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The Pros And Cons Of Entitlement Theory

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Basically Sen (1981), founded Entitlement theory on the assumption that the system under consideration is an economy with private ownership and exchange in form of trade, exchange between people and production and between man and nature. However, he also accepted social benefits as entitlement relations. The theory is useful to explain poverty effects for different people at household level with disaggregation of differences among the group in the population and people even at the same household (Lenhardt, 2013). Hence, analysis using this theory implicates resources allocation between households. Remittances being one external resources can have effects in the final analysis using Entitlement Theory.
Ideally, there are strong linkages between poverty and environment also explicated in the Entitlement Theory of poverty. Entitlement can be defined as collective outcome of environmental resources package that the human capital used to produce, own and have power on that particular resource as an individual or as a member of a given community or economic group. All have ability to use those resources package
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It ignores cultural issues, which are similarly important with the legal system. However, entitlement approach needs adjusting to new dynamics of contemporary analysis of poverty (Rubin, 2009).

In spite of those criticisms, the theory can be useful for analysing poverty and remittances especially rural poverty since remittances are believed to be one of issues influencing entitlement and ownership. Remittances can be used to buy assets. By owning assets, especially productive assets, it increases chances for a individual or household to create wealth and it is widely agreed to be a crucial factor in escaping and reduce chances to be trapped into poverty (Miller et. al.,
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