Introduction
Poverty remains a significant global challenge, affecting millions of individuals and communities. Within academic and policy discussions, poverty is often categorised into two distinct types: absolute and relative. Understanding these concepts is crucial for students of social sciences, economics, and policy studies, as they underpin debates on inequality, welfare, and development. This essay aims to define absolute and relative poverty, explore their theoretical underpinnings, and provide relevant examples to illustrate their real-world application. By examining these definitions and their implications, the essay will highlight the multifaceted nature of poverty and the importance of context in addressing it. The discussion will be structured into two main sections, focusing separately on each type of poverty, before concluding with a summary of key points and broader implications.
Absolute Poverty: Definition and Examples
Absolute poverty refers to a condition where individuals or households lack the basic resources necessary for survival. This includes insufficient access to food, clean water, shelter, and healthcare, often measured against a fixed threshold or poverty line. The World Bank, for instance, defines extreme poverty as living on less than $1.90 per day, adjusted for purchasing power parity (World Bank, 2020). This measure aims to capture a universal standard of deprivation, irrespective of geographical or cultural context. The concept is rooted in the idea that certain human needs are non-negotiable, and failing to meet them results in severe hardship.
An example of absolute poverty can be observed in parts of sub-Saharan Africa, where millions lack access to basic necessities. In South Sudan, for instance, conflict and economic instability have left large populations unable to afford food or access safe drinking water, with many surviving below the international poverty line. Such conditions often lead to malnutrition, disease, and high mortality rates, illustrating the acute nature of absolute poverty. Furthermore, this type of poverty is often addressed through humanitarian aid and development programmes aimed at meeting immediate needs, though long-term solutions remain complex and challenging.
Relative Poverty: Definition and Examples
Relative poverty, by contrast, is defined in relation to the economic standards of a specific society or community. It occurs when individuals or households cannot afford the goods, services, or living conditions considered normal or acceptable within their cultural or social context. Often, it is measured as a proportion of the median income—commonly, those earning less than 60% of the median income in a given country are deemed to be in relative poverty (OECD, 2019). This concept acknowledges that poverty is not solely about survival but also about social exclusion and the inability to participate fully in society.
For example, in the United Kingdom, relative poverty affects a significant portion of the population, particularly single-parent households and the elderly. According to official statistics, around 22% of the UK population lived in relative poverty in 2021, often struggling to afford housing, education, or social activities that others take for granted (Joseph Rowntree Foundation, 2022). Such deprivation can lead to stigma, reduced opportunities, and poorer mental health, highlighting how relative poverty, though less severe than absolute poverty, still profoundly impacts quality of life. Addressing relative poverty often involves policies focused on reducing income inequality and improving access to social services, rather than merely providing basic necessities.
Conclusion
In summary, absolute and relative poverty represent two distinct yet interconnected dimensions of deprivation. Absolute poverty focuses on the inability to meet fundamental human needs, as seen in extreme cases like South Sudan, while relative poverty reflects disparities within a specific societal context, evident in developed nations like the UK. Understanding these concepts is vital for designing effective interventions, as strategies for addressing absolute poverty differ significantly from those targeting relative poverty. Indeed, while absolute poverty demands urgent provision of basic resources, relative poverty calls for broader systemic changes to reduce inequality. The implications of this distinction are profound, urging policymakers and researchers to adopt nuanced, context-specific approaches to alleviate suffering and promote social justice.
References
- Joseph Rowntree Foundation. (2022) UK Poverty 2022: The essential guide to understanding poverty in the UK. Joseph Rowntree Foundation.
- OECD. (2019) Poverty rate. OECD Data.
- World Bank. (2020) Poverty Overview. World Bank.

