Introduction

Poverty is an age-old social malaise and global problem. According to Martin Rein, poverty may be regarded as subsistence, inequality or externality. Subsistence is concerned with the minimum of provision needed to maintain health and working capacity. Its terms of reference are the capacity to survive and to maintain physical efficiency. Inequality is concerned with the relative position of income groups to each other. Society is seen as a series of stratified income layer and poverty is concerned with how the bottom layers fare relative to the rest of society. Hence, the concept of poverty must be seen in the context of society as a whole. Poverty consists of social problems correlated with low income.

Absolute Poverty: Meaning

Absolute poverty is a situation where a population or section of a population is able to meet only its bare subsistence essentials of food, clothing and shelter in order to maintain minimum levels of living. Absolute poverty is claimed to be an objective definition, based up notion of subsistence. Subsistence is the minimum needed to sustain life, and so being below subsistence level is to be experiencing absolute poverty because one does not have enough to live on.

An absolute standard means one defined by reference to the actual needs of the poor and not by reference to the expenditure of those who are not poor. A family is poor if it cannot afford to eat. Absolute poverty refers to a condition of acute physical wants starvation, malnutrition, disease, want of clothes, want of shelter a total lack of medical care. Absolute poverty usually involves a judgment of basic human needs and is measured in terms of the resources required for physical survival. Most measures of absolute poverty are concerned with establishing the quality and amount of food, clothing and shelter deemed necessary for a healthy life. It is usually measured by pricing the basic necessities of life, drawing a poverty line in terms of this price, and defining as poor those whose income falls below that figure.

Drewnowski and Scott in their 'Level of Living Index' define and operationalize 'basic physical needs' in the following way : nutrition, measured by factors such as intake of calories and protein; shelter, measured by quality of dwelling and degree of overcrowding; and health, measured by factors such as the rate of infant mortality and the quality of available medical facilities.

Relative Poverty: Meaning

Relative poverty is more a matter of subjective definition than of objective conditions. In such a situation, a person may have everything that a normal human being requires-nourishment, clothing, shelter, entertainment yet he may have the uncomfortable feeling that he is poor because he cannot keep up with the Joanes next door. Hence, relative poverty is essentially a phenomenon of status discontent or relative deprivation. Relative poverty is the problem of poverty in an affluent but unequal society. Basic needs may be met, but for those at the very bottom many other social expectations cannot be met, resulting in their exclusion from the customary standard of living in that society.

Difference between Absolute and Relative Poverty:

1. Any person not in a position to obtain essential commodities like food, shelter and clothing is said to experience absolute poverty. Relative poverty does not concentrate on biological needs but rather makes a comparison between two people in the environment.
2. Income Level is considered in Absolute Poverty. It is not considered when measuring relative poverty as a person will still be considered poor despite meeting his/her basic needs
3. Absolute poverty, however, does not include a broader quality of life issues or the overall level of inequality in society. What the concept fails to recognize is that individuals also have important social and cultural needs. Although people living in relative poverty are to an extent well-off compared to those living in absolute poverty, they still cannot afford the same standard of life as other people in society.
4. Absolute Poverty is measured Using the Gini-Coefficient and Lorenzo Curve whereas Relative Poverty is measured using Poverty Line.
5. It is not possible to completely eradicate absolute Poverty. But there is a small margin of success where Relative poverty’s eradication is concerned.
6. Quality of life is poor in absolute poverty. Quality of life is marginally better as those living under relative poverty since they have access to health care services etc.

Causes of Absolute Poverty

1. Heavy pressure of population: Population has been rising in India at a rapid speed. This rise is mainly due to the fall in death rate and high birth rate.
2. Unemployment and underemployment: Due to continuous rise in population, there is chronic unemployment and under employment in India. There is educated unemployment and disguised unemployment. Poverty is just the reflection of unemployment.
3. Capital Deficiency: Capital is needed for setting up industry, transport and other projects. Shortage of capital creates hurdles in development.
4. Under-developed economy: The Indian economy is underdeveloped due to low rate of growth. It is the main cause of poverty.
5. Increase in Price: The steep rise in prices has affected the poor badly. They have become poorer.
6. Net National Income: The net national income is quite low as compared to size of population. Low per capita income proves its poverty.
7. Rural Economy: The Indian economy is a rural economy. Indian agriculture is backward. It has great pressure of population. Income in agriculture is low and disguised unemployment is more in agriculture.
8. Lack of Skilled Labour: In India, unskilled labour is in abundant supply but skilled labour is less due to insufficient industrial education and training.
9. Deficiency of efficient Entrepreneurs: For industrial development, able and efficient entrepreneurs are needed. In India, there is a shortage of efficient entrepreneurs. Less industrial development is a major cause of poverty.
10. Lack of proper Industrialisation: Industrially, India is a backward state. 3% of the total working population is engaged in industry. So industrial backwardness is a major cause of poverty.
11. Low rate of growth: The growth rate of the economy has been 3.7% and the growth rate of population has been 1.8%. So compared to population, the per capita growth rate of the economy has been very low. It is the main cause of poverty.

Causes of Relative Poverty

1. Income Inequality: Income inequality refers to the unequal distribution of income within a society. When a large proportion of wealth and income is concentrated in the hands of a few individuals, this can result in a lack of access to resources and opportunities for those who are at the bottom of the income scale.
2. Unemployment: Unemployment is a key factor that contributes to relative poverty. When individuals are unable to find work, they may experience a decline in their standard of living, and may not have access to the resources and opportunities that are necessary for their well-being and development.
3. Education and Skills: Education and skills are critical factors that determine an individual's ability to access resources and opportunities. A lack of education and skills can limit an individual's ability to find work, and can contribute to a cycle of poverty.
4. Discrimination: Discrimination can play a significant role in relative poverty. People who are discriminated against on the basis of their race, gender, income level, standard of living or other characteristics may experience limited access to resources and opportunities, and may be more likely to experience poverty.

Conclusion

In conclusion, absolute poverty and relative poverty are two distinct concepts that describe different forms of poverty and its effects on individuals and communities. Understanding the distinction between absolute and relative poverty is important in order to effectively address poverty and improve the lives of those who are affected by it. Addressing absolute poverty requires addressing the basic needs of individuals and households, while addressing relative poverty requires addressing the underlying causes of poverty, such as discrimination and limited access to resources and opportunities.