Fariborz Raeis Dana,
Volume 5, Issue 17 (7-2005)
Abstract
All simple methods of the measurement of poverty, such as ratio of the poor in total population and income gap are in fact unable to reflect inter-transformation society, with respect to change in money making groups, income transformation, gathering of the social groups, symmetry, asymmetry (dependency of the index to the other specification of the individuals in the society), monotonicity, social welfare, social justice etc. Therefore, these indices are weak and deficient to show dynamism of the poverty. the more complicated indices that started to introduce from Sen work, reflect The income distribution circumstance and income ranking and some of them are admitted to Gini coefficient. Nearly fifteen such principal indices that apply income distribution content and income transformation, poverty line and distribution among the poor are recognized. Some of these indices deal with social welfare, which is not a calculable issue. However the total number of secondary and/or related indices are amounted to more than seventy. Selecting a proper index for every society relies on data access, the structure and distribution of the population and the income of the society under consideration, the goals of planning as well as policy making and finally choosing the researcher. In this article I have analyzed the ability and power of the main indices, with special regard to Iran situation. To accomplish this fact, I have introduced a nine-item principles that are necessary in index, Then I introduced analyzed the sen, Kakwani Takayama and some other indices. Finally, bringing Iran poverty and income distribution condition into consideration, I have represented a propose index as the geometric mean of the third Kakwani's and the first sen indices. Using Some appraises and non-parametric estimate as well as official data for Iran, I have calculated the poverty index of the country. This index is considered as a high index with respect to percupita income of the country.
Farhad Khodad Kashi, Khalil Heidari, Faride Bagheri,
Volume 5, Issue 17 (7-2005)
Abstract
In this article, the Poverty Line in urban and rural is estimated according to four methods during the years (1984-2000) as follows: a) needing for Calorie, b) the percentage of family average income, c) the average of family expenses, and d) the parasite inverted indices. The results point to this fact that Poverty is not a fixed extemal phenomenon and to some extent relies on the researcher's definition and attitude towards poverty and the variables used for assessment that totally will lead to different values and search of poverty. The findings of this article indicate to this fact that urban poverty line steadily placed in a higher rank than rural poverty line, and the poverty line based on the smaller in concept is a relative definition of poverty line. The vast amount of urban and rural poverty lies on parasite inverted indices.
Faride Bagheri, Hossein Kavand,
Volume 7, Issue 28 (9-2008)
Abstract
Objectives: Since the late 1990s, when the term of Pro-poor Growth was first introduced, the economists have developed some new approaches as to the relation between the economic growth and poverty, and the combined effect of economic growth and income inequality alleviation on poverty reduction. Recently a new topic has been raised which studies the tri-lateral relations between the three concepts of economic growth, poverty and income inequality. The pro-poor growth refers to the kind of economic growth which brings about inequality alleviation in addition to primarily benefiting the poor population - a total economic improvement of the poor population of the community. To provide definition and measurement tools for the concept, there have been some recent efforts: (Kakwani & Pernai, 2000), (Ravallion & Chen, 2003), (Son, 2003).
Drawing on the Poverty Growth Curve (Son, 2003) and the Second Order Dominance, the present study seeks to find out if the economic growth of Iran during 1995-2006 was pro-poor or anti-poor.
Method: As mentioned above, for the economic growth to be pro-poor, there should be income inequality alleviation along with economic improvement of all community members. To this end, the community's income deciles are analyzed with regard to the changes in income inequality following changes in economic growth based on the Second Stochastic Dominance approach. The present paper aims to draw on Atkinson Proof to connect the Generalized Lorenz Curve with economic growth and inequality. In the following, based on the data from the Urban and Rural Households Income and Expenditure 1996-2005, the poverty growth curve and Lorenz curve are drawn and analyzed for Iranian households for the mentioned time period.
Findings: According to the outcomes, the average income growth was pro-poor in the years 2000, 2003 and 2005 for urban areas. In the year 2002 the economic growth in all deciles increased but income equality decreased. And the average income growth was pro-poor in the years 1999 to 2002 for rural areas that's to say, in the mentioned years the poor population enjoyed more income increase than the rest of society and the income gap got narrower. Obviously, the index was anti-poor for the remaining years of the reference period.
Results: During the 1996-2005 economic growth in most years has been propoor in both urban and rural areas.
Sakineh Ashrafi, Davod Behbudi, Dr Mohamad Reza Vaez Mahdavi, Hosein Panahi,
Volume 18, Issue 71 (3-2019)
Abstract
Expended Abstract
Introduction: An issue which is often recurring in discussion on development is whether the main focus of development strategies should be on growth or on poverty and/or inequality. The goal of development strategies can be put in two statements. “First, the rapid elimination of absolute poverty, under all forms, is a meaningful goal for development Second, the reduction of absolute poverty necessarily calls for highly country-specific combination of growth and distribution policies” (Bouguignon, 2003, P. 69).
