Economics

What is Poverty? – Types, Causes, Solutions, Economic, Social and More

What is Poverty?

Poverty includes, among these conditions, access to food, drinking water. In sanitation facilities, health, housing, education, as well as information. If these conditions are lacking, the UN considers said condition a state. In other words, anyone who does not have access to minimum requirements that allow the development of essential life but is worthy.

Thus, among other institutions, the UN highlights as one of the main objectives. which that institution works.

Poverty, as a general rule, is shown more intensely in countries. That is under development as well as developing.

Types of Poverty

Among the existing types of poverty, we can distinguish a series of styles that try to measure different situations and conditions.  And also, a list of classes tries to break down said measurement, facilitating it and allowing greater control.

Among the existing types of poverty, the following should highlight:

  • Extreme poverty
  • Relative poverty
  • Absolute
  • Child
  • Rural
  • Material
  • Structural
  • Urban
  • And also, Social

In this way, this relationship shows the main types of poverty existing on the planet.

Causes of Poverty

In response to the question, why is there poverty in the world? It is necessary to point out many factors. It generates significant inequalities among the planet’s inhabitants. This difference results, in some instances, in the fact that there are people who do not have the necessary resources to be able to cover their basic needs.

In this sense, depending on the territory, the causes are variable and very specific. Each economy has certain peculiarities that lead to this scarcity situation for many families. consequences of poverty

Poverty is one of the great evils that an economy can present. Well, poverty has a series of adverse effects on society, worsening its living standard. The main consequence is that when there is a particular territory. And also, it said the economy enters a vicious circle from which it is challenging to get out.

In this way, an economy with few resources can reorient. It has fewer options to attract foreign investment that allows the implementation of initiatives that generate wealth and help improve the conditions of citizens.

Solutions of Poverty

As for the solutions, we find a situation similar to the causes. Depending on the territory where this problem is to be correct, it will be necessary to carry out a series of measures or others. They must be well planned and adapt to the conditions of the economy.

Economic and Social Policy

Poverty is a condition in which one or more people have a level of well-being below the socially accept minimum.

A first approximation associate with the inability of people to satisfy their basic food needs. Then, a broader concept considers. That includes health, housing conditions, education, employment, income, and also expenses. All more extensive aspects such as identity, human rights, and popular participation.

The main definitions of poverty used in Peru are:

Overall poverty: Includes people whose households have per capita income or consumption. It’s below the cost of a total basket of minimum essential goods and services.

Extreme poverty: Includes people whose households have per capita income or consumption. If below the value of a minimum food basket.

Total poverty line: The cost of a minimum basket of goods (including food) and services.

Extreme poverty line: And also, it is the cost of a minimum food basket.

Poverty gap: It is the average difference between the income of the poor and the value of lines. The opening may refer to extreme or extreme poverty.

The severity of poverty: This is an indicator of inequality among the poor, whose measurement is complex.

And also, it is the average value of the squares of the differences between the income of the poor and the line.

Conditions to Consider a Person Poor

As we were saying, the United Nations Organization (UN) establishes a list of conditions that measure what consider and what is not. However, the UN is the most authoritative organization on issues of inequality on the planet. In this sense, other institutions such as the World Bank also establish a relationship.

For this reason, the conditions established by the UN are the following:

  • Access to food
  • Drinking water
  • Health
  • Living place
  • Education
  • And also, Information

In summary, poverty is considered that does not meet. At those conditions that characterize a decent life.

How is Poverty Measured?

The measurement of carried out by a series of parameters defined by institutions. In this sense, the UN, the World Bank, the International Monetary Fund. They are another series of organizations that are in charge of preparing a series. It’s indicators that measure the planet. And also, among these indicators, and also the following should highlight:

  • Human Development Index (HDI).
  • Human poverty index (HPI).
  • Gini index.
  • And also, the Poverty gap.

Thus, these indicators are the most used by the institutions mentioned above to measure. Is the level shown by the countries?

Poverty in Brazil

During the first decade of this century, economic growth. The strengthening of the formal labour market. And also, the increase in the minimum wage and the expansion of social policies have contributed to the rise in the income of the poor in Brazil. Those factors led to a roughly 80% drop in inequality between 2003 and 2013 (World Bank, 2016).

It is estimated that the BolsaFamilia (PBF), the main conditional income transfer program in Brazil, is responsible for reducing between 10?% and 15?% of the income inequality registered in that decade.

With the institution of the PBF in 2004, the Brazilian government established the monthly per capita income of R$50 and R$100 as thresholds for the definition of extreme and respectively.  Since then, those thresholds have been adjusted annually for consumer inflation. Currently, the outer line is set at a monthly per capita income of up to R$ 85, and the line at a monthly per capita income of between R$ 85.01 and R$ 170.

Conclusion

World. The lack of access to good quality teaching, health, electricity, drinking water and other essential services. It remains a reality for millions worldwide. If whether due to socioeconomic factors, gender, ethnicity or geography. For this reason, the Brazilian Learning Initiative for a World.

If without Poverty ( WWP  ) seeks to stimulate a broader debate that allows thinkers and managers. And also, the social policies to obtain greater clarity about the problem and the means to face it throughout the world.

According to this point of view, the poor would be the people whose level of income or per capita consumption of their family or household is below the essential minimum to meet basic human needs. This minimum is often referred to as the “poverty line”.

Also Read: What is Wealth? – Types, Difference Between Gross and Net Wealth, More

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