Group MembersMuhammad Waleed

Waseem Liaquat

Umar Farooq

Poverty

Poverty

Absolute Poverty : A situation where individuals don’t have access to basic requirements of life –Food, Shelter and Clothing

Relative Poverty : is a poverty measure based on a poor standard of living or a low income relative to the rest of society. 

PovertyHalf the world’s population, about 3 billion,

live on less than $2 per day. Malnutrition, lack of health care, substandard

housing, and illiteracy breed desperation, disease and daily suffering.

Poverty traps future generations in a vicious cycle without hope or opportunity.

Poverty StatisticsAlmost 30,000 children under the age of five die

Approximately 790 million people in the developing world are chronically undernourished.

Nearly a billion people entered the 21st century

unable to read a book or sign their names.

Difference between “Poor” & “Poorest”

The term “poorest” or “very poor” refers to“very poor” refers to people living on less people living on less than $1 per day or in the bottom half of those living below their nation’s poverty line.

The term “poor” means those living in poverty above $1 per day or the upper half of those living below their nation’s poverty line.

Causes of PovertyDecline in overall

national national growth

Political instabilityNatural disastersCorruptionSocio-economic

disparities and disparities and prejudices prejudices.

.Lack of access to

educationLack of infrastructureLack of relevant laws

&administrative procedures 

Lack of access to investment & credit, complete market information

Effects of PovertyWithout the security of formal jobs, each day

the poor work from dawn to dusk the poor work from dawn to dusk

All or most of the money earned go to basic survival. There is little or no money left to improve quality of life.

Living in poverty almost always means that the harsh reality of today will repeat itself  tomorrow.

Effects of Poverty, continued…Poverty breeds poverty.If one cannot afford

proper nutrition or health care for one’s family, children grow up at greater risk of acquiring a life threatening or disabling disease.

If one cannot afford to educate one’s children, it will be a repeat of their parents’ life

If one cannot afford to buy one’s own land or home or livestock, there are few opportunities to build assets that will last over time.

The 5 Poorest Countries Of The World

1. Democratic Republic of Congo (GDP – per capita: $300)

2. Republic of Liberia (GDP – per capita: $500)3. Republic of Zimbabwe (GDP – per capita: $500)4. The Solomon Islands (GDP – per capita: $600)5. Republic of Somalia (GDP – per capita: $600)

Poverty in Pakistan

Causes of Poverty In PakistanGovernment Bad PoliciesCORRUPTIONInflationSmuggling OverpopulationUnemploymentLack of educationLaw and order situationForeign Investment

Government’s ExpendituresIt is estimated that around 5 Crore is spent

on the security of Prime Minister and the President

Monthly expense of 1 minister = 30 Lacs, Monthly expense of 96 minister = 288000000 (28 Crore80 Lacs

CORRUPTION

It’s a condition when People forget about mortality, and don’t care about the fact if money is being earned by fair means

Only one relationship that is exists in society is money. One has to pay a heavy cost to get his right.

Institutions have failed to provide justice to common Citizens.

InflationPoverty in Pakistan is increasing because of

general rise in prices of all products in Pakistan

Hence, it decreases purchasing power of people earning low earnings/Wages/Salaries.

Smuggling Pakistan was recently facing the shortage of

sugar and wheat due to the smuggling these items to neighboring countries.

Pakistan is the 7th largest wheat producing, it’s consumption was 20 Million ton and produced 23 million ton recently

Similarly Pakistan is the 4th largest sugercane producing country, but due to stocking habits of it’s owners…It was facing severe sugar crises

Unempoyment International Labour Organization defines,

occurs when people are without jobs and they have actively sought work 

Unemployment rate in 2009was 7.40 which is doubled in 2010, the current rate is15.20%

When peoples are unemployed they consume the resources but are unable to contributein overall economy, which results in overt.

Law and Order SituationThere are lots of problem regarding Law &

Order situation in PakistanTerrorist attacks create uncertainty in stock

marks and people earnings from stock are getting loss due to which the whole country faces uncertain increase in commodity prices

Local Industries, Fims, are unableto sign agreements with foreigninvestors due to prevailing laworder situation

Role of IMFIMF loans usually come with conditions,

restrictions and requirements imposed by IMF on the borrowing country

Pakistan is also seeking the help from IMF on very dangerous conditions which are causing more poverty in the country. Some of the conditions are Listed Below:

 Put an end to subsidies on all products. Taxes should be increased. Govt. expenditure should be stop. cut military spending by almost a third