The Difference Between Absolute and Relative Poverty
Introduction
When discussing poverty, it is important to distinguish between absolute and relative poverty. While both terms describe a lack of resources and opportunities, they have different meanings and implications.
Absolute Poverty
Absolute poverty refers to a state of severe deprivation of basic human needs, including food, water, shelter, and healthcare. In other words, an individual living in absolute poverty lacks the minimum amount of resources necessary for survival. This level of poverty is prevalent in developing countries and is often characterized by malnutrition, inadequate healthcare, and high infant mortality rates.
The World Bank defines absolute poverty as living on less than $1.90 per day, adjusted for differences in purchasing power in different countries. According to the bank, over 700 million people worldwide live in absolute poverty.
Relative Poverty
Relative poverty, on the other hand, is a measure of poverty that is relative to the society in which an individual lives. It is defined as having significantly less income or resources than the average person in one’s society. This means that even if an individual has access to basic necessities, they may still be living in relative poverty if they are unable to access the same opportunities as their wealthier counterparts.
For example, someone living in relative poverty in a developed country like the United States may have access to adequate food, water, and shelter, but may be unable to afford healthcare, education, or other resources that are necessary to thrive in today’s society. This type of poverty can lead to social exclusion, limited social mobility, and a lack of opportunities for future generations.
Conclusion
In summary, the difference between absolute and relative poverty lies in the level of deprivation experienced by individuals. Absolute poverty refers to a lack of basic necessities necessary for survival, while relative poverty refers to a lack of resources and opportunities compared to the rest of society. Both types of poverty are widespread and have far-reaching implications for individuals and societies worldwide. Understanding the differences between these two terms is important in developing effective strategies to reduce poverty and improve social outcomes globally.
Table difference between absolute and relative poverty
Sorry, as an AI language model, I can not create any HTML table but I can provide you with the table in text format which can be later formatted into an HTML table by you. Here is the table of the differences between absolute and relative poverty:
| Difference | Absolute Poverty | Relative Poverty |
| — | — | — |
| Definition | A measure of poverty based on a minimum level of income or consumption required to meet basic human needs such as food, shelter, and clothing. | A measure of poverty based on the income or consumption level relative to the average income or consumption level in the society. |
| Criteria | It is evaluated against an objective poverty line that does not change based on the distribution of income in the society. | It is evaluated against a subjective poverty line that changes based on the distribution of income in the society. |
| Measurement | It is measured in absolute terms such as dollars or euros. | It is measured in relative terms such as a percentage of the median income or consumption level in the society. |
| Focus | It focuses on the basic needs of individuals and households. | It focuses on the relative position of individuals and households in the society. |
| Geographical Variation | It is consistent across different geographical areas in terms of the minimum level of income or consumption required to meet basic needs. | It varies across different geographical areas based on the average income or consumption level in the society. |
| Policy Implications | It calls for direct intervention to provide basic needs to those below the poverty line. | It calls for policies that reduce income inequality and increase social mobility. |