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Level 11

Poverty and Inequality

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Absolute poverty
Where income levels are insufficient to meet the basics of life e.g. food, shelter etc.
Relative poverty
Where income levels are insufficient to allow the person to live a 'normal' life in the country in which they reside.
Gini coefficient
A measure of inequality in a country - the closer to 1 the coefficient is the more unequally incomes are distributed.
Lorenz curve
A graphical representation of relative inequality
The poverty line
The minimum level of money needed to pay for the basics of life - in 2005 the World Bank defined this at $1.25 per day
Millennium Development Goals
Targets set to attempt to improve the quality of life in the developing world including halving the number of people in absolute poverty by 2015
Human Poverty Index
A composite measure of poverty developed by the UN including poor life expectancy, high levels of illiteracy, malnourished children and access to clean water (another similar measure HPI -2 was establ
The problem of measuring relative poverty - it will vary from place to place and over time.