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Aarambh 2024: The Biggest Event for IIT JEE and NEET UG Aspirants
What is the difference between absolute poverty and relative poverty? This is a question that many people are asking these days. The answer is not always clear, but in this article, we will try to explain the differences between these two types of poverty. Absolute poverty is defined as a state in which a person cannot meet their most basic needs, such as food, clothing, and shelter. Relative poverty, on the other hand, refers to a situation in which a person’s income falls below a certain percentage of the national median income.
What is Absolute Poverty?
As we mentioned before, absolute poverty is a state in which a person cannot meet their most basic needs. This means that if you are in absolute poverty, you are not able to get the minimum amount of food, clothing, and shelter that you need to survive. In other words, you are living in dire circumstances. According to the World Bank, absolute poverty is defined as “a situation in which people are deprived of safe drinking water, food, sanitation facilities, health care, shelter, and clothing.”
It is measured as the percentage of the population living below the international poverty line of US$0.90 a day in 2011 prices.” In other words, if you are living on less than $0.90 a day, you are considered to be in absolute poverty.
What is Relative Poverty?
Relative poverty, on the other hand, refers to a situation in which your income falls below a certain percentage of the national median income. This means that if the median income in your country is $100, and you are earning $60, you are considered to be in relative poverty. The national median income changes from country to country, so the amount of money that you need to live above the poverty line also changes.
In most developed countries, the official poverty line is set at 50% of the median household income. This means that if you are earning less than 50% of what the average person in your country is earning, you are considered to be in relative poverty.
Absolute Poverty and Relative Poverty: Difference
Meaning
Absolute poverty is a state of being in which a person lacks the necessities of life, such as food, clothing, and shelter. In contrast, relative poverty is a condition in which a person’s income is insufficient to meet his or her needs when compared to others in society.
Causes
The causes of absolute poverty are many and varied, but they can be grouped into three main categories: natural disasters, economic factors, and political factors. Natural disasters include things like droughts, floods, and earthquakes that can destroy crops or homes and leave people without food or shelter. Economic factors such as inflation or a country’s debt can also lead to absolute poverty. And finally, political factors such as war or corrupt governments can also contribute to absolute poverty.
Impact
The impact of absolute poverty is both immediate and long-term. In the short term, people who are living in absolute poverty lack the necessities of life and are often forced to go without food, clean water, shelter, and medical care. This can lead to disease, malnutrition, and even death. In the long term, absolute poverty can trap people in a cycle of poverty that is difficult to escape. Children who grow up in absolute poverty are more likely to drop out of school, have difficulty finding jobs as adults, and live in poverty themselves as adults.
Conclusion
Absolute poverty is the state of being without basic human needs such as food, water, and shelter. Relative poverty, on the other hand, is a measure of income inequality that compares people’s incomes to those of others in their society. It looks at how well off the poorest members of society are in comparison to the rest of the population. While both types of poverty are serious issues that need to be addressed, relative poverty is generally seen as a bigger problem because it can trap people in a cycle of disadvantage. This is why many countries now use relative poverty measures when developing policies to reduce poverty.
