Presented by Faruk Sharipov

Poverty, social
exclusion and
welfare
 What you are going to learn

Welfare
Terminology
History Social Exclusion
Forms Terminology
Measuring Exclusion
Poverty
Terminology
Measuring Poverty
Poverty Reduction
Poverty is . . .
a condition in which one lacks the financial resources needed to meet basic needs, such as
food, shelter, and clothing. (Wikipedia)

a denial of choices and opportunities, a violation of human dignity. It means lack of basic capacity
to participate effectively in society. It means not having enough to feed and clothe a family, not
having a school or clinic to go to, not having the land on which to grow one's food or a job to earn
one's living, not having access to credit. It means insecurity, powerlessness and exclusion of
individuals, households and communities. It means susceptibility to violence, and it often implies
living in marginal or fragile environments, without access to clean water or sanitation. (United
Nations)

Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes

low incomes and the inability to acquire the basic goods and services necessary for survival
with dignity. (World Bank)
 Measuring poverty
Absolute poverty usually refers to "a condition characterized by severe deprivation of basic human
needs, including food, safe drinking water, sanitation facilities, health, shelter, education and
information. It depends not only on income but also on access to services”. Having an income below the
International Poverty Line ($2.15/day), which is defined as an income needed to purchase basic needs, is
also referred to as pimary poverty. (Wikipedia)

Relative poverty views poverty as socially defined and dependent on social context. It is argued that the
needs considered fundamental is not an objective measure and could change with the custom of society.
For example, a person who cannot afford housing better than a small tent in an open field would be said
to live in relative poverty if almost everyone else in that area lives in modern brick homes. (Wikipedia)

Secondary poverty refers to those that earn enough income to not be impoverished, but who spend their
income on unnecessary pleasures, such as alcoholic beverages, thus placing them below it in practice.
(Wikipedia)
 1/3
Poverty Reduction
Improving technology
Mass production of goods in places such as rapidly industrializing China has
made what were once considered luxuries, such as vehicles and computers,
inexpensive and thus accessible to many who were otherwise too poor to afford
them. (Wikipedia)
State funding
Certain basic needs are argued to be better provided by the state.
Universal healthcare can reduce the overall cost of providing healthcare by
having a single payer negotiating with healthcare providers and minimizing
administrative costs. It is also argued that subsidizing essential goods such as
fuel is less efficient in helping the poor than providing that same money as
income grants to the poor. (Wikipedia)
 2/ 3
Poverty Reduction
Preventing overpopulation
Poverty and lack of access to birth control can lead to population increases that
put pressure on local economies and access to resources, amplifying other
economic inequality and creating increase poverty. (Wikipedia)

Improving access to availlable basic needs

In Africa, it costs more to move fertilizer from an African seaport 100
kilometres (60 mi) inland than to ship it from the United States to Africa
because of sparse, low-quality roads, leading to fertilizer costs two to six times
the world average. Microfranchising models such as door-to-door distributors
who earn commission-based income or Coca-Cola's successful distribution
system are used to disseminate basic needs to remote areas for below market
prices. (Wikipedia)
 Poverty Reduction 3/ 3
Educational training
Free education through public education or charitable organizations rather than
through tuition, from early childhood education through the tertiary level
provides children from low-income families who may not otherwise have the
financial resources with better job prospects and higher earnings and promotes
social mobility. (Wikipedia)
Economic freedoms
Corruption often leads to many civil services being treated by governments as
employment agencies to loyal supporters and so it could mean going through 20
procedures, paying $2,696 in fees, and waiting 82 business days to start a
business in Bolivia, while in Canada it takes two days, two registration
procedures, and $280 to do the same. Such costly barriers favor big firms at the
expense of small enterprises, where most jobs are created. (Wikipedia)
Social Exclusion
Describes a state in which individuals are unable to participate fully in economic,
social, political and cultural life, as well as the process leading to and sustaining such a
state. (United Nations)

Participation may be hindered when people lack access to material resources,

including income, employment, land and housing, or to such services as
education and health care. (United Nations)

Yet participation is also limited when people cannot exercise their voice or
interact with each other, and when their rights and dignity are not accorded equal
respect and protection. (United Nations)
Challenges of measuring exclusion
People are excluded from many domains of life − social, economic, political, civic and spatial −
and the salience of each domain depends strongly on the country and local contexts as well as on
the stage of a person’s life course. That is to say, the concepts of social inclusion and social
exclusion are multidimensional and contextdependent. Consequently, translating them into a
limited set of indicators constitutes a considerable challenge. National definitions and
measurement are thus the starting point for monitoring and analysis, although a limited set of
measurable attributes applicable across countries is also necessary for global monitoring and
analysis. Furthermore, adequately assessing who is being left behind and how not only requires
“objective” indicators of the status of individuals and social groups, but also must take into account
their subjective judgments and perceptions. Exclusion is, after all, a personal experience, and the
views of those affected by it or at risk of being left behind cannot be disregarded. (United Nations)
Welfare
Welfare, or commonly social welfare, is a type
of government support intended to ensure that
members of a society can meet
basic human needs such as food and shelter.
Social security may either be synonymous with
welfare, or refer specifically to social insurance
programs which provide support only to those
who have previously contributed (e.g. most
pension systems), as opposed to social
assistance programs which provide support on
the basis of need alone (e.g. most disability
benefits).
Wikipedia
History
The Song dynasty government (960 CE) supported multiple
programs which could be classified as social welfare,
including the state hospitals, low-interest loans for peasants,
state orphanages, free pharmacies for the poor, filled state
granaries, fire stations and libraries in the large cities,
retirement homes, public clinics, and paupers' graveyards.

The seventh century caliph Umar implemented a form

of zakat, one of the Five Pillars of Islam, as a codified
In the Roman Empire, the first
universal social security tax. Traditionally estimated
emperor Augustus provided the
at 2.5% of an individual's assets, government zakat
Cura Annonae or grain dole for
funds were distributed to various groups of Muslims,
citizens who could not afford to
including impoverished people and those in severe
buy food every month.
debt.
Wikipedia
 Forms
• Social insurance, state-sponsored programs based partly on individual contributions
towards benefits such as healthcare, unemployment payments, and old-age pensions.

• Means-tested benefits, financial assistance provided for those who are unable to cover basic
needs, such as food, clothing and housing, due to poverty or lack of income because of
unemployment, sickness, disability, or caring for children.

• Universal or categorical benefits, also known as demogrants. These are non-

contributory benefits given for whole sections of the population without a means test,
such as family allowances or the public pension in New Zealand
• Non-contributory benefits. Several countries have special schemes, administered with
no requirement for contributions and no means test, for people in certain categories of
need, such as veterans of armed forces, people with disabilities, and very old people.
 Presented by Faruk Sharipov

Thank you very

much!