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

2. 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?

3. 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

4. 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

5. 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)

6. 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.