Poverty – A Multidimensional Phenomenon
Poverty has many faces, and multiple indicators are used to capture the different deprivations experienced by a population. This complex phenomenon is linked to economic wellbeing, capability, and social exclusion. Poverty is a major moral problem because of the suffering it causes and the disadvantages conferred to some population segments. It is defined as a persistent and debilitating social condition attributed to diverse causes that affect a person’s physical, mental, and emotional wellbeing. The complex nature of poverty means that multiple measures are used depending on a country’s priorities.
1. Economic Wellbeing
Income and consumption are key quantifiable indicators of poverty in society. These variables measure economic wellbeing and contain absolute, relative, and subjective components. At the basic level is absolute poverty, which describes the lack of necessities needed for survival – shelter, clean water, and food. Here, the quality of survival is an important consideration that is not quantifiable. A person may require social, cultural, economic, or political resources to survive, but these aspects cannot be measured in monetary terms. Based on the survival criteria, poverty is described as the income level necessary to obtain the least calorie intake or personal wellbeing. Therefore, earnings or wages are connected to consumption and welfare needs, which are not quantifiable.
Determining the minimum income level that would suffice individual wellbeing is not easy. The International Monetary Fund and other agencies use a dollar-a-day expenditure as the absolute poverty line. However, other organizations consider basic needs and essential services, including health, in defining poverty. In contrast, the United Nations Development Program (UNDP) distinguishes two other forms of absolute deprivation: extreme poverty (scarcity of the income needed to purchase basic food) and overall poverty that extends to non-food items. Given that individual incomes, consumption, and wellbeing depend on other people in society, poverty lines are variable. The lower group’s median income is used as a measure of the living standards compared to the high-income groups. This approach estimates relative poverty, where people are described as poor if their incomes are below the median level in society. The economic well-being view means that poverty can be alleviated by raising median incomes and consumptive capacities of the underprivileged.
2. Capability Poverty
Separating the poor from the non-poor requires considering additional factors besides income, consumption, and wellbeing. The capability approach to poverty considers factors limiting one’s ability to attain a welfare status. Variables such as health and education impact the quality of life and incomes. Capability is considered the capacity to attain full functioning, but this ability is not entirely dependent on income. The UNDP uses five metrics to measure this type of poverty: illiteracy, malnutrition, life expectancy, poor maternal health, and preventable disease morbidity. The income-capability relationship depends on age, sex, social roles, place, and wellness. A person with a low income may exhibit lower-level functioning and capability within an industrial society.
Beyond material deprivation, the freedom to exercise choice may be limited for the poor. A high-level capability is associated with greater access to resources and alternatives. Therefore, distributive justice is required to ensure equal rights in society, such as employment, nutrition, and social inclusion. Poor nutritional status impacts health, limiting one’s ability to derive income. Additionally, morbidity and low life expectancy disproportionately affect the poor due to the deprivation of capabilities. While this approach includes dimensions beyond income-related factors, it does not consider institutional or social barriers to human wellbeing.
3. Social Exclusion
Another aspect of poverty is social exclusion – marginalization from economic or political processes. High-income individuals or those with considerable capabilities may still be poor if systems are designed to exclude people based on personal characteristics. Structural factors, including macroeconomic policies, may impose barriers to some groups, limiting their participation in socio-economic development. In most countries, social exclusion is based on race, gender, or regional marginalization, limiting people’s access to economic activities. Socially excluded persons or groups cannot exercise their fundamental rights and freedoms, including political participation. Excluding people with a specific demographic profile from democratic processes leads to policies that do not reflect their interests and priorities, limiting their upward mobility. As a result, these individuals or groups become economically disadvantaged or poor.