POVERTY INEQUALITY URBANISATION
POVERTY INEQUALITY URBANISATION
In 2022, the World Bank estimated that about 8% of the world’s population (which is almost
650 million people) lived on less than $2.15 per day. This state is known as “extreme
poverty.” While extreme poverty is the most urgent issue, 47% of the world’s population is
still struggling with less than $6.85 per day. What is poverty exactly?
In this article, we’ll provide a thorough definition alongside key facts everyone should know
and the best ways to take action.
Poverty occurs when individuals and communities don’t have enough money or resources for
a basic standard of living. That includes good housing, food, clean water, healthcare, and
much more. COVID-19 stalled years of progress on ending poverty, which makes solutions
like improved gender equity, universal health coverage, and taxes on the world’s richest all
the more essential.
What is poverty?
Poverty happens when someone lacks the income and resources necessary to maintain a good
standard of living. That includes safe housing, medical care, food, clean water, and so on.
The UN emphasizes that it’s also “more than a lack of income.” There are varying
socioeconomic factors at play such as race, sexuality, ethnicity, gender, the ability to access
services, and opportunities for decent work. Poverty also drives many social issues like poor
education, child labor, forced labour, poor health, violence, and more.
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For years, extreme poverty – which affects the poorest people on Earth – referred to living on
less than $1.90 a day. In 2022, the World Bank updated its line to $2.15. It was changed to
reflect cost increases for basic food, clothing, and shelter in low-income countries between
2011 and 2017 relative to the rest of the world. $2.15 in 2017 prices is equal to $1.90 in 2011
prices. Before COVID-19, the world was doing a decent job reducing extreme poverty.
According to the World Bank’s Poverty and Shared Prosperity report, 1 billion people
escaped extreme poverty over 30 years. Then, COVID hit. In 2020, 70 million fell below the
extreme poverty line. Based on estimates, about 7% of the world (most in Africa) will still be
in extreme poverty by 2030. There’s also the matter of those vulnerable to poverty. These are
people living on $2-$5 per day. There are 1.3 billion in this group. One financial setback like
an illness, injury, job loss, or other crisis would be enough to push them into extreme poverty.
Inaccessible healthcare
Poor healthcare is both a cause and a consequence of poverty. Cost is a big reason why. One
expensive emergency can tip people into poverty and keep them there. Poverty also increases
the risk of health issues that quickly drain a person’s wallet. There are issues beyond pure
cost, however. Disenfranchised groups aren’t given equal access to information, services,
nutritious food, and other resources necessary for good health. Even if healthcare were more
affordable, there would be other steps needed to make it truly accessible.
There’s an established link between poverty and social injustices like racism and gender
inequality. Take the United States. According to research from sociologist Regina Baker,
Black populations living in southern states with a “strong historical racial regime” experience
worse poverty. There’s also a wider poverty gap between Black and white populations in
these states. Worldwide, gender inequality and poverty are deeply linked. If everyone
received equal rights and opportunities, it would eliminate a lot of poverty.
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v=vvlozhvQPJw&pp=ygUOZW5kaW5nIHBvdmVydHk%3D
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Determinants of Poverty in Kenya
Causes of Landlessness
INEQUALITY
Global Inequality : Our world's deepest pockets — "ultra high net worth individuals" — hold an
astoundingly disproportionate share of global wealth.
Inequality has been on the rise across the globe for several decades. Some countries have reduced the
numbers of people living in extreme poverty. But economic gaps have continued to grow as the very
richest amass unprecedented levels of wealth. Among industrial nations, the United States is by far the
most top-heavy, with much greater shares of national
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wealth and income going to the richest 1 percent than any other country.
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https://www.youtube.com/watch?v=0xMCWr0O3Hs
What is inequality
Inequality can be viewed from different perspectives, all of which are related. Most common metric
is Income Inequality, which refers to the extent to which income is evenly distributed within a
population. Related concepts are lifetime Inequality (inequality in incomes for an individual over his
or her lifetime), Inequality of Wealth (distribution of wealth across households or individuals at a
moment in time), and Inequality of Opportunity (impact on income of circumstances over which
individuals have no control, such as family socioeconomic status, gender, or ethnic background). All
of these inequality concepts are related and offer different yet complementary insights into the causes
and consequences of inequality, hence providing better guidance to governments when designing
specific policies aimed at addressing inequality.