Issues related to the benefits of growth accrued to the poor have also been a priority of development policy in the 1990s. An emerging consensus is that growth alone is a rather blunt tool for poverty reduction. In addition to the emphasis on poverty reduction, policies of redistribution of income and assets have become increasingly important. A policy agenda that addresses both distributional concerns and poverty reduction could lead to the enhancement of both economic growth and equity. Indeed, the relationship among growth, inequality, and poverty is complex and interdependent.
Method: In this paper, the relationship between economic growth, inequality, and poverty during the years of the second to fifth development plan of Iran is examined. To this end, using the concept of pro-poor growth, this study examines the period in which the poor have benefited from economic growth and how the distribution of the benefit of economic growth has been. The measure “Poverty Equivalent Growth Rate” (PEGR) was used, which takes in to account both the growth rate in mean income and how the benefits of growth are distributed among the poor and the non-poor. The proposed measure satisfies a basic requirement that reduction in poverty is a monotonically increasing function of the PEGR; the larger the PEGR, the greater the reduction in poverty will be. Thus, the PEGR is an effective measure of poverty reduction, i.e. maximization of PEGR implies a maximum reduction in poverty. If a government’s objective is to achieve a maximum reduction in poverty, then its policies should be focused on maximizing the PEGR. Further the PEGR can be used as an important indicator to monitor poverty over times as well as across socioeconomic and demographic groups (Kakwani & Son, 2008) This methodology is developed based on Atkinson’s theorem linking the generalized Lorenz curve and changes in poverty.
The pattern of growth has been analyzed in urban and rural regions of Iran using the National Household Survey (NHS) covering the period 1995-2016. On average, each NHS contains information on more than 15,000 households.
Table 1:Poverty growth for Iran: 1995-2016
percentile Second plan
1995-1999 Third plan
2000-2004 Fourth plan
2005-2010 Fifth plan
2011-2016
Urban Rural Urban Rural Urban Rural Urban Rural
10 6/37 6/28 9/61 11/20 0/36 -3/34 -9/89 -7/36
20 5/32 4/18 8/68 9/64 0/40 -3/17 -9/44 -6/25
30 5/11 3/10 8/13 8/85 0/39 -3/27 -9/13 -5/69
40 4/90 2/44 7/86 8/16 0/33 -3/36 -8/41 -5/20
50 4/69 2/03 7/78 7/59 0/17 -3/38 -7/54 -4/15
60 4/56 1/75 7/72 7/13 0/09 -3/40 -6/16 -3/09
70 4/47 1/52 7/71 6/79 -0/01 -3/39 -4/89 -2/02
80 4/33 1/33 7/69 6/46 -0/16 -3/38 -3/37 -0/65
90 4/22 1/10 7/74 6/23 -0/42 -3/48 -2/02 0/57
100 3/99 1/37 7/20 6/34 -1/10 -3/88 -0/74 1/08
Findings: Empirical study illustrated that the growth has been pro-poor during the second (1995-1999) to third (2000-2004) development plan in urban regions (figure. 1). The annual growth rate of the mean income in the second plan period (1995-1999) is 3.99%. It should be noted that taking account of g(p)>0 for all P values, we can conclude that poverty has declined between 1995 and 1999. Since g(p) is more than 3.99 for all p<100, it implies that the growth has been pro-poor during this period. A similar situation occurs in the next period, 2000-2004. The annual growth rate of per capita income is 7.20% and growth is pro-poor.
Figure. 1. Pro-poor poverty growth curve for urban regions in Iran: 1995-1999 and 2000-2004
Unfortunately, the pro-poor growth did not continue in the two subsequent periods —forth (2005-2010) and fifth (2011-2016) development plan— when the average growth rate become negative due to the financial crisis. The growth rate of per capita income declined at annual rates of -1.1 and -0.74 during 2005-2010 and 2011-2016, respectively. In the fifth development plan, the benefits of growth received by the poor are proportionally less than those received by the non-poor (Figure. 2)
Figure 2. Not Pro-poor poverty growth curve for urban regions in Iran: (2005-2010) and (2011-2016)
The poverty growth curve in rural regions during development programs was approximately the same in urban regions (figure. 3).
Figure 3. The poverty growth curve in rural regions in Iran: 1995-1999; 2000-2004; 2005-2010 and 2011-2016.
Discussion: The results reveals that despite the implementation of fifth development programs, poverty reduction policies have not been used as a sustainable strategic plan during developmental plans, and the use of oil revenues to solve the poverty issue as a therapeutic project without considering the growth and developmental issues, leads to poverty at some point, but on the other hand, causes the poverty return in later periods with a greater scope. As in recent years, with the slowdown of economic growth, has returned to the society more intensely, and as a result, the phenomenon of poverty and the underdevelopment of the economy in the country have reached a higher degree.
Ethical Considerations
Funding
In the present study, all expenses were borne by the author and he did not have any sponsors
Authors’ contributions
All authors contributed in designing, running, and writing all parts of the research.
Conflicts of interest
The authors declared no conflict of interest
Acknowledgments
In this article, all rights relating to references are cited and resources are carefully listed.