DEFINITION AND TYPES OF POVERTY

Definitions of Poverty

• Edward Greene (1999): "Insufficient resources for an adequate standard of living."

• World Bank’s World Development Report:

  • "The inability to maintain a minimal standard of living."

  • "A pronounced deprivation in well-being."

  • "To be hungry, to lack shelter and clothing, to be sick and not cared for, to be illiterate and not schooled."

• Accepted View: People are poor when they cannot access the basic needs required to fully participate in society.

Types of Poverty

1. Absolute or Subsistence Poverty

Proposed by: Charles Booth & Seedbohm Rowntree
Definition:

• The absence of enough resources (money) to secure basic life necessities.

• Individuals lack essential things such as food, shelter, and clothing.

Measurement:

• Uses a subsistence level (poverty line) as the marker for poverty.

• Uses a monetary approach:

  • Low-income countries: US$1.00 per day.

  • Developing countries (e.g., Latin America and the Caribbean): US$2.00 per day.

• Anyone earning below this amount per day is considered absolutely poor.

Advantages of Absolute Poverty Approach

• Considered an objective, reliable, and scientific tool to determine poverty levels.

• Sets a baseline for identifying poverty.

• Highlights the existence of people who cannot provide for their basic needs.

• Used by governments to formulate poverty reduction policies.

Disadvantages of Absolute Poverty Approach

• Ignores other human needs, focusing only on basic survival.

• Uses fixed values for food prices, though prices fluctuate.

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

2. Relative Poverty

Proposed by: Peter Townsend
Definition:

• A challenge to Booth and Rowntree’s absolute poverty approach.

• Argues that poverty is both economic and social.

• A person is poor when they cannot fully participate in their society in a normal and desirable way.

• Poverty is measured using the Deprivation Index, which includes financial and living standard factors.

Advantages of Relative Poverty Approach

• Considers societal expectations of well-being.

• Provides a more realistic picture of poverty.

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

• Highlights inequality and fairness in society.

Disadvantages of Relative Poverty Approach

• Can distract from real poverty issues; if people are not starving, they may not be considered poor.

• Equates inequality with poverty; those who cannot "keep up" are labeled poor.

3. Subjective Poverty

Definition:

• The feeling of being poor compared to others in the same society.

• A subjective perception rather than an objective measure.

• If people feel poor, their actions and interactions with others may reflect this belief.