Course Type | Course Code | No. Of Credits |
---|---|---|
Discipline Core | SLS2EC236 | 4 |
1. Does the course connect to, build on or overlap with any other courses offered in AUD? No.
2. Specific requirements on the part of students who can be admitted to this course:
(Pre-requisites; prior knowledge level; any others – please specify) No.
3. No. of students to be admitted (with justification if lower than usual cohort size is proposed):
As per SLS norms.
4. Course scheduling (semester; semester-long/half-semester course; workshop mode; seminar mode; any other – please specify):
As per course scheduling norms for MA economics program.
5. How does the course link with the vision of AUD?
Poverty has a global relevance and it affects all of us either directly or indirectly. At the world level, despite having some progress in reducing poverty, the number of people who remain poor are exceptionally high. The same is true in case of India. In India, millions of people live in extreme poverty. It is despite the fact that the counting of poor people is very contentious in India. If we see the profile of poor of India, we can see that majority of the poor are belonging to the marginalised section of the society. So the course is study for these people who have been historically on the margin and somehow left far behind even in the duration of high economic growth.
6. How does the course link with the specific programme(s) where it is being offered?
This course complements the other development economics courses offered in MA economics program at AUD. It improves the availability of electives in development economics area offered at the MA level.
Course Details:
a. Summary:
The course will start with the general discussion of understanding of poverty in India. It discusses how we say a person is poor or non-poor? How modern era poverty is different from the earlier poverty and then goes deeper into it.It discusses conceptual framework of defining poverty, and covers poverty debates both the world level and India. It discusses various causes of poverty and Inequality; How global capitalism link with the creation of reserve army of labour and its linkages with inequality and poverty. The course discuss caste and poverty in India. The second part of the course covers methods of measuring poverty and inequality. The course gives hand on training on method of measuring poverty, inequality, and how to do impact evaluation of any poverty alleviation programme.
Objectives:
i. To introduce students to the general concept of poverty. How the poverty at modern time is different from earlier time?
ii. To understand the link between poverty and labour market.
iii. To understand the implications of global capitalism on poverty & inequality in India
iv. To introduce students to a notion of caste and poverty and interlinkages between two.
v. To teach different method of measuring poverty and inequality around the world and in India.
Expected learning outcomes:
At the end of the course students should be able to:
i. Explain the conceptual framework of defining poverty both at the world level and in India.
ii. Measure poverty and Inequality at the world and India level.
iii. Link capitalism and poverty and its relation with labour market
iv. Describe global debate around measuring poverty at the world level and in India
v. To conduct impact evaluation of poverty alleviation programme
vi. Read and comprehend a professionally published research paper in the area of Poverty.
Overall structure (course organisation, rationale of organisation; outline of each module):
The course will familiarize students about the various issues of poverty, primarily an economist's of view. The course is divided into two parts. The first part mainly focuses upon theoretical discussion of nature and causes of poverty, identification problems, measurement issues and debate on measurement of global poverty and poverty in India. Second part covers computation part of measuring poverty, inequality, and the approaches of impact evaluation of poverty alleviation programmes.
Part A
1. What is Poverty? Nature of modern (early 21st century) poverty contrast with the poverty at earlier time (not prior than 1858).
2. Conceptual framework of defining poverty - Absolute Vs. Relative Poverty, Food energy intake method, Cost of Basic need Approach, Sen’s capabilities Approach, Human Development Approach, Subjective method
3. Poverty Debates - Debates on the measurement of global poverty, and on Poverty estimates in India
4. The link between poverty and labour market- Reserve Army of labour, Impact of reserve army of labour on employment& wage , Historical reason for reserve army of labour.
5. Capitalism and Poverty: Capitalism and Reserve Army of labour- Experiences of Developed countries, Role of migration, and Role of the colonial market. Impact of metropolitan capitalism on the colonised economy - De-industrialization, Impoverishment of peasantry and petty producer, swelling of reserve army of labour.
6. Economic Development and Poverty - Crucial role of Absorption of labour reserve, Relationship between output, Technological progress, and Labour demand, Condition for the elimination of poverty
7. Caste and Poverty: Distribution, Multidimensionality & Persistence of Poverty.
8. Inequality: Inequality of what and within whom? What are the processes that create disparity? Why does it matter?-The intrinsic and instrumental harms of inequality.
