POVERTYA DARK SPOT IN HUMANITY

DEFINITION OF TERMS 5 WAYS TO DEFINE POVERTY:

o ABSOLUTE POVERTYThe World Bank defines extreme poverty as living on less than U.S$1.25(PPP)/day.It is also possible to establish an international poverty line

o MODERATE POVERTYWhich PPP/day is less then $2 a day.

oRELATIVE POVERTYIt views poverty as socially defined and dependent on social context, hence relative poverty is a measure of inequality.The poor being defined as those who are deprived from the benefits of a modern economy.

oULTRA POVERTYA term apparently coined by Michel Lipton, connotes being amongst poorest of the poor in low income countries. Lipton defined Ultra poverty as receiving less than 80% minimum caloric in take whilst spending more than 80% of income in food.

oVOLUNTARY POVERTYAmong some individuals, such as ascetics, poverty is considered a necessary or desirable condition, which embraced in order to reach certain spiritual, moral, or intellectual states.

DEFINITION OF TERMS oPOVERTY INCIDENCE

It is the number of households having an income below the poverty threshold , to meet basic food needs and non-food needs such as clothing, housing, transportation, health, and education expenses

o SUBSISTENCE INCIDENCE It is the minimum income required to meet basic food needs and satisfy the nutritional requirements set by the Food and Nutrition Research Institute (FNRI) to ensure that one remains economically and socially productiveIt is used to measure extreme or subsistence poverty

oUNEMPLOYMENTCondition of a person who is able to work, is actively seeking work, but is unable to find any. Statistics on Unemployment are collected and analyzed by government labour offices in most in countries considered an important indicator of economic health.

oUNDEREMPLOYME-NTAn employment situation that is insufficient in some important way for the worker, relative to a standard.

CAUSES OF POVERTY

DIRECT CAUSES• Unemployment• Lack of food and facilities• Excessive breeding• Debts• Lack of financial, investing

and shares trading knowledge

• Overspending• Access to education and

medicine• Catastrophes

PRIMARY CAUSES• Corruption• Labor standards• Lack of Control of Local Resources• Lack of democracy in a country• Lack of inclusiveness• Insufficient Law and order• Limited property and personal property

rights• Not allowing businesses to keep most of

their profits

HISTORICAL CAUSES

• Colonialism• Slavery• War• Conquest

EFFECTS OF POVERTY

SOCIAL• High Infant Mortality and Annual Death

Rate• Increase in hygiene and diet related

diseases • Increased rate of homeless people • Nation's tourism trade • Impact on the affected children’s

development, both physically and mentally

• Children from poorer backgrounds lag at all stages of education.

POLITICAL• Increased Crime Rate• Increased risk of war• Mass emigration of

population• Genocide• Terrorism

WORLD POVERTY STATISTICAL UPDATES

Total Percentage of World Population that lives on less than $2.50 a day 50%

Total number of people that live on less than $2.50 a day 3 Billion

Total Percentage of People that live on less than $1.25 a day 1 Billion

Total percent of World Populations that live where income differentials are widening 80%

Total Percentage of World Income the richest 20% account for 75%

Total Number of children that die each day due to Poverty 22,000

Total Number of People in Developing Countries with Inadequate Access to Water 1.1 billion

Total Number of School Days lost to Water Related Illness 443 million school days

Year Ratio of People at Poverty to Wealthy Level

2013 88 to 1

STATISTICAL UPDATES ON POVERTY ASIA

o The extreme poverty rate declined from 54.7% in 1990 to 20.7% in 2010, benefiting 745 million Asians.

o Asia’s $1.25 poverty rate would decline to 5.8% in 2020, 2.5% in 2025, and 1.4% in 2030, meaning that extreme poverty could be “eradicated” (below 3% poverty rate) by 2025.

o Adopting the $1.51 poverty line raises Asia’s poverty rate in 2010 by 9.8 percentage points from 20.7% to 30.5%. This increases the number of extreme poor by 343.20 million

o The vulnerability-adjusted poverty line adds about 11.9 percentage points to Asia’s poverty rate in 2010, adding 417.99 million to those considered extremely poor.

