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What is Called Absolute Poverty?

Published in Poverty Studies 2 mins read

Absolute poverty is a condition characterized by a severe deprivation of basic human needs, including food, safe drinking water, sanitation, health, shelter, education and information. It occurs when household income falls below a level necessary to maintain these basic living standards, essentially threatening survival.

Understanding Absolute Poverty

Unlike relative poverty, which defines poverty in relation to the living standards of the majority in a particular society, absolute poverty is a fixed standard across countries and over time. This fixed standard typically represents the minimum resources required for physical survival.

  • Key Characteristics:

    • Fixed Standard: Measured against a consistent benchmark of minimum requirements.
    • Survival Threat: Lack of resources directly impacts physical survival and well-being.
    • Cross-Country Comparison: Allows for comparison of poverty levels between different nations.
    • Time-Series Analysis: Enables tracking of poverty trends over time using a consistent measure.
  • Measuring Absolute Poverty:

    • The World Bank defines extreme poverty as living on less than $2.15 per day (2017 PPP). This is a common, although not the only, measure used.
    • National poverty lines, based on the cost of a basket of essential goods and services, may also be used to measure absolute poverty within a country.

Examples of Absolute Poverty Conditions

Households experiencing absolute poverty often face:

  • Chronic hunger and malnutrition.
  • Lack of access to clean water and sanitation, leading to disease.
  • Inadequate or non-existent housing.
  • Limited or no access to healthcare.
  • Lack of educational opportunities.

Why Absolute Poverty Matters

Understanding and addressing absolute poverty is crucial for several reasons:

  • Humanitarian Imperative: Alleviating suffering and ensuring basic human rights.
  • Economic Development: Poverty hinders economic growth by reducing productivity and human capital.
  • Social Stability: Poverty can lead to social unrest and instability.
  • Global Health: Poverty contributes to the spread of infectious diseases.

In summary, absolute poverty represents a state of severe deprivation where individuals lack the basic resources necessary for survival, measured against a fixed standard applicable across different countries and time periods. This makes it a critical indicator for tracking progress in global development and addressing fundamental human needs.

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