Absolute poverty

Definition

Absolute poverty refers to a condition where individuals or families lack the minimum resources necessary to maintain basic living standards, such as food, clean water, sanitation, healthcare, and shelter. It is a severe state of deprivation that can lead to life-threatening situations. This concept connects deeply to issues surrounding economic inequality, the distribution of resources globally, and how poverty is measured in different contexts.

5 Must Know Facts For Your Next Test

1. Absolute poverty is often measured using international standards, such as the World Bank's benchmark of living on less than $1.90 per day.
2. This form of poverty is critical for understanding global development issues and informs policy decisions aimed at alleviating hardship.
3. It can have severe impacts on health and longevity, as individuals in absolute poverty often face higher risks of malnutrition and disease.
4. Absolute poverty is distinct from relative poverty, which focuses on economic inequality within a specific context rather than basic survival needs.
5. The reduction of absolute poverty is a key goal for many international organizations, which work towards sustainable development and improving living conditions worldwide.

Review Questions

• How does absolute poverty differ from relative poverty in terms of measurement and implications for social policy?
  • Absolute poverty focuses on the lack of essential resources necessary for survival, using fixed thresholds like living on less than $1.90 per day. In contrast, relative poverty considers an individual's economic status compared to others in their society, reflecting inequalities that can lead to social exclusion. Understanding these differences helps policymakers address both immediate needs through programs targeting absolute poverty while also tackling broader issues of inequality related to relative poverty.
• Discuss the global efforts made to combat absolute poverty and their significance in shaping development policies.
  • Global efforts to combat absolute poverty include initiatives like the United Nations Sustainable Development Goals (SDGs), which aim to eradicate extreme poverty by 2030. Organizations like the World Bank provide funding and support for programs that improve access to education, healthcare, and economic opportunities. These efforts are significant as they not only address immediate needs but also promote long-term development strategies that enhance resilience against future economic shocks.
• Evaluate the effectiveness of current measures used to assess absolute poverty and propose potential improvements.
  • Current measures of absolute poverty, such as income-based thresholds set by the World Bank, provide a useful framework but may overlook local contexts and variations in living costs. A more effective approach could involve incorporating multidimensional indicators that consider health, education, and living conditions alongside income. By enhancing measurement tools to reflect the realities faced by those in absolute poverty, policymakers can develop targeted interventions that more accurately address their specific challenges and improve overall well-being.

Related terms

relative poverty: Relative poverty is a condition where individuals are unable to meet a standard of living considered acceptable in their society, which can vary based on social and economic factors.

poverty line: The poverty line is a threshold set by governments or organizations to determine who is considered poor based on their income or consumption levels.

multidimensional poverty: Multidimensional poverty considers various factors beyond income, such as education, health, and living standards, to assess the overall well-being of individuals and communities.