Question

Differentiate between absolute poverty and relative poverty? Is absolute poverty concept is relevant to Pakistan? Explain how absolute poverty can be eliminated from LDC?

Answer 1

Absolute poverty is the conditions of the poverty when a person cannot meet the most basic necessities to sustain life and other normal activities. Relative poverty is a concept where the standard of living is compared to the economic standards of living with other society members of the society they belong to. Yes, the concept is relevant in Pakistan because it is on defining minimum calorie intake for food requirements and a minimum non-food allowance as per the needs of humans for physical functioning and daily life activities. As per statistics it has increased.

Absolute poverty reduction is a set of measures, both economic and humanitarian, with the goal of promoting economic growth that will permanently lift people over a poverty line. It intends to promote inclusive and sustainable human development and put efforts to reduce poverty in all its dimensions. As there is a clear linkage between education, poverty reduction and sustainability, it often uses education as a short-hand for promoting economic growth. Education is highly relevant and has the potential to equip individuals with skills required to improve their livelihoods, thus holds the power to transform people’s lives. Also by improving the efficiency of capital flows makes contribution in reducing the levels of world's poverty in developing nations, enhancing their infrastructures, strengthen their human capital and always encourage nations to cooperate and seek peaceful solutions for the problems. In the developing countries, government spending on health and education is not as high as in developed countries; as a result they can't reap the benefits from high investments in health and education which will reap higher future incomes; thus these need to be also improved