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The idea of povertyThere is no generally agreed definition of poverty. This is because, Piachaud argues, the definition of poverty is a moral question - it refers to hardship which is unacceptable. [1] 'Poverty' may refer to:
The chart points to a range of different meanings:
some are close to each other, others far apart. Poverty has often been described in terms of low income and resources, but this does not capture the huge range of issues which it touches. The World Bank’s study, Voices of the Poor, identifies several recurring themes. In relation to material conditions, there are precarious livelihoods, problems of physical health and living in excluded locations. The studies put great emphasis on social relationships - relationships of
gender, social exclusion and lack of security. And then there are political issues - limited abuse of authority by those in power. [2] These issues cannot be set aside in trying to deal with poverty, and poverty is increasingly being thought of as a multidimensional concept. External links: Voices of the Poor | (PDF) | Poverty in the UK | Poverty - an International Glossary (PDF) Poverty in a social contextConventionally, poverty is represented in two main models.
Poverty, like all need, is defined in terms of the society where it takes place: what people can eat, and where they can live, depend on the society they live in. That does not mean that it is based only on a comparison with others in the same society; there are some countries where most people are poor. Beyond that, social and political relationships - like problems of gender or relationships to authority - are an integral part of the experience of poverty. These issues occur in many different societies, in poorer and richer countries alike, but they can only be understood in their social context. The causes of povertyThe problems of poverty have been explained in many ways. Pathological explanations are those which attribute poverty to the characteristics or behaviour of poor people. They include:
Structural explanations explain poverty in terms of the society where it occurs. They include:
Further material: Social problems | Welfare and equality External link: Paul Spicker (this website's author) talks to the BBC about the transmission of poverty Measuring povertyBecause there is no agreed definition of poverty, there can be no agreed measure. Even if definitions were agreed, though, poverty would be complex and difficult to quantify. Measures of poverty have to be 'indicators', or signposts. The most commonly used measure is based on income. The World Bank, for example, used to use the arbitrary standard of $1.25 per day; at this level there are about 1300 million poor people in the world. At $2 a day, another arbitrary line, the figure approaches 2.5 billion. Some nations apply 'budget standards', estimating the cost of a minimum basket of goods. The US defines its poverty threshold by identifying the cost of a food basket and estimating from that how much income is necessary. Others use relative measures. The European Union uses a comparative indicator which defines people as being 'at risk of poverty' if their income is below 60% of the median income. (The median comes half-way up the income distribution). This means that there is more poverty where there is more inequality, or 'economic distance'. Social science surveys have estimated the numbers of poor people in various ways. Some use budget standards; others use a 'subjective' poverty test, to see whether people identify themselves as poor. Others again have developed a 'consensual' method, where an opinion poll is used to identify what people in that society see as essential, and working from there to see who can afford that standard. A survey for the Joseph Rowntree Foundation estimates that on these tests a quarter of Britain's population is poor. [7] External links: World Bank | US Poverty Threshold | Rowntree survey | Madden: The Heart of Poverty Targeting the poorProviding services to poor people often depends on the idea that it is possible to 'target' resources or services by choosing the people who will receive them. In principle, people should receive benefits and services when they are poor, and they should not receive them when they are not. There are many problems with this in practice.
Because governments lack the capacity to test income effectively, some are using 'proxy' means tests, based on an analysis of national studies of households. Indicators are chosen which seem most likely to be associated with low income and poverty. These tests are easier and cheaper to run than full tests of income, and the information about whether people have basic assets is likely to be more stable. However, the World Bank has found that "it is hard to add new beneficiaries in the short term and hard to remove them from the program rosters when a crisis has passed." [8] Proxy means tests appear to be better at excluding people who are not poor than they are at identifying and including those who are.[9] The process is very approximate, which defeats the purpose of trying to fit the response to individual needs. It can seem arbitrary - some claimants tend to think it is decided almost as a matter of luck, some pray for success - and, Australian Aid has argued, there are openings for corruption, as people pay bribes to get on the rolls. [10] The
World Bank has also examined 'indicator targeting', trying to reach the poor by focusing on associated factors. It may be done, for example, by concentrating on areas affected by drought or crop failure; subsidies for particular foods can be chosen in order to benefit poor people. However, focusing on geographical areas has not proved effective. Sometimes universal services, like Essential Health Care Packages, are better at getting resources to poor people than selective services are. Further material: Targeting; Universality and selectivity Policies for povertyPoverty can be responded to in many ways:
Any well-designed strategy to deal with a multidimensional set of issues depends on a range of policies being implemented together, and Poverty Reduction Strategies generally combine issues of economic and human development with issues of governance. The most effective responses to poverty have
probably been
External link: Poverty Reduction Strategy Papers Eradicating 'extreme' povertyThe United Nations considers extreme poverty to be a breach of human rights. The Guiding Principles on Extreme Poverty and Human Rights begin with an understanding of poverty as “a multidimensional phenomenon that encompasses a lack of both income and the basic capabilities to live in dignity”. [12] States have duties, for example
External link: Video - Hans Rosling on progress in dealing with poverty References
P Spicker, The idea of poverty, Policy Press 2007
What defines poverty?Poverty is about not having enough money to meet basic needs including food, clothing and shelter. However, poverty is more, much more than just not having enough money. The World Bank Organization describes poverty in this way: “Poverty is hunger. Poverty is lack of shelter.
How is poverty measured?Poverty is measured in the United States by comparing a person's or family's income to a set poverty threshold or minimum amount of income needed to cover basic needs. People whose income falls under their threshold are considered poor. The U.S. Census Bureau is the government agency in charge of measuring poverty.
Which term describes the minimum income level the federal government says is needed to buy basic necessities?A poverty threshold is a specified dollar amount considered to be the minimum level of resources necessary to meet the basic needs of a family unit1. Thresholds vary by the number and age of adults and the number of children under age 18 in the family unit, but they are the same for all states.
What are the causes of relative poverty?Causes of relative poverty include unemployment, poor health, and inequalities within the labor market. An example of someone in relative poverty is a person who does not have a job and relies on government assistance to maintain.
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