Poverty is a state or condition in which a person or community lacks the financial resources and requirements to enjoy a minimum standard of life . The poor are those who live below the poverty line. The poor are those who live below the poverty line. The poverty line is defined in terms of per capita household expenditure. Poverty manifests itself in the form of both bsolute poverty as well as relative poverty.
Absolute poverty was defined as a condition when people do not have the enough money to get the basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services.
When people of a particular society are poor in comparison to others around them, but they may still have enough money to survive is known as relative poverty. Relative poverty relates to inequalities in a society. For e.g: a poor in India can never be the same as a poor in New York. A poor in india is more poor relative to the new york one. This type of poverty is known as Relative poverty.
Causes of Poverty
There are many factors in an economy which are responsible for poverty. Some of them are listed below. Poverty is caused due to
- Population is a major factor of poverty.
- Inequality of opportunity in acquiring education and skills.
- Government Policies.
- Under developed nature of economy.
- Regional disparity is an important factor of poverty.
- Low level of productivity in agriculture and industry.
- Large scale of unemployment and under employment.
- Inequality in the ownership of land, buildings, industry etc.