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Understanding Poverty and Inequality

John McArthur, Chandrika Bahadur, Sabina Alkire, Homi Kharas, Carol Graham, Makada Henry-Nickie, Caren Grown, Alpa Shah, Haroon Bhorat, Rashawn Ray, Andre Perry, Heriberto Tapia, Amar Bhattacharya, Dany Bahar, Nora Lustig, Michael Cooke, Wing Thye Woo, and Addisu Lashitew

In September 2015, 193 member states of the United Nations adopted the 2030 Agenda for Sustainable Development and committed themselves to the 17 Sustainable Development Goals (SDGs). The SDGs are interconnected, recognizing that poverty cannot be eradicated without improved health and education, sustainable economic growth cannot occur on a planet under threat of climate change, and so forth.

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In September 2015, 193 member states of the United Nations adopted the 2030 Agenda for Sustainable Development and committed themselves to the 17 Sustainable Development Goals (SDGs). The SDGs are interconnected, recognizing that poverty cannot be eradicated without improved health and education, sustainable economic growth cannot occur on a planet under threat of climate change, and so forth.

Goal 1, “End poverty in all its forms everywhere,” calls on stakeholders at every level to drastically reduce the number of people living in poverty, provide services and assistance to those in need, and ensure the resilience of the poor and vulnerable in times of crisis. SDG 1 builds on earlier calls to cut poverty in lower-income countries by, first, calling for the elimination of extreme poverty worldwide by 2030, and for every country to cut all dimensions of nationally-defined poverty by half by the same date. Goal 1 further draws linkages between poverty and climate disasters, and sets targets for social protection, resource mobilization and policy development. Likewise, Goal 10, “Reduce inequality within and among countries,” calls on stakeholders at all levels to empower the economic, political, and social inclusion of all people; and for governments to work together to provide pathways of opportunity across the world.

This course will present an overview of the definitions, scale, and scope of different forms of poverty and inequality across the world. It will examine links between poverty, inequality, and well-being; opportunities for socioeconomic mobility; the particular challenges facing women, minorities, Indigenous people, and vulnerable populations; and how poverty and inequality link to issues like climate change, migration, and conflict. Finally, the course will conclude with a look at policy approaches and tools for addressing poverty and inequality in a variety of contexts.

Understanding Poverty and Inequality was created by the SDG Academy in partnership with the Center for Sustainable Development at the Brookings Institution.

This course is for:

  • Policy professionals who want to understand the scale and scope of poverty and inequality in order to design effective interventions
  • Development practitioners seeking knowledge on poverty alleviation
  • Advanced undergraduates and graduate students interested in economics, development, and other key concepts related to the poverty and inequality

What's inside

Learning objectives

  • Global poverty and exclusion as a multidimensional set of deprivations
  • Key elements of the history, achievements, and remaining challenges of poverty and inequality around the world
  • Causes of poverty and inequality
  • Tradeoffs and synergies across dimensions of sustainable development, including identity-based discrimination, climate vulnerability, and more

Syllabus

Module 1: An Introduction to Poverty and Inequality
Chapter 1: What do we mean by “poverty” & “inequality”?
Chapter 2: Measurement, trends, and rates of change
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Chapter 3: How does economic growth affect poverty and inequality?
Chapter 4: Case study: Poverty reduction in East Asia
Chapter 5: Case study: Broad-based growth in Ethiopia
Module 2: Multidimensional Measures of Poverty
Chapter 1: Multidimensional poverty vs. income poverty: why it matters
Chapter 2: Measuring multidimensional poverty
Chapter 3: The MPI information platform
Chapter 4: Policy approaches to multidimensional poverty
Module 3: Explaining Global Inequality
Chapter 1: Defining inequality
Chapter 2: Measuring income inequality
Chapter 3: Global versus within-country inequality
Chapter 4: Winners and losers in the global economy
Chapter 5: Convergence and poverty hotspots
Chapter 6: Tackling inequality
Module 4: Poverty and Subjective Well-being
Chapter 1: Introducing well-being
Chapter 2: Measures of well-being
Chapter 3: The U Curve
Chapter 4: The Adaptation Conundrum and Progress Paradoxes
Module 5: Identity and Exclusion
Chapter 1: Inequality, poverty, and social identity
Chapter 2: Race and financial inequality
Chapter 3: Gendered dimensions of poverty
Chapter 4: Inequality and indigenous experience
Chapter 5: Case study: Exclusion and inequality in South Africa
Chapter 6: Case study: Policing, racism, and colorism in America and beyond
Chapter 7: Case study: Worthy of investment: The devaluation of assets in Black American communities
Module 6: Poverty and Inequality, Today and Tomorrow
Chapter 1: New inequalities of the 21st-century
Chapter 2: Poverty, inequality, and the COVID-19 pandemic
Chapter 3: Why climate matters for poverty and inequality
Chapter 4: The evolution of the global middle class
Chapter 5: Mobility, migration, and opportunity
Chapter 6A: Fiscal policy, inequality and poverty in low and middle income countries
Chapter 6B: Fiscal policy reforms: is UBI a good idea?
Chapter 7: Cash transfers for poverty alleviation
Conclusion

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Explores poverty and inequality, which are important global issues
Taught by instructors who are experts in the field of poverty and inequality
Highly relevant to students with an interest in global development and social justice
Develops understanding of the multidimensional nature of poverty and inequality
Examines the causes and consequences of poverty and inequality
Provides a comprehensive overview of the Sustainable Development Goals

