IAFS 1000 Lecture Notes - Lecture 1: Welfarism, Dutch Disease, Physical Capital
26 Dec 2016
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Document Summary
Income-sale of outputs, public/private transfers (subsidies and remittances) - usually measured with surveys that can be inaccurate. Global average for bottom billion is between -2/day. Often social capital is not measured or accounted for. Assets- poor people tend to focus more on assets than monetary capital. Risk- managing risks through ownership of assets, borrowing, insurance & social insurance, coping strategies Problems: -insecurity: exposure to risks that could result in loss of assets e. g. lack of car insurance/natural disaster e. g. moving to an area where diseases are prominent without proper vaccination. Vulnerability is the likelihood that such risks will result in the decline of well-being. Enhancing one freedom usually enhances others since they are inter-connected. Political freedoms- civic rights/ power to decide who governs and on what principles, freedom of speech/critique/protesting. Economic facilities- opportunities that individuals enjoy to utilize resources for consumption, production, or exchange. Social opportunities- arrangements of society for health and education.
