Absolute Poverty vs. Relative Poverty

Attribute	Absolute Poverty	Relative Poverty
Definition	Refers to a fixed economic threshold below which individuals or families are considered to be lacking the basic necessities of life	Refers to a standard of living in which individuals or families lack the resources to meet the average standard of living in their society
Measurement	Usually measured in terms of income level or consumption expenditure	Measured in relation to the median income or standard of living in a particular society
Global Perspective	Can be defined universally across different countries and regions	Varies depending on the economic conditions and standards of living in each society
Impact	Can lead to severe deprivation and inability to meet basic needs such as food, shelter, and healthcare	Can lead to social exclusion, inequality, and lack of access to opportunities and resources

Definition

Absolute poverty refers to a condition where individuals do not have enough resources to meet their basic needs such as food, shelter, and clothing. It is often measured by a specific income threshold below which individuals are considered to be living in absolute poverty. On the other hand, relative poverty is a measure of poverty in relation to the economic status of other members of society. It is often defined as having a standard of living significantly below the average in a particular society.

Measurement

Absolute poverty is typically measured using a fixed poverty line that represents the minimum income needed to afford basic necessities. This poverty line is often adjusted for inflation and varies from country to country. In contrast, relative poverty is measured in relation to the median income or average standard of living in a society. Individuals are considered to be in relative poverty if their income falls below a certain percentage of the median income.

Impact

Absolute poverty is often associated with severe deprivation and lack of access to basic necessities such as food, clean water, and healthcare. Individuals living in absolute poverty may struggle to survive and face significant health risks. In contrast, relative poverty may not involve the same level of deprivation, but it can still have negative consequences on individuals' well-being. Those in relative poverty may experience social exclusion, limited opportunities for advancement, and feelings of inadequacy.

Causes

The causes of absolute poverty are often related to structural factors such as lack of access to education, healthcare, and employment opportunities. In many cases, absolute poverty is perpetuated by systemic issues such as discrimination, political instability, and economic inequality. On the other hand, relative poverty is often influenced by social and economic factors such as income inequality, unemployment, and changes in the cost of living. Individuals in relative poverty may struggle to keep up with rising living standards and face challenges in meeting societal expectations.

Policy Implications

Addressing absolute poverty requires targeted interventions such as providing access to education, healthcare, and social services. Governments and organizations may implement programs to alleviate immediate needs and create pathways out of poverty for individuals living in extreme deprivation. In contrast, addressing relative poverty may involve broader policy changes aimed at reducing income inequality, improving social mobility, and creating more inclusive economic opportunities. Policies such as minimum wage laws, social welfare programs, and affordable housing initiatives can help reduce the prevalence of relative poverty in society.

Global Perspective

Absolute poverty is a significant issue in many developing countries where large segments of the population lack access to basic necessities. International organizations such as the United Nations and World Bank have set targets to eradicate extreme poverty and improve living conditions for the world's poorest populations. In contrast, relative poverty is a more prevalent issue in developed countries where income inequality and social disparities are more pronounced. Efforts to address relative poverty in these countries often focus on creating more equitable economic systems and social safety nets.