Poverty 

is a state or condition in which one lacks the financial resources and essentials for a certain
standard of living. Poverty can have diverse social, economic, and political causes and effects.
[1]
 When evaluating poverty in statistics or economics there are two main measures: absolute
poverty compares income against the amount needed to meet basic personal needs, such
as food, clothing, and shelter;[2] relative poverty measures when a person cannot meet a minimum
level of living standards, compared to others in the same time and place. The definition of relative
poverty varies from one country to another, or from one society to another.[2]
Statistically, as of 2019, most of the world's population live in poverty: in PPP dollars, 85% of people
live on less than $30 per day, two-thirds live on less than $10 per day, and 10% live on less than
$1.90 per day now changed to $2.15/day.(extreme poverty).[3] According to the World Bank Group in
2020, more than 40% of the poor live in conflict-affected countries.[4] Even when countries
experience economic development, the poorest citizens of middle-income countries frequently do
not gain an adequate share of their countries' increased wealth to leave poverty.[5] Governments and
non-governmental organizations have experimented with a number of different policies and
programs for poverty alleviation, such as electrification in rural areas or housing first policies in urban
areas. The international policy frameworks for poverty alleviation, established by the United
Nations in 2015, are summarized in Sustainable Development Goal 1: "No Poverty".
Social forces, such as gender, disability, race and ethnicity, can exacerbate issues of poverty—with
women, children and minorities frequently bearing unequal burdens of poverty. Moreover,
impoverished individuals are more vulnerable to the effects of other social issues, such as
the environmental effects of industry or the impacts of climate change or other natural
disasters or extreme weather events. Poverty can also make other social problems worse; economic
pressures on impoverished communities frequently play a part in deforestation, biodiversity
loss and ethnic conflict. For this reason, the UN's Sustainable Development Goals and other
international policy programs, such as the international recovery from COVID-19, emphasize the
connection of poverty alleviation with other societal goals.[6]

Definitions and etymology[edit]

The word poverty comes from the old (Norman) French word poverté (Modern
French: pauvreté), from Latin paupertās from pauper (poor).[7]
There are several definitions of poverty depending on the context of the situation it is placed in, and
usually references a state or condition in which a person or community lacks the financial resources
and essentials for a certain standard of living.
United Nations: Fundamentally, poverty is a denial of choices and opportunities, a violation of human
dignity. It means lack of basic capacity to participate effectively in society. It means not having
enough to feed and clothe a family, not having a school or clinic to go to, not having the land on
which to grow one's food or a job to earn one's living, not having access to credit. It means
insecurity, powerlessness and exclusion of individuals, households and communities. It means
susceptibility to violence, and it often implies living in marginal or fragile environments, without
access to clean water or sanitation.[8]
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.[9]
European Union (EU): The European Union's definition of poverty is significantly different from
definitions in other parts of the world, and consequently policy measures introduced to combat
poverty in EU countries also differ from measures in other nations. Poverty is measured in relation to
the distribution of income in each member country using relative income poverty lines.[10] Relative-
income poverty rates in the EU are compiled by the Eurostat, in charge of coordinating, gathering,
and disseminating member country statistics using European Union Survey of Income and Living
Conditions (EU-SILC) surveys.[10]

Measuring poverty[edit]

The number of people below different poverty lines

Main article: Measuring poverty

See also: Poverty threshold and Individual Deprivation Measure

Absolute poverty[edit]
Main article: Extreme poverty
See also: Purchasing power and Asset poverty
Absolute poverty, often synonymous with 'extreme poverty' or 'abject poverty', refers to a set
standard which is consistent over time and between countries. This set standard usually refers to "a
condition characterized by severe deprivation of basic human needs, including food, safe drinking
water, sanitation facilities, health, shelter, education and information. It depends not only on income
but also on access to services."[11][12][13] Having an income below the poverty line, which is defined as
an income needed to purchase basic needs, is also referred to as primary proverty.
The "dollar a day" poverty line was first introduced in 1990 as a measure to meet such standards of
living. For nations that do not use the US dollar as currency, "dollar a day" does not translate to
living a day on the equivalent amount of local currency as determined by the exchange rate.
[14]
 Rather, it is determined by the purchasing power parity rate, which would look at how much local
currency is needed to buy the same things that a dollar could buy in the United States.[14] Usually,
this would translate to having less local currency than if the exchange rate were used.[14]
From 1993 through 2005, the World Bank defined absolute poverty as $1.08 a day on such
a purchasing power parity basis, after adjusting for inflation to the 1993 US dollar[15] and in 2008, it
was updated as $1.25 a day (equivalent to $1.00 a day in 1996 US prices)[16][17] and in 2015, it was
updated as living on less than US$1.90 per day,[18] and moderate poverty as less than $2 or $5 a
day.[19] Similarly, 'ultra-poverty' is defined by a 2007 report issued by International Food Policy
Research Institute as living on less than 54 cents per day.[20] The poverty line threshold of $1.90 per
day, as set by the World Bank, is controversial. Each nation has its own threshold for absolute
poverty line; in the United States, for example, the absolute poverty line was US$15.15 per day in
2010 (US$22,000 per year for a family of four),[21] while in India it was US$1.0 per day[22] and in China
the absolute poverty line was US$0.55 per day, each on PPP basis in 2010.[23] These different
poverty lines make data comparison between each nation's official reports qualitatively difficult.
Some scholars argue that the World Bank method sets the bar too high,[citation needed] others argue it is too
low.