Chapter 6: Poverty and Hunger Beyond Economic Growth: An Introduction to Sustainable Development By Tatyana P. Soubbotina

Overview of Chapter 6: Poverty and Hunger The multidimensional nature of poverty The geography of poverty South Asia and Sub-Saharan Africa The vicious circle of poverty Low savings and investment create a poverty trap The challenge of hunger Another vicious circle?

The multidimensional nature of poverty Poverty is deprivation: low income, low consumption, poor nutrition, poor living conditions, poor health, poor education, vulnerability to disasters, powerlessness Can economic growth or redistribution reduce poverty? World Bank measures poverty as $1 per day (1985 PPP) For middle-income countries, poverty is $2 a day (1985 PPP) For US in 2013, poverty is $23,550 per year for family of four

The geography of poverty: Where do poor people live? In 2000, most of world’s poor lived in Asia Rapid economic growth in China and India have lifted many people out of poverty The highest incidence of poverty is in Sub-Saharan Africa (see Fig. 6.1) Economic growth in Sub-Saharan Africa has been slow

A vicious cycle of poverty: the savings-investment poverty trap Increases in economic growth require increases in physical or human capital, which requires increases in investment, which requires increases in savings How can poor people increase savings if they are poor? Low savings can create a poverty trap (Fig. 6.3) Most savings are in high-income countries Foreign investment in poor countries inhibited by political instability Poverty contributes to political instability Political instability can create a poverty trap (Fig. 6.4)

The challenge of hunger: Another vicious circle of poverty? Since plenty of food is produced, hunger is about access to food Malnutrition mostly affects women and rural poor Most food emergencies caused by natural disasters Poverty is a cause and consequence of hunger Vicious cycle of poverty & hunger (Fig. 6.7) Policies can simultaneously address poverty & hunger International aid, trade reform, farming technology, roads, etc.