By Nanak Kakwani

ISBN-10: 0230004903

ISBN-13: 9780230004900

This e-book indicates that poverty is multidimensional and therefore should be analyzed from a multidisciplinary standpoint, which has to incorporate fiscal, sociological, mental, anthropological, philosophical, criminal and evolutionary views. It additionally offers the hot principles on poverty research that experience develop into very hot in recent times - the participatory technique, the concept that of empowerment, the proposal of vulnerability and the excellence among power and temporary poverty.

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They proceed to build a multidimensional measure of poverty assuming only two attributes. The first issue is whether a person should be considered poor if she falls short of the thresholds for all attributes, or only one. In the two-attribute case if x1 Ͻ z1, and x2 Ͻ z2, the person would be poor in both dimensions and therefore unambiguously poor. Alternatively, the shortfall might be in only one dimension, in which case the determination would depend on the Erik Thorbecke 9 nature of the relationship between the two attributes.

The first component is supposed to represent that part of vulnerability due to (chronic) poverty, while the second reflects risk and uncertainty and, presumably, transitory poverty. While this distinction is ingenious and useful in estimating the utility gain that could accrue to the poor if there were a means to decrease their anticipation of risk through some social insurance programme, it could mask the fact that certain types of current poverty (portfolios of deprivations) render those households more vulnerable.

2). This feature of their approach is fundamental in that it incorporates the possibility of households deciding within an intertemporal framework to reduce their mean consumption to reduce consumption variability and risk. Wood (2003) referred to this trade-off as the ‘Faustian Bargain’. The quest for household security can lock poor people into social structures that reduce vulnerability but which also keeps them poor. Based on ethnographies derived from qualitative research, Wood shows why many households ‘stay poor’ in an attempt to ‘stay secure’.

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Many Dimensions of Poverty by Nanak Kakwani

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