ABSTRACT

This chapter discusses the merits and shortcomings of absolute and relative definitions of poverty. Depending on the definition, socio-political models for poverty alleviation can be residual and target the neediest, aiming at securing people’s basic needs, or they can be redistributive and focus on enhancing living standards and welfare. Drawing on the “command over resources” approach, resources are seen as the most central element of welfare. Through discussion of various definitions, critical debates and understandings of poverty, the aim is to show that in order to understand poverty one needs definitions that account for absolute and relative perspectives in combination. Absolute definitions help shed light on the unacceptable situation of the global poor and recognise that some forms of poverty are worse than others. Relative definitions show that even within a wealthy nation with high living standards some people experience intolerable material and economic hardships. The resources needed to escape poverty are always relative to the society where people live, at a specific time, and conditional to individuals’ characteristics and opportunities. Nevertheless, socio-political solutions to poverty should acknowledge the importance of raising the incomes of the poor. Hence, the significance of money should not be downplayed.