 350-425 425-500 500-575 575-665 665-775 775-91 5 91 5-1 120
1 1201500

5.1 9.6 10.1 9.9 10.0 10.1 10.0 10.0 10.1 5.0 5. O 99.9

10.1 19.7 29.8 39.7 49.7 59.8 69.8

1854 1729 1912 1968 2091 21 87 2297 2467 2536 2736 2938 2156

64 62 60 58 56 54 52 49 45 41 32
,

1 733
1868 1957 2054 2173 2289 2403 258 1 2735 3778 2 149

1
1

300-340 340-380 380-420 420-470 470-525 525-615 615-775 775-950 950 more All

79.8 89.9 94.9 100.0

15001925 1925 more All

Source: Nutritional intake in India NSS 55"' Round. Report No. 471 in Alternative Economic Survey (2004)

Society and Economic Development: Some H a r d Facts

POVERTY AND SOCIAL CONFLICT

The rise in inequality and the stark variation in living standards of the rich and the poor globally have led to an increase in social tensions in societies. As a result, a large number of the poor are getting attracted to political movements, which in their perception and understanding can improve their economic condition. In India, it has been observed that large territories are under the control of Naxalites who are organizing people for achieving economic equality with the rest of the society. This is further made complex due to caste differentiation where economic and social mobility is restricted in our social system.

Poverty and Vulnerability

It has been observed that poor people are vulnerable to a number of discrimination. Vulnerability creates impediment in the implementation of various development programmes. Some groups may be at risk of becoming poor because of inherent vulnerabilities (i.e., different types of discrimination based on class, gender, caste, ethnicity, or factors such as disability, region of residence and family configuration). Furthermore, certain combinations of vulnerability may be strongly correlated with poverty, such as female-headed households or families living in remote and isolated mountainous regions or some castes from specific occupational background. Such correlations between vulnerabilities and poverty make it necessary to pay special attention to these segments of population.

Poverty and Exclusion

The issue of exclusion is varied as there can be social exclusion as well as economic exclusion. In several situations, the two types of exclusion are also directly interrelated. Exclusion based on caste, whatever economic group you belong to, would imply social exclusion. More specifically, social exclusion refers to issues of participation, empowerment and social rights. However, the inter-related nature of economjc and social exclusion in India would mean that some castes are both economically and socially excluded from the procebs of development. Because of a vast range of deprivations, certain castes have been restricted to their traditional occupations or to other low wage unskilled work. For policy makers, it is important to go beyond the narrow definition of poverty based on income indicators only and take note of social exclusion too.

Check Your Progress 2

1)

Distinguish between various measures of poverty.

2)

How does poverty affect the marginalized sections of society'?

3)

Write short notes on: i) ii) Poverty line Human capability approach

Inequality and Poverty

2.9 LET US SUM UP

As a multidimensional phenomenon, poverty is defined and measured in different ways. The structural inequities and inherent disadvantages lead to social and economic exclusion where it is dificult for people to have access to credit, land, health care and education. It has been observed that unless the structural inequalities in societies are not tackled the problem of poverty will persist. The distribution of assets, particularly land in rural areas, access to credit, education and healthcare is essential for eradicating poverty. Similarly, the human capability concept of poverty focuses on expanding people's opportunities to enable them to live up to their potential.

2.10 KEY WORDS

Exclusion
:

Economic exclusion refers to denial of access to economic opportunities and social exclusion refers to exclusion from of participation, empowerment and social rights. Inequality refers to disparity in a set of population in respect to their material (cash or kind) possessions. It is the average of the differences between the income of each individual poor and the poverty line. It measures the total amount of income necessary to raise everyone who is below the poverty line up to that line. The poverty line is a monetary measure of the minimum consumption of goods and services that a household should obtain in order to ensure that its basic needs are adequately met. It refers to lack of access to minimum standard of living in society.

Inequality Poverty Gap

: :

Poverty Line

Poverty Social Conflict

: :

he rise in inequality and the stark variation in living standards of the rich and the poor globally have led to an increase in social tensions in societies. As a result, a large number of the poor are getting attracted to political movements, which in their perception and understanding can improve their economic condition. This anger can also be misdirected into socially unacceptable direction.

2.1 1 SOME USEFUL BOOKSJREFERENCES

McKinley, Terry, 1 997, 'Beyond the Line: Implementing Complementary Methods o f Poverty Measurement', UNDP Poverty Reduction Series. Todaro, Michael and Stephen Smith, 2005, Economic Development, Pearson Education, London

Society and Economic Development: Some Hard Facts

UNDP website: www. undp.org for The Human Development Reports Yujiro Hayami, 2001, Development Economics- From the Poverty to the Wealth of Nations, Oxford University Press, New York.

2.12 ANSWERSIHINTS TO CHECK YOUR PROGRESS EXERCISES

Check Your Progress 1
1)
2)

See Section 2.2 and answer. See Section 2.3 and answer.

Check Your Progress 2

1)

See Section 2.4 and answer. See Section 2.5 and answer. See Sub-section 2..4.2and answer.

2) 3)