An In-Depth Analysis of Absolute Poverty and Relative Poverty

This essay delves into the contrasting concepts of absolute and relative poverty, crucial for understanding economic disparities. It begins by defining absolute poverty as the inability to meet basic survival needs, a condition consistent across countries, while relative poverty is defined by a lower standard of living compared to others within a society, varying from region to region. The paper highlights the key differences, such as absolute poverty focusing on biological necessities and relative poverty considering income inequality and societal standards. The essay uses references from various researchers and scholars to provide a comprehensive analysis of the two forms of poverty. The essay concludes by emphasizing the importance of understanding these distinctions for effective poverty alleviation strategies. The essay underscores that poverty is a significant social issue, and a clear understanding of both forms is essential to address them effectively.

Running head: ABSOLUTE POVERTY AND RELATIVE POVERTY
ABSOLUTE POVERTY AND RELATIVE POVERTY
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Introduction:
Poverty is an economic state that makes people experience lack of specific needs that are
considered as the essential amenities for the lives of human beings. It is important to mention
that the definition of poverty varies according to regions (Lewis, 2017). Specific areas
experience poverty at a significantly higher level compared to the other areas. Therefore to
develop a universal definition of poverty is hard. Poverty is of two types, relative poverty and
absolute poverty. The aim of the paper is to differentiate between absolute poverty and relative
poverty is discussed. Also, the paper highlights the contrast and comparison between the two
forms of poverty.
Absolute poverty:
The term absolute poverty can be used to refer to the condition of poverty where an
individual is incapable of meeting the essential commodities that are needed to sustain life and
other basic needs. It is a condition that is set and same across every country. The absolute
poverty is a state of extreme poverty where the individual does not possess wealth as well as a
lack of basic health. In regard to absolute poverty, it is the biological needs which are mandatory
to survive are crucial to take into consideration. Absolute poverty is static and therefore it is do
not change over a period of time (Hagenaars, 2017).
Relative poverty:
The term relative poverty can be defined as the standard of living that involves the basic
needs however when compared with other individuals the economic standard of living is low.
The relative poverty is subjective in nature, and it varies according to countries. The relative
poverty is a state that can make a person rich in a particular society, and the same person might

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be poor in another society. The relative poverty is measured by the poverty line which says the
minimum amount of income one requires to sustain (Heger, Zens & Bangalor, 2018).
Contrast and comparison:
Relative and absolute are two methods of measuring the poverty levels. Although the
absolute and the relative poverty, both are used to measure poverty, they differ specifically in the
way they are defined. Lack of biological necessities such as food, clothes, shelter, drinking water
and sanitation is called absolute poverty. On the other hand, relative poverty, also known as
extreme poverty refers to a poverty line which determines the income a person needs in order to
satisfy basic needs. To manifest in a simpler form, lack of basic necessities is absolute poverty,
and relative poverty plays a role in income inequality aspect.
According to Shildrick and MacDonald (2013), absolute poverty refers to a set of
condition that is universal in nature and they are same in every country across the world.
Absolute poverty is constant and therefore it is do not change over a period of time. Relative
poverty refers to the condition that are subjective by nature in the society. Due to the fact it is
subjective in nature, it is varies country to country and prone to changes along with time. For
example, more urban cities will have greater education, transportation cost, energy which will
result to a higher poverty line compared to the poorer countries. According to Ravallion (2017),
a person who falls below the poverty line is certain to be in poverty however the person can rise
if the state of the country improves in terms of its wealth. In regard to absolute poverty the
poverty line is constant and universal therefore, it is the same minimum standard for everyone
across the globe. People that are considered poor under the relative poverty, they certainly have a
source of income although it is lower than the set income level. The only reason for considering
them poor is due to their incapability meeting certain standards preset by a society. An example

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would be considering a person living in an economically well-established society may have a
decent income and all the basic requirements for living however they would be considered
relatively poor. The reason for considering them relatively poor is for they are incapable of
buying the luxuries or having the luxuries like the other people living in the same community. In
contrast, when a person cannot afford to possess the basic necessities such as safe drinking
water, food, clothes and household, that person would be in absolute poverty. Absolute poverty
is manifested mostly from the third world countries.
In regard to absolute poverty, Fritzell et al. (2015) state that it is the biological needs that
are crucial to take into consideration. However, relative poverty has nothing to do in respect to
the biological needs of human life. The income level is highly considered in absolute poverty
whereas in relative poverty it is not of high importance. Relative poverty varies according to
regions, and therefore, it varies between the developed countries and developing countries. It is
also important to remember that absolute poverty can vary and change according to time
however it is not the same for relative poverty. People living in absolute poverty are in extreme
poverty who lack even the smallest human needs which are the utmost poor quality of life. A
person who is considered from the relative poverty perspective has quality lives although they
might lack the luxuries like the other people in their community.
Conclusion:
It is important to realise and understand the difference between the poverty
measurements. Understanding both of the concepts helps to understand that what one is
experiencing. At the end of the paper, it can be concluded that the poverty alleviating bodies
need to understand the major and minor difference existing between absolute poverty and
relative poverty in order to make better strategies and plans to demolish the social issue of

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poverty and related challenges. Lastly, poverty is a severe condition that leads to other social
issues for the large impact it can have on human life. Therefore, every person needs to act to
combat the problem.

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References:
Fritzell, J., Rehnberg, J., Hertzman, J. B., & Blomgren, J. (2015). Absolute or relative? A
comparative analysis of the relationship between poverty and mortality. International
journal of public health, 60(1), 101-110.
Hagenaars, A. J. (2017). The definition and measurement of poverty. In Economic Inequality
and Poverty: International Perspectives (pp. 148-170). Routledge.
Heger, M., Zens, G., & Bangalor, M. (2018). Does the environment matter for poverty
reduction? the role of soil fertility and vegetation vigor in poverty reduction. The World
Bank.
Lewis, O. (2017). The culture of poverty. In Poor Jews (pp. 9-25). Routledge.
Ravallion, M. (2017). Poverty comparisons. Routledge.
Shildrick, T., & MacDonald, R. (2013). Poverty talk: how people experiencing poverty deny
their poverty and why they blame ‘the poor’. The Sociological Review, 61(2), 285-303.