Question

Define/distinguish the difference between the concepts of absolute/official and relative poverty. Provide and discuss an example of each concept.

Answer 1

Relative poverty refers to a standard which is well defined in the society in which an individual lives and which therefore differs between one country to another in a period of time. Relative poverty is considered to be the easiest way to measure the level of poverty in a country. On the other hand Absolute/Official poverty refers to a set standard that is same in almost all countries & which doesn't change over time. Relative poverty & Absolute poverty both are prevalent in the world. The concept of absolute poverty is that there are minimum standards below which no one can survive anywhere in the world whereas the concept of relative poverty is that, a developed & rich country like England there are higher minimum standards for maintaining the livelihood of the people & also there is scope of these standards to become higher if the country becomes richer. So it is clearly can be understand that Absolute poverty is far more serious issue than Relative poverty. This Absolute poverty is prevalent in third world countries where percapita income is very low as compared to developed countries like UK.