IB Global Politics Poverty Notes

Defining Poverty

1. Absolute Poverty:

1. A condition where individuals lack the basic necessities for survival, such as food, clean water, shelter, and healthcare.
2. Measurement: Often defined by the World Bank as living on less than \$2.15 per day (as of 2022).

2. Relative Poverty:

1. A condition where individuals lack the resources to participate fully in the society in which they live.
2. Measurement: Often defined as living below a certain percentage (e.g., 50%) of a country's median income.

3. Multidimensional Poverty:

1. A broader concept that considers multiple deprivations, such as education, health, and living standards.
2. Measurement: The Multidimensional Poverty Index (MPI) developed by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) is a key tool for assessing this form of poverty.

Causes of Poverty

1. Economic Factors:
   1. Unemployment and Underemployment: Lack of job opportunities or low-paying jobs trap individuals in poverty.
   2. Inequality: Unequal distribution of wealth and resources exacerbates poverty.
   3. Globalization: While it can create opportunities, globalization can also lead to job losses in certain sectors and increase economic vulnerability.
2. Political Factors:
   1. Governance and Corruption: Weak institutions and corruption can hinder economic development and the equitable distribution of resources.
   2. Conflict and Instability: War and political instability disrupt economies and displace populations, leading to poverty.
3. Social Factors:
   1. Education and Skills: Lack of access to quality education limits economic opportunities.
   2. Discrimination: Marginalized groups, such as women and ethnic minorities, often face barriers to economic participation.
4. Environmental Factors:
   1. Climate Change: Extreme weather events and environmental degradation can destroy livelihoods, particularly in agriculture-dependent communities.
   2. Resource Scarcity: Limited access to natural resources, such as water and arable land, exacerbates poverty.

Measuring Poverty

1. Income-Based Measures:

1. Poverty Line: A threshold below which individuals are considered poor. This can be absolute (e.g., \$2.15 per day) or relative (e.g., 50% of median income).
2. Gini Coefficient: A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

2. Multidimensional Measures:

1. Multidimensional Poverty Index (MPI):
   1. Assesses poverty across three dimensions: health, education, and living standards.
   2. Each dimension is further broken down into specific indicators, such as child mortality, years of schooling, and access to clean water.
2. Human Development Index (HDI):
   1. A composite index measuring a country's average achievements in health, education, and income.
   2. Significance: The HDI provides a broader perspective on development beyond income alone.

The Impact of Poverty

1. Human Rights:
   1. Poverty is a violation of basic human rights, as it deprives individuals of the ability to live with dignity and access essential services.
2. Economic Development:
   1. Poverty hinders economic growth by limiting human capital development and reducing consumer demand.
3. Social Stability:
   1. High levels of poverty and inequality can lead to social unrest and political instability.
4. Global Security:
   1. Poverty contributes to transnational challenges such as migration, terrorism, and environmental degradation.

Addressing Poverty: Strategies and Challenges

1. Economic Policies:
   1. Job Creation: Investing in infrastructure and industries that generate employment.
   2. Social Safety Nets: Implementing programs like cash transfers and unemployment benefits to support vulnerable populations.
2. Education and Health:
   1. Access to Education: Ensuring quality education for all, particularly for marginalized groups.
   2. Healthcare Services: Expanding access to affordable healthcare to improve overall well-being.
3. Governance and Institutions:
   1. Anti-Corruption Measures: Strengthening institutions to ensure transparent and accountable governance.
   2. Conflict Resolution: Promoting peace and stability to create an environment conducive to development.
4. International Cooperation:
   1. Development Aid: Providing financial and technical assistance to low-income countries.
   2. Trade and Investment: Promoting fair trade practices and sustainable investment to support economic growth.

Challenges in Addressing Poverty

1. Inequality:
   1. Economic growth does not always translate into poverty reduction if wealth is concentrated among a small elite.
2. Climate Change:
   1. Environmental degradation and climate-related disasters disproportionately affect poor communities, undermining development efforts.
3. Political Will:
   1. Addressing poverty requires strong political commitment and effective governance, which can be lacking in some contexts.

Case study

Bangladesh's Garment Industry and Global Poverty

Bangladesh's Garment Industry and Global Poverty

• Background
  • Bangladesh is the world's second-largest garment exporter, with the industry generating over $42 billion annually (2023).
  • The sector employs approximately 4 million workers, around 80% of whom are women, in over 4,000 factories.
  • Garment exports account for over 85% of total export earnings, making the economy heavily dependent on a single industry.
• Poverty Reduction
  • Bangladesh reduced its poverty rate from 44% in 1991 to approximately 19% by 2022, lifting tens of millions out of extreme poverty.
  • The garment industry has been the primary driver of female economic empowerment, giving women independent incomes.
  • GDP growth averaged 6-7% annually over the past decade, qualifying Bangladesh for Least Developed Country (LDC) graduation by 2026.
• Exploitation and Structural Issues
  • The Rana Plaza collapse (2013) killed over 1,134 workers, exposing deadly safety conditions in the industry.
  • Minimum wage for garment workers is approximately $95/month (2023) - far below a living wage in Dhaka.
  • Workers face union suppression, forced overtime, and unsafe conditions driven by pressure from global brands to minimize costs.
• Global Dimensions
  • Major buyers include H&M, Zara, Primark, and Walmart - raising questions about responsibility in global supply chains.
  • The Bangladesh Accord (2013), signed after Rana Plaza, improved factory safety but enforcement remains uneven.
  • Illustrates the "race to the bottom" dynamic where developing countries compete on low wages to attract foreign investment.
• IB Connections
  • Central example of the development vs. dependency debate - does integration into global capitalism reduce or entrench poverty?
  • Illustrates structuralist/dependency theory arguments about exploitation in the global economic order.
  • Raises questions about economic, social, and cultural rights (ICESCR) - the right to fair wages and safe working conditions.