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For making comparisons between developing countries, which uniform standard (per person per day) for the poverty line is used in terms of minimum availability?
- a)$1.90
- b)$2
- c)$3
- d)$5
Correct answer is option 'A'. Can you explain this answer?
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For making comparisons between developing countries, which uniform sta...
for making comparisons between developing countries, many international organisations like the World Bank use a uniform standard for the poverty line: minimum availability of the equivalent of $1.90 per person per day
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For making comparisons between developing countries, which uniform sta...
The uniform standard used for measuring poverty in developing countries is the poverty line, which represents the minimum level of income or consumption needed to meet basic needs. The poverty line is often expressed in terms of a per person per day amount. In the case of comparing developing countries, a commonly used poverty line is $1.90 per person per day.
Explanation:
1. Definition of the poverty line:
- The poverty line is a threshold that separates those who are considered poor from those who are not.
- It is determined based on the minimum level of income or consumption needed to meet basic needs such as food, shelter, clothing, and healthcare.
2. Importance of a uniform standard:
- A uniform standard allows for comparisons to be made across different countries, providing a consistent measure of poverty.
- It helps in assessing the progress of countries in reducing poverty and targeting resources effectively.
3. $1.90 per person per day:
- The poverty line of $1.90 per person per day is based on the International Poverty Line set by the World Bank.
- It represents the minimum level of consumption needed to meet basic needs in extreme poverty conditions.
- This standard takes into account the global purchasing power parity, which ensures that the poverty line is comparable across countries.
4. Criticisms and limitations:
- The $1.90 poverty line has faced criticism for being too low and not adequately capturing the true extent of poverty.
- It is argued that higher poverty lines are needed to account for additional expenses such as education, transportation, and non-food items.
- Some argue that a higher poverty line would provide a more accurate representation of the minimum level of income needed to escape poverty.
In conclusion, the $1.90 per person per day poverty line is commonly used as a uniform standard for comparing poverty levels in developing countries. While there are criticisms regarding its adequacy, it provides a consistent measure that allows for meaningful comparisons and assessments of poverty reduction efforts.
Explanation:
1. Definition of the poverty line:
- The poverty line is a threshold that separates those who are considered poor from those who are not.
- It is determined based on the minimum level of income or consumption needed to meet basic needs such as food, shelter, clothing, and healthcare.
2. Importance of a uniform standard:
- A uniform standard allows for comparisons to be made across different countries, providing a consistent measure of poverty.
- It helps in assessing the progress of countries in reducing poverty and targeting resources effectively.
3. $1.90 per person per day:
- The poverty line of $1.90 per person per day is based on the International Poverty Line set by the World Bank.
- It represents the minimum level of consumption needed to meet basic needs in extreme poverty conditions.
- This standard takes into account the global purchasing power parity, which ensures that the poverty line is comparable across countries.
4. Criticisms and limitations:
- The $1.90 poverty line has faced criticism for being too low and not adequately capturing the true extent of poverty.
- It is argued that higher poverty lines are needed to account for additional expenses such as education, transportation, and non-food items.
- Some argue that a higher poverty line would provide a more accurate representation of the minimum level of income needed to escape poverty.
In conclusion, the $1.90 per person per day poverty line is commonly used as a uniform standard for comparing poverty levels in developing countries. While there are criticisms regarding its adequacy, it provides a consistent measure that allows for meaningful comparisons and assessments of poverty reduction efforts.
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