Poverty

- a pronounced deprivation in well-being

- multifaceted word that requires a clear analysis in all its many dimensions

- a situation people want to escape

- a complex societal issue

- not having enough money or access to resources to enjoy a decent standard of living

Absolute and Relative Poverty

- Absolute poverty is when household income is below a certain level. (Absolute poverty incidence
or poverty line)
- This makes it impossible for the family to meet their basic needs, including food, decent shelter,
clothing, medical/health services, clean drinking water, electricity, and education.
- Relative poverty is when households receive 50% less than average household incomes.
- They do have some money but still not enough money to afford anything above the basics.
- Sometimes described as “relative deprivation” because the people falling under this category are
not--
- This means that certain families have absolutely no chance of enjoying the same standards of
living as other people in the same society currently have access to.
- They are basically “trapped” in a low relative income box--
- When the relative approach is used to measure poverty, there is another concept that needs to
be explored – persistent poverty.
- This is when households receive 50 or 60% less income than average incomes every--
- Since long-term poverty has more impactful consequences on economic and social conditions,
persistent poverty is an important concept to bear in mind.
- Also termed as “inequality”

Poverty and the World

- Poorest population work in the agriculture sector

- Illiterate/uneducated and malnourished
- Industrial revolution heightened inequality and intensified the gap between the rich and the
poor
- Sluggish economic growth and low production and consumption of goods and services.
- Natural disasters, leaving people to go back to zero in terms of capitalization
- Reduced influence of unions in businesses
- Tax policies favorable to the rich population
- Upper-lever management receiving a hefty deal of salary and income
- Poverty has a positive correlation with a country’s standard of living
- Globalization as an avenue of exploitation and oppression.
- Underpaid labor force, wages being deducted at source, personal work papers controlled by
other people, human trafficking, underpaid labor force, wages being deducted at source,
personal work papers controlled by other people, human trafficking, forced labor/labor
exploitation, and child abuse/labor