Understanding Poverty

Questions and Answers

Identify two groups that are at a higher risk of living in relative poverty.

Lone parents and their children, and low-paid workers are two groups at higher risk of relative poverty.

What distinguishes relative poverty from absolute poverty?

Relative poverty is when individuals lack material goods considered necessities by their society, whereas absolute poverty refers to a lack of basic necessities like food and shelter.

Explain the concept of the 'cycle of poverty'.

The cycle of poverty refers to families that remain in poverty for generations due to unchanging factors that prevent upward mobility.

How does political instability contribute to poverty?

Political instability often disproportionately affects poorer individuals, as wealthier people can escape dangerous situations more easily. Signup and view all the answers

Why are welfare benefits sometimes insufficient to lift individuals out of poverty?

Welfare benefits may not provide enough financial support to cover basic living expenses, making it difficult for individuals to escape poverty. Signup and view all the answers

What defines absolute poverty, and how is it measured globally?

Absolute poverty is defined as lacking basic necessities like food, water, sanitation, and shelter, measured globally as living on less than $1.90 a day. Signup and view all the answers

How has the COVID-19 pandemic affected global poverty levels?

The COVID-19 pandemic is estimated to have increased the number of people living in extreme poverty by around 100 million. Signup and view all the answers

What distinguishes relative poverty from absolute poverty?

Relative poverty measures an individual's economic status in relation to others in their society, while absolute poverty considers a universal standard of living. Signup and view all the answers

Why did the World Bank adjust the global poverty line to $2.15 per day in 2022?

The adjustment to $2.15 per day reflects the increase in prices in low-income countries since the previous measurement in 2017. Signup and view all the answers

As of 2017, how many people worldwide were living in extreme poverty according to the World Bank?

In 2017, about 700 million people were living in extreme poverty globally. Signup and view all the answers

Study Notes

Definition of Poverty

Poverty is complex and can be defined in terms of absolute and relative poverty.
Absolute poverty refers to the lack of basic necessities, including food, safe drinking water, sanitation, shelter, health access, education, and information.

Global Measures of Extreme Poverty

World Bank defines extreme poverty as living on less than $1.90 per day, globally adjusted for different prices.
In 2017, approximately 700 million people lived in extreme poverty, down from over a billion in 1990.
The COVID-19 pandemic has likely increased the number of people in extreme poverty by around 100 million.
The Global poverty line was updated to $2.15 per day in late 2022 to accommodate price increases in low-income countries.

Relative Poverty

Relative poverty takes social context into account, measuring poverty based on standards of living in a specific society.
Individuals may have basic necessities but lack material goods considered essential in their society.
Groups most likely to experience relative poverty in industrial societies include lone parents, long-term unemployed, low-paid workers, the chronically ill or disabled, welfare dependents, refugees, and recent immigrants.

Demographics and Geographic Considerations

High-risk groups for relative poverty include women, children, older individuals, and ethnic minorities.
South Asia and Sub-Saharan Africa are regions with significant absolute poverty, but economic growth is lifting many out of poverty in South Asia.
Economic growth in Africa often starts from a lower base, resulting in continued poverty for many.

Risks Faced by the Poor

City slum dwellers face precarious living conditions, with homes vulnerable to destruction by authorities.
Rural populations have limited access to essential services such as health and education.
Political instability and civil wars disproportionately affect poorer individuals.
Climate change poses significant risks, with poorer communities often living in areas prone to flooding and pollution and lacking the resources to relocate.

Causes and Cycles of Poverty

Key causes of poverty include being born into poverty, lack of opportunities for education and employment, low-paid work, and insufficient welfare benefits.
The cycle of poverty often spans generations due to systemic factors that prevent upward mobility.
Children born into poverty often struggle academically, limiting their chances of improving their socio-economic status.
Wealthy children tend to benefit from resources that facilitate wealth accumulation, reinforcing economic disparities.

Description

This quiz explores the concept of poverty, distinguishing between absolute and relative poverty. It covers the basic necessities of life essential for a decent standard of living. Engage in understanding how poverty affects different societies and its implications.