DEFINITION AND TYPES OF POVERTY

What are two definitions of poverty?

Poverty is defined as "insufficient resources for an adequate standard of living" (Edward Greene, 1999). The World Bank’s World Development Report defines it as "the inability to maintain a minimal standard of living" or "a pronounced deprivation in well-being."

What is the accepted view of poverty?

People are considered poor when they cannot access the basic needs required to fully participate in their society.

What are the three types of poverty?

The three types of poverty are Absolute (or Subsistence) Poverty, Relative Poverty, and Subjective Poverty.

Who proposed the concept of absolute poverty?

Charles Booth and Seebohm Rowntree proposed the concept of absolute poverty.

What is absolute poverty?

Absolute poverty refers to the lack of enough resources (money) to secure basic life necessities such as food, shelter, and clothing.

How is absolute poverty measured?

Absolute poverty is measured using a subsistence level (poverty line) and a monetary approach:

• In low-income countries, it is set at US$1.00 per day.

• In developing countries (e.g., Latin America and the Caribbean), it is set at US$2.00 per day.

• Anyone earning below these amounts is considered absolutely poor.

What are the advantages of the absolute poverty approach?

The absolute poverty approach is considered:

• An objective, reliable, and scientific tool for determining poverty levels;

• A baseline for identifying poverty;

• A way to highlight people who cannot provide for their basic needs;

• Useful for governments to create poverty reduction policies.

What are the disadvantages of the absolute poverty approach?

The absolute poverty approach has several drawbacks:

• It ignores other human needs, focusing only on basic survival;

• It fixes food prices, even though they constantly change;

• It averages nutritional needs, ignoring factors like household composition, age, and occupation.

Who proposed the concept of relative poverty?

Peter Townsend proposed the concept of relative poverty.

What is relative poverty?

Relative poverty means a person lacks the resources to fully participate in society in a normal and desirable way. It considers both economic and social aspects of poverty.

How is relative poverty measured?

Relative poverty is measured using the Deprivation Index, which examines financial resources and living standards.

What are the advantages of the relative poverty approach?

The relative poverty approach:

• Considers societal expectations of well-being;

• Provides a realistic view of poverty;

• Expands the definition beyond basic needs to include quality of life;

• Highlights inequality and fairness in society.

What are the disadvantages of the relative poverty approach?

The relative poverty approach has some drawbacks:

• It may cause people to ignore real poverty issues, assuming that if people aren’t starving, they are not poor;

• It equates inequality with poverty, meaning those who cannot "keep up" are considered poor.

What is subjective poverty?

Subjective poverty is the feeling of being poor compared to others in the same society. It is based on a person’s perception rather than an objective measurement.

How does subjective poverty affect individuals?

If people feel poor, their actions and interactions with others may reflect this belief, impacting their social behavior and self-esteem.