Global Poverty

Global Poverty

1. Definitions of poverty

   • Mainstream view versus basic needs
   • Adam Smith (Linen shirt example)
   • Multidimensional
   • Poverty debate: lack of consensus on definitions, 1980s: rise of neo-lib, 1990s: rise of Marxists, gender, nationalists & Keynesians
   • Relative poverty = inequality, intrinsic to capitalism Absolute poverty = unable to lead a 'decent life'

2. Global Hunger

   • Orthodox position versus society based position
   • 3rd world produces most food but has most malnourished
   • Amartya Sen
     • System not based on need but on entitlement
     • Exchange entitlement: to understand poverty we must understand structure of ownership
     • Class based Marxist approach

3. Is poverty increasing or decreasing?

   • Impact of globalization
     • Critical argument: anti-neo-lib claim that poverty has increased due to globalization
     • Liberal argument: globalization has reduced number of people in poverty
   • Critique of measurement of poverty: only recognises absolute poverty and lacks conceptual foundation and social aspects
   • Reliability of data
     • WB data ignores unpriced 'basic needs'
     • WB data politically sensitive
     • China and India did not participate in 1993, two biggest countries

4. Causes of poverty

   • Colonial history
     • Rules of international exchange set by colonialists
     • Deep rooted structure of IPE
   • Behavioural approach: poor lack character and rich are rich due to virtue
   • Structural approach: wealth and poverty and coproduced
   • Marxist approach: exploitation in production
   • World system theory & dependency theory: wealth in core contingent on poverty in periphery
   • Mix of factors: over population, lack of capital/ infrastructure/ employment, poor governance & corruption
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5. Urban poverty

   • Urbanisation does not always lead to economic growth
   • Mike Davis: Planet of Slums
     • SAPs & decline of the state = huge amount of slums
     • WB's solutions to crisis are the same issues that caused it
     • Gated communities versus slum dwellings
       • Reproduction of colonial cities & racial zoning to defend their own class
   • Should we care about slums?
     • 'Urbanisation of insurgency'
     • Madhi Army, Baghdad
     • Future of warfare lies in the slums

6. Solutions to poverty

   • IMF/WB believe that economic reform is essential
     • Current system means major share of aid goes to non project assistance
   • Less reliance on states, more on privatization
   • Long term solutions
     • Increase capacities & skills (education, employment, infrastructure) in South
     • Change rules of the game
     • Redistribution of resources
     • Jeffrey Sachs: The End of Poverty Responsibility of wealthy countries to alleviate poverty in Global South
   • Charity is bad
     • Aid siphoned off by corrupt elites, does not benefit recipient & encourages dependency