Poverty

• Poverty is a state or condition in which a person or community lacks

the financial resources and essentials for a minimum standard of
living. Poverty means that the income level from employment is so
low that basic human needs can't be met.
• Poverty is a multi-dimensional phenomena
• There is dearth of essential facilities.
• Poverty is a vicious cycle
Poverty Line
• How are poor people identified – using the poverty Line .People who
fall below the indicated mark are considered poor. While who fall
above are not poor.
• There are many ways of measuring poverty .One way is to determine
it by the monetary value (per capita Expenditure) of the minimum
calorie intake that was estimated at 2400 Calories for rural person and
2100 Calories for a person in urban area. Based on this the poverty
line defined for rural areas consumption worth for Rs 816 per person
a month and for urban areas it was Rs 1000
Absolute poverty vs Relative poverty
• Absolute poverty is when household income is below a certain level,
which makes it impossible for the person or family to meet basic needs
of life including food, shelter, safe drinking water, education,
healthcare, etc. (Usually used in Developing countries or
underdeveloped countries.)
• Relative Poverty- A condition where household income is a certain
percentage below median incomes.(usually used in developed
countries). Relative poverty is sometimes described as “relative
deprivation” because the people falling under this category are not
living in total poverty, but they are not enjoying the same standard of
life as everyone else in the country
Absolute Poverty
• In this we calculate an aggregate value of Minimum quantity of
commodities which are necessities of life.
• Those whose income are below the aggregate value is below poverty
line.
• A poverty line indicates deprivation in an absolute sense, i.e., the
value of a set level of resources deemed necessary to maintain a
minimal standard of well being. With such a definition, poverty is
eliminated once all households command resources equal to or above
the poverty line. The $1/day per capita poverty line is one example of
an absolute poverty line, but most countries determine their own
absolute poverty lines as well
Relative Poverty
• Many wealthier countries, on the other hand, set poverty lines based
on relative standards. In the United Kingdom, for example, the
poverty line is 60 percent of the median income level (after taxes and
benefits and adjusted for household size), an approach adopted
broadly in the European Union.
• Inequality matters as a component of deprivation. As such, relative
poverty can be reduced but never eliminated
Extreme Poverty
• It is the most server form of poverty defined by UN “ as a condition
characterized by severe deprivation of basis human needs ,including
food ,safe drinking water ,sanitation facilities ,health shelter
education.
• 4 % of the Indian population live in extreme poverty.
The social definition of poverty
• Poverty is hunger, poverty is being sick and not being able to see the
doctor. Poverty is not being able to go to school, and not knowing
how to read. Poverty is not having a job. Poverty is fear for the future,
having food once in a day .Poverty is losing a child to illness brought
about by unclear water. Poverty is powerlessness lack of
representation and freedom .
Types of poor
• Chronic poor- Always poor and usually poor
• Transient Poor- Churning poor( Move in and out of poverty regularly
and Occasionally poor(usually are not poor but sometimes poor for
long spells.
• Non-Poor –Never Poor
Vicious Cycle of Poverty
• It implies that circular constellation of forces tending to act and
repeat one another in such a way as to keep a poor Individual in a
state of poor
Multidimensional Poverty Index
• It uses range of index to calculate a summary poverty figure for a
given poverty index
Poverty In India