Important Differences Between Absolute Poverty and Relative Poverty

Absolute Poverty

Absolute poverty refers to the lack of access to basic necessities such as food, water, shelter, and healthcare that are essential for survival. It is defined as a situation where an individual or household is unable to meet their basic needs for a sustained period of time, which can lead to severe deprivation, malnutrition, and illness.

The concept of absolute poverty is often measured using a poverty line, which is defined as the minimum level of income or consumption required to meet basic needs such as food, water, and shelter. The poverty line can vary depending on the context and is often set based on the cost of a basic basket of goods and services required for survival in a given society.

Absolute poverty is often associated with developing countries and regions, where access to basic necessities is limited due to factors such as low income, inadequate infrastructure, and political instability. However, absolute poverty can also exist in developed countries, where marginalized populations may lack access to basic necessities due to poverty, discrimination, or social exclusion.

Addressing absolute poverty requires policies and interventions that focus on providing access to basic necessities such as food, water, and healthcare, as well as promoting economic development, investing in infrastructure, and improving social and political stability.

Examples of Absolute Poverty

Here are some examples of absolute poverty:

• Lack of access to clean water: A person or household may be considered in absolute poverty if they do not have access to clean drinking water, which can lead to illness and disease.
• Malnutrition: A person may be considered in absolute poverty if they do not have access to a sufficient amount of food to meet their basic nutritional needs, which can lead to stunted growth, weakened immune system, and other health problems.
• Homelessness: A person or household may be considered in absolute poverty if they do not have a safe and secure place to live, which can lead to exposure to the elements, illness, and social isolation.
• Lack of access to healthcare: A person or household may be considered in absolute poverty if they do not have access to basic healthcare services, which can lead to untreated illnesses and diseases, reduced quality of life, and premature death.
• illiteracy: A person may be considered in absolute poverty if they lack basic literacy and numeracy skills, which can limit their ability to access education, employment, and other opportunities.

Forms of Absolute Poverty

Here are some common forms of absolute poverty:

1. Lack of Access to Clean Water: Millions of people around the world lack access to clean drinking water, which can lead to waterborne illnesses and diseases.
2. Food Insecurity: Millions of people do not have access to sufficient and nutritious food, leading to malnutrition, stunted growth, and other health problems.
3. Lack of Adequate Housing: Many people around the world live in inadequate or unsafe housing conditions, including slums, shacks, and makeshift housing.
4. Lack of Access to Basic Healthcare: Many people in developing countries do not have access to basic healthcare services, including vaccinations, medicines, and preventative care.
5. illiteracy and Lack of Education: Many people in developing countries lack access to basic education, which can limit their opportunities for employment and economic growth.
6. Lack of Access to Electricity: Many people in developing countries lack access to electricity, which can impact their ability to study, work, and access information.

Methods to Measures Absolute Poverty

Measuring absolute poverty involves determining the minimum level of income or consumption required to meet basic needs such as food, shelter, and healthcare. There are various methods and approaches to measure absolute poverty, including:

• Poverty Line: A poverty line is the minimum level of income or consumption required to meet basic needs such as food, shelter, and healthcare. It is typically based on the cost of a basic basket of goods and services required for survival in a given society. The poverty line can vary depending on the context and is often set by governments or international organizations.
• Basic Needs Approach: This approach involves identifying a set of basic needs such as food, shelter, and healthcare, and determining the minimum amount of resources required to meet these needs. The basic needs approach can vary depending on the context and the specific needs of the population being measured.
• Human Development Index (HDI): The HDI is a composite index that measures the overall level of human development in a country, including indicators such as life expectancy, education, and income. Countries with low HDI scores are often considered to have high levels of absolute poverty.
• Multidimensional Poverty Index (MPI): The MPI is a composite index that measures poverty across multiple dimensions, including health, education, and standard of living. It is based on the idea that poverty is a complex phenomenon that cannot be measured by income or consumption alone.

Relative Poverty

Relative poverty is a measure of poverty that looks at how a person or a household’s income or standard of living compares to the rest of the society in which they live. It is a relative measure, as it is defined in relation to the overall income or wealth distribution of the society in which the person lives, rather than an absolute level of income or consumption.

For example, a person living in a high-income country who cannot afford a car, a television or a computer might be considered relatively poor in that society, even though they may have access to basic necessities such as food, shelter and clothing. On the other hand, a person living in a low-income country who has access to these amenities might not be considered relatively poor, as they have a similar standard of living to the majority of the population in their society.

Relative poverty is often measured using a poverty line, which is defined as a certain percentage of the median income or consumption level in a given society. For example, in the European Union, the poverty line is set at 60% of the median income.

Addressing relative poverty requires policies and interventions that address the structural and systemic factors that contribute to income and wealth inequality, such as access to education, healthcare, and employment opportunities. This can include efforts to reduce discrimination, promote greater social inclusion, and create more equitable economic systems.

