HL-2 BW 034

HL-2 BW 034

1.       Differentiate between absolute and relative poverty

Relative poverty-comparitive level of poverty

 Completely relative-50% 60% of average income

 Absolute poverty-

 Don’t have the necessities for survival

 1.25$ a day-set by the World Bank

2.        Define and illustrate a poverty trap

Poverty trap- Any linked combination of barrier to growth and development

Growth leads to low income leads to low level of savngs leads to low levels of investment

Development leads to low income which leads to low productiviety which leads to low level of human capital

3.       List and define each of the single indicators: Financial, Health, Education

Financial- such as GDP per capita or GNI are indicators used to assess growth or development

Health- life expectancy at birth

-          Infant mortality rate

Education measures- Adult lit rate

Net enrolment ratio in primary

-          In general which will be higher for a developing country?

GDP/capita or GNI/ capita

GDP/ Capita or GDP/ Capita (PPP)

GNI for developed countries

GDP/Capita for developng countries