Poverty Report: Exploring Relative and Absolute Poverty Concepts
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This report provides a comprehensive overview of poverty, differentiating between absolute and relative poverty. It explores the factors contributing to poverty, including situational, generational, urban, and rural poverty. The report delves into the effects of poverty on education, child development, crime rates, and social mobility. Furthermore, it contrasts absolute poverty, defined by a lack of basic necessities, with relative poverty, which considers income inequality within a society. The report also outlines various strategies for poverty reduction, such as increasing minimum wages, creating jobs, transparency in government spending, canceling national debts, and improving access to healthcare. The conclusion emphasizes the importance of understanding the different types of poverty and implementing effective measures to address them, ultimately aiming for improved living standards and societal progress.
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Absolute And Relative Poverty
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Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Divergence between relative and absolute wealth .....................................................................1
CONCLUSION ...............................................................................................................................5
REFRENCES ..................................................................................................................................6
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Divergence between relative and absolute wealth .....................................................................1
CONCLUSION ...............................................................................................................................5
REFRENCES ..................................................................................................................................6

INTRODUCTION
This study is going to present all aspects of lower financial condition of people and how
they survive in that scenario by fulfilling their basic needs of clothing, food and shelter. Poverty
is general scarcity in that state people have lack of specific amount of some substantial
possession either money (Oakes, 2017). They consider different factors which are social,
political, economical elements. This assignment also cover absolute poverty which is defines as a
lack of necessary means which help people to accomplish their basal one certain needs. There is
relative poverty too which is also cover by this project which is describe inequality in income at
some solid preposition of that central outgo. By making difference in between direct and
comparative poverty and conclusion how to resolve it by some of strategies (Notten, 2011).
TASK 1
Divergence between relative and absolute wealth .
Poverty is basically referred as a lack of resources and scarcity which is necessary in
daily life of human being to survive. They are not enough sufficient group of people who have
certain financial condition to fulfil their basic needs in which includes food to eat, clothes to ear
and shelter to live. As according to the world bank they analysed that there is fall in rate of
poverty more betwixt 1990 – 2015 it is about fell approximately from the 34.1 % to 9.6% . which
is noticed by the world bank that it is very large percentile of performance is falling below
although which is not good for the country as well as global economy , there is large group of
people which is surviving in extremely poor condition (Moore, 2012). This was the first time in
which this large record is collect by them.
Accordant to united kingdom, poverty is not about choice, opportunity like its a violation
of some human rights and their dignity. It means there are families in the societies which is
almost very uncertain capacity through which they can participate for making effective society.
They don't even have enough resources and financial condition so they can feed to their families,
pay for their school fees as well as clinic fees along with this they don't have job to make earn
money for living. So on, powerlessness, insecurity, exclusion of any individual, communities and
households are belongs to them (Kaplinsky, 2013). It effectuation in implies in living, fragile or
peripheral environments, they don't even get clean water to access or for sanitation. That' how
thy live on their daily basis. As in clear economic status, when there is any family which is fails
1
This study is going to present all aspects of lower financial condition of people and how
they survive in that scenario by fulfilling their basic needs of clothing, food and shelter. Poverty
is general scarcity in that state people have lack of specific amount of some substantial
possession either money (Oakes, 2017). They consider different factors which are social,
political, economical elements. This assignment also cover absolute poverty which is defines as a
lack of necessary means which help people to accomplish their basal one certain needs. There is
relative poverty too which is also cover by this project which is describe inequality in income at
some solid preposition of that central outgo. By making difference in between direct and
comparative poverty and conclusion how to resolve it by some of strategies (Notten, 2011).
TASK 1
Divergence between relative and absolute wealth .
Poverty is basically referred as a lack of resources and scarcity which is necessary in
daily life of human being to survive. They are not enough sufficient group of people who have
certain financial condition to fulfil their basic needs in which includes food to eat, clothes to ear
and shelter to live. As according to the world bank they analysed that there is fall in rate of
poverty more betwixt 1990 – 2015 it is about fell approximately from the 34.1 % to 9.6% . which
is noticed by the world bank that it is very large percentile of performance is falling below
although which is not good for the country as well as global economy , there is large group of
people which is surviving in extremely poor condition (Moore, 2012). This was the first time in
which this large record is collect by them.
Accordant to united kingdom, poverty is not about choice, opportunity like its a violation
of some human rights and their dignity. It means there are families in the societies which is
almost very uncertain capacity through which they can participate for making effective society.