Global Income Inequality
World Inequality Report data show that the share of national income going to the richest 10 percent
has increased in nearly every country. The 10 countries where the richest 10 percent increased their
share of the national economic pie the most between 1980-2020 are India, Russia, South Africa,
Poland, China, Korea, the United States, Australia, Germany, and Japan. In several of these countries,
the sharp increase in inequality has coincided with the rollback of various post-World War II policies
aimed at narrowing economic divides.
Rapid economic growth in Asia (particularly China and India) has lifted many people out of extreme
poverty. But the global richest 0.1 percent and 1 percent have reaped a much greater share of the
economic gains, according to the World Inequality Report. In 2020, the richest 1 percent pocketed
20.6 percent of global income, up 2.8 percentage points since 1980. The top 0.1 percent pocketed 8.59
percent in 2020, up 1.98 percentage points since 1980. These ultra-rich individuals did take a hit in
the 2008 financial crisis, but the richest top 0.1 percent have nearly regained the global income share
they enjoyed in 2007.
According to the UBS Global Wealth Report, in 2023 the world’s richest 1 percent, those with more
than $1 million, owned 47.5 percent of all the world’s wealth – equivalent to roughly $214 trillion.
Adults with less than $10,000 make up nearly 40 percent of the world’s population, but hold less than
1 percent of the world’s wealth. UBS defines “wealth” as the value of financial assets plus real assets
(primarily housing) of an individual, minus their debts.
“Ultra high net worth individuals” — the wealth management industry’s term for people worth more
than $30 million — hold an astoundingly disproportionate share of global wealth. These wealth
owners held 6.5 percent of total global wealth, yet represent only a tiny fraction (0.003%) of the world
population, based on Institute for Policy Studies analysis of Capgemini and Credit Suisse wealth data
and UN Population Fund population estimates.
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https://www.cnn.com/2013/10/29/opinion/sutter-solutions-income-inequality/index.html
With only around one-tenth of the SDG for eradicating inequality achieved to date, the question
remains as to which strategies might be deployed to close the gap.
Oxfam’s paper calls for governments to take a proactive role in shaping their economies to boost
equality. It proffers that this can be achieved through a mix of measures. These include:
Guaranteeing public services such as healthcare, education, care and food security known to
address inequality
Investment in public infrastructure and services
Better governance of the public sector to ensure greater accountability and transparency
Strengthening laws for gender and racial justice
Improving business governance to avoid corporate power and wealth becoming too large
Capping CEO pay while protecting payment of a living wage
Creating more effective corporate tax regimes and ensuring enforcement
Offering proactive support for sustainable, equitable business models through taxation and
other incentives.
Oxfam says it supports the idea that “every nation should aim for a situation in which inequality is
reduced to the point where the bottom 40% of the population have around the same income as the
richest 10%”.
II. URBANISATION
The challenges and solutions facing cities this decade | UN-Habitat (unhabitat.org)
Urbanization is a process whereby populations move from rural to urban areas, enabling cities and
towns to grow. It can also be termed as a progressive increase in the number of people living in towns
and cities. It is highly influenced by the notion that cities and towns have achieved better economic,
political, and social mileages compared to rural areas.
Accordingly, urbanization is very common in developing and developed worlds as more and more
people have the tendency to move closer to towns and cities to acquire “privileged” social and
economic services as well as benefits. These include social and economic advantages such as better
education, health care, sanitation, housing, business opportunities, and transportation.
“Urbanization (or urbanisation) refers to the population shift from rural to urban areas, the decrease in
the proportion of people living in rural areas, and the ways in which societies adapt to this change. It
is predominantly the process by which towns and cities are formed and become larger as more people
begin living and working in central areas.“
The majority of people move to cities and towns because they view rural areas as places with hardship
and backward/primitive lifestyles. Therefore, as populations move to more developed areas (towns
and cities), the immediate outcome is urbanization.
This normally contributes to land development for use in commercial properties, social and economic
support institutions, transportation, and residential buildings. Eventually, these activities raise several
urbanization issues.
