Question

Give 3 points of difference between absolute poverty and relative poverty.

Answer 1

Absolute and relative poverty, although both ways of measuring poverty, differ in terms of their definition of what poverty actually is. Absolute poverty includes the lack of biological necessities, such as food, water, clothing, housing, and sanitation, whereas, relative poverty refers to a poverty line, and is a definition of the amount of income a person needs to satisfy basic needs. In basic terms, absolute poverty is a having a lack of basic resources, and relative poverty is more to do with income inequality. Absolute poverty refers to a set condition, which is the same in every country, and does not change over a period of time. Relative poverty, on the other hand, refers to conditions which are subjective to the society in which the person lives, and therefore, does vary between countries, and can change over time e.g. more urban cities will have greater education, energy, and transportation costs, so the poverty line will be higher in this country, compared to poorer countries. People in relative poverty do have an income, but it is lower than the set income level. They are seen as poor because they do not have the capabilities to meet certain standard set by a community. For example, someone living in a rich society may have a steady income and all the necessities for living, but because they do not have as many luxuries as others living in the society, they are said to be in relative poverty. In contrast, if someone cannot afford necessities they are said to be in absolute poverty. Absolute poverty is more evident in third world countries, where people are living on $1 – $2 a day.

Answer 2

Answer:

Absolute Poverty

• Absolute Poverty refers to a phenomenon in which a section of the society is unable to fulfil even its basic necessities of life concerning food, clothing, housing, education and health.

• It is caused because of many factors like over population, low economic growth, over dependence on agriculture, etc.

• There are remedies to remove absolute poverty by Poverty Alleviation Programme and other ways.

• It is measured by 'Poverty Line.'

Relative Poverty

• Relative Poverty refers to a phenomenon in which inequalities of income exist and hence one person is poor in relation to other person.

• It is caused because of inequalities of income.

• It can't be removed as people have different skills and accordingly their incomes vary.

• It is measured by 'Gini Co- efficient.'