POVERTY, INEQUALITY,

AND DEVELOPMENT

Jairus Albert Alcantara

Niña Gabrielle A. Custodio
 What's
Poverty?
Poverty is a state or condition
in which a person or community
lacks the financial resources
and essentials for a minimum
standard of living.

Standard of Living
quality of life
 Causes of
Poverty
Poverty Cycle it passes from
one generation to the next.

inequality increases.
Poverty rarely has a
single cause.
LITTLE OR NO ACCESS TO
LIVELIHOODS
Conflict and geopolitical
unrest
 What is Economic Inequality
Disparities among individuals' incomes and wealth.

Over the past 30 years, global wealth has increased;

overall, living standards have improved. Disparities like
these and the ones many people see in their everyday lives
give rise to questions about economic inequality.
Example COVID 19
psychological aspect of economic inequality. How satisfied
we are with our income or net worth depends not just on
how low or high those figures are. Instead, our
satisfaction depends in part on how our income and wealth
compare to that of others such as our neighbors,
colleagues, friends, siblings, classmates, and bosses.

For example: Lorenzo, an accountant, may be perfectly

happy earning $70,000 a year in his accounting job but
only until he learns that his colleague and fellow
accountant Sebastian is earning $80,000.
 How does Economic Inequality Happen?
Economic inequality is a problem where we
compare ourselves to others. We feel bad when
we find out that other people have more than
we do, especially when we're similar to those
people. People need incentives to work hard,
and they feel they deserve to keep what they
earn.

In the example above, how would Lorenzo and

Sebastian feel if they learned more about
Marco's life story?
 Measuring Inequality
The most widely used measure of inequality is the
Gini coefficient, which ranges from 0 (perfect
equality) to 1 (perfect inequality, one individual
has everything), but is typically in the range of
0.3 to 0.5 for per capita expenditures

The benefits of the Gini coefficient are described

as:
mean independence
population size independence
symmetry
Pigou-Dalton Transfer sensitivity

A newer measure of inequality is the ‘Palma’ ratio.

 What is economic development?

Economic development is the process by

which emerging economies become
advanced economies. Economic
development also refers to the overall
health, well-being, and academic level
of the general population. During the
development, there is a population
shift from agriculture to industry, and
then to services. A longer average life
expectancy is one of the results of
economic development.
 Economic development vs. Growth
Economic growth

Economic growth is all about

expanding GDP

Economic development

Economic development looks at how

the citizens of a country are
affected.
Education standards.
Environmental standards.
Availability of housing, plus the
quality of housing.
Activity Questions
1. How is Economic Inequality viewed in the
Philippines? What actions / solutions are done by
the government to minimize inequalities?
2. Why Does Poverty Still Exist? What action should
be taken to lessen poverty?

THANK YOU!