Poverty
Absolute poverty
- It is a global measure, meaning it is used by
countries all over the globe.
- The central bank defines absolute poverty as living
below the poverty line of $2.15 a day, in 2017 GDP,
measured at purchasing power parity.
- (Purchasing power parity tells us how much of one
currency is needed to purchase a basket of goods
compared to another currency).
- This means that these individuals can not afford
basic necessities, such as food, water or shelter.
- Application: In 2017, it was estimated that nearly
700M live in absolute poverty, and over 96% of these
people live in developing countries.
Relative poverty
- Earning less than a certain percentage of the average
income of a country.
- For the UK, this percentage is 60%.
- This means that the individual has a lower purchasing
power than the average person.
Absolute poverty
- It is a global measure, meaning it is used by
countries all over the globe.
- The central bank defines absolute poverty as living
below the poverty line of $2.15 a day, in 2017 GDP,
measured at purchasing power parity.
- (Purchasing power parity tells us how much of one
currency is needed to purchase a basket of goods
compared to another currency).
- This means that these individuals can not afford
basic necessities, such as food, water or shelter.
- Application: In 2017, it was estimated that nearly
700M live in absolute poverty, and over 96% of these
people live in developing countries.
Relative poverty
- Earning less than a certain percentage of the average
income of a country.
- For the UK, this percentage is 60%.
- This means that the individual has a lower purchasing
power than the average person.
