Centre for Development, Environment and Policy P104 Understanding Poverty Author: Colin Poulton This version draws on two previous versions of the module authored by Colin Poulton and Stefanie Busse. The lead author for Unit 9 was Chris Joynes. The author wishes to express his gratitude to Laura Rodriguez Takeuchi and Amina Khan of Overseas Development Institute for excellent input into the scoping of this version. © SOAS | 3741 Understanding Poverty Module Introduction ABOUT THIS MODULE Within the Sustainable Development Goals (SDGs) the eradication of extreme poverty remains a central objective of international development efforts. As with the Millennium Development Goals before them, the SDGs recognise that poverty has multiple dimensions and that progress is needed on a number of fronts (economic, social and political) if poverty is to be effectively tackled. Government departments, international development agencies and non-governmental organisations (NGOs) are thus expected to design policies and to plan interventions with a clear understanding of how these will contribute to poverty reduction objectives in the areas concerned. This module is aimed at development practitioners – from government departments, international development agencies, NGOs or private business – who are involved in the design of policy or interventions to combat poverty in low- or middle-income countries. It aims to provide a sound understanding of the nature of poverty, its causes and consequences, of trends in poverty reduction across continents and regions of the world, and of debates as to the drivers of these trends. © SOAS CeDEP 2 Understanding Poverty Module Introduction STRUCTURE OF THE MODULE The module is broadly structured in two parts. The first seven units provide a conceptual framework for understanding poverty and its causes (both proximate and deeper). The final three units review evidence on trends in poverty at global and regional level and the key factors accounting for these trends. Part I: The first two units consider what we mean by poverty and how poverty can be measured. The definition of poverty that we use makes a big difference to the number of people who are considered to be poor. Unit 1 examines money-metric definitions of poverty (based primarily on income or consumption levels), considering the strengths, weaknesses and practical measurement challenges associated with each. Basic numeracy skills are required to study this unit. Unit 2 examines multi-dimensional poverty measures in a similar way, along with definitions of poverty generated through participatory exercises with poor people. Unit 3 considers the relationships between economic growth, inequality and poverty reduction. The focus here is on macro-level dynamics, which shape the context in which local and household-level poverty dynamics play out. Unit 4 begins with the sustainable livelihoods framework and considers poverty dynamics at household level: how and why people fall into poverty and/or get stuck in it. Whilst Unit 4 focuses on household assets as an important determinant of poverty status, Unit 5 introduces social relationships and differentiation, and explores how these interact with economic factors to produce multidimensional poverty. The linkages between poverty and the environment are explored in Unit 6. This unit highlights the dependence of many poor households on natural capital, considers how population growth interacts with environmental management and poverty, and considers climate change as a huge evolving shock that will impact the livelihoods of millions of poor households. Finally, Unit 7 considers how the exercise of power affects poverty, given that powerlessness is often cited by poor people themselves as a key feature of the experience of being poor. It considers the conditions under which political leaders are likely to pursue pro-poor policies and also takes a critical look at the role of international development assistance (aid) in poverty reduction. Part II: Unit 8 presents available evidence on trends in monetary poverty and hunger across countries and continents. It also examines debate on the relative incidence of rural versus urban poverty. Projections by the World Bank indicate that the majority of the world’s extreme poor will live in rural areas until at least 2025. However, does the underlying definition of poverty understate the prevalence of urban poverty? Unit 9 considers drivers of observed trends in capability poverty. Finally, Unit 10 examines the SDGs. Drawing on a comparison with the Millennium Development Goals, it considers the process by which they were developed and the content of the goals themselves, so as to consider their potential to contribute to the eradication of extreme poverty in the world by 2030. © SOAS CeDEP 3 Understanding Poverty Module Introduction WHAT YOU WILL LEARN Module Aims • To present the multiple dimensions of poverty and how they can be measured. • To explore both the proximate and deeper factors that trap people in poverty or assist them to escape poverty. • To compare trends in poverty reduction across continents and regions and to consider the key factors accounting for these trends. • To examine the impact of international interventions and initiatives on efforts to eradicate poverty. Module Learning Outcomes By the end of this module, students should be able to: • demonstrate a rigorous and critical understanding of key concepts used in international poverty debates. This includes practical issues of measurement as well as definition • analyse both the proximate and deeper factors that trap people in poverty or assist them to escape poverty • critically assess the impact of international interventions and initiatives, such as international development assistance and the SDGs, on efforts to eradicate poverty. © SOAS CeDEP 4 Understanding Poverty Module Introduction ASSESSMENT This module is assessed by: • an examined assignment (EA) worth 40% • a written examination worth 60%. Since the EA is an element of the formal examination process, please note the following: (a) The EA questions and submission date will be available on the Virtual Learning Environment (VLE). (b) The EA is submitted by uploading it to the VLE. (c) The EA is marked by the module tutor and students will receive a percentage mark and feedback. (d) Answers submitted must be entirely the student’s own work and not a product of collaboration. (e) Plagiarism is a breach of regulations. To ensure compliance with the specific University of London regulations, all students are advised to read the guidelines on referencing the work of other people. For more detailed information, see the FAQ on the VLE. © SOAS CeDEP 5 Understanding Poverty Module Introduction STUDY MATERIALS There is no textbook for this module, but the following has been provided: Collier, P. (2007) The Bottom Billion. Oxford, Oxford University Press. This is not a traditional textbook; rather, it provides a particular, high-profile, but also controversial analysis of the causes of poverty in low-income countries and how to eradicate it. You are invited to read selected chapters of the book as you work through the module and are encouraged to read others at some point during your studies. The selected chapters illustrate how economics, geography, governance and politics combine to trap large numbers of people in poverty or to help them escape from it. They also model an evidence-based and critical analysis of complex and often emotive questions. That said, you are encouraged to develop your own critical assessment of the arguments presented in the book and to develop your own understanding of what needs to be done to tackle poverty as you work through the module. For each of the module units, the following are provided. Key Study Materials Key readings are drawn mainly from the textbooks, relevant academic journals and internationally respected reports. They are provided to add breadth and depth to the unit materials and are required reading as they contain material on which you may be examined. Readings are supplied as digital copies and ebooks via the SOAS Online Library. For information on how to access the Library, please see the VLE. For some units, multimedia links have also been provided. You will be invited to access these as part of an exercise or activity within the unit, and to discuss their implications with other students and the tutor. Further Study Materials These texts and multimedia are not always provided, but weblinks have been included where possible. Further Study Materials are NOT examinable; they are included to enable you to pursue your own areas of interest. References Each unit contains a full list of all material cited in the text. All references cited in the unit text are listed at the end of the relevant units. However, this is primarily a matter of good academic practice: to show where points made in the text can be substantiated. Students are not expected to consult these references as part of their study of this module. Self-Assessment Questions Often, you will find a set of Self-Assessment Questions at the end of each section within a unit. It is important that you work through all of these. Their purpose is threefold: © SOAS CeDEP 6 Understanding Poverty Module Introduction • to check your understanding of basic concepts and ideas • to verify your ability to execute technical procedures in practice • to develop your skills in interpreting the results of empirical analysis. Also, you will find additional Unit Self-Assessment Questions at the end of each unit, which aim to help you assess your broader understanding of the unit material. Answers to the Self-Assessment Questions are provided in the Answer Booklet. In-text Questions This icon invites you to answer a question for which an answer is provided. Try not to look at the answer immediately; first write down what you think is a reasonable answer to the question before reading on. This is equivalent to lecturers asking a question of their class and using the answers as a springboard for further explanation.