The poverty is the state in which an individual or group cannot satisfy basic human needs to maintain a minimum level of quality of life. The lack of income, employment, education, access to health or decent housing are some of the characteristics of this condition.
On the other hand, the inequality It refers to the unfair or unequal distribution of resources between various persons or groups, resulting in social, gender, ethnic, religious or other discrimination.
In this way, when one speaks specifically of poverty, one speaks of the lack of some resource, generally economic, to maintain a decent living condition. In the case of inequality, this refers to the way in which resources are distributed.
Both situations are complementary, but they do not necessarily present themselves at the same level. There can be a lot of inequality in a society without a lot of poverty and vice versa.
Poverty
Inequality
Definition
It is the impossibility of a person or group of people to satisfy basic needs that allow them to sustain a minimum standard of living.
It is the unequal distribution of income and/or differential treatment for the benefit of an individual or group with respect to another individual or group.
Characteristics
It is a lack of something that is necessary to live. It is part of and promotes a vicious circle. Lack of basic services. Malnutrition. Low schooling. Health problems. Create contexts of violence. Resources or income are distributed unequally. It is part of and promotes a vicious circle. There is social, gender, ethnic discrimination, etc. A person or group has little access to opportunities. Limits participation in the social and political life of a group.
Causes
Different types of inequality and discrimination. Wars and conflicts. Lack of employment. Lack of basic resources such as food, housing and health. Scarcity of resources (in a country or region). Unequal distribution of national wealth. Social problems. Wars and military conflicts. Access to education is limited. Discrimination based on gender, religion, ethnic origin, sexual preference, etc.
Guys
Absolute: insufficient income to satisfy basic needs (internationally comparable). Relative: income below the minimum average in a given country. Objective: uses data on income, consumption, access to resources. Subjective: perception of people about their socioeconomic situation. It can be of many types, including social, economic, gender, ethnic, educational, religious, and legal or legal inequality.
Most common indicators to measure it
International poverty lines: minimum income of USD 1.90 per day. Subjective poverty line: analysis of the perception of one’s own economic situation. Gini coefficient: measures economic inequality through income distribution. Palma Index: ratio of the income of the richest 10% to the poorest 40%. Gender Inequality Index: measures empowerment, reproductive health and the labor market. Example
A family’s income is insufficient to feed school-age children and pay for their training and educational materials. This results in school dropouts and poorly paid child labor.
The children of an immigrant family do not have access to the formal educational system because it is considered that they do not meet the conditions that nationals have, limiting their training.
What is poverty?
The poverty refers to a state in which a person or group of persons cannot meet basic needs to maintain a viable socioeconomic standard of living. In conditions of poverty, people are unable to participate in social life and make social contributions.
In this way, poverty promotes a vicious circle. The lack of employment, education, as well as conditions that allow individual and community socioeconomic development, limit the possibilities of people to leave this state.
According to the United Nations Organization, a person is in a state of poverty when they do not have access to means that guarantee the satisfaction of certain basic needs.
Lack of resources, discrimination and various forms of inequality, infrastructure problems, wars and conflicts are some of the most common causes of poverty in different regions.
In general, when talking about poverty in a country, in comparison with other countries, or of an individual in comparison with his fellow citizens, he is talking about poverty in socioeconomic terms. That is, poverty in this sense focuses on those populations that are in the lowest social stratum.
Characteristics of poverty
It expresses the lack of something that is necessary. In conditions of poverty a vicious circle occurs. Limited or non-existent basic services. There are nutrition problems. Low schooling. It carries health problems (including a short life expectancy). It generates social violence, isolation and discrimination.
Causes of poverty
Socioeconomic, gender, ethnic inequality, etc. Difficulty in accessing basic resources such as food, drinking water, housing and health. educational problems. Corruption. Wars and armed conflicts. Colonialism and slavery. Lack of employment. Infrastructure problems (regional and national). Scarcity of material resources (for example, agricultural and natural).
types of poverty
poverty can be objective when previously agreed indicators are used, and according to which an individual or population is located as being or not in a condition of poverty. Likewise, this type of poverty is divided into absolute and relative.
When it comes to poverty subjective, this refers to the perception that people have about their condition, even when they have the minimum income necessary to not be considered objectively poor. That is, if a person feels poor for not being able to satisfy needs that he considers important.
absolute poverty
The absolute poverty is a condition in which the income is not sufficient to meet basic living needs. For example, food, drinking water, hygiene spaces, health, housing, education and information.
Absolute poverty is used to compare poverty between different countries with different socioeconomic conditions. This way of measuring poverty has the advantage of offering objective data that extends beyond the borders of a country.
For example, a salary of $1,800 per month in New York or London might be considered a low salary. On the other hand, in Mexico City that same amount of money would be above the monthly minimum wage.
However, if a family in London lacks decent housing, food and basic services, and the same occurs with a family in Mexico City, it can be said that both are in a condition of poverty. This regardless of the income they have in either of the two cities.
This is why it is better to use access to specific basic needs as a measure to compare poverty levels between different countries. If a person is in a situation of absolute poverty, this person is poor regardless of their origin.
relative poverty
The relative poverty refers to the income that is found by below the national income median in a specific country. In this case, what is involved is to identify that population within a country that is below the average for that country in income.
A characteristic of this type of poverty is that it changes according to the level of average income within a given country over time. That is, relative poverty within the same country is variable. For example, the average salary of a person two decades ago is different from the average salary today.
Thus, relative poverty in one country is not equal to relative poverty in another. The objective is to identify people who are disadvantaged when compared to the population of their own country.
If a person’s salary is the equivalent of USD 900 per month in England, it is possible that their economic situation is different from that of a person who has the same salary in Mexico, Venezuela, Bolivia or Costa Rica.
international poverty line
The international poverty line is an indicator developed by the world Bank used to compare the level of poverty, or access to a minimum standard of living, between different countries. This is one of the best known poverty lines.
This poverty line measures the minimum necessary consumption that allows access to the minimum required in terms of food and shelter, among other elements.
Originally, the poverty line set the minimum daily income of $1 as the limit below which an individual was in a state of extreme poverty. Currently, this number stands at $1.90 per day.
It is used the Purchasing power parity (PPP) as a basis for establishing a minimum income limit at the international level. The PPP establishes that the exchange rate between two currencies should allow the purchase of the same good or service, at the same price, in two different countries.
In other words, the PPA proposes that the same asset, such as a personal computer, should cost the same in two different countries. For example, if a personal computer costs the equivalent of USD 300 in Argentina, this same computer should cost the same USD 300 in Mexico (converted to Mexican pesos).
Using the minimum income of USD 1.90 implies that this poverty line focuses more on the analysis of less developed countries. Other lines have been established for lower-middle-income countries (USD 3.20) and upper-middle-income countries (USD 5.50).
According to the World Bank, 10% of the world’s population lives on USD 1.90 or less per day. 26% on less than $3.20 per day, and 46% on less than $5.50 per day.
subjective poverty
The subjective poverty It refers to the perception that people have when evaluating their own socioeconomic situation. This focuses on the vision that people have about their condition.
A person can have covered the minimum needs that the poverty line establishes, as well as the minimum income, and still feel that they are in a state of poverty.
To measure subjective poverty, surveys are carried out, using indicators such as subjective poverty line (LPS). This uses the minimum family income as a reference and people’s perception of whether this income is sufficient to meet their basic needs.
Other indicators focus on the minimum income, examining the income and expenses of a person or family. Here, the minimum amount that people consider is necessary to satisfy their expenses is considered…