Types of Poverty
- Absolute Poverty
- It is when household income is below a certain level, which makes it impossible for the person or family to meet basic needs of life including food, shelter, safe drinking water, education, healthcare, etc.
- Relative Poverty
- It is when households receive 50% less than average household incomes, so they do have some money but still not enough money to afford anything above the basics.
- Situational Poverty
- It is temporary in nature and occurs due to some adverse situations like earthquakes, floods or some severe health problem.
- For example, a family earns a decent income and is able to meet basic necessities of life. One day a severe cyclone hits the city and destroys their house; an earning member of the family loses his job. So a well off family suddenly becomes poor overnight.
- Chronic Poverty
- People experience deprivation for many years, sometimes their entire lives and this poverty is even passed on to the next generations.