key term - Absolute Poverty

Definition

Absolute poverty is a state of extreme deprivation where individuals or households lack the most basic human needs, such as access to clean water, adequate nutrition, healthcare, and shelter. It is the severest form of poverty, where people struggle to survive on a day-to-day basis.

5 Must Know Facts For Your Next Test

1. Absolute poverty is typically measured by the World Bank using a global poverty line of $1.90 per day, adjusted for purchasing power parity.
2. Individuals living in absolute poverty often lack access to basic necessities like clean water, adequate nutrition, and sanitation, leading to poor health outcomes.
3. Absolute poverty is more prevalent in developing countries, where a larger proportion of the population struggles to meet their basic needs.
4. Factors contributing to absolute poverty include lack of economic opportunities, limited access to education and healthcare, political instability, and environmental degradation.
5. Addressing absolute poverty requires a multifaceted approach, including targeted social welfare programs, investments in infrastructure, and economic development initiatives.

Review Questions

• Explain how the poverty line is used to identify individuals or households living in absolute poverty.
  • The poverty line is the minimum level of income or consumption deemed necessary to meet basic needs. Individuals or households with incomes or consumption levels below the poverty line are considered to be living in absolute poverty. The World Bank uses a global poverty line of $1.90 per day, adjusted for purchasing power parity, to identify those in the severest form of deprivation, where they struggle to survive on a day-to-day basis and lack access to the most basic human needs, such as clean water, adequate nutrition, healthcare, and shelter.
• Describe the key factors that contribute to the prevalence of absolute poverty in developing countries.
  • Absolute poverty is more prevalent in developing countries due to a combination of factors, including limited economic opportunities, lack of access to education and healthcare, political instability, and environmental degradation. In these regions, a larger proportion of the population struggles to meet their basic needs, often lacking access to clean water, adequate nutrition, and proper sanitation. Addressing absolute poverty in developing countries requires a multifaceted approach, including targeted social welfare programs, investments in infrastructure, and initiatives to promote economic development and improve living standards.
• Analyze the importance of using a multidimensional approach to measuring and addressing absolute poverty, rather than solely focusing on income-based measures.
  • Measuring and addressing absolute poverty solely based on income-based measures, such as the global poverty line, provides an incomplete picture of the challenges faced by individuals living in the severest form of deprivation. The concept of multidimensional poverty recognizes that poverty is a complex, multifaceted issue that extends beyond just income levels. By considering factors like access to education, healthcare, and adequate living standards, a multidimensional approach offers a more comprehensive understanding of the barriers and challenges faced by those in absolute poverty. This holistic perspective is crucial for designing and implementing effective policies and interventions that address the root causes of absolute poverty and improve the overall well-being of individuals and communities.

Related terms

Poverty Line:

The poverty line is the minimum level of income or consumption deemed necessary to meet basic needs. It is used to identify individuals or households living in absolute poverty.

Relative Poverty:

Relative poverty is defined by a person's economic status compared to others in the same society or country. It is based on a household's income relative to the national median income.

Multidimensional Poverty: Multidimensional poverty considers multiple factors beyond just income, such as access to education, healthcare, and living standards, to determine an individual's level of poverty.