The Cycle of Poverty

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The Cycle of Poverty

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The Cycle of Poverty:

The Cycle of Poverty The Advocacy Foundation, Inc. 1735 Market Street, Suite 3750 100 Edgewood Avenue, Suite 1690 Philadelphia, PA 19102 Atlanta, GA 30303 (878) 222-0100 Voice | Data | SMS www.TheAdvocacyFoundation.org © The Advocacy Foundation, Inc. 2015 (All Rights Reserved)

Biblical Authority:

Biblical Authority Jeremiah 22:3 (NIV)   3  This is what the Lord says: Do what is just and right. Rescue from the hand of the oppressor the one who has been robbed. Do no wrong or violence to the foreigner, the fatherless or the widow, and do not shed innocent blood in this place. ______   1 John 3:17 (NIV) 17  If anyone has material possessions and sees a brother or sister in need but has no pity on them, how can the love of God be in that person? ______ James 2:15-16 (NIV) 15  Suppose a brother or a sister is without clothes and daily food. 16 If one of you says to them, “Go in peace; keep warm and well fed,” but does nothing about their physical needs, what good is it? ______   Isaiah 1:17 (NIV) 17 Learn to do right; seek justice. Defend the oppressed. Take up the cause of the fatherless; plead the case of the widow. ______ Luke 4:18-19 (NIV) 18 “The Spirit of the Lord is on me, because he has anointed me to proclaim good news to the poor. He has sent me to proclaim freedom for the prisoners and recovery of sight for the blind, to set the oppressed free, 19 to proclaim the year of the Lord’s favor.” ______ Proverbs 22:22-23 (NIV) Saying 2 22 Do not exploit the poor because they are poor  and do not crush the needy in court, 23 for the Lord will take up their case and will exact life for life. 2

Introduction:

Introduction The Cycle of Poverty has been defined as a phenomenon where poor families become impoverished for at least three generations… There are many disadvantages that collectively work in a circular process making it virtually impossible for individuals to break the cycle. This occurs when poor people do not have the resources necessary to get out of poverty, such as financial capital, education, or connections. This cycle has also been referred to as a "pattern" of behaviors and situations which cannot easily be changed. 3

Introduction:

Introduction The followings are Causes of Poverty : - Low productivity rates - Low salary - Low infrastructure and corrupt governance - Business failure - Ignorance, lack of skills and technology - Unhealthiness or diseases - Disaster - Inability to access to resources such as land, finance, information, technical assistances, etc. - No on-going education 4

Introduction:

Introduction Life Shocks 2004 research in New Zealand produced a report that showed that "life shocks" can be endured only to a limited extent, after which people are much more likely to be tipped into hardship. The researchers found very little differences in living standards for people who have endured up to 7 negative events in their lifetime. People who had 8 or more life shocks were dramatically more likely to live in poverty than those who had 0 to 7 life shocks. 5

The Culture of Poverty:

The Culture of Poverty The Culture of Poverty is a social theory that expands on the cycle of poverty. It offers one way to explain why poverty exists despite anti-poverty programs. Early proponents of this theory argued that the poor are not simply lacking resources, but also acquire a poverty-perpetuating value system. 6

The Culture of Poverty:

The Culture of Poverty “The people in the culture of poverty have a strong feeling of marginality, of helplessness, of dependency, of not belonging. They are like aliens in their own country, convinced that the existing institutions do not serve their interests and needs. Along with this feeling of powerlessness is a widespread feeling of inferiority, of personal unworthiness. This is true of the slum dwellers of Mexico City, who do not constitute a distinct ethnic or racial group and do not suffer from racial discrimination. In the United States the culture of poverty that exists in the Negroes has the additional disadvantage of racial discrimination.   People with a culture of poverty have very little sense of history. They are a marginal people who know only their own troubles, their own local conditions, their own neighborhood, their own way of life. Usually, they have neither the knowledge, the vision nor the ideology to see the similarities between their problems and those of others like themselves elsewhere in the world. In other words, they are not class conscious, although they are very sensitive indeed to status distinctions. When the poor become class conscious or members of trade union organizations, or when they adopt an internationalist outlook on the world they are, in my view, no longer part of the culture of poverty although they may still be desperately poor.” - Oscar Lewis, circa 1998 7

