Question

2. How is absolute poverty measured, in comparison to the distribution of national income? List 3 countries in Latin America with extremely high rates of absolute poverty and 3 countries with very high income inequality. What are 2 factors which may have increased absolute poverty rates throughout the region’s history? Refer to how a household would be above or below an absolute poverty line. Finally, provide 2 factors which have increased income inequality in Latin America throughout its history.

Answer 1

ABSOLUTE POVERTY:

Absolute poverty refers to a condition where a person does not have the minimum amount of income needed to meet the minimum requirements for one or more basic living needs over an extended period of time.

MEASUREMENT OF ABSOLUTE POVERTY:

Absolute poverty refers to a set standard which is consistent over time and between countries. An example of an absolute absolute measurement would be the percentage of the population eating less food than is required to sustain the human body (approximately 2000–2500 calories per day).

DISTRIBUTION OF NATIONAL INCOME:

Thus the distribution of the national income among labour and capital is fully determined by three sets of data: the amount of capital, the amount of labour, and the production function. ... If an additional 1 percent of labour adds 0.75 percent to total output, labour's share will be 75 percent of the national income.

COUNTRIES IN LATIN AMERICA WITH EXTREMELY HIGH RATE OF ABSOLUTE POVERTY:

The unequal distribution of wealth remains the underlying cause of poverty throughout Latin America, although the region's countries have made widely varying degrees of progress towards meeting the United Nations Millennium Development Goals (MDGs)

As of October 2019, the countries that have the highest rates of poverty per population in South America are Suriname, Bolivia, Guyana, and Venezuela.

COUNTRIES WITH VERY HIGH INCOME INEQUALITY:

Using the most recent figures, South Africa, Namibia and Haiti are among the most unequal countries in terms of income distribution – based on the Gini index estimates from the World Bank – while Ukraine, Slovenia and Norway rank as the most equal nations in the world.

FACTORS THAT HAVE INCREASED ABSOLUTE POVERTY THROUGHOUT THE RELIGION HISTORY:

Here, we look at some of the top causes of poverty around the world.

• Inadequate access to clean water and nutritious food. ...
• Little or no access to livelihoods or jobs. ...
• Conflict. ...
• Inequality. ...
• Poor education. ...
• Climate change. ...
• Lack of infrastructure. ...

As of 2010, the US Census declared that 15.1% of the general population of the United States lived in poverty:

• 22% of all people under the age of 18.
• 13.7% of those between the ages of 19-21 • 9% of all people either 65 or older.

The effects of poverty can follow a child into adulthood, leading to chronic illness and lack of education or the ability to work. The effects of poverty are more than just missing a meal. Families struggle with chronic food insecurity, hunger, and malnutrition.

The official level of income that is needed to achieve a basic living standard with enough money for things such as food, clothing, and a place to live: live above/below the poverty line Half of the nation lives below the poverty line.

The main reason Latin America fails to reduce inequality is the precarious tax system and its weak redistributive power. According to World Bank data, Latin American countries have the lowest tax burden.

Several factors have contributed to the rise in within-country inequality, including globalization, technological change favoring higher-level skills and capital, structural changes in labor markets, the rising importance of finance, the emergence of winner-take-all markets, and policy changes such as shifts toward.

Latin American economies have seen two decades of substantial economic and social progress. Yet, with less favourable external conditions, and a slowdown in growth, how can the region build on the gains made in the last few decades? Continued progress towards greater equity and productivity enhancing reforms will be critical to reigniting growth in the region.