INSTITUTE OF ACCOUNTANCY ARUSHA (IAA)
PROGRAM: BACHELOR IN ECONOMICS AND FINANCE
MODULE: DEVELOPMENT ECONOMICS
MODULE CODE: EFU 07421
DUE DATE: 18th JUNE, 2013
COMPONENT FACILITATOR: WILLSON G. MTETI
PETER, ALBERTO| BEF/0142/T. 2011| 0764654962| [email protected] com| ANGELLO, VALERIUS L. | BEF/0126/T. 2011| 0718027959| [email protected] com| MSECHU, JERRY F. | BEF/0111/T. 2011| 0713298717| [email protected] com| KIPESHA, MANSWETUS| BEF/0141/T. 2011| 0762561701| [email protected] com| Question 3:
Discuss The Foster Greer- Thorbecke Index as a way of measuring low income. Table of Contents
1 . 1POVERTY2
1 . 2CATEGORIES OF POVERTY3
1 . 2 . 1The complete poverty standard3
1 . installment payments on your 2Measuring Total Poverty4
1 . 3Relative lower income standard: some
1 . 3. 1Persistent poverty4
1 . 3. 2Fighting poverty4
1 . 4CRITERIA FOR APPEALING POVERTY MEASURE5
1 . 5. 1The invisiblity principle5
1 . 4. 2The population freedom principle6
1 . 4. 3The monotonicity principle6
1 . 4. 4The distributional sensitivity principle6
2THE ENGENDER, GREER and Thorbecke (FGT) Index6
2 . 1Poverty Directories (Planning): 7
2 . 1 ) 1Incidence of poverty7
2 . 1 . 2Intensity of poverty7
2 . 1 ) 3Inequality of poverty8
2 . 2Advantages for class of poverty measures9
Measures of poverty reduction11
4. 1 ) 1Controlling overpopulation11
4. 1 ) 2Increasing personal income11
some. 1 . 3Cultural factors to productivity; eleven
4. 1 . 4Removing constraints on government services; 14
According to The Scottish Poverty Information Unit (Information), " Low income is defined relative to the standards of surviving in a culture at a particular time. People live in poverty when they are denied an income enough for their material needs and when then these types of circumstances rule out them by taking part in activities which are an accepted part of everyday life in that contemporary society. вЂќ Based on the Government of Tanzania (Tanzania), generally low income is a result of a large number of and often mutually reinforcing factors including insufficient productive resources to generate materials wealth, illiteracy prevalence of diseases, normal calamities these kinds of floods, drought and man-made calamities just like wars. In the international level, an bumpy economic and political relationship, as a mirrored in undesirable terms of trade and also other transactions for developing countries is also a serious cause of lower income in growing countries. A few causes of low income are not immediate for example , practices and best practice rules which slow down effective reference utilization and participation in income making activities. The assessment of poverty amounts is challenging by deficiency of consistent information and absence of officially identified poverty lines. The low income line of A single US$ daily in genuine terms has become used to facilitate comparison with other countries. PovertyВ is the state of one who lacks some material possessions or funds. CATEGORIES OF LOW INCOME
According to Poole and Henderson (J. Vernon Henderson, William Poole., 1991), lower income can be identified in classified in terms of total term or relative term. Below the absolute and comparative poverty will be illustrated. The poverty regular
The poverty standard refers to the price of a specific package of goods (food, clothing, and housing/shelter) defined just sufficient to maintain a minimum, adequate lifestyle. Hence, it's the income only adequate to acquire that enough bundle of products. People with income below the absolute poverty common are termed as poor. The definition of just satisfactory or satisfactory means that will depend in part about how well-off a society is usually. We described the extent of total poverty since the number of people who are unable to order sufficient...
Recommendations: Information, G. (n. d. ). http://www.powerfulinformation.org. Retrieved June Sunday, 2013, from Effective Information: http://www.powerfulinformation.org/page.cfm?pageid=pi-poverty
J. Vernon Henderson, William Poole. (1991). Principles of Economics. Pa State College or university: D. C. Heath.
Kerby, R. (2013). Sage know-how. Foster, Greer and Thorbecke Index.
Michael jordan P. Todaro, Stephen C. Smith. (2012). ECONOMIC EXPANSION (11th impotence. ). United States of America.: Addison-Wenly, Pearson Education, Inc.
Planning, Meters. o. (n. d. ). measuring lower income. Retrieved 06 Tuesday, 2013, from www.nscb.gov.ph: www.nscb.gov.ph/poverty/.../1_Cambodia%20-%20Poverty%20measure.
Series, I. f. (2010, April). The FosterвЂ“GreerвЂ“Thorbecke (FGT) Low income Measures: Twenty- Five Years Later. 3.
Tanzania, G. o. (n. d. ). www.tanzania.go.tz/poverty.html. Recovered June Sunday, 2013, coming from Tanzania National Website: www.tanzania.go.tz/poverty.html
wikipedia. (n. d. ). Retrieved June Tuesday, 2013, from https://en.wikipedia.org: https://en.wikipedia.org/wiki/Poverty
worldbank. (n. g. ). http://info.worldbank.org/etools/docs/library. Retrieved The spring Saturday, 2013, from worldbank: http://info.worldbank.org/etools/docs/library/93518/Hung_0603/Hu_0603/Module4MeasuringPovertyMeasures.pdf.