Examples of Relative Poverty

Here are some examples of relative poverty:

• A family in a high-income country with an income of $30,000 per year may be considered relatively poor if the median income in their area is $50,000 per year.
• A person in a developing country who has access to basic necessities such as food, shelter and clothing but cannot afford a smartphone or computer may be considered relatively poor in their society, where these amenities are becoming increasingly common.
• A student in a high-income country who cannot afford to attend extracurricular activities, such as sports teams or music lessons, due to their family’s income may be considered relatively poor compared to their classmates who have access to these opportunities.
• A person in a high-income country who cannot afford to go on vacation or participate in leisure activities may be considered relatively poor compared to others in their society who can afford to do so.
• These examples show that relative poverty is defined in relation to the overall income or wealth distribution in a given society, and can vary depending on cultural and societal norms and expectations.

Forms of Relative Poverty

There are different forms of relative poverty that can affect individuals and households. Some common forms of relative poverty include:

• Income poverty: This occurs when a person or household has a lower income than the median income in their society, which can limit their ability to access resources and opportunities.
• Material poverty: This occurs when a person or household lacks access to basic material resources, such as housing, food, clothing, and healthcare, which are necessary for a decent standard of living.
• Social exclusion: This occurs when a person or group is excluded from participating fully in social and economic life due to factors such as income, education, or race.
• Opportunity poverty: This occurs when a person or household lacks access to opportunities that can improve their economic and social outcomes, such as education, training, or employment.
• Digital poverty: This occurs when a person or household lacks access to digital technologies and the internet, which can limit their ability to access information, communicate with others, and participate in the digital economy.

Measure Relative Poverty

Relative poverty is typically measured using a poverty line, which is defined as a certain percentage of the median income or consumption level in a given society. The poverty line is used to determine whether a person or household is considered poor relative to the rest of the population.

The most common poverty line used for measuring relative poverty is the percentage of median income or consumption level in a given society. In the European Union, for example, the poverty line is set at 60% of the median income.

To measure relative poverty, the income or consumption level of a person or household is compared to the poverty line for their society. If their income or consumption level falls below the poverty line, they are considered to be living in relative poverty.

In addition to income or consumption, other factors that may be used to measure relative poverty include access to basic necessities such as housing, healthcare, and education, as well as measures of social exclusion and inequality.

Measuring relative poverty is not a straightforward process, and different methods and thresholds may be used in different contexts. It is also important to consider the limitations of poverty measures, as they may not capture the full range of experiences and needs of individuals and households living in poverty.

Important Differences Between Absolute and Relative Poverty

Here is a table outlining the important differences between absolute and relative poverty:

Key Difference Between Absolute and Relative Poverty

Here are key differences between absolute and relative poverty:

1. Focus on Basic Needs vs. Social Inclusion: Absolute poverty focuses on meeting the most basic needs for survival, such as access to food, water, and shelter. Relative poverty, on the other hand, focuses on social inclusion and participation in society, such as access to education, healthcare, and social activities.
2. Economic Growth vs. Income Distribution: Addressing absolute poverty requires economic growth and increased income to provide access to basic needs. Addressing relative poverty requires addressing income inequality and ensuring a fair distribution of resources.
3. Long-term vs. Short-term Perspective: Addressing absolute poverty requires immediate action to provide access to basic needs. Addressing relative poverty requires a longer-term perspective, as it is often rooted in systemic issues such as income inequality and requires sustained efforts to address.
4. Geographic Location: Absolute poverty is more commonly found in developing countries, while relative poverty can be found in both developed and developing countries.
5. Policy Implications: Addressing absolute poverty requires policies that focus on basic needs such as food security, healthcare, and affordable housing. Addressing relative poverty requires policies that focus on income inequality, such as progressive taxation, social safety nets, and minimum wage laws.

Similarities Between Absolute and Relative Poverty

While there are significant differences between absolute and relative poverty, there are also some similarities:

1. Both Forms of Poverty Affect Quality of Life: Both absolute and relative poverty have a negative impact on the quality of life of individuals, families, and communities.
2. Addressing Poverty Requires Multi-dimensional Approaches: Addressing both forms of poverty requires multi-dimensional approaches that address economic, social, and cultural factors.
3. Poverty Affects Vulnerable Populations: Both forms of poverty disproportionately affect vulnerable populations such as women, children, and the elderly.
4. Interconnectedness: There is an interconnectedness between absolute and relative poverty, as addressing absolute poverty can help to reduce relative poverty and vice versa.
5. Negative Impacts on Society: Both forms of poverty have negative impacts on society as a whole, including reduced economic growth, increased crime rates, and social unrest.

Conclusion Between Absolute and Relative Poverty

In conclusion, absolute and relative poverty are two distinct concepts, but both have a significant impact on individuals and communities. Absolute poverty is defined by the inability to meet basic needs such as food, water, and shelter, while relative poverty is defined by the inability to maintain a standard of living that is comparable to others in society.

While addressing absolute poverty requires immediate action to provide access to basic needs, addressing relative poverty requires a longer-term perspective and policies that address income inequality and social inclusion. Both forms of poverty require multi-dimensional approaches that address economic, social, and cultural factors.

Reducing poverty, whether it be absolute or relative, is essential for achieving sustainable development and promoting human dignity. Governments, non-governmental organizations, and individuals must work together to combat poverty and ensure that everyone has access to the resources and opportunities needed to lead a fulfilling life.