Analysing Poverty & Inequality

MGDI30602 Analysing Poverty & Inequality 20 Semester 2 Undergraduate Level 3 Salauddin Tauseef Unit coordinator Global Development Institute 1 FHEQ level (Framework for Higher Education Qualifications) ' Last part of a Bachelors ' European Credit Transfer & Accumulation System Rating : 10.0 This 20-credit third-year optional unit offers a comprehensive and analytically rigorous introduction to poverty and inequality in global development. The course begins with the conceptual and quantitative foundations: how poverty and inequality are defined, measured, and compared across countries and over time. Students will learn to interpret key tools such as the Lorenz curve, Gini coefficient, Atkinson index, FGT poverty measures, and international poverty lines, using real household survey data to construct and analyse poverty profiles.The course then examines the economic mechanisms that sustain poverty, including poverty traps, behavioural constraints, and structural disadvantages, alongside major policy responses such as cash transfers and graduation programmes. In the final part, the unit moves beyond income to explore multidimensional and capability-based approaches to wellbeing, including the Multidimensional Poverty Index (MPI) and its policy applications.Throughout, the emphasis is on linking theory, measurement, and real-world evidence. By the end of the course, students will be equipped to critically assess poverty statistics, understand competing policy approaches, and engage confidently in debates about how poverty and inequality should be measured and addressed across diverse country contexts. This 20-credit third-year optional unit offers a comprehensive and analytically rigorous introduction to poverty and inequality in global development. The course begins with the conceptual and quantitative foundations: how poverty and inequality are defined, measured, and compared across countries and over time. Students will learn to interpret key tools such as the Lorenz curve, Gini coefficient, Atkinson index, FGT poverty measures, and international poverty lines, using real household survey data to construct and analyse poverty profiles.The course then examines the economic mechanisms that sustain poverty, including poverty traps, behavioural constraints, and structural disadvantages, alongside major policy responses such as cash transfers and graduation programmes. In the final part, the unit moves beyond income to explore multidimensional and capability-based approaches to wellbeing, including the Multidimensional Poverty Index (MPI) and its policy applications.Throughout, the emphasis is on linking theory, measurement, and real-world evidence. By the end of the course, students will be equipped to critically assess poverty statistics, understand competing policy approaches, and engage confidently in debates about how poverty and inequality should be measured and addressed across diverse country contexts. The unit aims to provide:<ol><li>A rigorous understanding of the conceptual and theoretical foundations of poverty and inequality, including competing perspectives on welfare, distribution, and development.</li><li>A systematic exposition of the measurement of poverty and inequality, including income-based and multidimensional approaches, and an assessment of their properties, limitations, and policy implications. </li><li>Critical engagement with empirical evidence and data sources, enabling students to evaluate research findings, official statistics, and the quality and comparability of datasets across contexts.</li><li>An applied understanding of the economic, social, and political drivers of poverty and inequality, and the role of public policy, institutions, and international actors in shaping distributional outcomes across low-, middle-, and high-income countries.  </li></ol> This unit enhances student outcomes by developing strong analytical and policy-relevant skills central to the study of poverty and inequality. Through engagement with measurement tools, empirical evidence, and real-world datasets, students strengthen their ability to interpret statistical indicators, critically evaluate research, and assess the quality and comparability of data. These competencies are highly valued in professional environments that rely on evidence-based decision-making.The course supports employability by equipping students with skills relevant to careers in government departments, international organisations (e.g. UN agencies, World Bank), NGOs, research institutions, consultancy, and the civil service. Students develop the capacity to communicate complex quantitative and conceptual material clearly to specialist and non-specialist audiences, a key requirement in policy and development practice.More broadly, the unit fosters transferable skills aligned with PEAM priorities, including critical thinking, independent research, data literacy, problem-solving, structured written communication, and professional engagement with contemporary policy debates. These attributes prepare graduates for analytically demanding roles in the development, public policy, and research sectors. <ul><li>Demonstrate a systematic understanding of the key concepts, theoretical frameworks, and quantitative measures used in the analysis of poverty and inequality.</li><li>Explain the economic and behavioural mechanisms underlying poverty and distributional change.</li><li>Evaluate the strengths and limitations of income-based and multidimensional approaches to measuring wellbeing and deprivation.