absolute poverty

« Back to Glossary Index

Absolute poverty is a state in which individuals lack the financial resources necessary to afford basic needs for survival and a acceptable standard of living.

Key characteristics:

  • It is calculated using a fixed poverty line, such as the threshold set by the World Bank.
  • It is defined by a lack of essential items like food, clean water, safe shelter, sanitation, medical care, and education.
  • It is different from relative poverty, which compares an individual’s income to the average level of wealth within their specific society.
  • Governments and organizations use this measure to identify people in need and to create effective welfare programs.