Relative poverty

Definition

Relative poverty refers to a situation where an individual or group is unable to meet the standard of living deemed acceptable in their society, often compared to others within that same context. This concept emphasizes not just the lack of basic necessities, but also the disparities in wealth and resources that can lead to social exclusion and limited access to opportunities, making it a crucial factor in understanding poverty, inequality, and human development on a global scale.

5 Must Know Facts For Your Next Test

1. Relative poverty highlights the importance of social context when assessing poverty levels, as it can vary significantly from one society to another.
2. This concept is often used in policy-making to understand how economic growth can impact different segments of the population differently, particularly in developing countries.
3. Relative poverty can contribute to feelings of inadequacy and low self-esteem among those affected, impacting their mental health and social cohesion.
4. Globalization has led to increased awareness of relative poverty, as comparisons between wealthier nations and poorer ones illustrate stark differences in living conditions.
5. Policies aimed at reducing relative poverty often focus on improving access to education, healthcare, and job opportunities for marginalized groups.

Review Questions

• How does relative poverty differ from absolute poverty in its implications for human development?
  • Relative poverty differs from absolute poverty in that it considers societal standards when assessing an individual's well-being. While absolute poverty focuses on basic survival needs, relative poverty highlights how disparities within a community can impact social inclusion and overall quality of life. This distinction is important for human development because addressing relative poverty involves improving access to resources and opportunities, which can enhance social cohesion and promote sustainable growth.
• Discuss the role of income inequality in exacerbating relative poverty and its effects on social structures.
  • Income inequality plays a significant role in exacerbating relative poverty by creating divides between different socio-economic groups. When wealth is concentrated among a small segment of the population, those on the lower end of the income spectrum may struggle not only to meet their needs but also to participate fully in society. This can lead to social tensions, decreased trust among communities, and hindered economic mobility, reinforcing cycles of poverty that limit human development.
• Evaluate the effectiveness of current policies aimed at alleviating relative poverty in urban settings across different countries.
  • The effectiveness of policies aimed at alleviating relative poverty varies widely across urban settings globally due to differences in governance, resources, and socio-economic contexts. In some countries, targeted interventions such as social safety nets, education programs, and job training initiatives have proven successful in reducing disparities. However, in other contexts, inadequate implementation or lack of political will hampers progress. A comprehensive evaluation reveals that sustained efforts addressing both economic growth and social inclusion are essential for long-term reduction of relative poverty.

Related terms

absolute poverty:

Absolute poverty is a condition where individuals lack the minimum amount of income needed to secure basic necessities such as food, clothing, and shelter.

social exclusion: Social exclusion refers to the process by which certain individuals or groups are systematically marginalized and denied access to resources, opportunities, and rights available to others in society.

income inequality: Income inequality is the uneven distribution of income and wealth among individuals or groups within a society, often leading to disparities in living standards and opportunities.