</li></ul> <ul><li>Critically analyse theoretical and empirical literature on poverty and inequality.</li><li>Assess the assumptions, methodological choices, and policy implications associated with alternative measurement approaches.</li><li>Develop coherent, logically structured, and evidence-based arguments addressing complex development issues.</li></ul> <ul><li>Interpret and evaluate poverty and inequality indicators derived from household survey and international datasets.</li><li>Compare and assess the reliability, validity, and comparability of different data sources.</li><li>Apply appropriate analytical tools to construct and interpret poverty profiles and distributional analyses.</li></ul> <ul><li>Communicate analytical findings clearly and effectively in written formats.</li><li>Demonstrate independent learning, critical reflection, and intellectual integrity in the use of data and evidence.</li><li>Engage in debates on policy issues related to poverty, inequality, and global development.</li></ul> Topic 1: Concepts and Measurement of Poverty and InequalityConceptual foundations:<ul><li>Absolute vs relative poverty</li><li>Inequality vs poverty vs vulnerability</li><li>Welfare, wellbeing, and deprivation</li></ul>Inequality measurement:<ul><li>Lorenz curve and Gini coefficient</li><li>Atkinson index (inequality aversion)</li></ul>Poverty measurement:<ul><li>Headcount, poverty gap, squared poverty gap (FGT indices)</li></ul>Poverty lines:<ul><li>Absolute, relative, and subjective poverty lines</li><li>Cost-of-basic-needs approach</li><li>National vs international poverty lines (e.g. World Bank $2.15)</li></ul>Empirical applications: Poverty Profiles:<ul><li>Introduction: What Is a Country Poverty Profile?</li><li>Profile Presentation: Use of household survey data (DHS, LSMS)</li></ul>Topic 2: Poverty and the EconomyPoverty traps:<ul><li>Asset-based poverty traps</li><li>Nutrition-based and health-based traps</li><li>Empirical identification challenges</li></ul>Behavioural economics and poverty:<ul><li>Scarcity and cognitive load</li><li>Time inconsistency and self-control</li><li>Aspirations, hope, and social norms</li></ul>Poverty alleviation strategies:<ul><li>Cash transfers and Graduation programmes</li></ul>Topic 3: Multidimensional Wellbeing and Deprivation (Beyond income)***Critiques of income-based measures:<ul><li>Money-metric limitations</li><li>Intra-household inequality</li></ul>Capabilities approach: Sen’s functionings and capabilities:<ul><li>Multidimensional measures</li><li>Alkire–Foster methodology: Multidimensional Poverty Index (MPI)</li><li>National MPIs and policy use</li></ul>Empirical applications:<ul><li>MPI decomposition by region, gender, ethnicity</li><li>Policy targeting and monitoring</li></ul>***the topic may be covered partially in the interest of time.   The unit adopts a blended approach combining lectures, tutorials, and structured independent study, supported by digital resources on Canvas.Weekly 2-hour lectures (20 hours, synchronous, in-person) introduce the core concepts, theoretical frameworks, and quantitative tools used to analyse poverty and inequality. Sessions are interactive and incorporate discussion, interpretation of empirical evidence, and applied policy examples.Bi-weekly 2-hour tutorials (10 hours, synchronous, in-person) provide small-group support to deepen understanding, develop critical discussion, and offer guidance on assessment. These sessions focus on interpreting poverty and inequality measures, evaluating research evidence, and debating policy implications.Independent study (170 hours, asynchronous) forms a substantial component of the unit. Students are expected to engage with essential readings, review lecture materials, analyse empirical examples, and prepare for assessments.Canvas serves as the central hub for the course, hosting lecture slides, reading lists, supplementary materials, formative quizzes, and discussion forums. Digital resources support flexible, self-paced learning and reinforce quantitative and conceptual understanding. 1 Written exam 30% 2 Written assignment (inc essay) 70% Feedback on the assessments via Canvas within SEED’s guideline. MGDI10032 Quantitative Research Skills for Development Pre-Requisite Compulsory BSc Global Development BSc (Hons) Global Development Third Year Optional Y Ray (1998): Development Economics, Princeton University Press. Ravallion (2016): The Economics of Poverty, Oxford University PressHaughton, Jonathan; Khandker, Shahidur R. (2009). Handbook on Poverty and Inequality. World Bank.   Lectures 20 Tutorials 10 0 170 Equality, diversity, and inclusion (EDI) are integral to this unit. The course explicitly examines inequality, deprivation, and social exclusion in global development, highlighting how poverty and inequality affect individuals and communities differently across gender, race, ethnicity, and geography. Discussions in lectures and tutorials explore how structural inequalities intersect with poverty and policy interventions, encouraging critical reflection on inclusion, marginalisation, and under-representation in development contexts. Students engage with case studies and empirical evidence from low-, middle-, and high-income countries, providing a broad, inclusive perspective on global development challenges.Teaching is designed to be accessible and inclusive: all core materials are available on Canvas. Assessment and class discussions encourage respectful engagement with diverse viewpoints, equipping students to critically analyse inequality in ways that value and reflect diversity.