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Lecture Note 1
General Introduction

Nigeria, despite being one of the largest economies in Africa, faces significant challenges
related to poverty and unemployment. These challenges are not only economic but also social,
as they contribute to a higher incidence of crime, particularly in urban areas. The urban centres
of Nigeria experience more intense crime situations compared to rural areas due to high levels
of urban poverty, congestion, and unemployment (Ezeajughu, 2021).

The relationship between unemployment and crime is particularly stark in Nigeria, where
empirical evidence suggests that a 1% rise in unemployment leads to a significant increase in
the crime rate (Ojo et al., 2021). This course will delve into the complexities of this
relationship, exploring how economic deprivation and lack of job opportunities drive
individuals towards criminal activities as a means of survival.

Understanding poverty is crucial for planning effective interventions and policies. Studying
poverty helps us gauge the economic and social development of the state and devise steps to
alleviate it. By analysing the nuances of unemployment and its effects on crime, we aim to
uncover sustainable solutions to these pervasive issues.

Throughout this course, we will engage with various models, arguments and theoretical
perspectives, empirical data, and case studies to gain a comprehensive understanding of how
poverty and unemployment fuel crime and worsen insecurity in Nigeria. Join me as we explore
these critical issues and work towards fostering a more equitable and secure society.

Item 2
Poverty

Poverty is a multifaceted concept that encompasses various dimensions beyond the mere lack
of income. It involves a state where individuals or communities lack the financial resources
and essentials for a minimum standard of living.

Measurement of Poverty

1. Absolute Poverty
o Definition: Absolute poverty refers to a condition where individuals lack the
basic necessities for survival, such as food, clothing, and shelter. It is often
measured against a fixed income threshold, such as the international poverty
line set by the World Bank.
o Measurement: This method uses a fixed poverty line, such as living on less
than $1.90 per day (as of recent global standards). It focuses on whether
individuals can meet their basic needs.
o Advantages: Provides a clear benchmark, easy to understand and compare
across countries.

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 o Limitations: Does not account for variations in living costs across different
regions and countries.
2. Relative Poverty
o Definition: Relative poverty considers an individual's economic status in
relation to the overall economic status of the society. It measures how low
someone's income is compared to the median income of the society.
o Measurement: Typically, it is defined as having an income below a certain
percentage (often 50% or 60%) of the median income.
o Advantages: Accounts for social inclusion and relative standards of living.
o Limitations: Can vary significantly between different societies and does not
indicate whether basic needs are met.
3. Poverty Persistence
o Definition: This approach focuses on the duration individuals spend in poverty,
rather than just a snapshot in time.
o Measurement: Uses longitudinal data to track individuals over time,
considering those who experience poverty for extended periods.
o Advantages: Provides insight into chronic poverty and the long-term impacts
on individuals.
o Limitations: Requires extensive data collection and tracking.
4. Multidimensional Poverty Index (MPI)
o Definition: The MPI considers multiple factors that contribute to poverty,
including health, education, and living standards.
o Measurement: Uses a composite index that includes indicators like child
mortality, years of schooling, access to clean water, and electricity.
o Advantages: Provides a more comprehensive view of poverty.
o Limitations: Complex to calculate and requires extensive data.
5. Poverty Threshold: This is a measure used to determine who is considered poor. It
involves calculating the cost of essential goods and services needed to sustain one adult
in a given country and converting this into a monetary value.

Importance of Accurate Poverty Measurement

Accurate poverty measurement is vital for:

 Policy Formulation: Informs government policies aimed at poverty reduction.

 Resource Allocation: Helps in the efficient allocation of resources to the neediest.
 Tracking Progress: Monitors the effectiveness of poverty alleviation programs and
tracks progress over time.

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Policy Implications

1. Targeted Interventions
o Different strategies are required for chronic and transient poverty. Long-term
investments in education and healthcare are crucial for chronic poverty, while
short-term financial aid can help those in transient poverty.
2. Comprehensive Approach
o Policies should address the multidimensional nature of poverty, ensuring that
improvements in income are accompanied by better education, healthcare, and
living conditions.
3. Monitoring and Evaluation
o Continuous monitoring and evaluation of poverty dynamics help in
understanding the effectiveness of policies and making necessary adjustments.

Poverty Dynamics

Poverty dynamics refer to the changes in individuals' or households' economic status over time.
Understanding these dynamics is essential for effective poverty alleviation strategies, as they
reveal not just the static state of poverty, but also the processes and factors that influence
movement into and out of poverty.

