Poverty reduction glossary

Capital Items either made by people to produce other goods, such as an oven to produce bread, or to provide services, such as a hospital to provide health care.   Enterprise The knowledge and skills to produce a good or service OR a business operation that provides goods and services.   Infrastructure The basic facilities, services and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools and post offices. It includes physical infrastructure (roads, bridges, buildings, plumbing, wiring and transport facilities), administrative infrastructure (trained staff, established procedures and appropriate equipment), social infrastructure (family and community networks) and political infrastructure (political parties, legislative bodies, electoral commission, judiciary and legal systems).   Human Development Index (HDI) A summary composite index based on life expectancy at birth, educational attainment (adult literacy and school enrolment rates) and income per capita.   Microfinance Small-scale loans, savings services, insurance and other financial products for low-income people who would not be eligible for conventional banking.   Official Development Assistance (ODA) Grants, loans, goods and services given by the government of a country to assist the progress in developing countries, generally known as 'aid'.   Poverty (at the individual or family level) Not having enough money to buy basic necessities, that is, education, health care, nutrition, housing, clothing, water and sanitation.   Population below US$1 per day The percentage of the population whose income or consumption falls below the poverty line set at one dollar per person per day, measured at 1985 purchasing power parity (PPP). It reflects the purchasing power that households have over the goods and services needed to escape poverty (food, clothing, housing and other non-food essentials).   Poverty line The per capita monetary requirements an individual needs to afford the purchase of a basic bundle of goods.   Purchasing Power Parities (PPPs) The conversion factors used for translating gross domestic product (GDP) and its components, from one country to another expressed in United States dollars (US$).   Sustainable development Development that improves the total quality of life without compromising the ability of future generations to meet their own needs, and in a way that balances the environmental, economic and social factors.