STATISTICAL UPDATES ON POVERTY

PHILIPPINES

o Poverty incidence among Filipinos in the first semester of 2014 was estimated at 25.8 percent based on the 2014 APIS conducted in July 2014. During the same period in 2013, poverty incidence among Filipinos was recorded at 24.6 percent

o Subsistence incidence among Filipinos, or the proportion of Filipinos whose incomes fall below the food threshold, was estimated at 10.5 percent in the first semester of 2014.This is at the same level the first half of 2013.

POVERTY AND UNEMPLOYMENT• Unemployment and poverty

are the two major challenges that are facing the world economy at present.

• Unemployment leads to financial crisis and reduces the overall purchasing capacity of a nation.

• This in turn results in poverty followed by increasing burden of debt

• It is true that unemployment and poverty are mostly common in the less developed economies. However, due to the global economic recessions, the developed economies are also facing these challenges in the recent times.

• Mass migration from rural to urban regions is adding to the problems of unemployment and poverty.

POVERTY AND UNEMPLOYMENT• Poverty and unemployment are

two such things using by which the politician dream to win in vote. It is applicable in districts as well as in the countries- everywhere the situation is the same.

• Keeping the two problems as political weapons, every politician is busy in pocketing benefits using it. For this reason, terrorist, human-bombers, unsocial activities are being created. As a result, the world now is in target by the terrorists

SOURCES OF UNEMPLOYMENTo CYCLICAL OR KEYNESIAN UNEMPLOYMENT, ALSO KNOWN AS DEMAND DEFICIENT UNEMPLOYMENT, OCCURS WHEN THERE IS NOT ENOUGH AGGREGATE DEMAND IN THEECONOMY.

o STRUCTURAL UNEMPLOYMENT DUE TO SOME DYNAMIC CHANGES IN A STRUCTURAL ORGANIZATION

o FRICTIONAL UNEMPLOYMENT DUE TO TEMPORARY UNEMPLOYMENT OF WORKERS.

o CASES OF HIDDEN UNEMPLOYMENT WHERE WORKERS RESTRAIN THEMSELVES FROM WORKING DUE TO ABSENCE OF APPROPRIATE FACILITIES

o LONG-TERM UNEMPLOYMENT (SOCIAL EXCLUSION)

o NATURAL RATE OF UNEMPLOYMENT OR SUMMATION OF FRICTIONAL AND STRUCTURAL UNEMPLOYMENT

WORLD UNEMPLOYMENT RATES DUE TO POVERTY

WORLD UNEMPLOYMENT RATES DUE TO POVERTY

WORLD UNEMPLOYMENT RATES DUE TO POVERTY

YEAR TOTAL UNEMPLOYMENT RATE

MALE UNEMPLOYMENT RATE

FEMALE UNEMPLOYMENT RATE

YOUTH UNEMPLOYMENT RATE

MALE YOUTH UNEMPLOYMENT RATE

FEMALE YOUTH UNEMPLOYMENT RATE

ADULT UNEMPLOYMENT RATE

MALE ADULT UNEMPLOYMENT RATE

FEMALE ADULT UNEMPLOYMENT RATE

2010 6.1 5.8 6.5 12.9 12.6 13.3 4.6 4.3 5.0 2011 6.0 5.7 6.4 12.7 12.4 13.1 4.5 4.2 4.9 2012 6.0 5.7 6.4 12.9 12.6 13.3 4.5 4.2 4.9 2013 6.0 5.8 6.4 13.1 12.8 13.5 4.6 4.3 5.0 2014 6.1 5.8 6.5 13.2 12.9 13.6 4.7 4.4 5.1

ASIA’S UNEMPLOYMENT RATES DUE TO POVERTY (2014)

Area TOTAL UNEMPLOYMENT RATE

MALE UNEMPLOYMENT RATE

FEMALE UNEMPLOYMENT RATE

YOUTH UNEMPLOYMENT RATE

MALE YOUTH UNEMPLOYMENT RATE

FEMALE YOUTH UNEMPLOYMENT RATE

ADULT UNEMPLOYMENT RATE

MALE ADULT UNEMPLOYMENT RATE

FEMALE ADULT UNEMPLOYMENT RATE

South Asia

4.0 3.7 4.8 10.4 10.1 11.0 2.5 2.3 3.3 East Asia

4.7 5.3 3.8 10.5 12.1 8.5 3.7 4.3 3.1 South-East Asia and the Pacific 4.3 4.1 4.4 13.3 13.1 13.5 2.3 2.2 2.5

PHILIPPINES’ UNEMPLOYME

NT RATE

Unemployment Rate in Philippines decreased to 6 percent in the fourth quarter of 2014 from 6.70 percent in the third quarter of 2014. Unemployment Rate in Philippines is reported by the National Statistics Office of Philippines.