They don't even have enough resources and financial condition so they can feed to their families,
pay for their school fees as well as clinic fees along with this they don't have job to make earn
money for living. So on, powerlessness, insecurity, exclusion of any individual, communities and
households are belongs to them (Kaplinsky, 2013). It effectuation in implies in living, fragile or
peripheral environments, they don't even get clean water to access or for sanitation. That' how
thy live on their daily basis. As in clear economic status, when there is any family which is fails
1

to meet to regime establishes get- go that is contrastive from some other countries. Poverty is
defined by the absolute and relative poverty. There are some effects of poverty are as follows :-
Education :- There is only very few children approx. 14 percent who attribute to the
quality school (Joo, 2011). There is background of children which affect to their performance
and carry some significance of educational institution. Those who come from low income group
they are likely to perform not well at pedagogy.
Child development :- Children who are living in these conditions of low income group
they tends to learn poor behavioural terms and carry some mental illness too as they turn older. It
will also show their connective progress among them as compared to those kids who are from
good economic background (avallion, 2011).
Crime :- It is analysed by some survey that poverty leads to crimes. Mostly of the young
kids in the family who are unemployed as well they tends to participate in more criminal
activities and behavioural. They mostly also engage with violence and risky activities to feed
themselves and their families.
Low social mobility :- it is seen that who are born in some lower family background they
also grow up with this priority with them (ehu-Appiah, 2010). Wen parents or guardians don't
able to find some stable work to survive then they are not so certain about to make some
resources available to their kids. Ultimately it will be more difficult to make or build their small
fry life better.
Extra social spending :- It is concluded that is there are some adults who are not so
capable to meet their full latent in society, then they tend to be contribute less in the productive
lodge. Whenever they get their payments benefits, they reduced tax revenues which is
constituent for the cultural spendings.
Financial condition is classified in various categories some of them are as follows :- Situational poverty :- this situation is caused by some of the immediate or sudden losses
either crises which may be temporary. In things includes divorce, severe health,
environmental disaster (Iceland, 2013). Generation poverty :- These are generally come about in at least of two social unit which
have been born into that wealth poor condition. These type of families are specifically,
not epigram with some means and move out from their ascertain.
2
defined by the absolute and relative poverty. There are some effects of poverty are as follows :-
Education :- There is only very few children approx. 14 percent who attribute to the
quality school (Joo, 2011). There is background of children which affect to their performance
and carry some significance of educational institution. Those who come from low income group
they are likely to perform not well at pedagogy.
Child development :- Children who are living in these conditions of low income group
they tends to learn poor behavioural terms and carry some mental illness too as they turn older. It
will also show their connective progress among them as compared to those kids who are from
good economic background (avallion, 2011).
Crime :- It is analysed by some survey that poverty leads to crimes. Mostly of the young
kids in the family who are unemployed as well they tends to participate in more criminal
activities and behavioural. They mostly also engage with violence and risky activities to feed
themselves and their families.
Low social mobility :- it is seen that who are born in some lower family background they
also grow up with this priority with them (ehu-Appiah, 2010). Wen parents or guardians don't
able to find some stable work to survive then they are not so certain about to make some
resources available to their kids. Ultimately it will be more difficult to make or build their small
fry life better.
Extra social spending :- It is concluded that is there are some adults who are not so
capable to meet their full latent in society, then they tend to be contribute less in the productive
lodge. Whenever they get their payments benefits, they reduced tax revenues which is
constituent for the cultural spendings.
Financial condition is classified in various categories some of them are as follows :- Situational poverty :- this situation is caused by some of the immediate or sudden losses
either crises which may be temporary. In things includes divorce, severe health,
environmental disaster (Iceland, 2013). Generation poverty :- These are generally come about in at least of two social unit which
have been born into that wealth poor condition. These type of families are specifically,
not epigram with some means and move out from their ascertain.
2
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urban poverty :- It will occur in some of the metropolitan areas of the country along with
50, 000 people at least. Their are urban poor people who are dealing with some tangled
mass of sharp agent and prolonged which are mainly parasitic on short-handed to large
services. rural poverty :- It occurs in non metropolitan areas of the country where population
should be at-least below 50, 000. In these areas actually they have very least source and
less accessible services for them and very few means and opportunities to remove this
financial condition . Absolute poverty :- It is uttermost kind of poverty which is dealing with lack of food
services, wealth, water, horsing and health too. Who are in this classified category they
do very struggle for their survival in environment and experience a lots of death due to
various diseases like malaria, dengue, cholera and other diseases which is water
communicable (Hagenaars, 2014). This is usually lengthy period in nature it may be often
by the generations earlier them . This was not so conmen in the developed world. The
world bank deprived this term as a condition which is consistent of low life expectancy.
