Determinant of Poverty

Topics: Sampling, Stratified sampling, Sample Pages: 9 (1647 words) Published: February 17, 2013
Determinants of poverty


Background to the study The translation of consumption into welfare units is a function of various physiological characteristics such as age and sex of recipient, and environmental factors ( The possession of assets is a measure of the socio-economic status of the household. According to the 2002 Uganda Population and Housing census main report, majority (79%) of the households owned the houses they lived in especially in rural areas with 86% compared to urban areas (30%).

Poverty has got many definitions. Poverty refers to whether households have enough resources or capabilities to meet their needs. Poverty is usually based on a comparison of incomes, consumption, education and other attributes. Poverty is a deprivation of essential assets and opportunities, to which every person is entitled, hence can be viewed from a non-monetary perspective as well.

Poverty has shifted from a largely rural based to largely an urban based due to ruralurban migration between 1999/00 and 2000/2003. The percentage of the population living below the poverty line rose from 34 percent to 38 percent both in urban and rural areas. In rural areas, where it appears to have been no growth in consumption, the percentage of people in poverty rose from 37 percent to 42 percent and in urban areas, the corresponding increase was from 10 percent to 12 percent (2002/3 UNHS report, pg 50).

In the National Population policy of 1995, Uganda set nine goals; one of them is to have a society that is both informed and conscious of population and development issues. The programmes aimed at promoting awareness, increasing understanding and influencing behavior change among families and opinion leaders in areas such as need for basic education, nutrition, and HIV/AIDS prevention. Further still, there is need of acquisition of the necessary skills, access relevant information and services in order for households


to contribute meaningfully to their well being characterized by reduction in poverty, low premature deaths, high education attainment levels, and improvement in health.

Household composition and structure affects the living conditions where on one hand in an extended family, the bigger the family size, the greater the competing demands on the family resources. A family’s socio-economic position influences consumption standards. The most promising variable highly associated with a household’s socio-economic status and welfare is the household head’s type of education and economic activity in which he is engaged. Crime prevention matters for poverty reduction, not only because people are directly hurt by it, but also because their Ability to invest is reduced. However, the human cost are also involved for instance, the imprisonment of an adult very often removes a breadwinner from a household, leaving a spouse and children in a very difficult situation.

1.2 Problem statement The study wanted to know the determinants of welfare in Mukono district. Despite the efforts and campaigns by the government and NGOs about the policies to improve the well.

1.3 Objective of the study

1.3.1 General objective The main objective of this study was to identify the key determinants of poverty with reference to Mukono district. Mukono district can be considered to be a rural area with individuals not in easy proximity to social services like schools, hospitals, employment hence poor living conditions.


1.3.2 Specific objectives

-To establish whether the level of education is significant in determining welfare.

-To assess the level of unemployment and income inequality among households.

-To establish whether the level of household expenditure is significant in determining welfare.

1.4 Hypothesis

-The higher the household earnings, which determines the material living conditions, the higher the consumption expenditure.

-The distance to the nearby formal court affects the delivery of...
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