Poverty

Poverty is a complex condition where individuals or communities lack financial resources. These resources are necessary to maintain a basic standard of living. It is more than just a lack of money. The United Nations describes it as a denial of choices and opportunities. It is also viewed as a violation of human dignity. This condition can prevent people from participating effectively in their societies.

Economists use two primary methods to measure this condition. The first is absolute poverty, which is often called extreme poverty. This measure compares income against a set standard of basic human needs. These needs include food, safe drinking water, sanitation, health, and shelter. It also depends on access to services like education and information. The second method is relative poverty. This measures poverty by comparing a person's income to others in the same society.

Absolute poverty relies on specific thresholds that stay consistent over time. In 1990, experts introduced the "dollar a day" line to measure survival. The World Bank uses Purchasing Power Parity, or PPP, to calculate these lines. PPP looks at how much local currency is needed to buy what one US dollar buys in the United States. In 2015, the World Bank updated the international poverty line to $1.90 per day. Some experts argue this threshold is too low. They suggest a minimum of $7.40 or even $15 a day is needed for a normal life expectancy.

Relative poverty is defined by the social context of a specific place. Because social customs change, the definition of relative poverty varies between countries. In the European Union, the measurement is based on economic distance. This is often set at 60% of the median household income. This measure is very useful for tracking social inclusion in wealthy, developed nations. It helps leaders see how much the income gap exists between different groups of people.

Global statistics show the massive scale of this issue. Currently, 10% of the world's population lives on less than $1.90 per day. In terms of PPP dollars, 85% of people live on less than $30 per day. Two-thirds of the population live on less than $10 per day. The World Bank reported in 2020 that over 40% of the poor live in conflict-affected countries. Even when a country's economy grows, the poorest citizens may not receive an adequate share of that wealth.

Social forces can make the impact of poverty much worse for certain groups. Women, children, and minorities frequently bear an unequal burden of these hardships. Impoverished individuals are also more vulnerable to environmental issues. This includes the impacts of climate change and extreme weather events. Economic pressures on poor communities can also lead to deforestation and biodiversity loss. These factors create a cycle where poverty and environmental damage reinforce each other.

International organizations work to connect poverty relief with other global goals. In 2015, the United Nations established the Sustainable Development Goals. The first goal is titled "No Poverty." Programs also focus on things like rural electrification and urban housing-first policies. These efforts aim to improve life expectancy and literacy rates globally. Since World War II, child mortality has decreased in every developing region. These connections show that solving poverty requires addressing many different systems at once.