Therefore, the quantity of people needed for their survival is not same at all places and
time periods which is particularly highly developed in very few countries. Where number
of people would fall below the poverty line of world bank.
Relative poverty :- this term is referred as relation with the members and other families in
the society. So on, there is some criteria in which they consider this relative poorness like
if someone can't afford holidays, vacations either someone who is not enough capable to
buy Christmas present to their kids , or who doesn't have enough wealth to send young
children for their higher studies in some university many more. They consider as a poor
because of rest of the assemblage is have accessing superior and elite services and other
disagreeableness (Fox, 2012). It is also socially characterized and dependent regarding
their social context although this is measure by inequality of income of the among people
of society. Sometimes it is useful in measuring percentage of population with the less
income and other rigid proportions of some central semen.
3
50, 000 people at least. Their are urban poor people who are dealing with some tangled
mass of sharp agent and prolonged which are mainly parasitic on short-handed to large
services. rural poverty :- It occurs in non metropolitan areas of the country where population
should be at-least below 50, 000. In these areas actually they have very least source and
less accessible services for them and very few means and opportunities to remove this
financial condition . Absolute poverty :- It is uttermost kind of poverty which is dealing with lack of food
services, wealth, water, horsing and health too. Who are in this classified category they
do very struggle for their survival in environment and experience a lots of death due to
various diseases like malaria, dengue, cholera and other diseases which is water
communicable (Hagenaars, 2014). This is usually lengthy period in nature it may be often
by the generations earlier them . This was not so conmen in the developed world. The
world bank deprived this term as a condition which is consistent of low life expectancy.
Therefore, the quantity of people needed for their survival is not same at all places and
time periods which is particularly highly developed in very few countries. Where number
of people would fall below the poverty line of world bank.
Relative poverty :- this term is referred as relation with the members and other families in
the society. So on, there is some criteria in which they consider this relative poorness like
if someone can't afford holidays, vacations either someone who is not enough capable to
buy Christmas present to their kids , or who doesn't have enough wealth to send young
children for their higher studies in some university many more. They consider as a poor
because of rest of the assemblage is have accessing superior and elite services and other
disagreeableness (Fox, 2012). It is also socially characterized and dependent regarding
their social context although this is measure by inequality of income of the among people
of society. Sometimes it is useful in measuring percentage of population with the less
income and other rigid proportions of some central semen.
3

There is difference between relative and absolute poverty they are not same. Some of differences
are as follows :-
Absolute poverty Relative poverty
It refers to the set of standards in which all the
same territorial division does not change in
over short span of time.
This refers to that standards which is define in
contextual of the societies where and
individual lives however difference in over
time and countries.
Concept of this absolute poverty has low
modular below which no one in world of all
time fall.
Its mostly in rich country, where higher and
minimum modular infra which no one fall
ever.
Consider as a analogy in case if this extreme. Along with this is continuing the analogy
above.
In this case, it is generally used in those
countries which is under developed and either
developing nations.
This will be apply in the case of already
developed nations, where every one has
enough currency to gratify their basic needs to
survive.
When social unit does not have enough
sufficient financial gain to sustain basic
acceptable to meet basic needs.
There is level of household which is consider
as lower income than central level within
income.
4
source 1: poverty line and condition
are as follows :-
Absolute poverty Relative poverty
It refers to the set of standards in which all the
same territorial division does not change in
over short span of time.
This refers to that standards which is define in
contextual of the societies where and
individual lives however difference in over
time and countries.
Concept of this absolute poverty has low
modular below which no one in world of all
time fall.
Its mostly in rich country, where higher and
minimum modular infra which no one fall
ever.
Consider as a analogy in case if this extreme. Along with this is continuing the analogy
above.
In this case, it is generally used in those
countries which is under developed and either
developing nations.
This will be apply in the case of already
developed nations, where every one has
enough currency to gratify their basic needs to
survive.
When social unit does not have enough
sufficient financial gain to sustain basic
acceptable to meet basic needs.
