This is the second posting in the Fridays Academy series. This series is based on the lecture notes on Economic Policies for Growth and Poverty Reduction, by Raj Nallari. We will post a note every Friday.
What is Poverty and how do we measure it?
To design effective policies and strategies aimed at reducing poverty, it is critical to understand the characteristics of poverty in a country or in a geographic area. Adequate Poverty measurement techniques are essential.
To measure poverty we need to define well-being. This is often done looking only at the monetary aspects of poverty. Non monetary dimensions are equally important.
Finally, there is no perfect measure of well-being or poverty. This does not mean we should avoid measuring poverty, but it does argue for approaching poverty measures with a degree of caution, and for analyzing carefully how the measures are constructed.
Percentage of population living with less than US$ 1 a day
Read the whole note by Raj Nallari.
Next Friday: steps in measuring poverty.