Question

How has the poverty rate of the world changed since 1980? What are the major factors underlying this change? Explain your responses.

Answer 1

The poverty rates since 1980 has shown a downward trend. Since 1980, the world’s rate of poverty has continued to decline mainly due to the income inequality. It is mainly due to the rapid growth of populous nations, India and China in particular. A rapid decline was observed during the most rapid periods of growth. In the 1980s, in OECD nations the richest 10% of the population earned nearly 7 times compared to the poorest 10%. It has now been increased to nearly ten times more. After 1980, the impacts of the median wages, unemployment, and inequality in wage were nearly half their pre-1980 magnitudes. Furthermore the period after 1980 also faced large changes in family structure and demographics