Which type of poverty is generally considered as a result of insufficient income?

The correct answer is Absolute poverty.

Key Points

• Absolute poverty refers to a condition where an individual’s income is insufficient to meet the basic human needs of subsistence, including food, shelter, and clothing.
• It is typically defined by a fixed threshold or minimum level of income required to maintain the minimum standard of living.
• The World Bank defines absolute poverty as living on less than $1.90 a day, adjusted for purchasing power parity.
• Unlike relative poverty, absolute poverty is not concerned with income disparities between individuals or groups but focuses solely on whether basic needs are being met.

Additional Information

• Relative Poverty
  • Relative poverty is measured in relation to the economic status of other people in society. It is concerned with inequality and social inclusion.
  • It is often defined as having an income below a certain percentage (e.g., 50%) of the median income in a given society.
  • This measure highlights the social dimension of poverty, where individuals or groups are considered poor if they fall significantly below the average living standards of the society they live in.
• Situational Poverty
  • Situational poverty is typically a short-term condition caused by sudden and unexpected crises such as natural disasters, job loss, or health emergencies.
  • Individuals in situational poverty may have access to resources and support systems that can help them recover.
• Urban Poverty
  • Urban poverty refers to poverty found within urban areas, characterized by overcrowded living conditions, inadequate access to services, and limited employment opportunities.
  • It often involves a lack of access to adequate housing, healthcare, and education within city environments.
• Measurement of Poverty
  • Poverty can be measured using various indicators, including income levels, consumption patterns, access to essential services, and living conditions.
  • Multidimensional Poverty Index (MPI) is another measure that considers various deprivations experienced by people in their daily lives, such as poor health, lack of education, and inadequate living standards.