Mr HounselEconomics

ILO:
a) Distinction between absolute poverty and relative poverty

b) Measures of absolute poverty and relative poverty

c) Causes of changes in absolute poverty and relative poverty

What do you think is meant by the phrase poverty?
What do you think the term extreme poverty in the graph refers to?
​What economic factors could explain the changes in the graph below?
Why is it something we'd want to resolve and by how much?

Absolute poverty exists when a person’s continued daily existence is threatened b ecause they have insufficient resources to meet their basic needs.

Absolute poverty – in 2008, the World Bank set the poverty line at $1.25 a day at 2005 GDP measured at purchasing power parity. In October 2015, the World Bank updated the international poverty line to $1.90 a day. Some economists measure the poverty line at $2 a day.

Related article:
​ How does deprivation vary by leading cause of death?

Relative poverty exists when a person is poor compared with others in their society. Most poverty in developed countries tends to be relative poverty.

Relative poverty – this is measured in comparison with other people in the country and will vary between countries. People are considered to be in relative poverty if they are living below a certain income threshold in a particular country. For example, in the EU, people falling below 60% of median income are said to be ‘at-risk-of poverty’ and are said to be relatively poor.

Watch the videos below to consider what relative poverty can look like, it's causes and possible solutions?

Additional reading UK articles:
https://fullfact.org/economy/poverty-uk-guide-facts-and-figures/
https://www.theguardian.com/society/2014/sep/05/poverty-uk-better-calling-it-inequality
http://www.bbc.co.uk/news/uk-33266799

USA examples:

UK policy example:

Related documentaries:
Skint Britain: Friends Without Benefits

China Example:
China alone accounted for most of the decline in extreme poverty over the past three decades. Between 1981 and 2011, 753 million people moved above the $1.90-a-day threshold. During the same time, the developing world as a whole saw a reduction in poverty of 1.1 billion.

Made in China 2025: How China aims to be known for quality

Ensure you have adequate class notes which defines the definitions of poverty and can assess/evaluate the causes of and possible solutions to poverty.

Kahoot revision MCQ