Economics Poverty Questions Medium
Poverty refers to a state of deprivation or lack of basic necessities and resources required for a decent standard of living. It is a multidimensional concept that encompasses not only low income levels but also limited access to education, healthcare, housing, clean water, sanitation, and other essential services.
Poverty can be defined in various ways, depending on the context and the specific measurement approach used. The most commonly used definitions include absolute poverty and relative poverty.
Absolute poverty is often defined based on a specific income threshold, below which individuals or households are considered to be living in poverty. This threshold is typically set at a level that is deemed necessary to meet basic needs, such as food, shelter, and clothing. The World Bank, for example, defines extreme poverty as living on less than $1.90 per day.
Relative poverty, on the other hand, compares an individual or household's income or living conditions to the average or median income in a particular society. It takes into account the relative deprivation experienced by individuals compared to others in their society. For instance, a common relative poverty measure is setting the poverty line at a certain percentage (e.g., 50% or 60%) of the median income.
In addition to these monetary-based measures, poverty can also be assessed using multidimensional indicators that capture various dimensions of deprivation, such as access to education, healthcare, sanitation, and social protection. These multidimensional approaches provide a more comprehensive understanding of poverty and help identify the specific deprivations faced by individuals or households.
Overall, poverty is a complex and multifaceted issue that requires a comprehensive understanding and a combination of different measurement approaches to effectively address its causes and consequences.