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2. 4 3. 3 4. START 5. Add your company slogan Poverty and incomeinequality in AsiaToo big to ignored ?LOGO 6. Contents1 Introduction2 Case : Chinas Inequalities3Case : Philippines and Taiwan4 Case : Global distribution of income 7. Percentage population living on less than $2 per day 8. social problems Poverty RetardingGrowth IncomeInequality 9. Perspective Povertyhave inadequateThe inability toincome oraccess for aeducation, or be inminimal poor health, orstandard of feel powerless, orlivinglack politicalfreedoms. 10. Absolute Poverty Relative 11. Absolute Poverty 12. Relative Poverty Judged by standard of country Standardreferred toRelativeterm ofsocietyDifferent amongcountries 13. National Poverty LineStandards and definitions vary across different countriespoverty line deemed appropriate for National Povertya country by its authoritiesLineBased on population-weightedSubgroup estimates from household surveys 14. International Poverty Line : 2$ per day 15. Asias performanceSustained Economic GrowthPoverty and income inequalities existCountrys performance ASIAA majority of the worldsquite variespoorest people today a majority of the worlds population Asian poverty beingConcentrated in South Asia. 16. Divergence Phase 1 Phase 2 Phase 3The data andstatistics affirmSome of Asia hasthat gap between shown goodAsia, holding thethe rich and the progress on largestpoor has poverty in recent populations, stillgrown, rather than years, like China has manydiminished, with and South Korea extreme poorsustained growthin income 17. Perspective Broader concept than povertyDefine entire populationInequalitiesDoes not emphasize on the poor Difference in level of livingThe rich and The poor 18. Inequalities When economy achieveeconomic growth Ideally, benefits shoulddistribute to individuals equally In fact, it accrues to somemembers other than others 19. The extent of concept Inequalities refer to the uneven distribution of income across the population or individuals within society The gap between the rich is inevitably consequence of growth and development the high inequality raises a moral question about fairness and social justice 20. Measurement of Poverty1. Headcount IndexIts the proportion of poor people in the population or the headcount ratio (HCR). q HCR nWhere q refers to the number of individual below a given poverty line, and n refers to the total number of individuals in country.For example, Thais poverty line 2010 is 1,678 Thai Baht or approximately$54 per month. There are 5.1 million individuals live below the poverty line. And ourpopulation is about 66 million people. Thais HCR = 7.72%So, headcount here would show us that 7.72% of total population is in poverty. 21. Measurement of Poverty2. Using the poverty line that called the international poverty line It can use to compare among many countries by some standard. The World Bank uses two lines for what can be called poverty (percentage of household live in $2 per day) and extreme poverty (percentage of household live in $1 per day) Nowadays, there is the national poverty line that stems from concerning about the difference in each country about population, economic condition and so on. So, the national poverty lines vary in each country. 22. Measurement of Inequality1. Using percentage share of income We divide the population into 5 groups (Quintiles) or 10 groups(deciles), and consider about what percentage share of income thateach group receives. Ideally, each group has to get income orbenefit equally, but it does not like this due to uneven distributionwhich leads to inequality. 23. IdeallyIncome CategoryPercentage share of incomeLowest Quintile20%Second Quintile20%Third Quintile 20%Fourth Quintile20%Highest Quintile 20% 24. In fact (data from https://www.cia.gov/library/publications/the-world-factbook/fields/2047.html) Thailand -2009 Income Category Percentage share of income Lowest deciles1.6% Second decilesN/A Third deciles N/A Fourth decilesN/A Fifth deciles N/A Sixth deciles N/A Seven deciles N/A Eight deciles N/A Ninth deciles N/A Highest deciles42.6% Highest Quintile is higher than lowest Quintile about 25 times. 25. China - 2008Income Percentage share ofCategory incomeLowest deciles3.5%Second decilesN/AThird deciles N/AFourth decilesN/AFifth deciles N/ASixth deciles N/ASeven deciles N/AEight deciles N/ANinth deciles N/AHighest deciles 15%Highest Quintile is higher than lowest quintile about 4.3 times 26. Singapore - 2008Income Category Percentage share ofincomeLowest deciles4.4%Second deciles N/AThird deciles N/AFourth decilesN/AFifth deciles N/ASixth deciles N/ASeven deciles N/AEight deciles N/ANinth deciles N/AHighest deciles23.2%Highest Quintile is higher than lowest quintile about 5.27 times 27. Japan 2008Income Category Percentage share ofincomeLowest deciles1.9%Second decilesN/AThird deciles N/AFourth decilesN/AFifth deciles N/ASixth deciles N/ASeven deciles N/AEight deciles N/ANinth deciles N/AHighest deciles27.5%Highest Quintile is higher than lowest quintile about 14.5 times 28. Measurement of inequalities2. Lorenz Curve and Gini CoefficientLorenz curve gives information on thedistribution of income. Its a rough index ofincome inequality. 29. Lorenz Curve The horizontal axis gives the percentage of households.The vertical axis gives the percentage of nationsincome. The green line or 45-degree line is called line ofequal distribution or egalitarian line. Note that no nation has a Lorenz curve such as greenline. The degree of inequality typically prevails. From the information in Lorenz Curve, we can get theGini index, which measure the degree of inequality forany income distribution by calculating the ratio of areabetween the Lorenz curve and 45-degree line. 30. Gini CoefficientArea ASo, Gini Index (G) = AreaA AreaBIf the Gini coefficient were equal tozero, the Lorenz curve would be the45-degree line. The closer to zero, themore equal about income distribution. 