To learn more about urbanization, here are its causes, effects, and solutions.
2. Commercialization
Commerce and trade play a major role in urbanization. The distribution of goods and services and
commercial transactions in the modern era has developed modern marketing institutions and exchange
methods. This has tremendously given rise to the growth of towns and cities.
Commercialization and trade come with the general perception that the towns and cities offer better
commercial opportunities and returns compared to the rural areas.
4. Employment Opportunities
In cities and towns, ample job opportunities continually draw people from rural areas to seek a better
livelihood.
Therefore, most people frequently migrate to urban areas to access well-paying jobs, as urban areas
have countless employment opportunities in all developmental sectors, like public health, education,
transport, sports and recreation, industries, and business enterprises.
Services and industries generate and increase higher value-added jobs, leading to more employment
opportunities.
6. Rural-urban Transformation
As localities become more fruitful and prosperous due to the discovery of minerals, resource
exploitation, or agricultural activities, cities emerge as the rural areas transform into urbanism. The
increase in productivity leads to economic growth and higher value-added employment opportunities.
This brings about the need to develop better infrastructure, learning institutions, health facilities,
transportation networks, and the establishment of banking institutions, better governance, and
housing.
As this occurs, rural communities start to adopt the urban culture and ultimately become urban centers
that continue to grow as more people move to such locations in search of a better life.
2. Housing Problems
Urbanization attracts people to cities and towns, leading to a high population increase. With the
increase in the number of people living in urban centres, there is a continued scarcity of houses.
This is due to insufficient expansion space for housing and public utilities, poverty, unemployment,
and costly building materials that only a few individuals can afford.
3. Overcrowding
Overcrowding is a situation whereby a huge number of people live in a small space. This form of
congestion in urban areas is consistent because of overpopulation, an aspect that increases daily as
more people and immigrants move into cities and towns for better livelihood.
Most people from rural or undeveloped areas always have the urge to migrate into the city, normally
leading to congestion of people within a small area.
4. Unemployment
The problem of joblessness is highest in urban areas and affects even the educated people. The youths
are the most affected demographic group, and it’s estimated that they are three times more likely to be
unemployed than adults.
And, as much as income in urban areas is high, the costs of living make the incomes seem horribly
low. The increasing relocation of people from rural or developing areas to urban areas is the leading
cause of urban unemployment.
5. Development of Slums
The cost of living in urban areas is very high. When this is combined with random and unexpected
growth and unemployment, there is the spread of unlawful resident settlements represented by slums
and squatters.
Slum and Urbanization
The growth of slums and squatters in urban areas is even further exacerbated by fast-paced
industrialization, lack of developed land for housing, a large influx of rural immigrants to the cities,
and the elevated prices of land beyond the reach of the urban poor.
9. Urban Crime
Issues of lack of resources, overcrowding, unemployment, poverty, and lack of social services and
education habitually lead to many social problems, including violence, drug abuse, and crime.
Most crimes, such as murder, rape, kidnapping, riots, assault, theft, robbery, and hijacking, are
reported to be more prominent in urban vicinities. Besides, poverty-related crimes are the highest in
fast-growing urban regions. These acts of urban crime normally upset the peace and tranquility of
cities/towns.
Solutions to Urbanization
Although most effects of urbanization are negative, there are a few that can be done to help mitigate
the negative impacts.
These include:
1. Building Sustainable and Environmentally-friendly Cities
Governments should pass laws that plan and provide environmentally sound cities and smart growth
techniques, considering that people should not reside in unsafe and polluted areas.
The objective here is to build sustainable cities that embrace improved environmental conditions and
safe habitats for all urban populations.
Governments should also encourage sustainable use of urban resources and support an economy based
on sustainable environments, such as through investment in green infrastructure, sustainable
industries, recycling and environmental campaigns, pollution management, renewable energy, green
public transportation, and water recycling and reclamation.
4. Population Control
Key stakeholders in urban areas must provide campaigns and counseling for effective medical health
clinics and family planning to help reduce the high rates of population growth.
Medical health clinics oriented towards family planning options must be made accessible across the
entire urban area with the objective of controlling diseases and population growth.
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