Part B
1.Method of Measuring Poverty& Inequality: Headcount Ratio, Poverty Gap Ratio, Square of Poverty Gap Index, Multidimensional Poverty Index (MPI). Lorenz Curve, Gini Index, and Distribution function.
2.Impact Evaluation: Internal and external validity of Impact Evaluation. Evaluation method in practice; Randomized Control Trial (RCT), Difference and Difference Estimation, fixed effect regression, and Instrument Variable Estimators
8.Assessment Plan:
The final assessment will be based on one term papers (40 % weightage), one empirical project/ case study (40 % weightage) and one book/articles review (20% weightage)
Contents (week wise plan with readings):
What is Poverty? Nature of modern (early 21st century) poverty contrast with the poverty at earlier time (not prior than 1858).
This section starts with discussion of asking a question “who is poor”, then discusses the general understanding of poverty. Then it covers how the modern poverty is different from the poverty at earlier time.
Atkinson, A. B. (2019). Measuring poverty around the world. Princeton University Press. (Chapter 2)
Habib, I. (2006). Indian Economy, 1858-1914, People's History of India, (Vol. 28). Tulika Books. (Chapter 1)
Naoroji, D. (1878). Poverty of India, London. (Part 1, a section on necessary consumption)
2. Conceptual framework of defining poverty - Absolute Vs. Relative Poverty, Food energy intake method, Cost of Basic need Approach, Sen’s capabilities Approach, Human Development Approach, Subjective method.
This section goes deeper in conceptualisation of poverty and discuss various measure of poverty measurement in India and at the world level.
Atkinson, A. B. (2019). Measuring poverty around the world. Princeton University Press. (Chapter 3)
Ravallion, M. (1998). Poverty lines in theory and practice (Vol. 133). World Bank Publications.
Wisor, S. (2011). Measuring global poverty: Toward a pro-poor approach. Springer. (Chapter 4-8)
.
3. Poverty Debates - Debates on the measurement of global poverty, and on Poverty estimates in India.
Measurement of poverty in India and at the world are very contentious. There is no measure of poverty which are free from criticism. So, this section mainly covers the poverty debates arising out of using various measure of poverty in India and the world.
Deaton, A., & Kozel, V. (2005). Data and dogma: the great Indian poverty debate. The World Bank Research Observer, 20(2), 177-199
Deaton, A., & Drèze, J. (2009). Food and nutrition in India: facts and Interpretations. Economic and political weekly, 42-65.
Deaton, A., & Drèze, J. (2010). From calorie fundamentalism to cereal accounting. Economic and Political Weekly, 45(47), 87-92.
Patnaik, U. (2007). Neoliberalism and rural poverty in India. Economic and Political Weekly, 3132-3150
Patnaik, U. (2010). A critical look at some propositions on consumption and poverty. Economic & Political Weekly, 6.
Patnaik U. (2010). On some fatal fallacies. Economic and Political Weekly, 45(47):81–87, February.
Patnaik, P. (2013). A Critique of the Welfare Theoretic Basis of the Measurement of Poverty. Economic & Political Weekly, 48(14), 6.
Ram, Krishna (2013). Cereal Consumption used as a proxy for real income, Economic and Political Weekly, July,
Rangarajan. C & Mahendra Dev, S.(2017) Counting the poor: Where Do We Stand, Aceadmic Foundation , New Delhi
Wisor, S. (2011). Measuring global poverty: Toward a pro-poor approach. Springer.
Supplementary readings on measurement of global poverty:
Anand, S., Segal, P., & Stiglitz, J. E. (2010). Debates on the measurement of global poverty. Oxford University Press.
Reddy, S. (2008). The World Bank's new poverty estimates: digging deeper into a hole. Challenge, 51(6), 105-112.
Reddy, S. G. (2009). Counting the poor: the truth about world poverty statistics. Socialist Register, 42(42).
Reddy, S. G., & Minoiu, C. (2007). Has world poverty really fallen? Review of Income and Wealth, 53(3), 484-502.
