Poverty is a multifaceted issue that can be understood in different ways based on various criteria. It is essential to categorize and understand different types of poverty to develop targeted interventions. The types of poverty are usually defined by causes, duration, and scope. Below are the primary types of poverty, along with explanations and examples:
1. Absolute Poverty
Definition:
- Absolute poverty refers to a condition where individuals are unable to meet the basic necessities of life, such as food, clothing, and shelter. It is typically measured against a fixed minimum income level or standard of living necessary for survival.
Characteristics:
- Often linked to malnutrition, lack of access to clean water, basic healthcare, and shelter.
- Defined by international organizations such as the World Bank using a global poverty line (e.g., $2.15 per day in 2022).
Example:
- Rural Ethiopia: Many rural inhabitants of Ethiopia live in absolute poverty. They struggle to afford basic needs like food and clean drinking water, with limited access to healthcare and education. Entire communities may live without electricity or sanitation, relying on subsistence farming for survival.
2. Relative Poverty
Definition:
- Relative poverty occurs when individuals’ income or living conditions are significantly below the average standard of living in their society. It focuses on inequality rather than mere survival, comparing one’s financial status to that of others in their community or country.
Characteristics:
- Relative poverty is seen as an issue of economic inequality, and the poverty line is usually set at a percentage (often 50% or 60%) of the median income of the society.
- It emphasizes the social exclusion and deprivation that come from not having the means to participate fully in society.
Example:
- United Kingdom: In a developed country like the UK, people experiencing relative poverty may have housing, healthcare, and food security but still cannot afford the lifestyle and opportunities available to the average person, such as access to quality education, recreational activities, or saving for retirement.
3. Situational (Temporary) Poverty
Definition:
- Situational poverty arises due to specific, unexpected events such as job loss, illness, natural disasters, or economic crises. This type of poverty is often short-term and does not necessarily indicate chronic deprivation.
Characteristics:
- Temporary in nature.
- Individuals affected by situational poverty may have previously lived in comfortable economic conditions before the event that caused the poverty.
- Recovery is possible once the circumstances change or stabilizing measures (like social safety nets) are introduced.
Example:
- COVID-19 Pandemic: During the COVID-19 pandemic, many workers in the informal economy, such as daily wage laborers and small business owners, fell into situational poverty due to lockdowns and reduced economic activity. As economies reopened, many of these individuals were able to regain their livelihoods.
4. Chronic (Persistent) Poverty
Definition:
- Chronic poverty refers to long-term or lifelong poverty. People experiencing chronic poverty remain poor for extended periods and are often trapped in a cycle of poverty due to systemic factors such as lack of education, health issues, and social discrimination.
Characteristics:
- Often passed down across generations, making it harder to break the cycle.
- Associated with deep-rooted structural issues such as poor access to education, healthcare, social services, and employment opportunities.
- More difficult to alleviate because of its entrenched nature.
Example:
- Tribal Communities in India: Many indigenous and tribal communities in India experience chronic poverty. Due to historical marginalization, lack of education, poor infrastructure, and limited job opportunities, these groups often face persistent poverty that affects multiple generations.
5. Urban Poverty
Definition:
- Urban poverty refers to poverty experienced by individuals or families living in urban environments. Urban poverty is often characterized by issues such as inadequate housing, lack of access to services, high living costs, and unemployment or underemployment.
Characteristics:
- People in urban poverty may live in slums or informal settlements.
- Although urban areas have more opportunities, the cost of living is typically higher, and urban poverty often involves overcrowding, crime, and inadequate sanitation.
Example:
- Slum Dwellers in Mumbai: Many people living in the slums of Mumbai, such as Dharavi, experience urban poverty. Despite being in close proximity to wealthier neighborhoods, these individuals live in cramped conditions without access to clean water or sanitation, often working in the informal economy with low wages.
6. Rural Poverty
Definition:
- Rural poverty occurs in rural areas where agriculture or small-scale industries are the main sources of income. It is often associated with poor infrastructure, lack of access to markets, inadequate healthcare, and limited educational opportunities.
Characteristics:
- Higher dependence on agriculture or natural resources.
- Often worsened by issues such as land fragmentation, droughts, and poor agricultural productivity.
- People living in rural poverty may have limited access to financial services and suffer from isolation due to poor transportation and communication facilities.
Example:
- Farmers in Sub-Saharan Africa: Many farmers in Sub-Saharan Africa experience rural poverty due to reliance on rain-fed agriculture, poor soil quality, lack of irrigation, and vulnerability to climate change. These farmers often live in remote areas with limited access to markets and modern agricultural technology.
7. Generational (Intergenerational) Poverty
Definition:
- Generational poverty refers to poverty that is transmitted from one generation to the next. Families experiencing this type of poverty have been trapped in a cycle of poverty for multiple generations, often due to a lack of education, social discrimination, and limited access to resources and opportunities.
Characteristics:
- Difficult to break without significant intervention.
- Linked to structural issues like social exclusion, inadequate access to education, and poor living conditions that perpetuate poverty from one generation to the next.
- Often associated with chronic poverty.
Example:
- Dalit Families in India: Many Dalit families have experienced generational poverty for centuries due to systemic caste-based discrimination. Despite modern legal protections, they still face barriers to education, employment, and social mobility, making it difficult to break the poverty cycle.
8. Extreme Poverty
Definition:
- Extreme poverty is the most severe form of poverty, characterized by the complete lack of basic human needs, including food, safe drinking water, sanitation, health, shelter, education, and information. People living in extreme poverty often have incomes far below the absolute poverty line.
Characteristics:
- Extreme deprivation and vulnerability to health crises, malnutrition, and lack of basic needs.
- Extreme poverty often leads to high mortality rates and significant human suffering.
Example:
- Conflict Zones in Yemen: The ongoing civil war in Yemen has pushed millions of people into extreme poverty. Due to the conflict, food, water, and healthcare are in short supply, and many families are living in conditions of severe deprivation, with children suffering from malnutrition and lack of medical care.
9. Income Poverty
Definition:
- Income poverty specifically refers to situations where individuals or households have insufficient income to meet their basic needs. It is often measured against an income threshold, such as the poverty line.
Characteristics:
- Individuals in income poverty may have jobs, but their wages are too low to cover essential expenses like food, housing, and healthcare.
- This form of poverty focuses solely on income and does not consider other forms of deprivation.
Example:
- Minimum Wage Workers in the U.S.: In the U.S., many minimum-wage workers experience income poverty. Despite being employed, they struggle to afford housing, healthcare, and other necessities due to the high cost of living relative to their wages.
10. Transitory Poverty
Definition:
- Transitory poverty is a temporary state of poverty that occurs when individuals fall into poverty for a short period due to economic shocks, illness, or other unexpected events. Unlike chronic poverty, it is not permanent.
Characteristics:
- Often a result of economic downturns, job loss, or natural disasters.
- Affected individuals may return to their previous economic status once conditions improve.
Example:
- Natural Disasters: After Hurricane Katrina in 2005, many families in New Orleans fell into transitory poverty due to the destruction of homes and loss of employment. Over time, some of these families were able to rebuild their lives and recover economically.
Conclusion:
Understanding the different types of poverty is crucial for policymakers and organizations working toward poverty alleviation. By recognizing that poverty varies in form and duration—from absolute poverty threatening basic survival to relative poverty highlighting social inequality—targeted and effective interventions can be developed. Each type of poverty affects people’s lives differently, and therefore, different approaches are needed to combat each type.
