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THE CONSTRUCTIONOF A
POVERTY IMPACT INDEXIN A
GLOBAL VALUE CHAIN ASSIGNMENTGary Baker
Cheryl JohnsonRachel Elfman
Corbin Smith
BACKGROUND
THE TEAM & ASSIGNMENT STRUCTURE
Photographer: Jeff M for Shorthttps://flic.kr/p/hZbGe
STEP 1: CHOOSE A CONTINENT
STEP 2: CHOOSE A PRODUCT
STEP 3: COUNTRY PRESENTATIONS
STEP 4: GLOBAL VALUE CHAIN PRESENTATIONS
STEP 4: GLOBAL VALUE CHAIN PRESENTATIONS
STEP 4: GLOBAL VALUE CHAIN PRESENTATIONS
PREPARING STUDENTS FOR STEP 5
STEP 5: VISUALIZING DATA & DETERMINING A PIIN
PRODUCTDe Beers Aura Solitaire Ring
• 2.2 mm (0.09 in.) wide platinum ring
• 0.50ct - 0.59ct• $5,500.00
ENTRY-LEVEL WAGES OF DIAMOND MINERS
5,700 Rand/month$472.50/month
WAGES OF US DIAMOND CONSUMERS
CPI OF BOTH NATIONS
PRICES OF FOOD/STAPLES
PRICES OF BASIC UTILITIES
HUMAN DEVELOPMENT INDEX - S. AFRICA0.658 - RANKED 118 GLOBALLY
• Life expectancy• 56.92 years at birth• Government spends 8.52%
of GDP on Health• Education
• Mean years of schooling - 9.94• Expected years of schooling -
13.1• 93% of adults are literate• Government spends 5.98% of
GDP on Education• Gross National Income Per Capita
• $11,787.91 in 2011
• Life expectancy• 78.94 years at birth• Government spends 17.85%
of GDP on Health• Education
• Mean years of schooling - 12.94
• Expected years of schooling -
16.5• Government spends 5.62%
of GDP on Education
• Gross National Income Per Capita• $52,308.38 in 2011
HUMAN DEVELOPMENT INDEX - US0.914 - RANKED 5 GLOBALLY
TIME NECESSARY TO PURCHASE CHIEF STAPLES
DENISON POVERTY IMPACT INDEX NUMBER
Algorithm:• m = hourly wage of producer or consumer• n = hourly wage of at poverty line S. Africa or in US
The lower the number, the more likely it is that the worker lives in poverty
Explanation
DENISON PIIN COMPARISONS
S. Africa diamond miners:
18 for a $5,500 ring~15 for a $33,000 ring
Canadian diamond miner wage: $24.84 ($20.43 USD)
Canadian diamond miners:• 65 for a $4,580 ring• 53 for a $32,100 ring
PIIN - scale 1-100
DENISON PIIN
CONCLUDING REMARKS
QUESTIONS
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