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Poverty as a System: Human Contestability Approach to Poverty Measurement

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  • Gopal Kanji
  • Parvesh Chopra

Abstract

Since Sen's (1976) paper on poverty measurement, a substantial literature, both theoretical and empirical, has emerged. There have been several recent efforts to drive poverty measures based on different approaches and axioms. These poverty indices are based on head count ratio, poverty gaps and distribution of income. These are very narrow in approach and suffer from several drawbacks. However, the purpose of the present paper is to introduce a new poverty measure based on a holistic and system modelling approach. Based on Chopra's human contestability (Chopra, 2003, 2007) approach to poverty, this new approach to measuring poverty has been developed using a structure equation model based on Kanji's business excellence model (Kanji, 2002) to create the proposed poverty model. We construct a latent variable structural equation model to measure the contestability excellence within certain boundaries of the societal system. It will provide us with a measurement of poverty in a society or community in terms of human contestability. A higher human contestability index will indicate the lower poverty within the society. Strengths and weakness as of various components will also indicate that a characteristic of the individual requires extra society or government support to remove poverty. However, there remains considerable disagreement on the best way to achieve this.

Suggested Citation

  • Gopal Kanji & Parvesh Chopra, 2007. "Poverty as a System: Human Contestability Approach to Poverty Measurement," Journal of Applied Statistics, Taylor & Francis Journals, vol. 34(9), pages 1135-1158.
    • Handle: RePEc:taf:japsta:v:34:y:2007:i:9:p:1135-1158
    DOI: 10.1080/02664760701619142
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    Citations

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    Cited by:

    1. Aon Waqas Awan & Yasir Kamal & Muhammad Rafique & Shahbaz Khan, 2012. "Corporate Social Responsibility In Pakistan Economy," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 4(1), pages 1-22, April.
    2. Chopra, Parvesh K. & Kanji, Gopal K., 2010. "On Measuring Country Risk: A new System Modelling Approach - La misura del rischio paese: un nuovo approccio system modelling," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 63(4), pages 479-515.
    3. Isabel Novo-Corti & Diana-Mihaela Țîrcă & Magdalena Ziolo & Xose Picatoste, 2019. "Social Effects of Economic Crisis: Risk of Exclusion. An Overview of the European Context," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    4. Chopra, ParveshK., 2022. "A Systems Model to Measure Labour Market Dynamics," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 75(4), pages 465-518.

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