There is level of household which is consider
as lower income than central level within
income.
4
source 1: poverty line and condition

It has low living, which automatically prevents
average development of human physical or
intellectual personality.
It consider over income distribution and
position of all the households paying attention
to their distribution.
In this extreme, they are poor and below their
average poverty line who don't even fulfil their
basic needs.
It associates issue with closely related to all
inequality.
Amount of economic condition line which
income peritoneum below the line of poverty.
This idea of relative one, they are not able to
afford goods and services and other lifestyle
which is trending in elite community .
5
source 2: McLeod,s., 2007
average development of human physical or
intellectual personality.
It consider over income distribution and
position of all the households paying attention
to their distribution.
In this extreme, they are poor and below their
average poverty line who don't even fulfil their
basic needs.
It associates issue with closely related to all
inequality.
Amount of economic condition line which
income peritoneum below the line of poverty.
This idea of relative one, they are not able to
afford goods and services and other lifestyle
which is trending in elite community .
5
source 2: McLeod,s., 2007
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There are some major steps through which people can cut poverty along with them and improve
the nation by taking them together in evaluation of progress . Some of the steps are as follows
through which can remove poverty :-
Raise minimum wages :- If they increase minimum wages then they tend to raise other
poor people through this wages (Beuchelt, 2011). By doing this poverty can be remove at some
stage because poor people also will get more wage if they set some standard of minimum wage
in the country. This will be help them to creating more opportunity and through this it will
provide them better quality of life standard.
Creating good jobs :- It is also a good way to get rid of this financial condition if
government support them in creating jobs for this classified category. If they take initiative in
offering and creating jobs to them then they will be earn enough by fulfilling their basic needs
(Asadullah, 2012). Jobs offering would be better decision this will remove unemployment of the
country as well as give employment and jobs to the lower wealth conditioned people for
effective growth.
Transparency in government spending :- By creating this types of transparency through
this can they reduce corruption in government. This will be responsible to antithetical areas of
regime budget, subject for actions, inaction so they will be assess accurately needed well leader
to leading their country.
Cancelling national debts :- It should be recognised that at international level that debt
burden on the poor people , most indebted state that has to be controlled if they set path of
sustainable progress, development, and poverty reduction. That will be the initiative help and
relief of debt to 23 currently poor country so they can do growth by themselves.
Access to health care :- The world wide health protection can cover almost all countries
can help to achieve their respected goals of extreme ending poverty by the 2030. If they push
their money to spend on health then it will resultant to be beneficial and greatly relieved to
poverty at global level.
CONCLUSION
This study concluded that, there is large number of poverty in world and there are many
people who is even not able to fulfil their basic needs to survive. There are various harmful effect
6
the nation by taking them together in evaluation of progress . Some of the steps are as follows
through which can remove poverty :-
Raise minimum wages :- If they increase minimum wages then they tend to raise other
poor people through this wages (Beuchelt, 2011). By doing this poverty can be remove at some
stage because poor people also will get more wage if they set some standard of minimum wage
in the country. This will be help them to creating more opportunity and through this it will
provide them better quality of life standard.
Creating good jobs :- It is also a good way to get rid of this financial condition if
government support them in creating jobs for this classified category. If they take initiative in
offering and creating jobs to them then they will be earn enough by fulfilling their basic needs
(Asadullah, 2012). Jobs offering would be better decision this will remove unemployment of the
country as well as give employment and jobs to the lower wealth conditioned people for
effective growth.
Transparency in government spending :- By creating this types of transparency through
this can they reduce corruption in government. This will be responsible to antithetical areas of
regime budget, subject for actions, inaction so they will be assess accurately needed well leader
to leading their country.
Cancelling national debts :- It should be recognised that at international level that debt
burden on the poor people , most indebted state that has to be controlled if they set path of
sustainable progress, development, and poverty reduction. That will be the initiative help and
relief of debt to 23 currently poor country so they can do growth by themselves.
Access to health care :- The world wide health protection can cover almost all countries
can help to achieve their respected goals of extreme ending poverty by the 2030. If they push
their money to spend on health then it will resultant to be beneficial and greatly relieved to
poverty at global level.
