Section 1: The 4 approaches as outlined by Stewart et al.
In order to understand/explain poverty an inequality in SA, on first needs to know how to
conceptualise it.
Is a poverty indicator based only on income enough? Is poverty simply material welfare?
Multidimensionality: poverty is multidimensional (i.e. access to
resources/influence/knowledge matters).
Holistic: Only a holistic approach in specific context gives a proper understanding of
what poverty actually is.
Importance of definitions
“To devise policies to reduce poverty effectively, it is important to know at what we
are aiming… Clarification of how poverty is defined is extremely important as
different definitions of poverty imply use of different criteria for measurement,
potentially the identification of different individuals and groups as poor, and the use
of different policy solutions for poverty reduction.” - Stewart et al.
Look at: Core features, unit of analysis, advantages & disadvantages, comparisons
and application in SA.
[Definitions and limitations of each]
1. Monetary
Focuses on the definition of poverty – poverty line that we either live above or
beneath.
2. Capabilities
What makes a ‘good life’? Poverty as a failure of basic capabilities (range of social
experiences).
3. Social exclusion
4. Participatory
General problems with definitions
1. ‘Space’ – what areas of human life are covered?
2. Universal vs relative
3. Value judgements – objective (reality out there) vs subjective
4. Poverty lines – distinction of poor vs non-poor
But drawing the line between the poor and the rest is not easy
World Bank:
- Gathers data on income from ppl around the world
- Defined absolute poverty as living on less than $1.90/day
- PPP-adjusted
SA: social grants – how to decide cut-off points?
5. Unit of analysis
Individual/household
Geographic area
6. Multidimensionality – aggregate index vs simply income