31. Gini Coefficient and TaxGini Coefficients are often calculated for pretax and posttaxincome distribution. If the Gini coefficient is lower for theposttax, it means that taxes have served the function ofreducing income inequality.For example, on average in 2000s,Japans Gini coefficient pretax is 0.462Japans Gini coefficient posttax is 0.329It means that imposition achieve the target of reducinginequalities 32. China 33. SUMMARYChina 2010 ranks the worlds 2nd largest economy. It is theworlds fastest-growing major economy with consistent growth rates ofaround 9% over the past 30 years since 1980. At that time, economicreforms initiated after 1978 began to generate significant and steadygrowth in investment, consumption and standards of living.China is also the largest exporter and second largest importerof goods in the world. The countrys per capita GDP was $7,544 in2010. Especially, the provinces in the coastal regions of China tend tobe more industrialized while regions in the hinterland are lessdeveloped. 34. Two sector : agriculture and industry The two most important sectors of the economy are agriculture and industry. The two sectors differs in many terms including technology, labor productivity, and incomes that have advanced rapidly in industry than in agriculture. Agricultural output follows the effects of weather, while industry is directly influenced by the government. The disparities between the two sectors have combined to form an economic-cultural-social gap between the rural and urban areas. 35. Coastal and Inland Problems Economic development is more rapid in coastal than inthe inland area, and there are large disparities in percapita income between these regions. The threewealthiest regions are in the southeast coast, centred onthe Pearl River Delta; along the east coast, centred onthe Lower Yangtze River; and near the Bohai Gulf, in theBeijingTianjinLiaoning region.It is the rapid development of these areas that is expected to contribute to the Asian regional economy growth, and Chinese government policy is designed to remove the obstacles to accelerated growth in these wealthier regions. 36. 5 Policies to reduce inequalities: China Western Development for increasing economic situation ofthe western provinces through capital investment and developmentof natural resources. Revitalize Northeast China, to renew the industrial bases inNortheast China covered the three provinces ofHeilongjiang, Jilin, and Liaoning Rise of Central China Plan to boost the development of its centralregions. It covers six provinces:Shanxi, Henan, Anhui, Hubei, Hunan, and Jiangxi. Third Front, focused on the southwestern provinces. Go Global, to encourage its enterprises to invest overseas. 37. IntroductionPolicies ConclusionProblem & Background Causes of Problem Solutions & Advices 38. Problem Cause ImpactChinas regionalinequality,Rapidly growing Chinas especiallyinternal income economic reform between itsinequalityin 1978 inland andcoastal regions,has risenconsiderably 39. Regional Differences Inland regions have less favorablenatural conditions for agricultural production.Long distance of inland regions limits Geography plays athe access to seaports andinternational market.role in producing Geography also affectsregional development 40. Government PoliciesFiscalDecentralizationGlobalizationMargetization 41. Fiscal GlobalizationMarketizationConclusion decentralization- Enhance trading-Weaken the financial -Make an ownership- make a connection to capacities of the central transformationothers government- market flexibilityTarget - impair its abilities to - effectively absorbed redistribute resourcessurplus rural labor into among region for an industrial production equity-Considerable autonomy -It took place only -Lead to many nonCoastal - enjoy Tax treatmentcoastal areastate enterprise- preferential allocation- Especially the new- rapid economicBenefitof resourcerich provincesgrowth-Inlands FDI is less than -Insufficient revenue -Inland ownershipCoastals FDI, so it is- heavier fiscal burden transformation hasattractive investor to - a worse investmentbeen carried out moreinvest in coastal more environment slowlyInlandthan inland area - inland regions have effect - lack of opportunities to been lacking behind ingrow due to smalldeveloping key marketmagnitude of investment. institution 42. Comparisonbetween Philippinesand Taiwan 43. Gini Coefficient YearPhilippines Taiwan 19850.410 0.290 19880.406 0.303 19910.438 0.308 19940.429 0.318 19970.462 0.320 20000.461 0.326 20030.445NA 20060.440NA 44. Share of Total Income of thePoorest Quintile and the RichestQuintile Philippines YearPoorest 20% Richest20%1988 5.2 51.81991 4.7 53.91994 4.9 52.01997 4.4 55.52000 4.4 54.82003 4.7 53.4 45. GDP per capita PPP $USDYear Philippines Taiwan2000 3,800 17,4002001 4,000 17,2002002 4,200 18,0002003 4,600 23,4002004 5,000 25,3002005 4,700 27,5002006 5,000 29,5002007 3,200 30,1002008 3,300 31,1002009 3,300 32,0002010 3,500 35,700 46. GDP per capita PPP $USDTaiwanPhilippines 47. Population below poverty line (%) Year PhilippinesTaiwan1997 36.8 N/A1999 N/A 12000 33.012001 38.0 N/A2003 24.9 N/A2005 N/A0.92006 26.4 0.92007 N/A0.952008 N/A1.082009 26.5 N/A2010 N/A1.16 48. Causes of income inequality inPhilippines Dynastic political cultureInstitution Corruption Landlocked Geography Frequency of typhoons hitting theprovince Lack of adequate educationEducation opportunity in the country 49. Causes of poverty in Philippines NonperformingDeclining revenuePoor investmentloans in the bankingcollection climate sectorGovernanceGradual loss of structure, corruptioninternationaland inefficiency incompetitivenesseconomicmanagement 50. Conditions for development inTaiwan Goodgovernance Reformed the health insurance systemTaiwangovernment expanded theavailability ofhigher education 51. Global distribution of income 52. Global distribution of income Manage property right Lower Promote trade economicbarriersactivity Globalization 53. Other ways to reduce poverty and inequality Open Economy in overall sectors Land reform Inherence tax Welfare state Green Revolution Technological process International consensus 54. Add your company slogan LOGO