Poverty and

Inequality
By: Ornopia, Christian D.
Table of contents

01 02
Introduction Discussion

03 04
Conclusion References
01
Introduction

Poverty and inequality

are a form of instability
into the future. -Tavis
Smiley.
 Introduction
Poverty and Inequality, exist around us. It is hard for one to determine
whether poverty causes inequality or is it the other way around because
both these problems are interrelated.
They both exist in every developed culture and often patched in order for
society to continue move upwardly.
Poverty and inequality have been recurrent challenges in the Philippines and
have again come to the fore in the wake of the current global financial crisis
and rising food, fuel, and commodity prices.
In many cases, people who have unequal opportunities in life often live in
poverty, and people who live in poverty may be treated unequally. Although
a person who experiences poverty may suffer from inequality, every person
who faces inequality is not impoverished. Inequality directly affects the
amount and severity of poverty within a nation. Countries that have greater
inequality often have many citizens living in poverty.
Introduction

Among the major East Asian economics, the Philippines has had slowest rate of poverty
production during the last three decades and at the turn of present century, had highest
incidence of absolute poverty. Yet only three decades ago, by Asian standards, the country
had comparatively low levels of absolute poverty.
The growth of the economy has been characterized by boom and bust cycles and current
episodes of moderate economic expansion have had limited impact on poverty reduction.
Other reasons for the relatively moderate poverty decline include the high rate of inequality
across income brackets, regions, and sectors; and unmanaged population growth.
Economic growth is a crucial factor in poverty reduction; however, other factors such as
inequality affect its impact on poverty. Consistent failure to reduce poverty and inequality
may also result in a lower economic growth trajectory (Lustig et al. 2001).
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January / 01 Su Mo Tu We Th Fr Sa

01 02

Mercury 03 04 05 06 07 08 09

Mercury is the closest

planet to the Sun 10 11 12 13 14 15 16

17 18 19 20 21 22 23

Venus
24 25 26 27 28 29 30
Venus is the second
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31
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 02
Discussion
 Discussion
Poverty is the state of not having enough material possessions
or income for a person's basic needs. Poverty may include
social, economic, and political elements. Absolute poverty is the
complete lack of the means necessary to meet basic personal
needs, such as food, clothing, and shelter. Poverty is often
extended for generations because children often experience the
same blocks that their ancestors faced.
The floor at which absolute poverty is defined is always about
the same, independent of the person's permanent location or
era. On the other hand, relative poverty occurs when a person
cannot meet a minimum level of living standards, compared to
others in the same time and place. Therefore, the floor at which
relative poverty is defined varies from one country to another, or
from one society to another.
 Discussion
The main causes of poverty in the country are the
following:
 low to moderate economic growth for the past 40
years
 low growth elasticity of poverty reduction
 weakness in employment generation and the quality
of jobs generated
 failure to fully develop the agriculture sector
 high inflation during crisis periods
 high levels of population growth
 high and persistent levels of inequality (incomes
and assets), which dampen the positive impacts of
economic expansion
 recurrent shocks and exposure to risks such as
economic crisis, conflicts, natural disasters, and
“environmental poverty.”
Discussion
With all of these, the high population growth rate is particularly significant, the population
growth over the two decades has been such that even though the official population incidence
fell, the actual number of poor people increased by more than 4 million from 1985-2000. Also
the main reason why poverty reduction in the country has been slow compared with other Asian
countries is the failure of the economy to grow rapidly and generate quality employment in
sectors with large numbers of the poor. This has constrained the poor in terms of opportunities
to escape deprivation and increased the probability of the non-poor to become poor.
Inequality, on the other hand, is a relative term and compares the financial stability of a
part of the society versus the financial situation of another part of the society where one party is
better off than the other. Inequality can be crippling to a person who wants a better life for
themselves and their families. Minorities throughout the world are often victims of inequality,
and inequality is an obstacle that prevents them from securing wholesome opportunities.
Unequal treatment can make it difficult for a person to establish a meaningful career, find a job
or buy properties. 04
03
02
01
We cannot also deny that Global Inequality exist, this refers to the
unequal distribution of resources among individuals and groups
based on their position in the social hierarchy (a series of ordered
groupings of people or things within a system. The following are
some of the causes of Global Inequality: 

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35% 50% 15%

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Mercury is the closest It is the farthest planet It has a beautiful name,
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 03
Our teachers
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Despite being red, Mars It’s a gas giant and the Mercury is the smallest
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Solar System
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it’s Jupiter’s rotation period

386,000 km
it’s the distance between the Earth and
the Moon
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Conclusion
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Mercury is the smallest Despite being red, Mars It has a beautiful name
planet in the Solar is actually a cold place and is the second planet
System from the Sun

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Saturn is a gas giant, Neptune is the fourth- Jupiter is a gas giant and
composed mostly of largest planet in the the biggest planet in the
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Mercur
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01 02 03 04
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Poverty
 Poverty is a pronounced deprivation
in well-being.
 Income or consumption poverty
refers to lack of monetary resources
to meet needs.
 Absolute poverty is poverty below a
set line of what is required to access
minimum needs for survival.
 Relative poverty is set in relation to
others.
 Shelter poverty, food poverty, asset
poverty, time-poverty or health
poverty refer to lack of that specific
good.
Inequality
 Inequality refers to disparities and
discrepancies in areas such as income,
wealth, education, health, nutrition,
space, politics and social identity.
 Intersecting inequalities occur when
people face inequality in multiple
aspects of their lives.
 Vertical inequalities occur between
individuals.
 Horizontal inequalities occur between
groups.
This is a table
Poverty
 Multidimensional poverty recognises
the many different ways in which
people can be deprived.
 The transiently poor move in and out
of poverty.
 The chronically poor are poor for
years at a time or even their whole
lives.
 Vulnerability to poverty is the
probability or risk of being in poverty
or falling into poverty in the future.
Inequality
 Inequality of outcomes refers to
differences in what people achieve in
life (e.g. level of income).
 Inequality of opportunities refers to
differences in people’s background or
circumstances that condition what
they are able to achieve.
 Global inequality refers to difference
in income between all individuals in
the world rather than inequalities
between countries.
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