Absolute and Relative Poverty

Topics: Poverty, World Bank, United Nations Pages: 2 (595 words) Published: May 12, 2013
The article I chose for this assignment is titled Absolute and Relative poverty. The author talks about the difference between the two terms, likewise defining them as clearly as possible as if to ensure that the reader is clear about what the difference between being absolutely poor and being relatively poor. The World Bank Group is the institution that mostly deals with the global issues of poverty advocating neoliberalism, western democracy, and open markets and structural adjustments to the economy. This article seems to be a research about Absolute and Relative Poverty. It is a research mainly because of the extensive lists of references and reading suggestions that she noted at the end of the article. Hence, the kind of research that the author used was by using available data and existing sources, primarily the World Bank. For those people who are attempting to change the dynamics of poverty, they thought they understood it, thinking it was fairly simple, but in hindsight complicated. To understand the dynamics of poverty, there are three interrelated terms to consider; (1) absolute poverty, (2) relative poverty, and (3) poverty threshold. Absolute poverty, as defined by the World Bank Group, is living under one dollar a day. People that are living in absolute poverty cannot even meet the basic necessities to live. Sad but true. And many are found in LDCs (Least Developed Countries). Relative poverty, “measures how people on the lowest rungs of the income ladder compare to the remainder of the population.” Poverty threshold measures the income that a society needs to even live the minimal standard of living. The Great Depression followed by World War II, incapacitated the economy so much so that poverty was in the rise. World Bank was established in 1945 in Bretton Woods, NH whose goal was to eradicate poverty. In the twenty first century, the World Bank and the United Nations created the Millenium Development Goals (MDG), who likewise was created to...
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