Income Distribution and Undernutrition Text extracted from The World Food Problem Leathers & Foster, 2004 http://www.lastfirst.net/images/product/R004548.jpg
Poorest of the Poor Live in third world Mostly landless Work for others, menial jobs Poorly educated Illiterate Superstitious Squatters who live in huts Almost no food Fragmented household Debt to relatives or lenders http://archives.zinester.com/60514/143124/232308_slum.JPG
Per capita incomes differ Democratic Republic Congo: $80/yr Switzerland: $38,330 Average person in Switzerland makes 500X more than in Mozambique. If compute purchasing power parity, difference between richest and poorest countries is 80X http://faculty.washington.edu/wgold/family%20on%20crinnenhorn.jpg http://news.bbc.co.uk/media/images/38542000/jpg/_38542715_family300bbc.jpg
Purchasing Power Parity 2003 http://en.wikipedia.org/wiki/File:PPP2003.svg
Global Incomes
Distribution of World GNP (1989)
Human Development Index Measures quality of life High HDI High income countries Low HDI Low income countries HDI not perfectly correlated with income http://bp0.blogger.com/_vxI-ox6Dacw/R0yJQ0c_8YI/AAAAAAAAAO4/jCG1CPQfBb0/s1600-h/HDI+map.JPG
Gini Coefficient Gini coefficient: Lowest inequity is in Japan Based on area of crescent made by Lorenz curve measures inequity of wealth = A/A+B Gini index = Gini coefficient x 100 Lowest inequity is in Japan Gini coefficient = .249 Gini index = 24.9 Richest 20% controls 35% of income Highest inequity is in Brazil Gini index= 60.7 Richest 20% controls 64% of income
Global Gini Coefficients http://upload.wikimedia.org/wikipedia/commons/thumb/a/aa/Gini_Coefficient_World_Human_Development_Report_2007-2008.png/800px-Gini_Coefficient_World_Human_Development_Report_2007-2008.png
Kuznets Curve As a country develops, rich must get richer first Therefore inequity will increase initially Later, inequity will drop as prosperity increases Data from 75 countries
Wealthy out-compete poor for food Can outbid poor for food Also purchase more livestock Herd becomes more dependent on grain Price of grain is bid up Harder for the poor to buy grain
Overall inequity declining slowly Global Gini coefficients: .67 in 1980 .65 in 1990 .63 in 2000 .62 in 2005 (Bob Sutcliff, 2007) http://www.bbc.co.uk/radio4/today/gallery/media/poverty2.jpg
Extreme Inequity Increasing
Child Labor 250 million children work worldwide Jobs 22% of workforce in Asia 17% of workforce in Latin America 1/3 of children in sub-Saharan Africa Jobs Agriculture Textiles Maids and services Construction and manufacturing Prostitution Many sold into debt bondage To pay parent’s debt or as collateral Advance on wages http://uzbekistan.neweurasia.net/wp-content/images/june-2007/01_02a.jpg
U.S. Poor are Wealthy Poverty income Person at poverty line in U.S. $9,359/yr Person at poverty line in U.S. has higher income than 80% of people in the world 97% poor households in U.S. have color TV
Middle Class Decline Middle class is disappearing in U.S. Income gap is increasing between wealthy and poor.
U.S. Inequity increasing Gini coefficients: 1968: 38.6: 1970: 39.4 1980: 40.3 1990: 42.2 2000: 46.2 2007: 47.0 http://www.visualizingeconomics.com/wp-content/uploads/us_income_inequal_5_15_2006.jpg
Rich in U.S. getting richer http://online.wsj.com/public/resources/images/P1-AL265_COMPAR_20080420183003.gif
Hunger in the U.S.A. 36.3 million people live in households that experience hunger or the risk of hunger Includes 13 million children More than one in ten households in the United States (11.2 percent). 1/5 of U.S. food ends up in the landfill Source: Bread for the World Institute (2004) http://www.endhunger.org/images/u_s_hunger.png
http://www.bendib.com/newones/2006/november/large/End%20of%20Hunger%20in%20US.jpg