What is the difference between absolute and relative poverty?
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Absolute poverty and relative poverty are two distinct concepts used to measure economic deprivation.
**Absolute poverty** refers to a fixed threshold of income or resources necessary to maintain basic living standards, such as food, shelter, and clothing. This threshold, often defined internationally as living on less than $1.90 per day (according to the World Bank), is constant over time and across different countries. It measures whether individuals have the minimum resources needed for physical survival. Absolute poverty is useful for assessing extreme poverty levels globally and identifying those who cannot meet fundamental needs.
**Relative poverty**, on the other hand, is context-specific and varies according to societal standards and economic conditions. It measures an individual’s or family’s income in relation to the average income or living standards of the surrounding community or country. For example, someone might be considered relatively poor if their income is below 50% of the median income in their society. Relative poverty highlights disparities within a society and the inability of individuals to participate fully in customary social activities due to financial constraints.
In summary, absolute poverty is about meeting basic survival needs, while relative poverty is about economic inequality and social inclusion within a particular society. Both concepts are important for understanding and addressing different aspects of poverty.
Absolute poverty refers to a state where an individual or household lacks the basic necessities of life, such as:
– Food
– Clean water
– Shelter
– Clothing
– Healthcare
It is typically measured using a fixed poverty line, below which individuals are considered to be living in absolute poverty.
Relative poverty, on the other hand, refers to a state where an individual or household has a lower standard of living compared to the rest of society. It is measured relative to the overall standard of living in a particular country or region.
Key differences:
– Absolute poverty focuses on basic needs, while relative poverty focuses on social inclusion and standard of living.
– Absolute poverty is typically measured using a fixed poverty line, while relative poverty is measured as a percentage of the median income (e.g., below 60% of median income).
Understanding both absolute and relative poverty helps policymakers address different aspects of poverty and develop targeted solutions to improve overall well-being.
Poverty refers to a situation where an individual (or household) is unable to maintain minimum basic standards of living(food.clothing and shelter).
Absolute poverty is a measure of poverty based on a set standard like the poverty line in India. It is usually measured in terms of money.It cam e eradicated and is sometimes manipulated to show reduction in poverty when it isn’t there.
Relative poverty of an individual is a measured in comparison to another individual.For example a middle income person is considered relatively poorer to a rich person.It can not be eradicated.It is also a measure of inequality or deprivation.