Poverty is an economic condition where humans experience a lack of certain commodities essential for stable living.
Absolute Poverty and Relative Poverty are two terms used to measure this poverty level.
Absolute Poverty is used to describe a condition where an individual does not have the financial means to obtain commodities to sustain life.
Relative Poverty refers to the standard of living compared to economic standards of living within the same surroundings.
This article will further highlight the significant differences between absolute poverty and relative poverty within the context of the IAS Exam
Aspirants can find more Difference Between Articles, by visiting the linked page
The difference between Absolute Poverty and Relative Poverty is given in the table below:
Differences between Absolute Poverty and Relative Poverty
| Absolute Poverty | Relative Poverty |
| Any person not in a position to obtain essential commodities like food, shelter and clothing are said to experience absolute poverty | Relative poverty does not concentrate on biological needs but rather makes a comparison between two people in the environment |
| Income Level is considered in Absolute Poverty | It is not considered when measuring relative poverty as a person will still be considered poor despite meeting his.her basic needs |
| Absolute poverty, however, does not include a broader quality of life issues or the overall level of inequality in society. What the concept fails to recognize is that individuals also have important social and cultural needs. | Although people living in relative poverty are to an extent well-off compared to those living in absolute poverty, they still cannot afford the same standard of life as other people in society. |
| Measured using Poverty Line | Measured Using the Gini-Coefficient and Lorenzo Curve |
| It is not possible to completely eradicate absolute | There is a small margin of success where its eradication is concerned |
| Quality of life is poor | Quality of life is marginally better as those living under relative poverty have access to health care services |
The concept of poverty is covered under the Economy segment of the UPSC Exams. Aspirants can find study materials related to this segment with the links given below:
Difference Between Absolute Poverty and Relative Poverty: UPSC Notes – Download PDF Here
Frequently Asked Questions about Absolute and Relative Poverty
Q1
What is an example of Relative Poverty?
Causes of relative poverty include unemployment, poor health, and inequalities within the labor market. An example of someone in relative poverty is a person who does not have a job and relies on government assistance to maintain.
Q2
What is an example of absolute poverty?
Absolute poverty is caused by debt, world population increases, natural disasters, conflicts, and child labor. An example of absolute poverty includes a 12-year-old boy who has never been to see a doctor or attended school.
Candidates can find the general pattern of the UPSC Exams by visiting the UPSC Syllabus page. For more articles and exam-related preparation materials, refer to the links given in the table below:
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FAQs
Absolute poverty compares households based on a set income level. And this level varies from country to country depending on its overall economic conditions. Relative poverty is when households receive 50% less than average household incomes.
What's the difference between relative poverty and absolute poverty? ›
Absolute poverty is a state of being in which a person lacks the necessities of life, such as food, clothing, and shelter. In contrast, relative poverty is a condition in which a person's income is insufficient to meet his or her needs when compared to others in society.
What is the difference between absolute and relative poverty in Quizlet? ›
Absolute poverty is where a person's income falls below the minimum level to meet basic needs such as food, shelter, clothing, access to clean water etc. Where as relative poverty is the term given to people who are living below a certain income threshold in a particular country.
How will you differentiate absolute poverty from relative poverty select one? ›
Definition: Absolute poverty focuses on meeting basic needs and uses an absolute threshold, while relative poverty considers income disparities within a specific context and uses a relative threshold compared to overall society.
What is the difference between absolute poverty and inequality? ›
Inequality is a broader concept than poverty. It is defined in terms of an entire population, not just the portion below a certain poverty threshold. Most inequality measures do not depend on the mean of the distribution.
What is absolute poverty in simple words? ›
Absolute poverty is defined as an individual or family who does not earn enough money to meet the basic needs of life such as food, clothing and shelter. Absolute poverty is based on a set income level and is not in comparison to other incomes in the economy.
Should poverty be explained in relative or absolute terms? ›
Both, absolute poverty and relative poverty are valid concepts in study of Sociology. Absolute poverty: The determination of this is a function of two factors, the definition of basic needs and the per capita income.
What is relative poverty example? ›
A common relative poverty example is to think of a person who is able to provide for their basic needs, such as food and shelter, but unable to obtain other standard things the people around them have that make life easier and more enjoyable. These things may include: Personal transportation, such as a car or bicycle.
What is the difference between relative and absolute income inequality? ›
The difference between these measures is that the absolute inequality measure always considers improvement in terms of the absolute difference, whereas the relative inequality measure considers it in terms of the relative difference.
What is the difference between relative poverty and income inequality? ›
In other words, relative poverty encompasses those who cannot afford to buy the goods they need to not be considered poor according to social norms. For example, if they can't afford a refrigerator or car. Inequality is the degree to which income or wealth are distributed unequally throughout a population.
Individual absolute deprivation refers to the lack of capacity to afford one's basic physical needs such as food, whereas relative deprivation refers to a social phenomenon arising when individuals cannot afford what most others in their environment can (Bourguignon, 1999; Sen, 1983) combined with the perception that ...
What are the different types of poverty? ›
Ans. There are two types of poverty: absolute poverty and relative poverty. Both of these kinds of poverty are concerned with money and consumption.
How to measure absolute poverty? ›
Absolute poverty refers to a set standard which is consistent over time and between countries. An example of an absolute measurement would be the percentage of the population eating less food than is required to sustain the human body (approximately 2000–2500 calories per day).
What's the difference between absolute poverty and relative poverty? ›
Absolute Poverty is used to describe a condition where an individual does not have the financial means to obtain commodities to sustain life. Relative Poverty refers to the standard of living compared to economic standards of living within the same surroundings.
What is the difference between absolute and relative poverty quizlet? ›
Where absolute poverty focuses on individuals or groups ability to get the essential for survival like food and water, relative poverty describes the difference in resources between those most impoverished to everyone else.
What is absolute and relative poverty Khan Academy? ›
Absolute poverty refers to a lack of basic resources needed for survival, while relative poverty indicates low income levels that exclude individuals from participating in society. Both types can exist in developed and developing countries.
Why is relative poverty difficult to measure? ›
The number of poor people depends on the relative position of each household or individual in the society. If these relative positions are maintained, the relative poverty lines do not reflect changes that could result in economic development shared out equally.
Where is absolute poverty most common? ›
The majority of the poorest now live in Sub-Saharan Africa, where weaker economic growth and high population growth in many countries has led to a rising number of people living in extreme poverty.
What is the difference between poverty and extreme poverty? ›
What Is the Difference Between Poverty and Extreme Poverty? Extreme poverty is defined as living on less than the International Poverty Line (IPL) of $2.15 per day. The IPL reflects the median of poverty lines in low-income countries.