PHILIPPINES’ UNEMPLOYME

NT RATE

•Among unemployed people, 65.2 percent were males. The age group 15 to 24 years old accounted for 49.4 percent of total unemployed, while the age group 25 to 34 accounted for 30.2 percent.

•By educational attainment, 21.6 percent were college graduates, 13.5 percent were college undergraduates, and 33.3 percent were high school graduates.

•Among regions, the National Capital Region (9.8 percent), Central Luzon (7.4 percent), and Calabarzon (7.1 percent) showed unemployment rates higher than the national figure (6.0 percent).

TOP 20 COUNTRIES WITH HIGHEST UNEMPLOYMENT RATES DUE TO POVERTY

TOP 20 COUNTRIES WITH HIGHEST UNEMPLOYMENT RATES DUE TO POVERTY

EMPLOYMENT INSTABILITY INREGIONS OF THE PHILIPPINES

• Philippine regions that boast relatively low levels of unemployment may also suffer from relatively high incidences of poverty. And vice versa regions with relatively high rates of unemployment may enjoy relatively low levels of poverty.

TOP 5 REGIONS1. NCR 10.32. CALABARZON 9.23. Central Luzon 8.74. Davao Region 6.95. Western Visayas 6.9

BOTTOM 5 REGIONS1. Cagayan Valley 3.22. Zamboanga

Peninsula 3.5

3. MIMAROPA 4.14. SOCCSKSARGE

N 4.4

5. CAR 4.5

REGIONAL STATISTICS ON UNEMPLOYMENT: 2013

- Largely a problem of the youth (48.5% of unemployed in 2013)

- Rate more than twice the national rate

- Educated workforce (college graduates at around one-fifth of the unemployed)

- More serious than unemployment problem (1 out of 5 employed is underemployed; its magnitude is 2x the unemployed)

- Highly correlated with poverty- Variation most pronounced

across regions (spatial)

TOP 5 REGIONS1. Bicol Region 37.3

2. Caraga 27.13. Northern Mindanao 25.7

4. Eastern Visayas 25.1

5. MIMAROPA 23.4

BOTTOM 5 REGIONS

1. NCR 12.12. ARMM 12.43. Cagayan Valley 12.9

4. Ilocos Region 20.0

5. Central Luzon 14.5

REGIONAL STATISTICS ON UNDEREMPLOYMENT: 2013

GLOBAL YOUTH UNEMPLOYMENT RATE RISING

• One of the report’s major findings is the worldwide unemployment rate among 15 to 24-year-olds of 13 percent, or 74 million youths, is set to rise.

• William Reese, CEO of the International Youth Foundation, thinks that figure is significantly underestimated.

• “I’m not surprised by that number, because it is probably much higher than they state. We’ve seen reports of over 70 million young people unemployed, but the real number is probably six or seven times that,” Reese

Rising unemployment and sluggish economic growth is predicted to further widen income and wealth inequality worldwide; the richest 10 percent of the world will hold 30 to 40 percent of total income, while the poorest 10 percent will earn as little as two percent.

• People must be united across, “both issue” groups join hands in its understanding on how this economic system destroys and impoverishes.

• The globalization of this struggle is fundamental, requiring degree solidarity and internationalism unprecedented in world history.

• This global economic system feeds on social divisiveness between and within countries.

• A major thrust is required which brings together social movements in all major regions of the world in this issue and commitment to the elimination of poverty & unemployment and a lasting world peace.

FIN

Submitted by :o Bacabac, Catherineo Buhayan, Carolyno Pabelico, Princess Ericao Reyes, Sarhao Salarda, Jessao Serna, Cristina

MLS 2-D