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Essay / Research Paper Abstract
A twelve page paper which looks at various studies on income inequality in Pakistan from both a local and a global perspective, and suggests ways in which a combination of key indicators might be used to give a more accurate picture of poverty levels and income inequality. Bibliography lists 4 sources.
Page Count:
12 pages (~225 words per page)
File: JL5_JLpakistan.rtf
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Unformatted sample text from the term paper:
international basis is not only to identify areas where developing countries are failing to meet human development targets (such as gender inequality, health care, and mortality rates) but to assess
ways in which these challenges might be met. It is useful, for example, to compare global studies with those carried out on individual countries as this can give a clearer
picture of the extent of comparative inequality on a world-wide scale. For instance, as Booth (2002) notes, a global study commissioned for the World Development Report in 2001 looked at
the way in which income inequality on a national level would impact on poverty reduction through economic growth. Poverty elasticity, according to the Gini coefficient, will vary according to levels
of inequality: those countries which are assessed as having a Gini coefficient of 0.43 or less show a poverty elasticity almost three times greater than that in nations with a
greater level of inequality. Poverty reduction through economic growth was also seen as more successful in those countries where the use of capital was more free and put to more
efficient use, and also in some areas of Africa, where growth patterns supported agriculture.
As Booth points out, it is possible to combine this data, which is based on nations previous rates of inequality and growth, with predictive forecasts of future development.
Such a model can give indications of future levels of poverty, which allows the respective strength of predicted growth rates and poverty-reducing policy scenarios to be assessed. Based on the
global studies, it would appear that increased economic growth will only have a significant impact on the reduction of poverty if it is accompanied by lowered rates of income inequality.
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