Poverty is the circumstance in which individuals or groups lack the financial resources and necessities for a basic level of existence. It is commonly quantified using income levels, with the most popular threshold being the World Bank’s worldwide poverty line of $2.15 per day (as of 2022).
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Types of Poverty
- Absolute Poverty:
- Refers to the complete lack of basic necessities, such as food, clean water, shelter, and healthcare.
- Measured by specific income levels that do not meet minimum needs.
- Relative Poverty:
- Occurs when people live below the standard of living that is considered acceptable in their society.
- A person may have adequate income to meet basic needs but is still considered poor in comparison to the broader population.
Human Poverty
Human poverty is defined as the lack of essential human skills such as the ability to live a long, healthy life, access knowledge, and maintain a good standard of living. It broadens the definition of poverty beyond income and emphasises how poverty affects human dignity and quality of life.
Key Aspects of Human Poverty:
- Lack of education: Poor access to educational facilities limits opportunities for individuals.
- Healthcare deficiencies: Lack of access to healthcare services contributes to malnutrition, high infant mortality, and low life expectancy.
- Low life expectancy: Many people living in poverty are unable to lead healthy lives due to poor living conditions.
- Marginalization: Poverty results in social exclusion, where certain groups or individuals are pushed to the edges of society, preventing them from participating fully in social and economic activities.
Human Development Index (HDI) and Human Poverty Index (HPI) are two key measures used by the United Nations to track human poverty, incorporating life expectancy, education, and living standards into the evaluation.
Relative Deprivation
Relative deprivation is the notion or reality of being denied something one feels entitled to in contrast to others in society. It is a sociological idea that adds to our knowledge of poverty in relative terms.
Key aspects:
- Subjective Poverty: Even if someone’s basic needs are met, they may feel deprived if they perceive that others are living in much better conditions.
- Inequality: Relative deprivation is closely linked to social inequality, where disparities in wealth, education, and social services lead to a sense of deprivation among the lower sections of society.
- Social Exclusion: Those experiencing relative deprivation often face social exclusion, where they are denied opportunities to participate in economic, political, and social life on equal terms with others.
Poverty in SAARC Countries
SAARC (South Asian Association for Regional Cooperation) includes eight countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Despite the region’s significant economic growth, it still grapples with high levels of poverty, inequality, and social exclusion.
Key Features of Poverty in SAARC Countries:
- High Population Density: The region is home to around 24% of the world’s population, a significant portion of which lives below the poverty line.
- Rural Poverty: Most of the poverty in SAARC countries is concentrated in rural areas, where people rely heavily on agriculture.
- High Unemployment: Limited job opportunities in the formal sector, especially for youth, contribute to persistent poverty.
- Malnutrition: Many SAARC countries face food insecurity and malnutrition, particularly among children and women.
- Vulnerability to Natural Disasters: Countries like Nepal, Bangladesh, and Pakistan are frequently hit by natural disasters, which exacerbate poverty and prevent recovery from poverty.
- Gender Inequality: Women in SAARC countries face higher rates of poverty due to limited access to education, healthcare, and economic opportunities.
Country-Specific Examples:
- India: Despite its rapid economic growth, India faces large-scale poverty, especially in rural areas. Approximately 21.9% of India’s population lives below the poverty line.
- Bangladesh: Has made progress in reducing poverty over the years, but about 20% of the population remains impoverished, particularly in rural areas.
- Nepal: With around 17% of the population living in poverty, many Nepalese in rural areas face poor access to infrastructure and services.
- Pakistan: Approximately 24% of the population lives in poverty, facing challenges like unemployment, poor healthcare, and low literacy rates.
- Sri Lanka: Has a lower poverty rate compared to other SAARC countries, but the recent economic crisis has pushed many people into poverty.
SAARC Declaration on Poverty Elimination
SAARC recognizes poverty as the region’s most pressing challenge and has made efforts to address it through cooperation and collaboration between member states. Over the years, SAARC has adopted various measures to reduce poverty in the region:
Major Initiatives:
- SAARC Social Charter (2004):
- A framework for social development in the region, with poverty alleviation as a major goal.
- Focuses on education, healthcare, gender equality, and employment.
- SAARC Plan of Action on Poverty Alleviation (2006):
- Emphasized the need for social protection, rural development, gender equity, and microfinance as key tools to reduce poverty.
- Advocated for increased public investment in agriculture, education, and health sectors.
- SAARC Development Goals (SDGs):
- The goals were aligned with the global Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs).
- The SDGs focused on reducing poverty, hunger, and gender inequality while improving access to education, healthcare, and employment.
- South Asian Poverty Alleviation Program (SAPAP):
- An initiative to empower rural poor communities by fostering micro-credit, self-help groups, and local development initiatives. The program promotes grassroots-level participation in poverty alleviation.
- SAARC Development Fund (SDF):
- Established to fund social development projects, including poverty reduction programs across SAARC member states.
- Its objectives include supporting small-scale rural development projects, entrepreneurship, and social safety nets.
- SAARC Leaders’ Commitment:
- In several SAARC summits, leaders have reiterated their commitment to poverty elimination, recognizing that economic growth must be inclusive and sustainable to lift people out of poverty.
Despite these attempts, implementing SAARC’s poverty reduction programmes has been difficult due to political instability, a lack of regional coordination, and insufficient finances. However, the proclamation and ongoing efforts demonstrate that poverty elimination remains a top priority for the SAARC region.
Frequently Asked Questions (FAQs)
Which countries have eliminated poverty to some extent?
15 countries have made rapid progress in combating extreme poverty. In barely over a decade, Tanzania has reduced extreme poverty by nearly half. China, Kyrgyz Republic, Moldova, and Vietnam had effectively eliminated extreme poverty by 2015.
What are the top 5 countries most affected by poverty?
The 5 countries with the highest number of extreme poor are (in descending order): India, Nigeria, Democratic Republic of Congo, Ethiopia, and Bangladesh.
How have countries reduced poverty?
Indeed, job growth is a major—perhaps the primary—path out of poverty. Firms, whether new or extremely tiny, create the most long-term jobs in a developing economy.
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