Therefore, some observers consider poverty to be relative to the context that is being used
the definition. They state that what matters is not only the minimum
standards people may or may not reach, but also their position
within a given society. Therefore they propose definitions of
relative poverty. These definitions set the poverty
standards relative to the context people are living in. These standards can vary considerably
from one country to another.
According to one common relative poverty standard, people are considered poor if they have
less than 60% of a country's median income (UNICEF 2005).
Consequently, the poverty line (expressed in absolute terms) will be drawn at a much higher
level in a rich country than in a poor country.
Some observers criticise relative definitions of poverty stating that it measures
inequality and not actual deprivation.
Proponents of relative definitions of poverty state that it is also important to take into
account the subjective aspects of poverty. People who may
not be defined as poor in absolute terms because they have sufficient income or sufficient
calorie intake may still feel poor and are considered poor in specific societies because
they cannot participate fully in the everyday life of their societies.
This is the case in most richer countries, where even with an income that is much higher
than that set by international standard definitions of poverty, people are unable to take
part in normal social activities such as going out.
In 2010 the Oxford Poverty & Human Development Initiative (OPHI) developed a new index
for multidimensional poverty (MPI) which replaced the Human Poverty Index. You will learn more
about this new indicator by clicking on the link in the right hand column and reading the
concerning chapter below.
What type of poverty (absolute or relative) does it talk about?
Answer:
relative poverty
More recently, discussions about definitions of poverty have stated that what is important
about poverty is how it affects people's quality of life
(or well-being) (Sen 1999). Poverty's impact on people's well-being encompasses both its
absolute aspects (as people's well-being is impaired in a state of deprivation) and its
relative aspects (well-being also depends on an individual's degree of acceptance within a society).
In your country, the lack of which aspects of quality of life can be a sign of poverty?
One of the most famous proponents of such an approach is the Indian economist Amartya Sen
whose work had a strong impact on international poverty policies. It influenced the UN in
integrating criteria of well-being in their Human Development Approach which will be
discussed later in this lesson.
Click on the link on the right-hand column in order to have a short view of the Human
Development Approach and how it encompasses dimension of well-being:
relative poverty