CONCLUSION
This study concluded that, there is large number of poverty in world and there are many
people who is even not able to fulfil their basic needs to survive. There are various harmful effect
6

of the poverty which can become hurdle to the growth of country and it is classified in various
categories like urban, rural, relative, situational, Generation they defined types of poverty. It is
basically also focused on the distinguish between relative and absolute poverty which helps to
understand this concept in more detail. So, basically there are also many ways through which
country can reduce poverty and government should also support that group of lower financial
conditioned this will help them raising progress and development of the country.
7
categories like urban, rural, relative, situational, Generation they defined types of poverty. It is
basically also focused on the distinguish between relative and absolute poverty which helps to
understand this concept in more detail. So, basically there are also many ways through which
country can reduce poverty and government should also support that group of lower financial
conditioned this will help them raising progress and development of the country.
7

REFRENCES
Books and Journals
Asadullah, M.N. and Chaudhury, N., 2012. Subjective well-being and relative poverty in rural
Beuchelt, T.D. and Zeller, M., 2011. Profits and poverty: Certification's troubled link for
Fox, A.M., 2012. The HIV–poverty thesis re-examined: poverty, wealth or inequality as a social
determinant of HIV infection in sub-Saharan Africa.Journal of biosocial science. 44(4).
Pp .459-480.
Hagenaars, A.J., 2014.The perception of poverty(Vol. 156). Elsevier.
Iceland, J., 2013.Poverty in America: A handbook. Univ of California Press.
Jehu-Appiah, C., and et. al., 2010. Efficiency, equity and feasibility of strategies to identify the
poor: an application to premium exemptions under National Health Insurance in Ghana.
Health Policy. 95(2). pp .166-173.
Joo, M., 2011. Effects of federal programs on children: Absolute poverty, relative poverty, and
income inequality.Children and Youth Services Review.33(7). Pp .1203-1211.
Kaplinsky, R., 2013.Globalization, poverty and inequality: Between a rock and a hard place.
John Wiley & Sons.
Moore, R., 2012. Definitions of fuel poverty: Implications for policy. Energy Policy. 49. Pp .19-
26.
Notten, G. and De Neubourg, C., 2011. Monitoring absolute and relative poverty:“Not enough”
is not the same as “much less”.Review of Income and Wealth. 57(2). pp .247-269.
Oakes, J.M., 2017. Methods in social epidemiology (Vol. 17). John Wiley & Sons.
Ravallion, M. and Chen, S., 2011. Weakly relative poverty. Review of Economics and Statistics.
93(4). pp .1251-1261.
Online
Types of Poverty. 2010. [Online]. Available Through: <http://www.eschooltoday.com/poverty-
in-the-world/types-of-poverty.html>. [Accessed on 4th august 3017].
8
Books and Journals
Asadullah, M.N. and Chaudhury, N., 2012. Subjective well-being and relative poverty in rural
Beuchelt, T.D. and Zeller, M., 2011. Profits and poverty: Certification's troubled link for
Fox, A.M., 2012. The HIV–poverty thesis re-examined: poverty, wealth or inequality as a social
determinant of HIV infection in sub-Saharan Africa.Journal of biosocial science. 44(4).
Pp .459-480.
Hagenaars, A.J., 2014.The perception of poverty(Vol. 156). Elsevier.
Iceland, J., 2013.Poverty in America: A handbook. Univ of California Press.
Jehu-Appiah, C., and et. al., 2010. Efficiency, equity and feasibility of strategies to identify the
poor: an application to premium exemptions under National Health Insurance in Ghana.
Health Policy. 95(2). pp .166-173.
Joo, M., 2011. Effects of federal programs on children: Absolute poverty, relative poverty, and
income inequality.Children and Youth Services Review.33(7). Pp .1203-1211.
Kaplinsky, R., 2013.Globalization, poverty and inequality: Between a rock and a hard place.
John Wiley & Sons.
Moore, R., 2012. Definitions of fuel poverty: Implications for policy. Energy Policy. 49. Pp .19-
26.
Notten, G. and De Neubourg, C., 2011. Monitoring absolute and relative poverty:“Not enough”
is not the same as “much less”.Review of Income and Wealth. 57(2). pp .247-269.
Oakes, J.M., 2017. Methods in social epidemiology (Vol. 17). John Wiley & Sons.
Ravallion, M. and Chen, S., 2011. Weakly relative poverty. Review of Economics and Statistics.
93(4). pp .1251-1261.
Online
Types of Poverty. 2010. [Online]. Available Through: <http://www.eschooltoday.com/poverty-
in-the-world/types-of-poverty.html>. [Accessed on 4th august 3017].
8
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