POVERTY AND SHARED PROSPERITY 2018

 World Bank
 % of people living in extreme poverty (< $1.90 a day) globally fell to a new low
 Decline in extreme poverty in South Asia is much faster than in the rest of the world.
 Extreme poverty is becoming more concentrated in Sub-Saharan Africa ∵ of low growth rates,
conflicts and weak institutions
 Half of the world’s countries now have poverty rates below 3%
 World Bank introduced New Poverty lines of US$3.20 and US$5.50 per person per day, expressed
in 2011 PPP. This is done ∵ Majority of people and most of the world’s poor now live in middle-income
countries
 SOCIETAL POVERTY LINE - is a combination of the absolute International Poverty Line (IPL) and a
poverty line that is relative to the median income level of each country. Specifically, it is equal in value
to either the IPL or US$1.00 plus half of daily median consumption in the country, whichever is greater.
The value of the SPL will never be less than the IPL. But, after a certain point as countries get richer, the
value of the SPL will increase as the consumption level of the median individual in that country increases.
No. of people below SPL in 2015 was 3 times more than those living under the US$1.90 level
 Individual Level of poverty looking into intra-household inequality among various age-groups and
gender. The gender gap in poverty rates is largest during the reproductive years.
 Multidimensional poverty is more prevalent among women than among men in all countries
 Major observations on Individual level of Poverty
 1/5 child lives in a poor household

SHARED PROSPERITY
 It is the growth in the average income or consumption of the poorest 40% of world population (the
bottom 40)
 It is examined by country rather than globally.
 Fostering Shared Prosperity – a goal by World Bank in 2013

SOCIETAL POVERTY LINE (SPL)

 Recommended by Atkinson Commission on Global Poverty
 What constitutes a basic need can vary depending on a country’s level of consumption or income. In a
poorer country, for example, participating in the job market may require only clothing and food, whereas
 someone in a richer society may also need internet access, a vehicle, and a cell phone. The cost of
performing the same function may differ across countries depending on their overall level of income.
 The concept of poverty itself is dependent on one’s social circumstances. What is a luxury in one society
could be a necessity in another.
 Different for developed and developing countries

Gender and Socio-emotional Dimensions of Poverty (non-monetary dimensions)

 Shame, fear, depression, worry, and anger emerge as integral components of the experience of poverty.
 denial of human rights - health care and education.
 social isolation, stigma, and discrimination
 Women feel stress and stigma in the context of care and family responsibilities under tightly
constrained domestic budgets. Men can feel emasculated if they cannot fulfill their breadwinning role.
 Whereas women may face sexual exploitation and gender based violence, especially as domestic
workers, men face exploitation and discrimination as casual laborers.
 Children find themselves socially excluded at school.