Absolute & Relative Poverty

Question 1

Define absolute poverty

Answer 1

When people’s income 💵 ⬇️ below minimum level to meet basic needs e.g. 🍎, shelter 🏠, 👕, clean 💦, sanitation facilities, education 📚 etc
Minimum level called ‘poverty line’

Question 2

How have global poverty rates changed over the years?

Answer 2

Poverty fallen globally 🌎 (2015-10% in absolute poverty AND in 1990-36%) BUT decline uneven

Question 3

How has the decline in global poverty been uneven?

Answer 3

East Asia and Pacific AND Europe and Central Asia ⬇️ extreme poverty to below 3%
BUT ⬆️ than half of extreme poor live in sub-Saharan Africa

Question 4

What is being done to reduce global poverty?

Answer 4

1 of UN’s sustainable development goals (‘end poverty in all its forms everywhere)

Question 5

What are the features of majority of the global poor?

Answer 5

Majority:

1) Live in rural areas
2) Poorly educated 📚
3) Employed in agricultural sector
4) Under 18 years of age (most don’t survive past 18)

Question 6

Define relative poverty

Answer 6

When people living below certain income 💵 threshold particular to country living in … varies from country to country

Question 7

What can the concept of relative poverty be described as?

Answer 7

1) Subjective- varies from country to country
2) Subject to change over ⏰
3) ✖️ comparable between countries e.g. sometime ‘relatively poor’ in 🇺🇸 considered wealthy in Malawi 🇲🇼

Question 8

How does the amount of people living in absolute poverty vary from the amount of people living in relative poverty in a particular country?

Answer 8

All countries have some ppl living in relative poverty- incomes 💵 unevenly distributed (inequality)
BUT possible for country to have ✖️one living in absolute poverty- definition internationally agreed

Question 9

How is absolute poverty measured?

Answer 9

Set standard consistent over ⏰ and between countries- ability of individuals or groups to meet basic needs
🌎 🏦- defines absolute poverty as % of population living on ⬇️ than $1.90 a day (PPP) at constant 2011 prices

Question 10

How is relative poverty measured?

Answer 10

Measured in comparison with other ppl in country
If person living below income 💵 threshold of particular country then classified as relatively poor e.g. EU- income ⬇️ than 60% of median income considered relatively poor

Question 11

What are the causes of changes in absolute and relative poverty?

Answer 11

1) Economic growth
2) Education 📚 and training
3) Social benefits
4) Tax
5) Wage rates (and national minimum wage rates)
6) Asset ownership

Question 12

What factors may affect the poverty rates in developing countries specifically?

Answer 12

1) Aid
2) Debt relief (aiding debt of developing countries)
3) Fair-trade schemes
4) Property rights