2. Poverty is a state or condition in which a person or community lacks
the financial resources and essentials for a minimum standard of
living. Poverty means that the income level from employment is so low
that basic human needs can’t be met. Poverty-stricken people and
families might go without proper housing, clean water, healthy food,
and medical attention. Each nation may have its own threshold that
determines how many of its people are living in poverty.
3. The World Bank Organization describes poverty in this way:
“Poverty is hunger. Poverty is lack of shelter. Poverty is being
sick and not being able to see a doctor. Poverty is not having
access to school and not knowing how to read. Poverty is not
having a job, is fear for the future, living one day at a time.
Poverty has many faces, changing from place to place and
across time, and has been described in many ways. Most
often, poverty is a situation people want to escape. So
poverty is a call to action – for the poor and the wealthy alike
– a call to change the world so that many more may have
enough to eat, adequate shelter, access to education and
health, protection from violence, and a voice in what happens
in their communities.”
4. 11 FACTS ABOUT GLOBAL POVERTY
1. Global poverty lines are used to measure the financial dimension of poverty. The
thresholds of $1.90, $3.20, and $5.50 per day represent different standards for poverty
around the world. People living on $1.90 per day are considered to live in extreme
poverty.
2. Money isn’t a complete measure of poverty. Other dimensions of poverty include
access (or lack thereof) to work, health, nutrition, education, sanitation, housing, etc.
3. In 2015 (the latest estimates available), 10% of the world’s population lived in
extreme poverty (less than $1.90 a day).
4. Half of the 736 million people living in extreme poverty globally live in five
countries: India, Nigeria, Democratic Republic of Congo, Ethiopia, and Bangladesh.
5. It’s estimated that, because of the COVID-19 pandemic and subsequent global
recession, poverty rates will increase for the first time since 1990.
5. 6. Internationally, 2.2 million people lack access to a safely-
managed drinking water service (located nearby, available when
needed, and free from contamination).
7. Approximately 297,000 children under five die every year
from diarrhea diseases due to poor sanitation, poor hygiene, or
unsafe drinking water.
8. About 13% of people globally do not have access to
electricity, and 40% of people globally do not have access to clean
fuels for cooking.
9. Malnutrition is the leading cause of poor health and death
around the world. Globally, 1 in 9 people is hungry or
undernourished.
10. A study of 13 developing countries found that government
spending on education and health accounted for 69% of the total
reduction of economic inequality.
11. The entire health budget of Ethiopia, a country of 105
million people, is equivalent to just 1% of the fortune of the
world’s richest man, Amazon CEO Jeff Bezos.]
7. Comprising of 7,641 islands, the
Republic of the Philippines is a
country located in the western
Pacific Ocean with the population
of. Poverty has always been
present and is one of the biggest
and seemingly the most evident
problem in the country.
14. 1. Situational poverty is generally
caused by a sudden crisis or loss and
is often temporary. Events causing
situational poverty include
environmental disasters, divorce, or
severe health problems.
15. 2. Generational poverty occurs in
families where at least two generations
have been born into poverty. Families living
in this type of poverty are not equipped with
the tools to move out of their situations.
16. 3. Absolute poverty, which is rare in the United States, involves a
scarcity of such necessities as shelter, running water, and food. Families
who live in absolute poverty tend to focus on day-to-day survival.
17. 4. Relative poverty refers to the
economic status of a family whose income
is insufficient to meet its society’s average
standard of living.
18. 5. Urban poverty occurs in
metropolitan areas with populations of
at least 50,000 people. The urban
poor deal with a complex aggregate of
chronic and acute stressors (including
crowding, violence, and noise) and are
dependent on often-inadequate large-
city services.
19. 6. Rural poverty occurs in nonmetropolitan areas with
populations below 50,000. In rural areas, there are more single-
guardian households, and families often have less access to
services, support for disabilities, and quality education opportunities.
21. CLASSICAL THEORY
Classical economic traditions contend that
individuals are ultimately responsible for poverty,
thereby providing a foundation for laissez-faire
policies.
22. NEOCLASSICAL THEORY
Neoclassical (mainstream) economics is more
diverse and provides explanations for poverty that
are beyond individuals’ control (notably, market
failures). Both classical and neoclassical
approaches overemphasize monetary aspects, the
individual as opposed to the group, and a limited
role for government.
23. KEYNESIAN/ NEOLIBERAL THEORY
Keynesian/neoliberal schools focus on
macroeconomic forces and emphasize the role of
government in providing economic stabilization and
public goods. Poverty is considered largely as
involuntary and caused by unemployment.
24. MARXIAN/RADICAL THEORY
Marxian/radical views consider class and group
discrimination as central to poverty and assign a
key role to the state in its intervention/regulation of
markets. Anti-poverty proposals in this vein include
minimum wages and anti-discrimination laws.