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Activities

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Career center

Learners who complete Understanding Poverty and Inequality will develop knowledge and skills that may be useful to these careers:
Human Rights Activist
Human Rights Activists advocate for the protection and promotion of human rights, including the elimination of poverty and discrimination. This course provides a deep understanding of human rights principles and strategies for advocacy, enabling learners to effectively engage in human rights work.
Social Justice Advocate
Social Justice Advocates work to promote social justice and equality for all. This course provides a deep understanding of the root causes of poverty, inequality, and discrimination, and equips learners with strategies for advocating for systemic change.
Policy Analyst
Policy Analysts play a critical role in shaping policies to address poverty and inequality. This course provides a comprehensive overview of the key issues, challenges, and approaches in this field. Learners will gain valuable insights into how evidence-based research and analysis can inform policymaking.
Sociologist
Sociologists study the social and cultural factors that shape poverty and inequality. This course provides a foundation in sociological theories and research methods, enabling learners to analyze and understand the complexities of social issues and contribute to evidence-based interventions.
Research Analyst
Research Analysts conduct research and analysis to inform policy and program development in the field of poverty and inequality. This course provides a foundation in research methods and analytical techniques, empowering learners to gather, analyze, and interpret data effectively.
Economist
Economists use their knowledge of economic principles to analyze trends and make recommendations on issues related to poverty, inequality, and development. This course provides a solid foundation in these areas, equipping learners with the tools and frameworks necessary for a successful career in economics.
International Development Specialist
International Development Specialists work in developing countries to promote economic and social development, including poverty reduction and inequality mitigation. This course provides a comprehensive overview of the challenges and approaches in international development, equipping learners with the knowledge and skills to make a meaningful contribution.
Program Manager
Program Managers are responsible for designing, implementing, and evaluating programs aimed at reducing poverty and inequality. This course provides a solid understanding of the principles and best practices in program management, enabling learners to effectively manage and contribute to successful poverty alleviation initiatives.
Nonprofit Executive Director
Nonprofit Executive Directors lead organizations dedicated to addressing social issues such as poverty and inequality. This course provides a foundation in nonprofit management and leadership, enabling learners to effectively manage and grow organizations that create positive social change.
Community Development Specialist
Community Development Specialists play a key role in poverty alleviation and social impact. This course helps build a foundation for this work by providing insight into the various dimensions of poverty, inequality, and their impact on individuals. Learners will also gain an understanding of evidence-based approaches to tackling these issues and promoting community well-being.
Social Impact Investor
Social Impact Investors seek to invest in projects that generate both financial returns and social benefits, such as poverty reduction and inequality mitigation. This course provides a comprehensive understanding of the principles and practices of social impact investing, enabling learners to make informed decisions and contribute to positive social change.
Urban Planner
Urban Planners design and implement plans for the development and revitalization of urban areas. This course provides a foundation in the principles and practices of urban planning, enabling learners to incorporate poverty reduction and inequality mitigation into their work.
Journalist
Journalists play a critical role in exposing poverty and inequality and holding those in power accountable. This course provides a foundation in the principles and practices of journalism, enabling learners to effectively report on these issues and raise awareness.
Social Worker
Social Workers provide direct services and support to individuals and communities affected by poverty and inequality. This course provides a foundation in the principles and practices of social work, enabling learners to effectively engage with clients and empower them to overcome challenges.
Teacher
Teachers play a vital role in shaping the minds of young people and fostering their understanding of social issues. This course may be useful for teachers who want to incorporate topics related to poverty and inequality into their curriculum or who want to better understand the challenges faced by their students from disadvantaged backgrounds.

Reading list

We've selected 14 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Understanding Poverty and Inequality.
This comprehensive handbook provides a state-of-the-art overview of research on economic inequality, covering topics such as measurement, trends, causes, and policy responses. It is an essential reference for students and researchers in the field.
This classic work provides a rigorous and comprehensive analysis of inequality, focusing on its ethical, social, and economic dimensions. It is essential reading for students and researchers interested in the theoretical foundations of inequality research.
This journal publishes high-quality research on economic development, including topics related to poverty, inequality, and social welfare. It is another valuable resource for keeping up-to-date on the latest research and policy debates in the field.
This journal publishes high-quality research on poverty, inequality, and development. It provides a valuable resource for keeping up-to-date on the latest research and policy debates in the field.
This seminal work explores the concept of entitlement failures as a cause of famines and poverty. It provides a theoretical framework for understanding the complex relationship between poverty, inequality, and social justice.
Milanovic offers a comprehensive analysis of global inequality trends, exploring the impact of globalization, technological change, and other factors. is essential reading for understanding the complexities of global inequality.
Sachs provides a comprehensive overview of the causes and consequences of poverty, offering policy recommendations for addressing global poverty. is valuable additional reading for understanding the broader context of poverty and inequality.
This influential work explores the historical, political, and economic factors that contribute to the persistence of poverty and inequality across nations. It provides valuable insights into the challenges of promoting inclusive growth and development.
Deaton provides a sweeping historical perspective on the evolution of inequality, focusing on the role of health, technology, and institutions. is valuable additional reading for understanding the long-term drivers of poverty and inequality.
Collier examines the challenges facing capitalism in the 21st century, including rising inequality, technological disruption, and climate change. He offers policy recommendations for creating a more inclusive and sustainable economic system.
Mazzucato challenges the traditional view of the role of the state in the economy, arguing that governments play a crucial role in creating value and driving innovation. is valuable additional reading for understanding the relationship between inequality and economic growth.
This classic work provides an ethnographic study of poverty in urban Mexico, exploring the cultural and psychological factors that contribute to the persistence of poverty. It is valuable additional reading for understanding the complexities of poverty and its impact on individuals and communities.
Muller critiques the excessive reliance on metrics and data in policymaking, arguing that it can lead to unintended consequences and hinder progress towards social goals. valuable reference for understanding the limitations of traditional poverty and inequality measures.

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