Determine what is poverty and whom can we classify as deprived or poor The WritePass Journal

Determine what is poverty and whom can we classify as deprived or poor Introduction Determine what is poverty and whom can we classify as deprived or poor Introduction When discussing about poverty, it is significant to determine what is poverty and whom can we classify as deprived or poor. It is essential to define poverty prior to it is measuring. Poverty refers to circumstances relating a lack of income, also a resultant low level of consumption and wellbeing. When talking about poverty, the criterion against which the income level is judged should be apparent, which is why the   measurements of poverty have had numerous disagreements over the years. There are two common concepts of poverty: an absolute concept of poverty, and a relative concept of poverty. A household would be considered in a absolute poverty if its income is set to a minimum level of expenditure and hence a set level of income, which leads to a minimum level of consumption such as diet, that is satisfactory to sustain wellbeing and restricted housing and clothing. Relative poverty on the other hand   is defined in terms of the standard of living in a specific society, at a specific time. Relative poverty takes into consideration a households income compared to other households in that society. If a household possesses insufficient income to allow it to partake in the habitual actions of its people. (Jean Hindriks, Gareth D. Myles (2006)).Constructing   a poverty line is the first step of measuring poverty. This constructed line separates those living   in poverty from those who are not.   (Jean Hindriks, Gareth D. Myles (2006)). Household surveys of income distribution or consumption that are similar across countries is fundamental for achieving steady measure s of poverty( Having global poverty by Timothy Besley, Robin Burgess). Identifying an indicator for household welfare, is the firs phase of measuring poverty, and this indicator could be based on consumption, income or expenditure (Ravallion, 1996). Household surveys of income distribution or consumption that are similar across countries is fundamental for achieving steady measures of poverty. In spite of this, ever with the most up-to-date   poverty data, constructing a poverty line that can be used for   comparison projects across countries proves to be challenging and problematic (Having global poverty by Timothy Besley, Robin   Burgess). Calculating the expenditure of a minimum average of living, mainly   concentrating on having sufficient food, is the traditional way of   constructing â€Å"precise† poverty line. Since in the poorest countries most of the earnings of the people is used up on food, not having sufficient money is not having enough to eat. But setting poverty line completely based   on food lacks reliability, because even the poorest purchase things other than food and clothing, goods that are   not categorised as necessities. This said the relation between   poverty and starvation still remains strong and this is why   a lot of countries determine  Ã‚   their poverty lines by calculating the expense of getting   a sufficient amount of   food (â€Å"Measuring Poverty† by Angus Deaton, 2003) References Jean Hindrinks, Gareth D. Myles.(2006) â€Å"Intermidiate Public Economics†, The MIT Press, Cambridge, Massachusetts.