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Advances in Development Economics

Fridays Academy (3): Steps in Measuring Poverty

Ignacio Hernandez's picture

As every Friday, we are posting one of the lecture notes on Economic Policies for Growth and Poverty Reduction, from Raj Nallari.


Steps in Measuring Poverty

There are three main steps to be taken into consideration when measuring poverty. 

  1. Define an indicator of welfare

  2. Establish a minimum acceptable standard of that indicator to separate the poor and the non-poor (often known as the poverty line) and

Economics of Happiness

Raj Nallari's picture

What is the appropriate goal of economic policy? From 1950s to now, this measurement of economic performance has been steadily changing from monetary to non-monetary aspects -- increasing per capita incomes, to broad-based GDP growth, to human development, to sustainable environment, gender equity, development as freedom and empowerment, poverty reduction, equity in opportunities, and more recently, to happiness.


Raj Nallari's picture

Internet technology began as a Cold War communications network developed by  America’s Department of Defense (DOD).  Between 1968 and 1998, the DOD controlled the operation of internet protocols and was coordinated by a tech-god (late Jon Postel).  Since 1998, a group called the Internet Corporation for Assigned Names and Numbers (ICANN) operating under the oversight of the American Government manages the dot-com addresses, names and routing numbers. 

Equity and Development: Need to increase equality of opportunity to all citizens

Raj Nallari's picture

Equity is defined as equality of opportunity or equality in access to goods and services. Inequities between boys and girls in educational access, between males and females in access to credit and job opportunities, inequities between the poor and the rich in access to land, education, essential health, water and other services, all have a bearing on poverty reduction. In other words, a person's life prospects should not be influenced by circumstances of birth, gender, race, family wealth and class or creed.

Policy Implications of a nonlinear relationship between aid, debt and GDP growth

Raj Nallari's picture

Aid and Growth Nexus.  Dollar and Burnside (2000) argue that aid positively influences long term growth in countries with good policy environment.  This is intuitively correct because we all accept that humanitarian assistance by averting crises and human suffering is generally considered.  In addition, no one can deny that building schools, hospitals, roads and power plants and paying teachers, doctors, nurses and engineers under aid projects complements private investment and contributes to overall human development, growth and development.  But, there