Absolute Poverty
There is a strong case for suggesting that we should be more concerned about real poverty than about inequality. It should matter more that some are without the basic necessities for life than it should about concern to narrow the gap between rich and poor.
The case for measuring poverty in absolute terms focuses on identifying and addressing basic material deprivation. Absolute poverty measures assess whether individuals have the minimum resources necessary to maintain physical well-being, such as sufficient food, clean water, shelter, and clothing. This provides a clear benchmark for ensuring survival and basic dignity.
Because absolute poverty thresholds, such as the World Bank’s $2.15 a day, are consistent across countries, they allow for meaningful international comparisons. This is especially useful in global development policy and aid allocation.
Absolute measures are easier to communicate and understand. The focus is on a fixed standard of living rather than constantly shifting social comparisons, which helps in setting clear policy goals and tracking progress over time.
Tracking changes in absolute poverty rates can show real progress in reducing deprivation. For instance, millions lifted above a global poverty threshold is a tangible indicator of development success.
Absolute poverty highlights conditions of extreme hardship and suffering, which can create a sense of moral urgency for intervention. It prioritizes those in the most dire situations regardless of relative social standings. And it aligns closely with development agendas such as the UN’s Sustainable Development Goals, which include targets for eradicating extreme poverty based on absolute thresholds.
In essence, measuring poverty in absolute terms offers a clear, stable, and internationally relevant framework focused on eradicating the most severe forms of human deprivation. Regardless of the case for more equality in society, the elimination of real, absolute poverty has a higher claim on the world’s attention. The mother in Africa or Asia or South America is not really concerned if Elon Musk, Bill Gates or Mark Zuckerberg have made a few extra billions and made her relatively poorer. She wants to know if she can feed her children by the end of the week, and provide them with shoes and clothing. These are real needs, not relative ones.
The word ‘poverty’ has been hijacked to stand for things such as below 60 percent of average incomes, but this is far less important than real poverty, which means falling short of the basic necessities.
Madsen Pirie