8.2 Poverty And Inequality

By the end of this lesson, you should be able to identify important issues within this topic, recognise contrasting perspectives, suggest causes and consequences, consider possible courses of action and develop suitable questions for Global Perspectives research.

How To Use This Topic Guide

This is not a chapter to memorise. Use it to explore possible issues, practise Cambridge skills and decide whether this topic is suitable for an Individual Report or Team Project.

What This Topic Includes

This topic explores why people experience unequal income, wealth, opportunity, services and power, and how poverty can affect health, education, housing and participation.

Possible Global Issues

Absolute and relative poverty.
Unequal access to education and healthcare.
Wealth concentration and inheritance.
Regional and rural–urban inequality.
Gender and ethnic inequalities.
Whether taxation should redistribute wealth.
Social protection and cash-transfer programmes.
Intergenerational poverty.
Effects of inflation and unemployment on low-income households.

Stakeholders And Perspectives

Low-income households may prioritise affordable essentials, secure work and dignity.
Governments may balance redistribution, growth and public budgets.
High-income groups may support opportunity but oppose high taxation.
Businesses may emphasise investment, wages and economic competitiveness.
Charities may focus on immediate need and vulnerable groups.
Economists may disagree about causes and the most effective policies.
Young people may face unequal access to education and networks.
Communities may experience poverty differently according to housing, transport and local services.

Possible Causes

Low wages and insecure employment.
Unequal education and healthcare.
Discrimination and exclusion.
Concentration of land, wealth or political influence.
Regional underinvestment.
Conflict, disaster and environmental change.
High living costs and debt.
Limited social protection.
Intergenerational disadvantage.

Possible Consequences

Poor health, nutrition and housing.
Lower educational achievement and opportunity.
Greater stress and insecurity.
Reduced social mobility.
Political exclusion and distrust.
Higher vulnerability to disasters and economic shocks.
Loss of talent and productivity.
Social division and conflict.

Possible Courses Of Action

Use progressive taxation and effective public spending.
Provide targeted income support and social protection.
Improve early education, healthcare and nutrition.
Raise job quality, skills and access to secure employment.
Expand affordable housing and transport.
Reduce discrimination and unequal access to institutions.
Support regional development and small businesses.
Measure poverty using more than income alone.

Possible Individual Report Questions

Is taxation the fairest way to reduce inequality?
Does economic growth automatically reduce poverty?
Are cash transfers more effective than providing services directly?
Should inheritance be taxed more heavily?
Is unequal wealth acceptable if everyone’s living standard improves?

Possible Team Project Ideas

Map barriers faced by low-income students in accessing school activities.
Create a local resource guide for support services.
Investigate food, transport or digital costs affecting students.
Run a donation or support project while evaluating whether it addresses causes or only symptoms.
Survey perceptions of inequality and compare them with available data.

Useful Types Of Evidence

Income, wealth and cost-of-living data.
Education, health and housing indicators.
Household surveys and personal testimony.
Tax and public-spending information.
Employment and wage statistics.
Research on mobility, discrimination and social protection.

Skill Practice

Compare two anti-poverty policies. Identify the immediate benefit, long-term effect, cost, groups reached and possible unintended consequences of each.

Lesson Summary

Poverty includes limited resources, opportunity and security.
Inequality concerns how benefits and power are distributed.
Policies should be assessed for fairness, effectiveness and sustainability.
Personal testimony should be combined with broader data.