Geography Reference
In-Depth Information
1.4 DEFINING AND
MEASURING POVERTY
Poverty: Basic Concepts and Definitions
In recent years, numerous commentators have emphasized that pov-
erty reduction and poverty alleviation strategies must be placed at the
very core of development practice. For example, in the early 1990s, the
World Bank's policies were regarded as giving rise to what was
described as the 'New Poverty Agenda'. In the same context, in 1999
'Poverty Reduction Strategy Papers' were introduced as a vital policy
instrument in respect of 'Heavily Indebted Poor Countries'.
The simplest conceptualization of poverty is that it represents a lack
of money and income. Proponents of this view point to the high correla-
tion that generally exists between income and other measures of social
and economic well-being, such as health and education. But just like
the definition of development itself, while income and money are impor-
tant components, poverty needs to be seen as multidimensional. White
(2008) notes that as well as income and consumption, factors such as
health, education, social life, environmental quality, and political and
spiritual freedoms are all vital components of poverty and that depriva-
tion in respect of any one of these may be regarded as giving rise to
poverty.
As noted by White (2008), studies have shown that relatively poor
people themselves often assess dimensions other than income as being
of considerable importance in assessing poverty levels. A well-known
study carried out by Jodha (1988) showed how the welfare of poor
Indians had increased by measures they themselves viewed as impor-
tant. These improvements included wearing shoes and occupying
accommodation separate from livestock. However, surveys showed that
during the same period as these improvements had been occurring the
incomes of the poor had actually fallen, showing clearly how factors
other than income have a direct bearing on poverty. As UNDP (2009)
has stressed, viewed in this manner, poverty means that opportunities
