Question

Which type of poverty is used for the measurement of poverty in developing countries?​

Answer 1

The main poverty line used in the OECD and the European Union is a relative poverty measure based on "economic distance", a level of income usually set at 60% of the median household income. The United States, in contrast, uses an absolute poverty measure.

Answer 2

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Poverty can be and is measured in different ways by governments, international organisations, policy makers and practitioners. Increasingly, poverty is understood as multidimensional, comprising social, natural and economic factors situated within wider socio-political processes. The capabilities approach also argues that capturing the perceptions of poor people is fundamental in understanding and measuring poverty.

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