Income-Oriented Approach

  1. Define entitlement and explain 1 limitation of using it as a measure of welfare
    entitlements are commodities or services which a person can own or command. Focusing too much on commodities and basic needs distracts from non-market ends as people desire things than mere survival or substinence. Non- market ends e.g. cultural identity, social integration and dignity which may be important to people's welfare are not included in assessments that solely use entitlements as a measure of welfare. 
  2. Explain the limitation of using income as a measure of welfare. Explain.
    Using income as a welfare measurement assumes that income is the only way through which people can acquire their basic needs. But this is not the case as income is only one means of acquiring basic needs. Food can be produced by people. 
  3. What are the limitations to the income-oriented approach?
    • 1. poverty line itself
    • 2. doesn't work for the poorest of the poor
    • 3. assumes income will be spent on basic needs
    • 4. assumes all basic needs are acquired through income
  4. What is wrong with the assumption that income will be spent on basic needs?
    people may buy cigarettes/ alcohol with income
  5. What is wrong with the poverty line?
    • the poverty line is lowered and its standards are changed constantly
    • there is a reduced standards for food in the menu
    • food is replaced with cheaper food
    • it gives the impression that poverty is less serious

    • the non-food needs should be included:
    • to meet standards for other basic needs such as education, clothing, med care, transportation that we will be able to see that the non-food needs are not being met
  6. What is the idea that the income-oriented approach does not work for the poorest of the poor?
    At times, the poorest of the poor are unemployable. They are unqualified for the jobs that might be provided so the only available work would be hard, unpaid labor. As a result, they would be given consumption and welfare transfers. E.g. CCT wherein there are conditions to get avail for basic needs and services such as immunization, education, weight checks. They become reliable on the government.
  7. What is an incentive to get out of poverty?
    better education and health
Card Set
Income-Oriented Approach
Income-oriented approach not complete