Difference Between Absolute and Relative Poverty

Introduction

Absolute Poverty and Relative poverty are two independent notions used to quantify and comprehend poverty; each focuses on different aspects of economic suffering.

Difference Between Absolute and Relative Poverty

Knowing the difference between absolute and relative poverty is essential to understanding the various aspects of poverty and coming up with effective solutions. Even though both words refer to deprivation and an abundance of resources, their conceptual foundations are different.

Absolute Poverty

  • Absolute poverty is defined as a fixed poverty level that does not vary over time or between circumstances.
  • It is commonly characterized as the minimal level of income or consumption required to meet basic requirements such as food, shelter, clothes, and healthcare.
    Difference Between Absolute and Relative Poverty
  • Absolute poverty is often measured over time and is commonly expressed in terms of a certain income criterion or a list of fundamental needs that must be met.
  • Absolute poverty centers on the incapacity to satisfy fundamental human needs, irrespective of how one's living standards are compared to those of others in the community.

Relative Poverty

  • Relative poverty is a metric that takes into account the level of living and economic circumstances of the community in which a person or group resides.
  • It is commonly described as having substantially less money or resources than the general populace of a certain society or community.
  • In contrast to Absolute poverty, which has a set threshold, Relative poverty is dynamic and subject to shift as society's general economic circumstances do.
    Difference Between Absolute and Relative Poverty
  • Inequality and social exclusion within a society are the main topics of Relative Poverty, which draws attention to differences in wealth, income, and resource access between various groups.
  • Relative poverty is when a person or household has enough money to cover their basic requirements, yet they are less fortunate and marginalized than most people in the community.
  • Numerous variables, including wealth distribution, income inequality ratios, and spending patterns within a culture, can be used to quantify relative poverty.

Difference Between Absolute and Relative Poverty

  • Absolute poverty is defined as a fixed poverty level that does not vary over time or between circumstances. It is sometimes characterized in terms of the basic needs of life that people need to exist, such as food, housing, clothes, and healthcare. Conversely, Relative poverty is a measure of poverty that accounts for social context and economic inequalities within a particular community or society.
  • Absolute Poverty denotes the lowest income or level of consumption required to meet basic needs and support life and is typically the basis for this measurement. Relative poverty measures a person or household's status among others in society, as opposed to emphasizing an absolute level of living. It takes into account if an individual's income or resources are appreciably less than the average or median income of the community.
  • The lack of access to fundamental necessities and the incapacity to pay for necessities that are necessary for survival are the main features of Absolute Poverty. Relative poverty, to put it simply, is the relative disadvantage that members of certain groups or people endure when their incomes or resources are far lower than those of the general population. This implies that people might still be seen as comparatively poor if their income or resources are significantly less than the average for the society, even in wealthy cultures where the majority of people enjoy a good quality of living.
  • Absolute poverty refers to a situation in which an individual lacks the financial resources to obtain the necessities of existence. Relative poverty is characterized as the standard of living in comparison to the economic standards of living in identical surroundings.
  • Absolute poverty excludes broader quality of life issues as well as the general level of inequality in society. What the notion fails to acknowledge is that individuals have crucial social and cultural requirements. People living in Relative poverty are better off than those living in absolute poverty, but they still cannot afford the same level of living as the rest of society.
  • Absolute poverty is frequently defined by the lowest possible level of living, but Relative Poverty compares income or wealth to others in society.
  • Absolute poverty exists independently of income distribution within a culture, whereas Relative poverty is determined by income distribution and societal norms.
  • Absolute poverty emphasizes the lack of basic resources such as food, housing, and healthcare, whereas Relative poverty emphasizes discrepancies in income and living conditions.
Absolute PovertyRelative Poverty
Absolute poverty is a precise and quantitative estimate of the minimum resources required to meet fundamental human needs.Relative poverty leads attention to the unequal allocation of resources within a society and income discrepancies.
Addressing Absolute poverty allows us to prioritize initiatives and deploy resources to satisfy immediate fundamental needs.Relative poverty alleviation attempts to improve the financial standing of underprivileged people or groups to lessen income disparities and advance social justice.
Outlining Absolute poverty is consistent with human rights values since it ensures access to vital resources and promotes well-being.Relative poverty data take into account societal norms and expectations, which might help us comprehend poverty in various cultural situations.
Addressing Absolute poverty entails assuring access to basic resources,Addressing Relative poverty entails lowering income disparities and boosting social mobility.
Absolute poverty is less affected by economic growth and progressRelative poverty might change despite societal changes.
Absolute poverty focuses on achieving fundamental necessities and uses an absolute threshold.Relative poverty takes into account economic differences within a given context and uses a relative threshold in comparison to society as a whole.
Absolute poverty can be measured using a fixed monetary threshold or a consumption level.Relative poverty is frequently measured using an individual's income or consumption percentile within society.

Disadvantages: Absolute and Relative Poverty

  • Absolute poverty may not adequately convey the intricacies of poverty that go beyond material suffering because it only considers basic requirements. The entire income distribution affects Relative poverty thresholds, making it difficult to establish uniformly applicable poverty limits.
  • Measures of Absolute poverty do not take cultural variances, community conventions, or regional variations in the cost of living into consideration. Cultural and societal expectations might impact Relative Poverty metrics, resulting in diverse interpretations of poverty.
  • The unequal allocation of resources within a society and income inequality are not specifically taken into account by Absolute poverty statistics. Comparing one's wealth or income to that of others is the foundation of Relative poverty, but this comparison can be arbitrary and contingent on the reference group selected.
    Difference Between Absolute and Relative Poverty
  • Absolute poverty could ignore the various facets of poverty, such as lack of opportunities or social marginalization. Measures of Relative poverty tend to ignore the material hardships that people face and instead concentrate on differences in income.
  • Absolute poverty thresholds may not respond appropriately to changes in living standards or societal growth over time. Relative poverty is mostly measured by income, which may overlook other aspects of poverty that go beyond economic means.
  • Absolute poverty measurements fail to represent individual or subjective experiences of poverty, limiting a thorough knowledge of the problem. Relative poverty underestimates the level of poverty since it does not explicitly account for persons who may lack necessities despite being above the relative poverty line.
  • If one solely concentrates on Absolute Poverty, people who live in poverty may become stigmatized and dehumanized. Relative poverty metrics tend to oversimplify the multifaceted nature of poverty by concentrating only on income disparities and ignoring other factors that contribute to poverty.

Conclusion

In a nutshell, while Absolute poverty focuses on the inability to meet necessities at a defined level, Relative poverty investigates poverty within the larger economic environment and living standards of a society, stressing differences and inequality among different groups.

Absolute poverty and Relative poverty are two independent notions for measuring and understanding poverty, each offering a unique viewpoint on the economic and social circumstances of people or groups within a community.






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