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Appendix 2

Social Indicators of Poverty

  1. The social indicators definition of poverty is increasingly influential in the activities of charitable and non-governmental organizations and in the policy actions and debates of governments.
    • The United Nations Human Development website, for example, targets concrete indicators of deprivation:

      "Across the world we see unacceptable levels of deprivation in people's lives. Of the 4.6 billion people in developing countries, more than 850 million are illiterate, nearly a billion lack access to improved water sources, and 2.4 billion lack access to basic sanitation. Nearly 325 million boys and girls are out of school. And 11 million children under age five die each year from preventable causes -equivalent to more than 30, 000 a day. Around 1.2 billion people live on less than $1 a day (1993 PPP US$), and 2.8 billion on less than $2 a day."
      (see http://hdr.undp.org/hd/default.cfm)

      Figure 1
      Developing Countries Face Serious Deprivations in Many Aspects of Life

      Health
      968 million people without access to improved water sources (1998)
      2.4 billion people without access to basic sanitation (1998)
      34 million people living with HIV/AIDS (end of 2000)
      2.2 million people dying annually from indoor air pollution (1996)
      Education
      854 million illiterate adults, 543 million of them women (2000)
      325 million children out of school at the primary and secondary levels, 183 mil. girls (2000)
      Children
      163 million underweight children under age five (1998)
      11 million children under five dying annually from preventable causes (1998)

      Source: http://hdr.undp.org/hd/default.cfm

    • Reacting to what it labeled "unacceptable levels of deprivation," the U.N. established Millennium Development Goals (MDGs). Using 1990 as a baseline, the 2015 goals include social indicators as well as income measures:
      1. cutting income poverty in half,
      2. achieving universal primary education, and
      3. reducing child mortality by two-thirds.
    • The United Nations Human Development Reports monitor progress in achieving the MSGs by compiling and disseminating annual human development indicator updates:

    Source (too long to List) Click Here for Site

    • For example, many studies have confirmed a strong, positive correlation across countries between the child mortality rate and per capita income.

    Figure 2

    Figure 2
    Dollar, David. "Capitalism, Globalization and Poverty." Consignment research paper written for The Foundation for Teaching Economics. Mar. 2003.
    • Educational attainment also correlates closely with per capita income.
    • Note the comparison (see Table 1, below) of the United Nations' education index (highest possible score 1.0) and per capita income for a selection of the poorest and wealthiest countries of the world.
      • (While social indicators are useful, the links between material poverty and education or infant mortality are not perfect and it is important to keep in mind that the factors moving people out of material poverty are not exactly the same as those that meet education and health objectives of organizations like the United Nations.)

    GNI Per Capita and Education, 2004

    Country Education Index* Per capita GNI** Country Education Index* Per capita GNI***
    Finland 0.99 $32,880 Pakistan 0.44 $600
    Netherlands 0.99 $32,130 Malawi 0.67 $160
    Australia 0.99 $27,070 Ghana 0.51 $380
    Denmark 0.98 $40,750 Bangladesh 0.45 $440
    Canada 0.98 $28,310 Nepal 0.53 $250
    U.S. 0.97 $41,440 Zambia 0.61 $400
    Spain 0.97 $21,530 Burundi 0.51 $90
    Ireland 0.97 $34,310 Mozambique 0.45 $270
    Japan 0.94 $37,050 Zimbabwe 0.78 $620
    Poland 0.96 $6,100 Niger 0.17 $210

    *United Nations Education index, 2006 – One of the three indices on which the Human Development Index is built. It is based on the adult literacy rate and the combined primary, secondary and tertiary gross enrollment ratio. http://hdr.undp.org/statistics/data/indicators.cfm?x=7&y=1&z=1

    ** GNI per capita (atlas method), 2004. See GDP (gross domestic product) and PPP (purchasing power parity). http://devdata.worldbank.org/data-query/

    *** Search Data Query: http://www.worldbank.org/data/dataquery.html

  2. Social indicators can help students translate abstract notions like per capita GDP into very concrete pictures of what poor people do and do not have.
    • As Figures 1 and 2, below, illustrate, the situation has definitely improved in the last 25 years, but clean water and adequate nutrition still are not norms of existence for many of the world's poor.
    Figure 1

    Figure 2