Poverty Economics Research Paper Example | Topics and Well Written Essays - 1750 words

Poverty Economics - Research Paper ExampleThe representative of trickle-down effect of growth is found to be prevalent in practice in the real world. chthonian this model, the benefits of growth argon mostly savored by the upper and middle classes of the party. The lower middle class and the sell root level receive very little benefits of this economic growth. This is due to the fact that there is secure problem of income divergence in most of the economies in the ballock, particularly in the developing countries (Altmann et al., 2013). All the sectors in the developing economies are not equally developed and there is huge inequality in income in the countries. In the concerned article, the Chief economist of World Bank has mentioned that the Bank has placed two juvenile objectives that it would strive to achieve. These two goals are ending extreme and chronic meagreness in the world by 2030, and promoting shared prosperity, defined in terms of progress of the poorest 40% of the population in each society (Basu, 2013). ... factors that affect this growth rate are rapid technological development, improvement in productivity and the bring down in the number of people living below poverty across the world. During the 19th century and likewise in the first few decades of the 20th century, over 1.2 billion people in the world use to live below the poverty level (the poverty path is set at $1 per day). Currently, this theatrical role of population has fallen marginally. According to the theory of poverty line, the people living below poverty line have the purchasing power of less than $1 dollar per day. Additionally, it must be noted in this context that more than half of the population of the world lives below $2 dollars per day. The variables that measure poverty are under nutrition, poor health condition, poor level or absolutely no literacy, environmentally flying and unhygienic living condition, low or no access to essential things in life (such as clean water) and lack of protection of fundamental freedoms or rights. Poor people all over the globe are characterized by the living condition in slum areas and under nourishment. Scholars and economists have univocally agreed that poverty is integrally linked with inequality in income distribution (Naranpanawa, Selvanathan & Bandara, 2013). One commonly used method of measuring the personal income statistics is the Lorenz curve. The Lorenz curve helps to analyze the percentage of income against the percentage of income recipients. The further the line is from the diagonal, the greater is the degree of inequality. The sideline diagram illustrates the workings of the Lorenz curve. Figure 1 Lorenz curve (Source Anonymous, n.d.) The further the curve bends from the diagonal, the greater is the inequality in income level. The area between the two