What is poverty?
The concept of ‘poverty’ is often difficult to define as it includes an array of multi-dimensional socio-economic indicators that have to be adjusted to align with various regional characteristics. For example, what poverty means in the United States will be slightly different from what it means in the sub-Saharan region.
One way to look at poverty is through the lens of income levels. Thus, there is:
- Absolute poverty which relates to people with inadequate income levels to meet the cost of the basic necessities of life (food, water, shelter, clothes, or security) and
- Relative poverty which involves the inequalities of income distribution and refers to those who are not able to obtain essential goods and services at a 50% level of the societal standard.
Another way to look at poverty is through specifically designed methodological tools such as the Global Multidimensional Poverty Index (MPI) developed by the United Nations Development Programme (UNDP) which is built around 10 indicators in health, education, and standards of living.
Causes of poverty
1. Lack of income and assets: without a stable and decent income, people are more prone to face poverty as they lack the necessary resources to meet their basic needs. Moreover, the absence of human assets (capacity for basic labor, health), natural assets (such as land), social assets (such as networks of contacts), or financial assets (such as access to savings or credits) will amplify the incidence of poverty.
2. Hunger and malnutrition: lack of nutritious and healthy food leads to energy and strength depletion, thus preventing a person from finding work or performing a job.
3. Inequality and marginalization: unfair social distribution systems and unequal access to community resources can amplify the risks of poverty.
4. Conflict: large scale conflicts, such as wars or civil acts of violence, will force a significant number of people into poverty. The most relevant example is Syria where over 70% of the population has been forced into some form of poverty since 2011.
5. Poor education: many of those living in poverty lack education and basic reading/writing skills. This, in turn, limits the possibility of entering the job market and accessing decent-paying jobs.
6. Voicelessness and powerlessness: materially deprived people or those without social support will be more likely to lack the ability to express their views or stand up for themselves and are thus more likely to face rude, humiliating, or inhumane treatment.
7. Climate change: the negative effects of climate change are having a serious impact on communities that are dependent on agriculture. Moreover, it is disproportionately affecting the most fragile and impoverished and may force somewhere between 68 to 135 million people into poverty by 2030.
8. Poor healthcare systems: people who lack access to decent and efficient healthcare will be more likely to suffer from various preventable illnesses and ultimately may lose their working abilities and thus facing deepening poverty.
9. Lack of governmental support: ineffective social and economic support systems will leave many people in need to face the burdens of poverty alone.
10. Little or no access to clean water, sanitation, and hygiene remains a global issue:
- More than 2 billion people do not have access to safe drinking water at home
- 1.5 billion people lack access to basic sanitation amenities
- 2 billion people lack access to essential hygiene services
Some global poverty facts
- Over 40% of the global population, representing about 3.5 billion people, live below the poverty line that is relevant to upper-middle-income nations. This is less than US$6.85 per day according to the World Bank.
- Around 700 million people, or 8.5% of the world’s population, live below the extreme poverty threshold of less than US$2.15 per day which is relevant to low-income nations.
- According to forecasts, if current trends continue, 590 million people, or nearly 7% of the world’s population, may still be living in extreme poverty by 2030.
- Around 75% of people facing extreme poverty reside in the sub-Saharan region of Africa. For the most part, these nations are highly impacted by conflicts, the World Bank has stated.
- Experts say that to achieve the minimal prosperity norm of US$25 per person per day, which is the threshold for high-income nations, the median income would need to grow five times.
- 1.1 billion people (including 566 million children) endure multidimensional poverty*.
* Multidimensional poverty can be defined as a more comprehensive view of poverty that includes other variables in addition to income, including access to safe drinking water, sanitation, healthcare, and education.
See also: The World Vs Poverty: statistics and trends
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