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Option: World Sociology

Global poverty, marginalisation and exclusion

  • 3 things to know
  • Component 3 Section B

Overview

Purchasing power parity, multidimensional poverty and poverty trap.

What you need to know

Answer each one before you reveal it.

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Key term

How is extreme poverty measured internationally?

Numbers

What has happened to extreme poverty globally since 1990?

Key term

Why is the fall in global poverty contested?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How is extreme poverty measured internationally?

    Model answer

    The World Bank measures extreme poverty by an international poverty line set in purchasing power parity terms. The number of people living below the line is then counted. The line has been raised several times as prices and the underlying survey data have changed.

  2. 2

    What is purchasing power parity, and why is it used?

    Model answer

    Purchasing power parity adjusts for what a sum of money actually buys in a given country, rather than converting at market exchange rates. The adjustment is needed because the same nominal amount purchases very different quantities in different economies.

  3. 3

    What criticisms are made of a single international poverty line?

    Model answer

    The international poverty line is very low, so a person just above it is not meaningfully out of poverty. The line rests on household survey data of uneven quality. It also reduces a complex condition to income, omitting health, education and security.

  4. 4

    What is multidimensional poverty?

    Model answer

    Multidimensional poverty is measured by deprivation across several domains at once — health, education and living standards — rather than by income. The Multidimensional Poverty Index published by the United Nations Development Programme is the best-known such measure.

  5. 5

    What has happened to extreme poverty globally since 1990?

    Model answer

    The number and share of people living in extreme poverty fell substantially between 1990 and 2019 on World Bank measures. Much of the fall is accounted for by China and East Asia. Extreme poverty rose again during the coronavirus pandemic.

  6. 6

    Why is the fall in global poverty contested?

    Model answer

    Critics argue that the fall depends heavily on where the line is set. The fall is also concentrated in a few countries, so it says little about development policy generally. Progress measured just above an extremely low line is a weak achievement.

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