January 27, 2011

Types of Poverty- APPSC G1 Mains - Indian Economy - Unit 3

Absolute Poverty

A measure of absolute poverty quantifies the number of people below a fixed real poverty threshold. Absolute poverty is a level of poverty at which certain minimum standards of living -- for example for nutrition, health and shelter -- cannot be met.

Relative poverty is a poverty measure based on a poor standard of living or a low income relative to the rest of society. Unlike absolute poverty, it does not necessarily imply that physical human necessities of nutrition, health and shelter cannot be met; instead it suggests that the lack of access to many of the goods and services expected by the rest of the contemporary society leads to social exclusion and damaging results for the individuals and families in relative poverty. Measurements of relative poverty are similar to measurements of social inequality

There is a distinction between absolute poverty indices and relative poverty indices. Relative poverty indices are also known as inequality indices. Poverty line is thus measured in terms of absolute poverty. Absolute poverty line can be lower than the lowest income and higher than the highest income.

Relative poverty deals with the socio-economic status of an area. However, absolute poverty is some who is destitute.


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