Poverty and Risk: Variation Among People and Over Time

AbstractPrevious chapters focused on the total or average level of each thing, for individuals and communities, introducing the economic principles used to explain and predict outcomes using a series of analytical diagrams that help us understand each population’s efficiency in using scarce resources to secure their wellbeing. Starting with this chapter the book shifts from theory to practice, introducing the data on how those outcomes differ and change within countries and around the world. The first section of this chapter introduces data on economic disparities around the world, introducing definitions and measurement for poverty and inequality. The second section shows how poverty relates to risk and change, introducing definitions and measurement for food insecurity, vulnerability and resilience. We show how formal and informal systems for insurance and credit address some risks but not others, leaving an important role for social assistance and safety net programs to sustain social inclusion, keeping children and adults out of poverty and achieve each population’s goals for equity, efficiency and sustainability over time.