Types of Poverty

Poverty can be categorised in different ways:

  1. Chronic Poor: Chronic Poor includes two types of people; viz., Always Poor and Usually Poor. The former includes those people who are always poor; such as rag pickers. However, the latter includes those people who are usually poor but sometimes may have more income than the poverty line; such as casual workers.
  2. Transient Poor: Transient Poor includes two types of people; viz., Churning Poor and Occasionally Poor. The former includes those people who on a regular basis move in and move out of the property; such as seasonal workers. However, the latter includes those people who are most of the time rich; i.e., have income more than the poverty line; but, due to a bad phase in their lives have income below the poverty line. For example, at the time of COVID, many people lost their jobs and many of them had to shut their businesses down.
  3. Non-Poor: These are the people who are never poor. 

Poverty Line: Meaning, Determination, Types and Criticism

Poverty refers to a state in which an individual is unable to fulfil even the basic necessities of life. The minimum requirements include food, clothing, shelter, education, and health facilities. A nation suffers from a cycle of poverty when a large portion of the population is deprived of even the most basic necessities of life for an extended period. If the minimum needs are not fulfilled, a person has to undergo pain and suffering. Sickness and disabilities render him helpless in all aspects of life. Generation after generation person who lives in poverty grows in poverty and dies in poverty. The population either breeds or multiplies itself.

Table of Content

  • What is Poverty Line?
  • Determination of Poverty Line
  • Types of Poverty
  • Criticism of Poverty Line

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What is Poverty Line?

The adequate minimum threshold income level or per capita expenditure for a country’s population is known as Poverty Line. Simply put, it is a cut-off point on the Line of Distribution that divides a country’s population into poor and non-poor. Poverty Line is determined in terms of Monthly Per Capital Expenditure (MPCE) or Calorie Intake....

Determination of Poverty Line

In India, poverty is determined using Monthly Per Capita Expenditure Method. In this method, the monetary value per capita expenditure of the minimum calorie intake is calculated....

Types of Poverty

Poverty can be categorised in different ways:...

Criticism of Poverty Line

The MPCE (Monthly Per Capital Expenditure) Method of calculating the Poverty Line is criticized because of the following reasons:...