Pogge, T., & Reddy, S. G. (2005). How not to count the poor. Available at SSRN 893159Summers, R., & poverty analysis,” The World Bank Research Observer, 11(2), 199-221, August.
Pogge, T., & Reddy, S. G. (2006). Unknown: The extent, distribution and trend of global income poverty. Distribution and Trend of Global Income Poverty.
Pogge, T. (2010). How Many Poor Pople Should Be? A rejoinder to Ravallion in
4. The link between poverty and labour market- Reserve Army of labour, Impact of reserve army of labour on employment & wage, Historical reasons for reserve army of labour.
This section deals with the linkages between labour market and poverty. It discusses how the large pool of unemployed labour adversely affects the labour market outcome including the wage that a labour receive out of his daily works. How the low wage links with the vicious cycle of poverty. This section also discuss historical reasons for reserve army of labour in case of India.
Karl Marx “Capital Volume 1”, a section on the General Law of Capital Accumulation.
Sweezy, P. M. (2018). Theory of Capital Development. NYU Press.
Ambedkar, B.R(1979). Babasaheb Ambedkar: Writing and speeches Vol, 3, Government of Maharrashtra, Mumbai. (Chapter 1, particularly a section on division of labour/ labourers).
Supplementary readings:
Karl Marx (1935). Wage-Labour and Capital/Value, Price and Profit, New York: International Publishers
Raychaudhuri, T. (1985). Historical Roots of Mass Poverty in South Asia A Hypothesis. Economic and Political Weekly, 801-806.
5. Capitalism and Poverty: Capitalism and Reserve Army of labour - Experiences of Developed countries, Role of migration, and Role of the colonial market. Impact of metropolitan capitalism on the colonised economy - De-industrialization, Impoverishment of peasantry and petty producer, swelling of reserve army of labour.
This sectional link poverty with capitalism. It discuss of how the evaluation of capitalism in western world link with maintenance of reserve army of labour. What roles migration and colonial market played in developing capitalism society there? Then, It discusses impact of metropolitan capitalism on the colonised economy.
Patnaik, U., & Patnaik, P. (2016). Capitalism, poverty and inequality, Chapter 5 in A theory of imperialism, Columbia University Press.
Patnaik,P(2018). Capitalism, Poverty and Praxis, International development economic Association, https://www.networkideas.org/featured-articles/2018/04/capitalism-poverty-and-praxis/
Foster, J. B., MC chesney, R., & jonna, J (2011). The global reserve army of labour and the new imperialism, Monthly Review, https://monthlyreview.org/2011/11/01/the-global-reserve-army-of-labor-and-the-new-imperialism/
Foster, Harry Magdoff, and Robert W. McChesney (2014). The Stagnation of Employment, Monthly Review, 55, no. 11, pg. 9–11.
Samir, A. (2003). World Poverty, Pauperization and Capital Accumulation. Monthly Review, 55(5). https://monthlyreview.org/2003/10/01/world-poverty-pauperization-capital-accumulation/
Supplementary readings:
Patnaik, U. (2012). Capitalism and the Production of Poverty. Social Scientist, 40(1/2), 3-20.
Bagchi, A. K. (1972). Some international foundations of capitalist growth and underdevelopment. Economic and Political Weekly, 1559-1570.
6. Economic Development and Poverty - Crucial role of Absorption of labour reserve,
Relationship between output, Technological progress, and Labour demand, Condition for the elimination of poverty.
This section mainly looks the role of economic development in removing poverty. It talks how absorption of labour reserve in gainful employment is essential condition of removing poverty. How output, technological progress and factors that affect labour demand are crucial for elimination of poverty?
Patnaik, P. (2011). Growth and poverty in the Indian economy. Social Scientist, 39(9/10), 19-23
Ajit K. Ghose, Nomaan Maji, and Christoph Ernst, The Global Employment Challenge (Geneva: International Labour Organisation, 2008), 9–10.
Jayaraj, D. & Subramanian, S (2012). Poverty, inequality, and population: essays in development and applied measurement. Oxford University Press. (Ch-2)
Quigley, W. (2008). Ending poverty as we know it: Guaranteeing a right to a job. Temple University Press.
