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| Frage | Antworten |
| What is Relative Poverty | Lack of resource required to participate in the activities and enjoy living standards that are customary or widely accepted in given society. |
| Which type of poverty is focused in development context ? Give definition . | In development context focus is on absolute poverty. It is defined as 'Lack of resource required to satisfy basic needs' ( World Bank, 1990) Basic Needs are: Food, Clothing, Shelter and Health. |
| What is income poverty ? | In pure economic terms, income poverty is when a family's income fails to meet a federally established threshold that differs across countries. Typically it is measured with respect to families and not the individual, and is adjusted for the number of persons in a family. |
| What is poverty line ? | The poverty line (YP) is defined as the minimum level of income required to satisfy basic needs. |
| How can poverty line be defined ? | Poverty line can be defined internationally, nationally or locally depending on the particular focus. |
| What is the importance of Poverty line (Yp) ? | With clear and transparent definition of poverty line we can interpret the poverty numbers. |
| What is Poverty line, PPP for Extreme and Moderate poverty ? | Poverty line,Yp= 1.25$ ( Extreme Poverty) Poverty line, Yp= 2$ ( Moderate Poverty) |
| Define The head count index (HCI) | HCI = H/N where H is the headcount, that is the number of people with incomes ( or other measures of living standards eg. consumption) below poverty line ( Yp ) and N is the total population number. |
| What is the limitation of Head Count Index ? | Head Count Index ignores differences in well being between different poor HH. It assumes all poor are in the same situation. For example: Cut in half of every poor income. Head Count do not change. Transfer of income from poor to not so poor, Head count do not change. |
| What is the significance of Total Poverty Gap | One drawback of the HCI is that it does not inform us about the depth of poverty ( How poor are the poor?) This can be measured by TPG or APG. |
| How to calculate TPG, What is the formula ? | Yi= Consumption expenditure of HH i. |
| How to calculate Normalized poverty gap ? | NPG= APG/ Yp |
| How to calculate Foster-Greer-Thorbecke (FGT) index ? | Where alpha (power) = 0 1 2 3. It can bee seen, FGT-0 is HCI and FGT 1 is normalized poverty gap. |
| What is the significance of FGT index ? | For higher value of alpha, very poor people get a higher weight in the index than less poor. Inequality is taken into account. |
| What is the purpose of Poverty Maps ? | It is a tool to show poverty hotspots within countries. They can help to understand poverty determinants and design and target interventions. |
| What is the yardstick for measuring inequality ? | Typically, percentile distributions or the Gini coefficient are used to measure inequality. |
| What is Gini Coefficient and how to calculate this ? | Gini Coefficient= Area A / Area (A+B) It gives value between 0 to 1. 0 means perfect equality |
| What was the main reason of poverty reduction over the last 20 years ? | Two third of the poverty reduction was due to economic growth. But economic growth alone can't be panacea. It very much depends on how the additional income that is generated is distributed within the country. |
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