- According to the United Nations (UN), Poverty entails more than the lack of income and productive resources to ensure sustainable livelihoods. Its manifestations include hunger and malnutrition, limited access to education and other basic services, social discrimination and exclusion, as well as the lack of participation in decision-making.
- Poverty is a multidimensional phenomenon in which a person or community lacks the financial resources and essentials for a minimum standard of living.
| According to the World Bank, Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. |
- Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life.
- In 2015, approximately 10 percent of the world’s population were living in extreme poverty, which means surviving on $1.25 or less per day. People in extreme poverty struggled to meet their most fundamental needs such as health, education, and access to clean water and sanitation.
- However, by 2017, the global extreme poverty rate dropped to 9.2 percent from 10.1 percent in 2015. This decrease means there were around 689 million people living on less than $1.90 a day.
- According to the MPI report by NITI Aayog in 2021, 25.01% of the population in India was multidimensionally poor.
- Global Multidimensional Poverty Index (MPI) 2022: 415 million individuals in India were able to escape multidimensional poverty in the last 15 years between 2005–2006 and 2019–21, with the incidence of poverty exhibiting a sharp drop from 55.1% to 16.4%.
- 18.7% is classified as vulnerable to multidimensional poverty (260.9 million people in 2020).
Classification of Poverty
| Absolute poverty | Relative poverty |
| It is a condition where household income is below a necessary level to maintain basic living standards (food, shelter, housing). This condition makes it possible to compare between different countries and also over time. | It occurs when people do not enjoy a certain minimum level of living standards as determined by government (and enjoyed by the bulk of population) that vary from country to country, which is said to be increasing and may possibly never be eradicated |
| Criteria not changed by economic growth. | Criteria will change with economic growth. |
| For example: Homeless people living on the streets, families that cannot afford to buy food to feed themselves and their children are also examples of absolute poverty. | For example:In the UK relative poverty is defined as income 50% less than average incomes or someone living in a rich society may have a steady income and all the necessities for living, but because they do not have as many luxuries as others living in the society, they are said to be in relative poverty. |
- Primary Poverty – is defined as a situation where income is insufficient to meet basic needs – even if every penny is spent wisely.
- Secondary Poverty – is defined as a situation where money is misspent on luxuries – leaving insufficient disposable income to buy necessities.
- Persistent Poverty – is defined as a situation where households find income is less than 60% of median incomes for 2 out of 3 years. This is important as long-term poverty has greater consequences than short-term.
- Multidimensional Poverty – measures poverty as an acute deprivation of essential aspects of life. It measures three key targets – living standards, education and healthcare. The Global Multidimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme.It has since been used to measure acute poverty across over 100 developing countries. It replaced the Human Poverty Index.
FAQs
1. What is the meaning of poverty?
Poverty refers to a condition where individuals or communities lack the resources necessary for a minimum standard of living deemed acceptable by society. It encompasses various dimensions including inadequate income, limited access to essential services like healthcare and education, and deprivation of basic human rights and opportunities.
2. How is poverty classified?
Poverty can be classified into absolute and relative poverty. Absolute poverty refers to a lack of basic necessities such as food, shelter, and clothing, while relative poverty compares individuals’ economic status to the broader society they live in. Additionally, poverty can be categorized based on its duration (chronic or temporary), its causes (structural or situational), and its geographical location (urban or rural).
3. What are the causes of poverty?
Poverty has multifaceted causes, including economic, social, and political factors. Economic causes may include lack of job opportunities, low wages, and economic instability. Social factors such as discrimination, inadequate access to education and healthcare, and gender inequality also contribute to poverty. Political factors such as ineffective governance, corruption, and unequal distribution of resources further exacerbate the issue.
4. How is poverty measured?
Poverty is commonly measured using various indicators, including income, consumption expenditure, and multidimensional indices. Income-based measures assess individuals’ or households’ income relative to a predetermined poverty line. Consumption-based measures consider expenditure on goods and services necessary for basic needs. Multidimensional indices incorporate factors such as education, health, standard of living, and access to basic services to provide a comprehensive assessment of poverty.
5. What are the consequences of poverty?
Poverty has far-reaching consequences that affect individuals, families, and societies as a whole. These may include limited access to education and healthcare, increased vulnerability to disease and malnutrition, reduced economic productivity, social exclusion, and heightened levels of crime and violence. Additionally, poverty perpetuates intergenerational cycles of deprivation, as children born into impoverished conditions often face barriers to achieving their full potential.
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