Topic 25: Poverty, Wealth & Inequiality

Topic 25: Poverty, Wealth & Inequiality

1. Economic Changes

   • Inequality in the world has increased markedly in recent years
     • External debts because of inflation and unemployment increased.
     • Liberal measures were a great boost for industrialized countries.
     • Third Industrial Revolution.
     • Organizations such as the International Monetary Fund and the World Bank

2. Wealth in the World

   • The gap between rich and poor has deepened in the midst of globalization.
     • The richest countries, which form the Organization for Economic Cooperation and Development (OECD)
     • The concetration also occurs in the use of energy sources.
     • Industrialized countries have taken advantage of their forests where oxygen is produced,

3. Human Development Index

   • In 1980, the 1998 Nobel Prize in Economics, Amartya Sen, created the Human Development Index, which was later adopted by the United Nations.
     • Life expectancy
     • Knowledge or educational achievements
     • Per capita income

4. Poverty & Indigency

   • In the we is great poverty. Poverty can be recognized immediately, but it is not easy to define it.orld, ther
     • Poverty: A situation of exclusion that deprives people of the minimum essential conditions to satisfy their human needs.
     • Indigency: the situation of extreme poverty

5. How is Poverty Measured?

   • This method was developed by ECLAC
     • First step: Making a basket that has enough calories required by the World Health Organization (WHO).
     • Second step: Poverty limit is given by urban households with an income equal to or less than the value of two food baskets, but greater than one basket.

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