Absolute poverty and relative poverty

Poverty is a concept that has existed for a long time and has evolved over time and space. At times, the people considered poor were beggars and the unemployed. To resolve the situation, we were trying to get these people back to work. For several years, the idea that poverty could be the result of problems in the economic system has grown. This view of things is gradually changing the way we fight poverty. Even today, poverty is something that is experienced differently from country to country. Thus, two types of poverty are put forward: absolute poverty and relative poverty.

Absolute poverty and relative poverty

Absolute poverty and relative poverty are two ways of measuring poverty in a state and in the world. Thus, depending on the economic situation of a country, it will either be a question of absolute poverty (extreme poverty) or relative poverty.

Absolute poverty refers to people who are unable to meet their basic needs (food, shelter, etc.). This type of poverty is more common in developing countries. We often talk about extreme poverty.

Absolute poverty is found mainly in developing countries, but it is not absent in emerging and developed countries. The absolute poverty line is international and set by the World Bank at $ 1.90 per day (each country converts it into its currency according to purchasing power parity (PPP)) (World Bank, 2015). People living in a situation of extreme poverty do not succeed in meeting their basic needs such as eating, adequate housing, etc.

Purchasing Power Parity (PPP) converts the various currencies in the world into a common currency in order to compare the purchasing power of each of these currencies.

Relative poverty is calculated by comparing the median income of a country. The proportion of the population below this income corresponds to the relative poverty rate. This type of poverty is used, among other things, to account for social and economic inequalities in developed countries. 

It is possible that a person is not in a situation of extreme poverty and can have access to basic goods and services, but must calculate all their essential expenses to the nearest penny to have enough money for the month. next. This person is not in a situation of extreme poverty, but he does not live in a suitable way for the country where he lives. She is still in a situation of poverty.

Actions by governments and international organizations to reduce poverty

In several countries, the state intervenes to promote the well-being of its citizens. For example, for children, some governments have introduced free education for primary and secondary education, family allowances, institutions to accommodate orphaned or abandoned children, or institutions to ensure the protection of children.

According to: https://www.alloprof.qc.ca/fr/eleves/bv/monde-contemporain/la-pauvrete-h1947