Banerjee, A. V., Bardhan, P. K., & Somanathan, R. (Eds.). (2017). Poverty and income distribution in India. juggernaut.(ch 15,16 &17)
7. Inequality: Inequality of what and within whom? What are the processes that create disparity? Why does it matter? -The intrinsic and instrumental harms of inequality.
This section begins with general discussion of inequality? Then it discusses inequality of what and within whom. What are the processes that creates inequality and how does it matter for economy and society as whole?
Milanovic, B. (2016). Global inequality: A new approach for the age of globalization. Harvard University Press.
Stiglitz, Joseph E. (2012). The Price of Inequality: How Today's Divided Society Endangers Our Future. New York: W.W. Norton & Co
Stewart, F. (2009). Horizontal inequality: two types of trap. Journal of Human Development and Capabilities, 10(3), 315-340
Supplementary readings:
Rawls, J. (2001). Justice as fairness: A restatement. Harvard University Press.
Piketty, T. (2014). Capital in the 21st Century. Translated by Arthur Goldhammer, The Balknap Press of Harvard University Press, London,
Sen A. (1992). Inequality Re-examined. Oxford: Clarendon Press; 1992.
8. Caste and Poverty: Distribution, Multidimensionality & Persistence of Poverty.
This sectional mainly deals with linkages between caste and poverty. It discusses of
distribution of poverty across caste. It covers the prevalence and persistence of
multidimensional poverty across caste in India.
Thorat, S. (2009). Dalits in India: Search for a common destiny. SAGE Publications Ltd.
Jayaraj, D. & Subramanian,S (2012). Poverty, inequality, and population: essays in development and applied measurement. Oxford University Press. (ch-3)
Borooah, V. K., Sabharwal, N. S., Diwakar, D. G., Mishra, V. K., & Naik, A. K. (2015). Caste, discrimination, and exclusion in modern India. SAGE Publications India. (ch 3)
Rycroft, R. (2014). The economics of inequality, discrimination, poverty, and mobility. Routledge. (ch9)
Part B (roughly around 4 weeks)
9. Method of Measuring Poverty& Inequality: Headcount Ratio, Poverty Gap Ratio, Square of Poverty Gap Index, Sen’s Poverty Index, Multidimensional Poverty Index (MPI). Lorenz Curve, Gini Index, and Distribution function.
This sectional mainly covers the various method of measuring poverty and inequality. The emphasis would be on the practical aspect of measuring poverty and inequality.
Haughtonand, J., & Khandker, S. R. (2009). Handbook of poverty and inequality.
Ravallion, M (2016). The Economics of Poverty: History, Measurement, and Policy, Oxford University Press, New Delhi (ch 5)
Sen, A. (1979). Issues in the measurement of poverty. The Scandinavian Journal of Economics, 285-307
Human development report 2013: The rise of the South: Human progress in a diverse world, UNDP
10. Impact Evaluation: Internal and external validity of Impact Evaluation. Evaluation method in practice; Randomized Control Trial (RCT), Difference and Difference Estimation, fixed effect regression, and Instrument Variable Estimators.
This section covers the methods of impact evaluation of poverty elimination programmes. In that it discuss conceptual aspect of randomised control trial and work with the methods listed above.
Duflo, E., Glennerster, R., & Kremer, M. (2007). Using randomization in development economics research: A toolkit. Handbook of development economics, 4, 3895-3962.
Ravallion, M. (2008). “Evaluating anti-poverty programs”. In Paul Schultz and Jhon Strauss (eds), Handbook of Development Economics, vol 4, Amsterdam: North Holland.
Lee, Myoung-jae (2005). Microeconometrics for policy, programme and treatment effects. Oxford: Oxford University Press.
Ravallion, M (2016). The Economics of Poverty: History, Measurement, and Policy, Oxford University Press, New Delhi (ch 6)
- Pedagogy:
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- Instructional strategies: Classroom lectures, presentations, video screenings.
- Special needs (facilities, requirements in terms of software, studio, lab, clinic, library, classroom/others instructional space; any other – please specify): Classroom with a projector and sound system.
- Expertise in AUD faculty or outside : AUD Faculty