13. Poverty

Question 1

What is Absolute poverty?

Answer 1

Conditions of absolute (extreme) poverty include:

1. Lack of food
2. Lack of safe drinking water
3. Lack of sanitation facilities
4. Lack of proper access to health care
5. Lack of shelter, education and information

Question 2

What is the measure of Absolute Poverty?

Answer 2

According to the World Bank this is defined as living on less that $1.90 per day (at constant 2011 prices).

Question 3

What is the UK Government’s definition of Absolute Poverty?

Answer 3

The threshold is a household earning less than 60% of the 2010/11 median after taxes and transfers, adjusted for household size and composition.

Question 4

What is relative poverty?

Answer 4

In the UK, relative poverty is currently set at 60% of the median income after taxes and benefits (adjusted for household size).

Question 5

What are the differences between Relative and Absolute poverty?

Answer 5

1. Absolute/extreme poverty is almost exclusively in developing countries; relative poverty is everywhere.
2. Absolute poverty refers to a set condition, whereas Relative is subjective as it refers to conditions which are subjective to the society in which the person lives.