ELUSIVE SOLUTIONS TO POVERTY AND INEQUALITY: FROM TRICKLE DOWN TO - - PowerPoint PPT Presentation

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ELUSIVE SOLUTIONS TO POVERTY AND INEQUALITY: FROM TRICKLE DOWN TO - - PowerPoint PPT Presentation

Mar 06, 2023 151 likes •248 views

ELUSIVE SOLUTIONS TO POVERTY AND INEQUALITY: FROM TRICKLE DOWN TO SOLIDARITY ECONOMY Dr. Tidings P. Ndhlovu Manchester Metropolitan University, UK Visiting Research Fellow, Graduate School of Business Leadership, University of

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ELUSIVE SOLUTIONS TO POVERTY AND INEQUALITY: FROM “TRICKLE DOWN” TO “SOLIDARITY ECONOMY”

  • Dr. Tidings P. Ndhlovu

Manchester Metropolitan University, UK Visiting Research Fellow, Graduate School of Business Leadership, University of South Africa t.ndhlovu@mmu.ac.uk

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INTRODUCTION

 THEORETICAL PERSPECTIVES  EQUITY, (IN) EQUALITY AND POVERTY  STRUCTURE OF PRESENTATION:  FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS

APPROACH

 SEN’S ENTITLEMENTS AND CAPABILITY APPROACH,

AND PARTICIPATORY APPROACHES

 MARXIAN APPROACHES, AND THE CONCEPT OF

“SOLIDARITY ECONOMY”

 CONCLUSIONS

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FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS APPROACH

 “TRICKLE DOWN” APPROACH: TOP-DOWN

  • POVERTY AND INEQUALITY: A NATURAL PHENOMENON
  • ECONOMIC GROWTH: INCOME “TRICKLING DOWN”
  • “GETTING PRICES RIGHT” (LAL, 1983)
  • FREE MARKET: RATIONAL INDIVIDUAL

BASIC NEEDS (BN) APPROACH (ILO, 1976): BOTTOM-UP

  • CHALLENGE TO “TRICKLE DOWN” THEORY:

ERADICATION OF ABSOLUTE POVERTY POVERTY: DEPRIVATION OF CONSUMPTION BUNDLES

  • BN STRATEGY

PROVISION OF BASIC NEEDS: MINIMUM (FOOD, SHELTER, CLOTHING) AND ESSENTIAL (WATER & SANITATION, HEALTH, EDUCATION) PROVISION OF PRODUCTIVE EMPLOYMENT

  • REQUIREMENTS

ADEQUATE FINANCE NECESSARY SERVICE NETWORKS

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FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS APPROACH

  • INTERIM CONCLUSIONS

NOT ANTI-GROWTH LINK WITH INVESTMENT IN HUMAN CAPITAL

  • EVIDENCE

CHINA: SRI LANKA

WORLD BANK INVOLVEMENT: NATIONAL SOVEREIGHTY

LIMITED RESOURCES

SUBSIDISATION: UNINTENDED CONSEQUENCES

  • PRIMARY/UNIVERSIRTY ACCESS: SELECTIVE POLICIES
  • EXTENSION OF SYSTEM: CONTRADICTORY TO TARGETING

DEPENDENCY

DEFINITION OF BASIC NEEDS & DEVELOPMENT OF SOCIAL INDICATORS:

  • SELECTION OF VARIABLES
  • WEIGHTING OF VARIABLES
  • METHOD FOR CONSTRUCTING COMPOSITE INDEX
  • USEFULNESS OF INDEX
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SEN’S ENTITLEMENTS AND CAPABILITY APPROACHES: PARTICIPATORY APPROACHES

POVERTY AND INEQUALITY:

  • DEPRIVATION OF BASIC CAPABILITIES

ENTITLEMENTS

  • CONSUMPTION BUNDLES: DEPEND ON EMPLOYMENT, WAGES,

PRICES OF COMMODITIES

  • POLITICAL/SOCIAL PRESSURES

CAPABILITY APPROACH:

  • ACCESS TO ENTITLEMENTS OF EDUCATION, HEALTH etc.
  • “FUNCTIONINGS” - ACTUAL ACHIEVEMENTS
  • FREEDOM - CAPABILITY – CHOICES/OPPORTUNITY; MATERIAL AND

SPIRITUAL NEEDS; PARTCIPATION IN POLITICAL/DEMOCRATIC PROCESSES; INVOLVEMENT IN DECISION-MAKING PROCESS

EXAMPLE OF PARTICIPATORY APPROACH (YUNUS, 1999)

  • GRAMEEN BANK (VILLAGE BANK) IN BANGLADESH
  • “MICRO-LOANS“ TO POOR WOMEN

SEN: CONCLUSION

  • POVERTY: MULTI-DIMENSIONAL ; DEPRIVATION - DIGNITY etc.
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MARXIAN APPROACHES, AND THE CONCEPT OF “SOLIDARITY ECONOMY”

 MARXIAN: OWNERSHIP OF MEANS OF PRODUCTION:

  • creation of surplus value
  • accumulation process: unequal distribution of wealth & income
  • division of labour: class, race, gender/social relations

 “SOLIDARITY ECONOMY”:

  • “popular economy” vis a vis “solidarity economy”
  • “solidarity economy” – different perspectives, ranging from

enlightened markets to collective values and fundamental

change of capitalist societies

 POLICY IMPLICATIONS

  • collective ownership; sustainable development
  • long-term structural transformation: Alleviation of poverty and

reduction of inequality - self-empowerment; emancipation

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Figure 1 Source: Kawano (2013: 5).

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NEO-CLASSICAL APPROACH: POVERTY: NATURAL PHENOMENON SOLUTION: “GETTING PRICES RIGHT”/TOP-DOWN CRITICISMS: ONE-DIMENSIONAL; “TRICKLE DOWN”

BASIC NEEDS APPROACH: POVERTY: CONSUMPTION DEPRIVATION SOLUTION: PROVISION OF CONSUMPTION AND PRODUCTIVE EMPLOYMENT/BOTTOM-UP CRITiCISMS: THEORETICAL AND EMPIRICAL

ENTITLEMENTS/CAPABILITY APPROACH; PARTICIPATORY APPROACHES: POVERTY: BASIC CAPABILITY DEPRIVATION SOLUTION: “FUNCTIONINGS” AND FREEDOM CRITICISMS: CONTRADICTORY ANALYSIS; EMPIRICAL

MARXIAN APPROACHES, AND THE CONCEPT OF “SOLIDARITY ECONOMY” POVERTY: POWER DEPRIVATION SOLUTION: “GETTING SOCIAL RELATIONS RIGHT” CRITICISMS: SOME ANALYSES CAN BE DETERMINISTIC, WHILE SOME “SOLIDARITY ECONOMY” ANALYSES MAY BE REFORMIST

CONCLUSIONS