There is a big difference between relative poverty and absolute poverty. Relative poverty is determined by how much money someone has in comparison to others in their society, while absolute poverty is based on the level of minimum income required to satisfy basic needs. In many cases, relative poverty can be alleviated through social programs and government assistance, while absolute poverty often requires targeted interventions and international aid.
What is Relative Poverty?
Relative poverty is the condition of having fewer resources or less income than others within a society or particular group. Relative poverty may also refer to the absolute deprivation of certain privileges and basic human needs, such as adequate housing, healthcare, and education.
- Some theorists argue that relative poverty is a more accurate measure of deprivation than absolute poverty because it takes into account the unequal distribution of resources within a society.
- For example, in a wealthy country like the United States, someone with an annual income of $30,000 would be considered relatively poor because they would likely have difficulty accessing the same resources and opportunities as someone earning $100,000.
- In contrast, in a less developed country, someone earning $30,000 might be considered relatively wealthy. Relative poverty can also change over time as economic conditions shift.
For instance, during an economic recession, middle-class families may experience a sudden drop in income that puts them into relative poverty. Because relative poverty is relative to other people within a society or group, it is often used as a measure of inequality. socioeconomic inequality. Economics measures Poverty using two ways Relative Poverty and Absolute Poverty.
What is Absolute Poverty?
Absolute poverty is defined as the condition of having no or very little money, material possessions, or access to basic necessities such as food, clothing, and shelter. According to the United Nations Development Programme (UNDP), Absolute poverty is measured as the percentage of people who live on less than US$1.90 per day.
- In other words, absolute poverty is a state of being in which a person lacks the basic necessities of life. Absolute poverty can be caused by a variety of factors, including war, natural disasters, famine, and disease.
- It can also be the result of economic inequality, structural violence, and discrimination. Absolute poverty has a detrimental effect on both individuals and societies. It leads to poor health, malnutrition, illiteracy, and low levels of productivity. Absolute poverty can be alleviated through economic growth, social protection measures, and targeted interventions.
- However, it is important to note that Absolute poverty is not simply a matter of lack of income; it is also a lack of access to essential services and opportunities. Therefore, sustainable solutions must address both the symptoms and the underlying causes of Absolute poverty.
Difference between Relative Poverty and Absolute Poverty
- Relative poverty is defined as being poor in relation to others in society. In other words, it is a measure of inequality. Absolute poverty, on the other hand, is a measure of deprivation.
- It is the minimum level of income needed to meet basic needs such as food, clothing, and shelter. Relative poverty is often used to measure poverty in developed countries, while absolute poverty is more commonly used to measure poverty in developing countries.
- However, both concepts are important in understanding the issue of poverty. Relative poverty can help to identify those who are at risk of falling into absolute poverty, and absolute poverty can help to identify those who are struggling to meet their basic needs. By understanding both concepts, we can develop better strategies for alleviating poverty.
Conclusion
Poverty is a global issue that requires collaborative solutions. While there are many different types of poverty, absolute poverty, and relative poverty are two important distinctions to make. Absolute poverty is defined by the lack of basic human needs such as food, water, shelter, and clothing. Relative poverty, on the other hand, refers to the comparison of one person’s income or resources to those of other people in society.
