Poverty: Comparative Analysis of China and India

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University of National and world economy

economic sociology paper

[pic]

Poverty:

Comparative Analysis
of China and India

WRITTEN BY mANOL MANOLOV
ECONOMICS IN ENGLISH 131
FACULTY No: 29114055

TABLE OF CONTENTS:

1. Introduction to ‘poverty’ in the world

• Causes of poverty
• Effects of poverty
• Global analysis of world poverty
• Analysis of East-Asian region

2. Analysis of poverty in India

• Overview
• Historical trend
• Urban poverty
• Rural poverty
• Indian economic development

3. Analysis of poverty in China

• Overview
• Historical background
• Analysis of characteristics of China’s poverty
• Recent economic growth in China
• Connection between the Economic growth and Poverty reduction

4. International cooperation for reducing poverty

1. Introduction to ‘poverty’ in the world

According to the World Bank (2000), “poverty is pronounced deprivation in well-being”. This of course begs the question of what is meant by well-being.

One approach is to think of one’s well-being as the command over commodities in general, so people are better off if they have a greater command over resources. In this view, the main focus is on whether households or individuals have enough resources to meet their needs. Typically poverty is then measured by comparing an individual’s income or consumption with some defined threshold below which they are considered to be poor. This is the most conventional view - poverty is seen largely in monetary terms. This also is the starting point for most analyses of poverty.

A second approach to well-being (and hence poverty) is to ask whether people are able to obtain a specific type of consumption good: do they have enough food? Or shelter? Or health care? Or education? In this view the analyst would need to go beyond the more traditional monetary measures of poverty and analyze an individual’s deprivation of education, nutrition, clothing, shelter etc.

Perhaps the broadest approach to well-being (and poverty) is the one articulated by Amartya Sen (1987), who argues that well-being comes from a “capability’’ to function in society. Thus poverty arises when people lack key capabilities, and so have inadequate income or education, or poor health, or insecurity, or low self confidence, or a sense of powerlessness, or the absence of rights such as freedom of speech. Viewed in this way, poverty is a multi-dimensional phenomenon, and less amenable to simple solutions.

Around the world, in rich or poor nations, poverty has always been present. In most nations today, inequality—the gap between the rich and the poor—is quite high and often widening. The causes are numerous, including a lack of individual responsibility, bad government policy, exploitation by people and businesses with power and influence, or some combination of these and other factors. Many feel that high levels of inequality will affect social cohesion and lead to problems such as increasing crime and violence.

• Causes of poverty

Poverty is caused by two basic things: scarcity of basic needs and barriers to opportunities.

In the past poverty had been mostly accepted as inevitable as economies produced little while populations grew almost as fast making wealth scarce. Food shortages were common before the appearance of modern agricultural technology. However, nowadays there are well enough places that still lack such technology, leading to poverty rates being retained or even raised. On the other hand, intensive farming often leads to a vicious cycle of exhaustion of soil fertility and decline of agricultural yields. Approximately 40% of the world's agricultural land is seriously degraded.

Health care can be widely unavailable too. The loss of health care workers emigrating from...
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