The Deprivation Index:

The Deprivation Index Deprivation Indices are a measure of the level of deprivation in an area. Examples include: Indices of deprivation 2004 Indices of deprivation 2007 Underprivileged area score Carstairs index Department of Environment Index 8

The Deprivation Index:

The Deprivation Index The new IMD 2007 contains seven domains which relate to: Income Deprivation, Employment Deprivation, Health Deprivation And Disability, Education Skills And Training Deprivation, Barriers To Housing And Services, Living Environment Deprivation, And Crime . Each Domain contains a number of indicators, totaling 37. Two supplementary indexes have been created as a subset of the Income domain. These relate to income deprivation affecting children and income deprivation affecting older people. 9

The Poverty Threshold:

The Poverty Threshold The Poverty Threshold , or Poverty Line , is the minimum level of income deemed adequate in a particular country. In practice, like the definition of poverty, the official or common understanding of the poverty line is significantly higher in developed countries than in developing countries. The common international poverty line has in the past been roughly $1 a day. In 2008, the World Bank came out with a figure (revised largely due to inflation) of $1.25 … 10

The Poverty Threshold:

The Poverty Threshold David Gordon's paper, "Indicators of Poverty & Hunger", for the United Nations, further defines absolute poverty as the absence of any two of the following eight basic needs: Food : Body Mass Index must be above 16. Safe Drinking Water : Water must not come solely from rivers and ponds, and must be available nearby (less than 15 minutes' walk each way). Sanitation facilities : Toilets or latrines must be accessible in or near the home. Health : Treatment must be received for serious illnesses and pregnancy. Shelter : Homes must have fewer than four people living in each room. Floors must not be made of dirt, mud, or clay. Education : Everyone must attend school or otherwise learn to read. Information : Everyone must have access to newspapers, radios, televisions, computers, or telephones at home. Access To Services : This item is undefined by Gordon, but normally is used to indicate the complete panoply of education, health, legal, social, and financial (credit) services. 11

Welfare:

Welfare Welfare is the provision of a minimal level of well-being and social support for all citizens, sometimes referred to as public aid . In most developed countries welfare is largely provided by the government, and to a lesser extent, charities, informal social groups, religious groups, and inter-governmental organizations. The welfare state expands on this concept to include services such as universal healthcare and unemployment insurance. 12

Welfare:

Welfare Welfare can take a variety of forms, such as monetary payments, subsidies and vouchers, or housing assistance. Welfare systems differ from country to country, but welfare is commonly provided to individuals who are unemployed, those with illness or disability, the elderly, those with dependent children, and veterans. A person's eligibility for welfare may also be constrained by means testing or other conditions. In the United States, depending on the context, the term “welfare” can be used to refer to means-tested cash benefits, especially the Aid to Families with Dependent Children (AFDC) program and its successor, the Temporary Assistance for Needy Families Block Grant, or it can be used to refer to all means-tested programs that help individuals or families meet basic needs… 13

Economic Inequality:

Economic Inequality Economic Inequality refers to how economic metrics are distributed among individuals in a group, among groups in a population, or among countries. Economists generally think of three metrics of economic disparity: Wealth ( Wealth Inequality ), Income ( Income Inequality ), and Consumption. The issue of economic inequality can implicate notions of equity, equality of outcome, and equality of opportunity. 14

Economic Inequality:

Economic Inequality International Monetary Fund economists showed that greater income equality—less inequality—increased the duration of countries' economic growth spells more than free trade, low government corruption, foreign investment, or low foreign debt. A study by the World Institute for Development Economics Research at United Nations University reports that the richest 1% of adults alone owned 40% of global assets in the year 2000. The three (3) richest people in the world possess more financial assets than the lowest 48 nations combined. 15

The Feminization of Poverty:

The Feminization of Poverty Feminization of Poverty describes a phenomenon in which women represent disproportionate percentages of the world's poor. UNIFEM describes it as "the burden of poverty borne by women, especially in developing countries". This concept is not only a consequence of lack of income, but is also the result of the deprivation of capabilities and gender biases present in both societies and governments. Women's increasing share of poverty is related to the rising incidence of lone mother households. According to [a Diana] Pearce's research [study], two-thirds of the poor that were over age 16 were women. 16

