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The Effects Of Poverty In A Country

1801 words - 8 pages

Background of the study
There is broad evidence that poverty is the biggest problem in the economic, social and political terms for various nations (Statistics South Africa, 2012). Shah (2010) mentioned that more than 24,000 children die each day around the world. But how do we understand poverty? Generally, poverty is described as lack of happiness (Van Praag and Carbonell, 2005) and/or having a daily income of less than fifty percent household disposal income (Marks, 2005). Poverty cannot only be based from their daily income and household consumption but also to the satisfaction that one feels about his/her present conditions which is a great challenge to government’s policy. Policymakers aim to maximize several aspects of one’s life such as their income, spending and their welfare. But in today’s scenario, policymakers fail to achieve this (Alem, 2012). As a result for this failure, causes of poverty occurred such as lack of education, high birth rate, war, calamities and corruption, Saleh (2010).
Different concepts of poverty have been developed by many pioneers that also used different measures. These concepts can only be understood depending in the ways of how poverty is to be measured. In the Philippines, poor are those not able to meet the adequate minimum degree of living (Makil, 1986). While Bautista (2003) looks at poverty as measured through income and expenditure of the chosen households. There it showed that the estimated ideal income for every household composed of thirteen members is not less than Php 14,177 for urban areas and Php 4,581 for rural areas.

According to May (2001), poverty is conceptualised in South Africa as the incapability to achieve minimum standard of living showed by an ultimate index used to a stable threshold such as the minimum wage line that distinguish poor individuals from average and rich individuals. According to the Living Condition Survey for 2008/2009, the average spending for every household is below the minimum level of R57,870 South African Rand (Statistics South Africa, 2012).
Poverty can be classified as absolute, relative and subjective definitions. Goedhart et al. (1997) revealed that the focus of subjective poverty is in monetary amounts of which individuals consider necessary to make ends meet for their households. Subjective poverty can view as a person’s assessment of his/her own interest, goodness and prosperity (Ravallion 2012).
Thus, this paper shall be conducted to measure the subjective poverty in Matina Aplaya, Davao City.

Statement of the Problem
This study aims to determine the subjective poverty and the contingent financing of the selected households in Matina Aplaya, Davao City.
Specifically, this study aims to address the following questions:
1. What is the profile of the selected household in terms of:
1.1 Size of the family
1.2 Monthly income
1.3 Number of family members
1.4 Health care
1.5 Number of family members on dependent age (0-14 & 65 above)

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