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Absolute poverty is a condition in which a person’s income is lower than a decent standard of living, measured by a poverty line. They are considered unable to afford the necessary goods and services (such as shelter, food, and clothing).
For example, a country may adopt a poverty line standard of US$1 per day. So, those who are lower than the number belong to the absolute poverty group. This standard has not changed and has not been revised for several years.
As an international benchmark, the World Bank renewed the standard of the international poverty line of US$1.90 per day in 2015. In that year, globally, those living on less than US$1.90 per day reached more than 700 million people.
Next, in 2018, the World Bank also refers to extreme poverty as those who have income less than US$1.9 based on purchasing power parity (PPP) in 2011, which, if converted to 2018, will be equivalent to US$2.12.
As inflation affects the purchasing power of individuals, the poverty line will change over time. In international standards, for example, the World Bank initially set US$1 a day as the line. Still, in 2015, they revised it to US$1.9 a day.
Types of poverty
There are two common terms for poverty: absolute and relative. As the definition above states, absolute poverty is based on the nominal standard (poverty line). Below-the-line individuals are absolutely miserable and considered unable to meet their basic needs.
Meanwhile, relative poverty is based not on nominal, but the percentage from a certain standard. For example, households fall into the category of relative poverty when they receive 60% less than the average household income. They are poor because they are below the average.
Relative poverty can also change along with economic growth, in contrast to absolute poverty. When the economy expands and increases household income, relative poverty will tend to decrease.
In addition to the two, there are also some poverty terms. For example, Eric Jensen, in his book “Teaching with Poverty in Mind,” divides poverty into situational, generational, absolute, relative, urban, and rural areas.
Causes of absolute poverty
Eradicating absolute poverty, a condition where individuals lack the income to meet basic needs for survival remains a critical global challenge. Here’s a closer look at some of the key drivers of absolute poverty:
Lack of resources and infrastructure
Limited access to basic needs: Clean water, sanitation facilities, and reliable energy sources are fundamental building blocks for a healthy and productive life. Without them, individuals struggle with waterborne diseases, sanitation issues, and limited opportunities for education and economic activity. Drought, floods, and other climate shocks can further disrupt access to these essentials in poverty-stricken regions, creating a vicious cycle of hardship.
Insufficient food production and distribution: Poverty-stricken regions often grapple with a combination of challenges: inadequate agricultural resources like fertile land or irrigation systems, inefficient food distribution networks that leave some areas with food shortages, and vulnerability to climate shocks that disrupt harvests.
This precarious situation can lead to chronic food insecurity, malnutrition, and stunted growth, especially among children.
Poor infrastructure: Imagine a community with dilapidated roads and bridges, unreliable power grids, and limited access to the internet. This is the reality for many living in absolute poverty.
Such poor infrastructure acts as a significant barrier. It hinders access to markets where individuals can sell their goods or find employment, limits their ability to reach healthcare facilities when needed, and restricts educational opportunities, particularly in remote areas.
Limited education and opportunity
Low literacy rates: Without basic literacy and numeracy skills, individuals face a multitude of challenges. They struggle to find decent jobs that offer a pathway out of poverty, participate in skills training programs that could enhance their employability, or access essential information about healthcare, sanitation, and financial literacy.
This lack of basic skills perpetuates the cycle of poverty across generations, as children born into poverty are less likely to receive an education themselves.
Inequitable education systems: Even when education is nominally available, the quality and accessibility can vary dramatically. Children from low-income backgrounds often attend schools with overcrowded classrooms, inadequately trained teachers, and a lack of essential resources. This puts them at a significant disadvantage compared to their peers from wealthier families, limiting their potential for future earnings and upward mobility.
Furthermore, social barriers like gender inequality or discrimination against minority groups can further restrict access to education and employment opportunities, hindering economic progress for entire segments of the population.
Conflict and instability
War and violence: The devastating effects of armed conflict are immediate and far-reaching. Infrastructure is destroyed, economic activity is disrupted, and entire populations are displaced.
This creates immediate humanitarian crises with food shortages, outbreaks of disease, and limited access to medical care. Even after the violence subsides, the long-term effects of conflict can hinder development efforts for years to come, trapping survivors in poverty.
