What is POVERTY LINE? The poverty line is a somewhat arbitrary line by which some group determines a person or family can meet their daily (or monthly, yearly, etc...) needs.
Introduction... The common international poverty line has in the past been roughly $1 a day. In 2008, the World Bank came out with a revised figure of $1.25 at 2005 purchasing-power parity (PPP). Determining the poverty line is usually done by finding the total cost of all the essential resources that an average human adult consumes in one year. This approach is needs-based in that an assessment is made of the minimum expenditure needed to maintain a tolerable life. This was the original basis of the poverty line in the United States, whose calculation was simplified to be based solely on the cost of food and is updated each year. The largest of these expenses is typically the rent required to live in an apartment, so historically, economists have paid particular attention to the real estate market and housing prices as a strong poverty line effector .
National poverty line National estimates are based on population-weighted subgroup estimates from household surveys. Definitions of the poverty line may vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations. Thus, the numbers are not comparable among countries. In 2009, in the United States of America, the poverty threshold for a single person under 65 was US$11,161; the threshold for a family group of four, including two children, was US$21,756. In the UK, "more than five million people – over a fifth (23 per cent) of all employees – were paid less than £6.67 an hour in April 2006. This is based on a low pay rate of 60 per cent of full-time median earnings, equivalent to a little over £12,000 a year for a 35-hour working week. In April 2006, a 35 hour week would have earned someone £9,191 a year - before tax or National Insurance"
India's official poverty level, on the other hand, is split according to rural vs. urban thresholds. For urban dwellers, the poverty line is defined as living on less than 538.60 rupees (approximately USD $12) per month, whereas for rural dwellers, it is defined as living on less than 356.35 rupees per month (approximately USD $7.50). By this measure, only 27.5% of Indians live in poverty, whereas by the World Bank standard of $1.25 per day, 42% of Indians live in poverty - this is the third highest rate in South Asia after Bangladesh and Bhutan. Continued...
Poverty is the lack of basic human needs, such as clean water, nutrition, health care, education, clothing and shelter, because of the inability to afford them. This is also referred to as absolute poverty. Relative poverty is the condition of having fewer resources or less income than others within a society or country, or compared to worldwide averages. Today, economic liberalization includes extending property rights, especially to land, to the poor, and making financial services, notably savings, accessible . WHAT IS POVERTY?....
About 1.7 billion people live in absolute poverty. Poverty reduction has historically been a result of economic growth as increased levels of production, such as modern industrial technology, made more wealth available for those who were too poor to afford them. Also, investments in modernizing agriculture and increasing yields is considered the core of the antipoverty effort, given three-quarters of the world's poor are rural farmers .
Inefficient institutions, corruption and political instability can also discourage investment. Aid and government support in health, education and infrastructure helps growth by increasing human and physical capital. Poverty had been mostly accepted as inevitable as economies produced little, making wealth scarce. In Antwerp and Lyons, two of the largest cities in western Europe, by 1600 three-quarters of the total population were too poor to pay taxes.
Poverty and social exclusion can affect all age groups. It is multi-faceted and it requires a multi-policy response. People are living in poverty if their income and resources (material, cultural and social) are so inadequate as to preclude them from having a standard of living. As a result of inadequate income and resources people may be excluded and marginalized from participating in activities which are considered the norm for other people in society.