As we shall see, this topic raises some fundamental questions about the role of economic policy. One of the Ten Principles of Economics in Chapter 1 is that governments can sometimes improve market outcomes. This possibility is particularly important when considering the distribution of income. | Review of the previous lecture At the macro level, economic growth implies greater availability of public resources to improve the quantity and quality of education, health and other services. At the micro level, economic growth creates employment opportunities, increases the income of the people and therefore, reduces poverty. Poverty is generally defined as lack of command over resources to satisfy basic needs, mainly food, shelter and clothing. This approach is basically an income approach as it measures the degree of lowness of income or consumption in the society. Review of the previous lecture A relative poverty line is set at around 50% of the average per capita income of the country. The subjective poverty line refers to that level of income at which people feels that their income is just equal to the minimum income required to meet end need. The absolute poverty line is defined as a minimum socially acceptable level of income or consumption used to distinguish the poor from . | Review of the previous lecture At the macro level, economic growth implies greater availability of public resources to improve the quantity and quality of education, health and other services. At the micro level, economic growth creates employment opportunities, increases the income of the people and therefore, reduces poverty. Poverty is generally defined as lack of command over resources to satisfy basic needs, mainly food, shelter and clothing. This approach is basically an income approach as it measures the degree of lowness of income or consumption in the society. Review of the previous lecture A relative poverty line is set at around 50% of the average per capita income of the country. The subjective poverty line refers to that level of income at which people feels that their income is just equal to the minimum income required to meet end need. The absolute poverty line is defined as a minimum socially acceptable level of income or consumption used to distinguish the poor from non-poor. Lecture 27 Part I : Poverty Part II: Five Debates Over Macroeconomic Policy Instructor: Abbas Course code: ECO 400 Lecture 27 Part I Poverty Part I Lecture Outline Methodologies used in Pakistan Poverty reduction strategy Various indicators Methodology used in Pakistan After two days of extensive consultation organized by the Planning Commission with all the experts on poverty in Pakistan in 2001 a consensus was emerged on the methodology to be followed in Pakistan. These include: Calorie intake approach 2350 calories per adult equivalence Consumption basked that includes food and non-food items (50% food + 50% non-food) Nutrition based adult equivalence scale with weight for person less than 18 years old and far all other individuals Poverty line be updated by using CPI-based inflation Calories Intake Calories Intake: Poverty Lines Used in the region Country National Rural Urban Pakistan India Bangladesh Sri Lanka China Vietnam Philippines Thailand .
