Absolute poverty

Definition

Absolute poverty refers to a condition where an individual lacks the minimum resources necessary to maintain basic living standards, such as food, clean water, shelter, and healthcare. This state is often measured against a global standard, typically defined as living on less than $1.90 per day, emphasizing the stark disparities in wealth and resources across different countries and regions.

5 Must Know Facts For Your Next Test

1. Over 700 million people worldwide live in absolute poverty, struggling to meet their basic needs.
2. Absolute poverty disproportionately affects women and children, with these groups often facing higher risks of malnutrition and lack of access to education and healthcare.
3. Countries with high levels of absolute poverty often experience slower economic growth and development due to a lack of investment in human capital.
4. Global efforts to reduce absolute poverty have led to significant declines in its prevalence, particularly in regions like East Asia, but challenges remain in sub-Saharan Africa.
5. The COVID-19 pandemic has reversed years of progress in reducing absolute poverty, pushing millions back into this extreme state due to economic disruptions and increased unemployment.

Review Questions

• How does absolute poverty differ from relative poverty in terms of measurement and implications for individuals?
  • Absolute poverty is measured by the inability to meet basic life necessities, typically defined by a fixed income threshold, whereas relative poverty compares an individual's income to the average income within their society. Individuals in absolute poverty are at risk of severe deprivation regardless of societal standards, while those in relative poverty may still have access to basic needs but live with significantly less compared to others around them. This distinction has important implications for policy-making and resource allocation aimed at addressing these different forms of poverty.
• What role does the Multidimensional Poverty Index (MPI) play in understanding absolute poverty and developing strategies to alleviate it?
  • The MPI provides a more comprehensive understanding of absolute poverty by considering various deprivations that affect individuals' quality of life beyond just income levels. By assessing dimensions such as education, health, and living conditions, the MPI highlights the multifaceted nature of poverty and enables policymakers to target specific areas for intervention. This nuanced approach can lead to more effective strategies for alleviating absolute poverty by addressing its root causes rather than merely providing financial assistance.
• Evaluate the impact of global initiatives aimed at reducing absolute poverty on socioeconomic development and inequality on a global scale.
  • Global initiatives aimed at reducing absolute poverty, such as the Sustainable Development Goals (SDGs), have significantly influenced socioeconomic development by mobilizing international resources and fostering cooperation among nations. These efforts not only aim for direct alleviation of poverty but also focus on improving access to education, healthcare, and economic opportunities. However, while progress has been made in some regions, persistent inequalities remain, particularly in low-income countries, revealing that tackling absolute poverty must go hand-in-hand with addressing systemic issues like discrimination and governance failures for sustainable change.

Related terms

relative poverty: Relative poverty is a condition where individuals or groups lack the minimum amount of income needed to maintain an average standard of living within their specific society.

multidimensional poverty index (MPI): The MPI is a measure that takes into account various factors beyond income, including education, health, and living standards, to assess the level of poverty experienced by individuals or households.

sustainable development goals (SDGs): The SDGs are a set of 17 global goals established by the United Nations to address various social, economic, and environmental challenges, including the eradication of poverty in all its forms everywhere.