Key Concepts in Poverty Dynamics

1. Entry into Poverty

o Individuals or households can fall into poverty due to various factors, such as
job loss, illness, economic downturns, or changes in family composition (e.g.,
divorce).
o These factors highlight the vulnerability of certain populations to economic
shocks and underscore the importance of social safety nets.
2. Exit from Poverty
o Exiting poverty typically requires overcoming significant barriers, such as
gaining stable employment, improving education, or accessing better
healthcare.
o Policy interventions like job training programs, educational opportunities, and
healthcare access are crucial for facilitating exits from poverty.
3. Chronic vs. Transient Poverty
o Chronic Poverty: Long-term or persistent poverty where individuals remain
poor for extended periods.
o Transient Poverty: Short-term poverty where individuals experience
temporary setbacks but manage to escape poverty relatively quickly.
o Understanding the difference helps in designing targeted policies. For example,
chronic poverty may require long-term structural changes, while transient
poverty might be addressed through temporary relief measures.

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 4. Multidimensional Nature of Poverty
o Poverty is not only about income but also encompasses various dimensions such
as education, health, housing, and access to services.
o A multidimensional approach considers these factors, providing a more
comprehensive understanding of poverty and its dynamics.
5. Situational Poverty: Temporary poverty caused by a sudden crisis or loss, such as a
natural disaster or job loss.
6. Generational Poverty: Poverty that is passed down from one generation to the next.
7. Urban vs. Rural Poverty: Poverty in urban areas often involves overcrowded living
conditions and limited access to services, while rural poverty may involve lack of
infrastructure and access to education and healthcare.

Factors Influencing Poverty Dynamics

1. Economic Factors
o Economic growth, labor market conditions, and inflation rates significantly
impact poverty dynamics.
o Policies promoting economic stability and job creation are vital for reducing
poverty.
2. Social Factors
o Education, healthcare, and social services play critical roles in influencing
poverty dynamics.
o Improved access to quality education and healthcare can prevent poverty and
facilitate upward mobility.
3. Demographic Factors
o Family structure, age, and household size are important determinants of poverty
dynamics.
o Policies addressing demographic vulnerabilities, such as support for single-
parent families or the elderly, are essential.

Causes of Poverty in Nigeria

1. Income Inequality: A significant cause of poverty in Nigeria is the stark income

inequality that exists across the population. Wealth is concentrated in the hands of a
few, while a large percentage of the population lives in extreme poverty. This disparity
is exacerbated by systemic issues such as corruption, which limits economic
opportunities for the poor.
2. Unemployment and Underemployment: Nigeria's labor market struggles to absorb
the growing population, leading to high levels of unemployment and underemployment.
Many Nigerians, particularly the youth, are unable to find stable and well-paying jobs,
which traps them in a cycle of poverty.

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 3. Political Instability and Ethnic Conflict: Nigeria has experienced decades of political
instability and ethnic conflicts, which have disrupted economic activities and displaced
millions of people. These conflicts create an environment of insecurity that discourages
investment and hinders economic growth.
4. Poor Infrastructure: Inadequate infrastructure, including electricity, transportation,
and communication systems, limits economic productivity. This underdevelopment
restricts access to markets, education, and healthcare, all of which are critical for
reducing poverty.
5. Corruption: Corruption at various levels of government siphons off resources meant
for public services, leading to poor governance and ineffective poverty alleviation
programs. This mismanagement of resources perpetuates poverty, as funds intended to
improve living conditions are diverted for personal gain.

Consequences of Poverty in Nigeria

1. Health Issues: Poverty is closely linked to poor health outcomes. In Nigeria, many
people living in poverty lack access to basic healthcare services, clean water, and
adequate nutrition, leading to high rates of infant mortality, malnutrition, and
preventable diseases.
2. Educational Challenges: Poverty severely limits access to education in Nigeria.
Children from poor families are less likely to attend school or complete their education,
which perpetuates the cycle of poverty as they grow up without the skills necessary for
gainful employment.
3. Insecurity and Social Unrest: Poverty contributes to insecurity and social unrest.
Frustration over economic hardship can lead to increased crime rates, insurgency, and
militancy. In Nigeria, many poor individuals, particularly youth, are drawn to criminal
activities or extremist groups as a means of survival.
4. Economic Stagnation: Widespread poverty hampers economic growth. A large
impoverished population reduces consumer spending, limits the domestic market, and
decreases overall productivity, leading to economic stagnation.