Absolute Poverty

Definition

Absolute poverty refers to a condition where an individual or household lacks the financial resources to meet the basic necessities of life, such as food, clean water, shelter, and healthcare. This state of deprivation is often measured against a specific income threshold, typically defined by international standards, making it a stark contrast to relative poverty, which considers the income level compared to others in society.

5 Must Know Facts For Your Next Test

1. Absolute poverty is typically quantified using international benchmarks like the World Bank's $1.90 per day threshold, indicating extreme deprivation.
2. This form of poverty affects millions globally, particularly in developing countries where access to basic services is limited.
3. Absolute poverty is often linked to adverse health outcomes, including malnutrition and increased mortality rates among vulnerable populations.
4. Addressing absolute poverty requires targeted interventions such as economic development programs, education access, and health care improvements.
5. Policies aimed at reducing absolute poverty often focus on redistributing resources and providing support through social welfare programs.

Review Questions

• How does absolute poverty differ from relative poverty in terms of measurement and implications for individuals?
  • Absolute poverty is measured against a specific threshold that determines whether basic needs are met, while relative poverty considers an individual's income in comparison to others within society. This distinction has significant implications; those in absolute poverty are unable to secure essentials for survival regardless of their community's wealth. In contrast, those in relative poverty may have some resources but still struggle compared to their peers. Understanding these differences is crucial for developing effective poverty alleviation strategies.
• Evaluate the effectiveness of current policies aimed at combating absolute poverty and suggest improvements.
  • Current policies aimed at combating absolute poverty often include cash transfer programs and access to education and healthcare services. While these initiatives can be effective, they sometimes lack comprehensive implementation or fail to address systemic issues such as corruption and inadequate infrastructure. Improvements could involve a multi-faceted approach that not only increases financial support but also invests in community development and job creation, ensuring sustainable pathways out of poverty.
• Analyze the relationship between absolute poverty and income inequality, discussing how one can influence the other.
  • Absolute poverty and income inequality are interconnected; high levels of income inequality can exacerbate absolute poverty by limiting access to resources and opportunities for lower-income individuals. When wealth is concentrated among a small percentage of the population, it becomes more challenging for those in absolute poverty to improve their circumstances due to a lack of economic mobility. Addressing income inequality through policies like progressive taxation and equitable access to education can help reduce absolute poverty by enabling broader participation in economic growth.

Related terms

Poverty Line: The minimum level of income deemed adequate in a particular country, used to determine who falls into absolute poverty.

Income Inequality: The unequal distribution of income within a population, highlighting disparities in wealth and resources among different segments of society.

Social Safety Net: A collection of services provided by the government or organizations to assist individuals and families in need, aimed at alleviating poverty.