Political instability: Weak or corrupt governments often fail to provide basic services such as security, education, and healthcare. They may struggle to enforce the rule of law or invest in essential infrastructure projects.
This creates an environment where poverty thrives, as individuals lack the basic building blocks for economic opportunity and social mobility.
Forced displacement: Millions of people worldwide are refugees or internally displaced due to conflict, persecution, or natural disasters. These individuals often face extreme hardship as they flee their homes with little more than the clothes on their backs. They struggle to rebuild their lives in unfamiliar surroundings, lacking access to basic necessities, employment opportunities, and a sense of security.
Weak governance
Corruption: Corruption diverts resources away from essential services and infrastructure projects that could benefit the poor. When public funds are siphoned off for private gain, resources for building schools and hospitals or improving sanitation systems are depleted. This not only undermines economic development but also erodes trust in government institutions, making it difficult to implement effective poverty reduction strategies.
Ineffective economic policies: Poorly designed economic policies can exacerbate poverty, particularly for the most vulnerable populations. Trade barriers that limit access to markets, inadequate social safety nets that fail to provide a safety cushion during economic downturns, or policies that favor large corporations over small businesses can all contribute to a situation where the poor have few opportunities to lift themselves out of poverty.
Lack of transparency and accountability: When governments lack transparency and accountability, they are less responsive to the needs of the poor. Essential information about budgets and resource allocation may be hidden from public scrutiny, making it difficult to track how effectively resources are being used to address poverty.
This lack of transparency also hinders citizen engagement in the development process, as communities have limited ability to hold their leaders accountable for delivering on promises to reduce poverty.
Consequences of absolute poverty
Absolute poverty doesn’t exist in a vacuum. It has a profound ripple effect, impacting not only individuals struggling to meet basic needs but also hindering the overall development of communities and nations. Here’s a closer look at some of the key consequences of absolute poverty:
Health issues
Chronic malnutrition: When people lack access to a sufficient and nutritious diet, chronic malnutrition results. This, in turn, weakens their immune systems, making them more susceptible to diseases.
Children who experience malnutrition early in life face stunted growth and cognitive development, limiting their future prospects. Pregnant women suffering from malnutrition are at greater risk of complications during childbirth, further perpetuating the cycle of poverty across generations.
Limited access to healthcare: Poverty often translates to limited access to quality healthcare. Individuals may lack the financial resources to afford medical care or live in areas with a shortage of doctors, nurses, and hospitals.
This lack of access to basic medical services contributes to higher rates of preventable diseases, slower recovery times from illness, and, ultimately, a lower life expectancy for those living in absolute poverty.
Limited economic development: a stifled engine of growth
Low savings and investment: When individuals are struggling to meet their basic needs for food, shelter, and clothing, they have little to no disposable income left over to save.
This lack of domestic savings hinders investment in businesses, infrastructure projects, and education – all crucial ingredients for economic growth. Without these investments, it becomes difficult for countries to create new jobs, diversify their economies, and lift people out of poverty.
Low productivity: Malnutrition, chronic illness, and inadequate education all contribute to lower workforce productivity in poverty-stricken regions.
Individuals may lack the energy or cognitive capacity to perform complex tasks, further hindering economic development and perpetuating a situation where businesses struggle to find skilled workers and individuals have limited opportunities to earn a decent living.
Social problems
Increased crime rates: Poverty can create an environment of desperation, where individuals see few alternatives to meet their basic needs.
This can lead to an increase in crime rates as people resort to theft, violence, or drug trafficking to survive. Crime not only undermines public safety but also discourages investment and economic activity, further hindering development efforts.
Food insecurity and hunger: Food insecurity refers to the state of having limited or uncertain access to enough nutritious food. In poverty-stricken regions, food insecurity is a constant threat.
Droughts, floods, or economic downturns can quickly push vulnerable populations into hunger, leading to social unrest and instability. The long-term effects of food insecurity can be devastating, particularly for children, who may suffer from stunted growth and irreversible cognitive development issues.