The Feminization of Poverty:

The Feminization of Poverty Several factors affect the feminization of poverty, and these factors place women at high risk of poverty. Though low income is the major cause, there are many interrelated facets of this problem. Lone mothers are usually at the highest risk for extreme poverty. Low income is a consequence of the social bias women face in trying to obtain formal employment, which in turn deepens the cycle of poverty. Poverty is multidimensional, and therefore economic, demographic, and socio-cultural factors all overlap and contribute to the establishment of poverty. It is a phenomenon with multiple root causes and manifestations. 17

Elitist Theory:

Elitist Theory In political science and sociology, Elite Theory is a theory of the state which seeks to describe and explain the power relationships in contemporary society. The theory posits that a small minority, consisting of members of the economic elite and policy-planning networks, holds the most power and that this power is independent of a state's democratic elections process. 18

Elitist Theory:

Elitist Theory Through positions in corporations or on corporate boards, and influence over the policy-planning networks through financial support of foundations or positions with think tanks or policy-discussion groups, members of the "elite" are able to exert significant power over the policy decisions of corporations and governments. The aristocratic version of this theory is the classical elite theory which is based on two ideas: Power lies in position of authority in key economic and political institutions; and 2. The psychological difference that sets elites apart is that they have personal resources, for instance intelligence and skills, and a vested interest in the government; while the rest are incompetent and do not have the capabilities of governing themselves, the elite are resourceful and will strive to make the government work. For in reality, the elite have the most to lose in a failed government. 19

Poverty Reduction:

Poverty Reduction Poverty Reduction is a term that describes the promotion of economic growth that will permanently lift as many people as possible over a poverty line. Poverty is the state of human beings who are poor. That is, they have little or no material means of surviving— food, shelter, clothes, healthcare, education, and other physical means of living and improving one's life. Poverty reduction measures, like those promoted by Henry George in his economics classic Progress and Poverty are those that raise, or are intended to raise, enabling the poor to create wealth for themselves as a means for ending poverty forever. 20

Poverty Reduction:

Poverty Reduction Extending property rights protection to the poor is one of the most important poverty reduction strategies a nation can implement. Securing property rights to land, the largest asset for most societies, is vital to their economic freedom. The World Bank concludes that increasing land rights is ‘the key to reducing poverty’ citing that land rights greatly increase poor people’s wealth, in some cases doubling it. It takes two days, two bureaucratic procedures, and $280 to open a business in Canada while an entrepreneur in Bolivia must pay $2,696 in fees, wait 82 business days, and go through 20 procedures to do the same. 21

The Working Poor:

The Working Poor The Working Poor are working people whose incomes fall below a given poverty line. While poverty is often associated with joblessness, a significant proportion of the poor are actually employed. Largely because they are earning such low wages, the working poor face numerous obstacles that make it difficult for many of them to find and keep a job, save up money, and maintain a sense of self-worth. 22

The Working Poor:

The Working Poor …many liberals argue that working poverty can only be solved through increased, not decreased, government intervention. This government intervention could include workplace reforms (such as higher minimum wages, living wage laws, job training programs, etc.) and an increase in government transfers (such as housing, food, childcare, and healthcare subsidies). According to the US Department of Labor, the working poor "are persons who spent at least 27 weeks [in the past year] in the labor force (that is, working or looking for work), but whose incomes fell below the official poverty level”. In other words, if someone spent more than half of the past year in the labor force without earning more than the official poverty threshold, the US Department of Labor would classify them as "working poor." In 2009, the individual-level working poverty rate in the US was 7%, compared to 4.7% in 2000; In 2009, the family-level working poverty rate in the US was 7.9%, compared to 5.6% in 2000; In 2009 11.7% of employed unrelated individuals were poor, compared to 7.6% in 2000. 23

Questions & Answers:

Questions & Answers 24

Thank You!:

Thank You! 25 The Advocacy Foundation, Inc. 1735 Market Street, Suite 3750 100 Edgewood Avenue, Suite 1690 Philadelphia, PA 19102 Atlanta, GA 30303 (878) 222-0100 Voice | Data | SMS www.TheAdvocacyFoundation.org © The Advocacy Foundation, Inc. 2015 (All Rights Reserved)

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