Economics

What are the types of poverty?

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Poverty is the problem of the economic development of developing countries. Hence, the main objective of economic development is to reduce poverty. The present and past development plans of developing countries have made poverty alleviation as an important objective.

Major types of poverty
Types of poverty described

Meaning of Poverty

Poverty is the problem of the economic development of developing countries. Hence, the main objective of economic development is to reduce poverty. The present and past development plans of developing countries have made poverty alleviation as an important objective. The INGOs, multilateral and bilateral agencies, NGOs, etc. are also working in developing countries with the major objective of poverty alleviation. Thus, it is clear that poverty is the biggest problem of developing countries. Therefore, poverty alleviation has become one of the major objectives of the economic development of almost all developing countries in the world.

Definition of Poverty

Poverty is defined as the inability to attain a minimum standard of living. In other words, it is an income below some minimum level to meet basic needs. The basic needs include foods, safe drinking water, sanitation facilities, health, shelter, education, and information.

According to the World Bank (World Development Report, 2000/2001), “Poverty is more than inadequate income or human development; it is also vulnerability and lack of peace, power, and representation.”

According to Amatya Sen, “Poverty is deprivation of basic capabilities rather than merely a lowness of income.”

Hence, poverty is the situation of inadequate income, illiteracy, malnutrition, lack of social services like health care, sanitation, and lack of social and political status.

👉 Readers also read: Characteristics of Poverty

Types of Poverty

In general, there are two types of poverty. They are as follows.

1. Absolute Poverty

Absolute poverty is the situation of inability to fulfill the basic needs of people or the inability to attain a minimum standard of living. To understand the meaning of absolute poverty, it is necessary to understand the concept of the poverty line. The poverty line is the minimum. Income is required to fulfill the basic needs of food, clothing, and shelter. If the income of a person is below the poverty line, it is known as absolute poverty. In the context of developing countries, the problem of absolute poverty is widely discussed. It is also measured in terms of calorie intake per day. If the calorie intake per day is below 2144, it is known as absolute poverty. World Bank (2015) has defined the individual whose income is less than the US $ 1.90 per day as absolutely poor. This is known as the international poverty line.

2. Relative Poverty

Relative poverty is the situation in which a person has enough income to sustain life, but the income and living standards are lower compared to the rest of the community. It is also the condition of less income in a country compared to the worldwide average. Absolute poverty is the problem of developing countries rather than relative poverty.

These are two main types of poverty. If you have some queries and questions related to these topics then please comment down.

What is the definition of poverty?

World Bank Defines: (World Development Report, 2000/2001), “Poverty is more than inadequate income or human development; it is also vulnerability and lack of peace, power, and representation.”
Amatya Sen Defines: “Poverty is deprivation of basic capabilities rather than merely a lowness of income.”

What are the major two types of Poverty?

1. Absolute Poverty
2. Relative Poverty

What is absolute poverty?

Absolute poverty is the situation of inability to fulfill the basic needs of people or the inability to attain a minimum standard of living. To understand the meaning of absolute poverty, it is necessary to understand the concept of the poverty line. The poverty line is the minimum. 

What is relative poverty?

Relative poverty is the situation in which a person has enough income to sustain life, but the income and living standards are lower compared to the rest of the community. It is also the condition of less income in a country compared to the worldwide average.

Who is considered poor?

World Bank (2015) has defined the individual whose income is less than the US $ 1.90 per day as absolutely poor.

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