Understanding Poverty as a Social Issue
Poverty is one of the most significant social issues facing societies around the world. It affects millions of people and has wide-ranging consequences for individuals, families and communities. But what exactly do we mean when we talk about poverty?
Key Definitions:
- Poverty: A state of deprivation where people lack the resources to meet their basic needs and participate fully in society.
- Social exclusion: When people are shut out from the social, economic, political and cultural systems that contribute to the integration of a person into society.
- Deprivation: The lack of access to resources and opportunities that most people take for granted.
Two Main Approaches to Defining Poverty
💰 Absolute Poverty
Absolute poverty refers to a set standard which is the same in all countries and doesn't change over time. It's based on a fixed income threshold or a basic set of needs that must be met.
Key features:
- Based on the minimum resources needed for physical survival
- Often measured using income thresholds (e.g., $1.90 per day)
- Focuses on basic needs like food, shelter and clothing
- Doesn't consider social context or changing standards of living
Example: The World Bank defines extreme poverty as living on less than $1.90 per day.
📅 Relative Poverty
Relative poverty defines poverty in relation to the economic status of other members of the society. It recognises that poverty is socially defined and changes over time.
Key features:
- Measured in relation to the average standard of living in a society
- Changes as society's overall wealth changes
- Considers social inclusion and ability to participate in society
- Often defined as having income below a certain percentage of median income
Example: In the UK, households with income below 60% of the median are considered to be in relative poverty.
Measuring Poverty
There are several different ways to measure poverty, each with its own strengths and limitations:
Income-Based Measures
These are the most common ways to measure poverty and focus on how much money people have.
📈 Poverty Line
An income threshold below which people are considered to be living in poverty. Different countries set different poverty lines.
In the UK, the poverty line is typically set at 60% of median household income.
🌎 International Poverty Line
The World Bank sets international poverty lines to compare poverty across countries.
The extreme poverty line is $1.90 per day, while $3.20 and $5.50 are used for lower and upper-middle income countries.
📊 Income Inequality
Measures like the Gini coefficient show how unequally income is distributed in a society.
Higher inequality often correlates with higher rates of relative poverty.
Multi-dimensional Approaches
These approaches recognise that poverty is about more than just income and consider various aspects of deprivation.
🎓 Townsend's Deprivation Index
Peter Townsend, a British sociologist, developed a broader understanding of poverty that includes social deprivation. His approach looks at whether people can participate in the normal activities of society.
Townsend identified indicators like:
- Having a week's holiday away from home
- Having friends or family for a meal once a month
- Having a warm winter coat
- Being able to replace worn-out furniture
If people cannot afford these things that most people take for granted, they are experiencing relative deprivation.
🌐 UN Human Development Index (HDI)
The HDI measures development by combining indicators of life expectancy, education and per capita income.
It provides a more holistic view of poverty and development than income alone.
The HDI considers:
- Life expectancy at birth
- Expected years of schooling
- Mean years of schooling
- Gross National Income per capita
Case Study Focus: UK Poverty Measurement
In the UK, the government uses several measures to track poverty:
- Relative low income: Households with income below 60% of the median in the current year.
- Absolute low income: Households with income below 60% of the median in 2010/11, adjusted for inflation.
- Material deprivation: Families who cannot afford specific goods and activities that are seen as necessities in society.
- Persistent poverty: Being in relative poverty for at least 3 out of 4 consecutive years.
According to the Social Metrics Commission, about 14.3 million people in the UK were living in poverty in 2018/19, including 4.6 million children.
Limitations of Poverty Definitions
Each approach to defining poverty has its limitations:
⚠ Problems with Absolute Poverty Measures
- Don't account for different costs of living in different places
- Focus only on basic survival needs, not social inclusion
- Don't consider non-monetary resources (like public services)
- May set the bar too low to be meaningful in developed countries
⚠ Problems with Relative Poverty Measures
- Can be misleading during economic downturns (poverty may appear to decrease if median income falls)
- Don't capture the depth of poverty (how far below the threshold people are)
- May not reflect actual living standards if inequality changes
- Can make international comparisons difficult
The Importance of How We Define Poverty
How we define poverty matters because it affects:
- Which groups are identified as being in poverty
- How many people are counted as poor
- What solutions are proposed to address poverty
- How we measure success in reducing poverty
For example, if we use an absolute measure focused on basic needs, solutions might focus on providing food and shelter. If we use a relative measure, solutions might focus more on reducing inequality and promoting social inclusion.
Case Study Focus: Child Poverty in the UK
The UK has committed to measuring child poverty in four different ways:
- Relative poverty: Children in households below 60% of median income
- Absolute poverty: Children in households below 60% of the 2010/11 median income (adjusted for inflation)
- Combined low income and material deprivation: Children who experience low income and cannot afford certain essential items
- Persistent poverty: Children in relative poverty for at least three years out of four
Using these different measures gives a more complete picture of child poverty in the UK. For example, in 2019/20:
- 31% of children (4.3 million) were living in relative poverty
- 25% of children (3.5 million) were living in absolute poverty
- 12% of children were in low income and material deprivation
This shows how different definitions can produce different figures and identify different groups as being in poverty.
Conclusion: Why Definitions Matter
The way we define poverty shapes our understanding of the problem and influences policy responses. Both absolute and relative approaches have value and using multiple measures gives us a more complete picture of poverty.
In your iGCSE Sociology exam, you should be able to:
- Explain the difference between absolute and relative poverty
- Discuss the strengths and limitations of different poverty measures
- Understand how poverty definitions affect social policy
- Apply these concepts to real-world examples
Remember that poverty is not just an abstract concept – it affects real people's lives in profound ways. Understanding how we define and measure poverty is the first step toward addressing this critical social issue.