UNIVERSITY OF NAIROBI

DEPARTMENT OF ECONOMICS AND DEVELOPMENT STUDIES

XEA 406 - Poverty and Development

Facilitator: Prof. Tabitha Kiriti-Nganga
SEMESTER: 04-03-2024 – 04-06-2025
CAT DATES: 27-05-2024
EXAM DATES: 04-06-2024 – 14-06-2024
LECTURE TIME: MONDAYS 8.00-11AM
ROOM LT 301
MODE OF DELIVERY
Online as well as physical lectures and Physical Examination

Course Outline
Course Description
Course Objective: To introduce learners to the knowledge and analysis of key issues on poverty
and equip them with in-depth information and tools of poverty measurement, monitoring and
analysis.

Pre-requisites: XET 201- Microeconomics; XEA 301- Development Economics.

Course Content: Concepts and definition; Poverty lines; Poverty analysis and measurement;
Metric and non-metric approaches to poverty measurement; Poverty and inequality; Evaluation
and Monitoring; poverty reduction strategies; poverty and health; poverty and environment;
Poverty and Empowerment; Macroeconomic policies and poverty; Poverty and Social conflict;
Role of Social capital; Safety nets and transfers.

Students will do a class timed test which will be marked out of 30. The main examination will be
marked out of 70.

LECTURE One
• Economic Growth and Economic Development
• Characteristics of Developed and Developing Countries
• Causes of the difference between the developed and the developing world
• Poverty during the COVID-19 period
• Different types of poverty

LECTURE Two
• Poverty Analysis and Measurement
• Steps in Measuring Poverty
• Measuring Poverty: Choosing an Indicator of Welfare

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LECTURE Three
• Accounting for Household Composition Differences
• OECD scale
• Other scales
• Estimate an equivalence scale

LECTURE Four
• Pros and Cons of Income or Expenditure Method of Measuring Poverty
• Other Measures of Household Welfare

LECTURE Five
• Poverty Lines (Definition)
• Various Approaches to Poverty Lines
• Relative Poverty
• Absolute Poverty
• How to Determine Poverty Lines: (Cost of Basic Needs; Food Energy Intake Method)

LECTURE Six
• Measures of Poverty
• Headcount Index
• Poverty Gap Index
• Squared Poverty Gap (Poverty Severity) Index
• Sen Index
• The Sen-Shorrocks-Thon Index
• The Watts Index
• Other Measures

LECTURE Seven
• Inequality Measures
• Decile Dispersion Ratio
• Gini Coefficient of Inequality
• Generalized Entropy Measures
• Atkinson’s Inequality Measures

LECTURE Eight
• Inequality Comparisons
• Poverty Profiles
• Profile Presentation

LECTURE Nine
• Determinants of Poverty

LECTURE Ten
• Poverty Reduction Policies and Strategies

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 • Pro-Poor Growth

LECTURE Eleven
• Poverty Monitoring
• Selecting Indicators
• Setting Targets
• Impact Evaluation

LECTURE Twelve
• Poverty and Health
• Poverty and Environment
• Definition of Environment
• Link Between Environment and Poverty

LECTURE Thirteen
• Poverty and Conflict
• Role of Social Capital in Poverty Reduction
• How Does Social Capital Affect Economic Outcomes?
• Macroeconomic Policies and Poverty
• The Link between Macroeconomic Policy and Poverty Reduction
• Safety Nets and Transfers

Continuous Assessment Test

Examination

READING LIST:
1. Yongnian Zheng and Jiwei Qian (2020), Development and Poverty Reduction
A Global Comparative Perspective, 1st Edition,
https://www.routledge.com/Development-and-Poverty-Reduction-A-Global-
Comparative-Perspective/Zheng-Qian/p/book/9781032086439
2. GSDRC (2016) Poverty and Inequality, https://gsdrc.org/wp-
content/uploads/2016/06/PovertyInequalityTG.pdf
3. Understanding Poverty and Development,
https://www.etu.org.za/toolbox/docs/development/poverty.html#:~:text=Developmen
t%20deals%20with%20the%20alleviation,to%20other%20problems%20of%20un
derdevelopment.&text=In%20rural%20areas%20there%20is,in%20healthier%20a
nd%20safer%20environments.
4. World Bank (2021) Understanding Poverty
https://www.worldbank.org/en/understanding-poverty
5. World Bank (2019) Accelerating Poverty Reduction in Africa,
https://openknowledge.worldbank.org/handle/10986/32354
6. Haughton and Shahidur R. Khandker (2009) A Handbook on Poverty and
Inequality: The World Bank: http://www-
wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/05/05/0003

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 33037_20090505014701/Rendered/PDF/483380PUB0Pove101OFFICIAL0USE0ONL
Y1.pdf
7. WHO (2003), Poverty and Health: DAC Guidelines and Reference Series, Organization
for Economic Co-Operation and Development: World Health, Organization.
http://whqlibdoc.who.int/publications/2003/9241562366.pdf
8. Warren, M. R., Thompson, P.J. Saegert, S. (2001), Role of Social Capital in Combating
Poverty: Social Capital and Poor Communities, (Susan Saegert, J. Phillip Thompson,
Mark R. Warren, Eds.)., New York: Russell Sage Foundation Press.
9. Christiaan Grootaert(1998), Social Capital: The Missing Link? The World Bank Social
Development Family Environmentally and Socially Sustainable Development Network.
10. Brian Ames, Ward Brown, Shanta Devarajan, Alejandro Izquierdo, (2001),
Macroeconomic Policy and Poverty Reduction, Prepared by the International Monetary
Fund and the World Bank August 2001
11. General Policy Forum : https://www.globalpolicy.org/social-and-economic-
policy/poverty-and-development/general-analysis-on-poverty-and-development.html
12. Poverty and Development in Africa: https://www.globalpolicy.org/social-and-economic-
policy/poverty-and-development/poverty-and-development-in-africa.html
13. Health Poverty and Development: https://www.globalpolicy.org/social-and-economic-
policy/poverty-and-development/health-poverty-and-development.html
14. Economic Growth and Quality of Life: https://www.globalpolicy.org/social-and-
economic-policy/poverty-and-development/economic-growth-and-the-quality-of-
life.html
15. Financing for Development: https://www.globalpolicy.org/social-and-economic-
policy/poverty-and-development/financing-for-development-1-33.html