Glossary term
Absolute Poverty: Meaning and Definition
Reviewed and approved by Dr. Anamika ShrivastavaPublished Last updated
Absolute poverty is the condition in which a person’s consumption falls below a fixed minimum standard needed for survival, such as the minimum food and other basic needs. It is measured against the poverty line, so it does not depend on how well others are doing, unlike relative poverty.
In more detail
A fixed standard allows comparison over time: if the number below the line falls, absolute poverty is falling. But the line is only as good as the method used to set it, and it says nothing about how far below it people are. Relative poverty, by contrast, can persist even when absolute poverty falls.
Example
A rural household of five spending less than the poverty line of ₹1,640 a month in 1999-2000 was absolutely poor.
Key points
- Judged against a fixed line.
- Counted by the head count ratio.
- Relative poverty compares people with each other.
Common mistake
Equating absolute poverty with begging or destitution only.
Related terms
Where it is explained
This term is explained in Class 11 Indian Economic Development Chapter 4: Poverty.