Poverty

Poverty is a condition in which people lack sufficient resources to meet basic needs such as food, shelter, clothing, and healthcare. It can be understood in absolute terms, using a fixed income or consumption threshold, or in relative terms, comparing a person’s standard of living with that of their society. Absolute poverty is often measured against international poverty lines; relative poverty uses national standards.

Poverty is multidimensional. In addition to income, deprivations in health, education, housing, water, sanitation, and security shape well-being. Tools such as the Multidimensional Poverty Index assess multiple deprivations at once, alongside traditional income-based measures.

Measurement relies on household surveys and official statistics. Issues include sampling error, underreporting, and choosing thresholds that influence comparisons across countries and over time.

Causes are diverse and interacting: low earnings, unemployment, lack of assets, inadequate public services, inequality, discrimination, shocks, conflict, and weak governance. Poverty often persists across generations through limited access to education and productive opportunities.

Consequences include poor health, stunting and malnutrition, limited schooling, low productivity, and social marginalization. Insufficient protection from shocks raises risk of escape from poverty.

Interventions combine social protection (cash or in-kind transfers), affordable healthcare and education, nutrition programs, housing, and policies that promote job creation and human-capital development. Effective strategies address both income generation and deprivations in health, education, and living standards.

Global trends show substantial progress in reducing extreme poverty since the 1990s, though progress is uneven. The Sustainable Development Goals aim to end poverty in all forms by 2030, with universal access to essential services and resilience to shocks.