ELUSIVE SOLUTIONS TO POVERTY AND INEQUALITY: FROM TRICKLE DOWN TO - PowerPoint PPT Presentation

ELUSIVE SOLUTIONS TO POVERTY AND INEQUALITY: FROM “TRICKLE DOWN” TO “SOLIDARITY ECONOMY” Dr. Tidings P. Ndhlovu Manchester Metropolitan University, UK Visiting Research Fellow, Graduate School of Business Leadership, University of South Africa t.ndhlovu@mmu.ac.uk

INTRODUCTION  THEORETICAL PERSPECTIVES  EQUITY, (IN) EQUALITY AND POVERTY  STRUCTURE OF PRESENTATION:  FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS APPROACH  SEN’S ENTITLEMENTS AND CAPABILITY APPROACH, AND PARTICIPATORY APPROACHES  MARXIAN APPROACHES, AND THE CONCEPT OF “SOLIDARITY ECONOMY”  CONCLUSIONS

FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS APPROACH  “ TRICKLE DOWN” APPROACH: TOP-DOWN ● POVERTY AND INEQUALITY: A NATURAL PHENOMENON ● ECONOMIC GROWTH: INCOME “TRICKLING DOWN” ● “GETTING PRICES RIGHT” (LAL, 1983) ● FREE MARKET: RATIONAL INDIVIDUAL BASIC NEEDS (BN) APPROACH (ILO, 1976): BOTTOM-UP  ● CHALLENGE TO “TRICKLE DOWN” THEORY : ERADICATION OF ABSOLUTE POVERTY POVERTY: DEPRIVATION OF CONSUMPTION BUNDLES ● BN STRATEGY PROVISION OF BASIC NEEDS: MINIMUM (FOOD, SHELTER, CLOTHING) AND ESSENTIAL (WATER & SANITATION, HEALTH, EDUCATION) PROVISION OF PRODUCTIVE EMPLOYMENT ● REQUIREMENTS ADEQUATE FINANCE NECESSARY SERVICE NETWORKS

FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS APPROACH ● INTERIM CONCLUSIONS NOT ANTI-GROWTH LINK WITH INVESTMENT IN HUMAN CAPITAL ● EVIDENCE CHINA: SRI LANKA WORLD BANK INVOLVEMENT: NATIONAL SOVEREIGHTY  LIMITED RESOURCES  SUBSIDISATION: UNINTENDED CONSEQUENCES  ● PRIMARY/UNIVERSIRTY ACCESS: SELECTIVE POLICIES ● EXTENSION OF SYSTEM: CONTRADICTORY TO TARGETING DEPENDENCY  DEFINITION OF BASIC NEEDS & DEVELOPMENT OF SOCIAL  INDICATORS: ● SELECTION OF VARIABLES ● WEIGHTING OF VARIABLES ● METHOD FOR CONSTRUCTING COMPOSITE INDEX ● USEFULNESS OF INDEX

SEN’S ENTITLEMENTS AND CAPABILITY APPROACHES: PARTICIPATORY APPROACHES POVERTY AND INEQUALITY:  ● DEPRIVATION OF BASIC CAPABILITIES ENTITLEMENTS  ● CONSUMPTION BUNDLES: DEPEND ON EMPLOYMENT, WAGES, PRICES OF COMMODITIES ● POLITICAL/SOCIAL PRESSURES CAPABILITY APPROACH:  ● ACCESS TO ENTITLEMENTS OF EDUCATION, HEALTH etc. ● “FUNCTIONINGS” - ACTUAL ACHIEVEMENTS ● FREEDOM - CAPABILITY – CHOICES/OPPORTUNITY; MATERIAL AND SPIRITUAL NEEDS; PARTCIPATION IN POLITICAL/DEMOCRATIC PROCESSES; INVOLVEMENT IN DECISION-MAKING PROCESS EXAMPLE OF PARTICIPATORY APPROACH (YUNUS, 1999)  ● GRAMEEN BANK (VILLAGE BANK) IN BANGLADESH ● “MICRO - LOANS“ TO POOR WOMEN SEN: CONCLUSION  ● POVERTY: MULTI-DIMENSIONAL ; DEPRIVATION - DIGNITY etc.

MARXIAN APPROACHES, AND THE CONCEPT OF “SOLIDARITY ECONOMY”  MARXIAN: OWNERSHIP OF MEANS OF PRODUCTION: ● creation of surplus value ● accumulation process: unequal distribution of wealth & income ● division of labour: class, race, gender/social relations  “SOLIDARITY ECONOMY”: ● “popular economy” vis a vis “solidarity economy” ● “solidarity economy” – different perspectives, ranging from enlightened markets to collective values and fundamental change of capitalist societies  POLICY IMPLICATIONS ● collective ownership; sustainable development ● long-term structural transformation: Alleviation of poverty and reduction of inequality - self-empowerment; emancipation

Figure 1 Source: Kawano (2013: 5).

CONCLUSIONS NEO-CLASSICAL APPROACH:  POVERTY: NATURAL PHENOMENON SOLUTION: “GETTING PRICES RIGHT”/TOP -DOWN CRITICISMS: ONE- DIMENSIONAL; “TRICKLE DOWN” BASIC NEEDS APPROACH:  POVERTY: CONSUMPTION DEPRIVATION SOLUTION: PROVISION OF CONSUMPTION AND PRODUCTIVE EMPLOYMENT/BOTTOM-UP CRITiCISMS: THEORETICAL AND EMPIRICAL ENTITLEMENTS/CAPABILITY APPROACH; PARTICIPATORY  APPROACHES: POVERTY: BASIC CAPABILITY DEPRIVATION SOLUTION: “FUNCTIONINGS” AND FREEDOM CRITICISMS: CONTRADICTORY ANALYSIS; EMPIRICAL MARXIAN APPROACHES, AND THE CONCEPT OF “SOLIDARITY  ECONOMY” POVERTY: POWER DEPRIVATION SOLUTION: “GETTING SOCIAL RELATIONS RIGHT” CRITICISMS: SOME ANALYSES CAN BE DETERMINISTIC, WHILE SOME “SOLIDARITY ECONOMY” ANALYSES MAY BE REFORMIST