Definition

Poverty is a state or condition where individuals lack the financial resources and essentials necessary for
a basic standard of living, encompassing the inability to meet fundamental needs like food, shelter, and
healthcare.

Types of poverty on the basis of social ,economical and political aspects:

1. Absolute poverty.

2. Relative Poverty.

3. Situational Poverty.

4. Generational Poverty.

5. Rural Poverty.

6. Urban Poverty.

1. 1. Absolute poverty:

Also known as extreme poverty or abject poverty, it involves the scarcity of basic food, clean water,
health, shelter, education and information. Those who belong to absolute poverty tend to struggle to
live and experience a lot of child deaths from preventable diseases like malaria, cholera and water-
contamination related diseases. Absolute Poverty is usually uncommon in developed countries.

2. Relative Poverty:

It is defined from the social perspective that is living standard compared to the economic standards of
population living in surroundings. Hence it is a measure of income inequality. For example, a family can
be considered poor if it cannot afford vacations, or cannot buy presents for children at Christmas, or
cannot send its young to the university.

3. Situational Poverty:

It is a temporary type of poverty based on occurrence of an adverse event like environmental disaster,
job loss and severe health problem.

People can help themselves even with a small assistance, as the poverty comes because of unfortunate
event.

4. Generational Poverty:

It is handed over to individual and families from one generation to the one. This is more complicated as
there is no escape because the people are trapped in its cause and unable to access the tools required
to get out of it.

5. Rural Poverty:

It occurs in rural areas with population below 50,000. It is the area where there are less job
opportunities, less access to services, less support for disabilities and quality education opportunities.
People are tending to live mostly on the farming and other menial work available to the surroundings.
6. Urban Poverty:

It occurs in the metropolitan areas with population over 50,000. These are some major challenges faced
by the Urban Poor:

• Limited access to health and education.

• Inadequate housing and services.

• Violent and unhealthy environment because of overcrowding.

Several types of poverty may be distinguished depending on such factors as time or duration (long- or
short-term or cyclical) and distribution (widespread, concentrated, individual):

Cyclical poverty

Cyclical poverty refers to poverty that may be widespread throughout a population, but the occurrence
itself is of limited duration. In nonindustrial societies (present and past), this sort of inability to provide
for one’s basic needs rests mainly upon temporary food shortages caused by natural phenomena or
poor agricultural planning. Prices would rise because of scarcities of food, which brought widespread,
albeit temporary, misery.

Collective poverty

In contrast to cyclical poverty, which is temporary, widespread or “collective” poverty involves a

Concentrated collective poverty

In many industrialized, relatively affluent countries, particular demographic groups are vulnerable to
long-term poverty. In city ghettos, in regions bypassed or abandoned by industry, and in areas where
agriculture or industry is inefficient and cannot compete profitably, there are found victims of
concentrated collective poverty. These people, like those afflicted with generalized poverty, have higher
mortality rates, poor health, low educational levels, and so forth when compared with the more affluent
segments of society. Their chief economic traits are unemployment and underemployment, unskilled
occupations, and job instability. Efforts at amelioration focus on ways to bring the deprived groups into
the mainstream of economic life by attracting new industry, promoting small business, introducing
improved agricultural methods, and raising the level of skills of the employable members of the society.

Case poverty

Similar to collective poverty in relative permanence but different from it in terms of distribution, case
poverty refers to the inability of an individual or family to secure basic needs even in social surroundings
of general prosperity. This inability is generally related to the lack of some basic attribute that would
permit the individual to maintain himself or herself. Such persons may, for example, be blind, physically
or emotionally disabled, or chronically ill. Physical and mental handicaps are usually regarded
sympathetically, as being beyond the control of the people who suffer from them. Efforts to ameliorate
poverty due to physical causes focus on education, sheltered employment, and, if needed, economic
maintenance.

1. Economic Factors

Unemployment: Lack of job opportunities or underemployment is one of the most significant causes of
poverty. Without a stable income, individuals and families cannot meet their basic needs.

Low Wages: Even when people have jobs, low-paying work can keep them in poverty. Many workers in
sectors like agriculture, retail, or service industries may earn wages that are insufficient to cover living
costs.

Economic Inequality: In societies where wealth is distributed unevenly, the gap between the rich and
the poor widens, leaving a significant portion of the population in poverty. Economic inequality can
prevent people from accessing quality education, healthcare, and other resources that help lift them out
of poverty.

Lack of Access to Credit and Capital: Many poor individuals or families do not have access to loans or
financial services, making it harder to invest in businesses or education, both of which can improve their
financial status over time.

2. Social Factors

Education and Skills Gap: Limited access to education or poor-quality education often prevents
individuals from obtaining the skills needed for better-paying jobs. Without education, individuals are
often stuck in low-skill, low-paying jobs, perpetuating the cycle of poverty.

Social Discrimination: Discrimination based on race, gender, ethnicity, religion, or disability can limit
access to opportunities. Marginalized groups often face barriers to employment, education, and other
resources that would allow them to escape poverty.

Poor Health and Disability: Chronic illness or disability can prevent individuals from working or
functioning at full capacity, which makes it more difficult to earn a living and support their families.

Family Structure and Responsibility: Single-parent families, especially those headed by women, may face
more significant challenges in providing for their children due to limited resources and support systems.
The responsibility of caregiving can also limit their ability to pursue education or employment
opportunities.

3. Political Factors

Poor Governance and Corruption: In countries with weak institutions, corruption can drain resources
that could otherwise be used to combat poverty. Government funds intended for public services like
education, healthcare, and infrastructure are often misallocated or siphoned off by corrupt officials.

Conflict and Political Instability: War, civil conflict, and political instability can destroy economies,
displace populations, and destroy livelihoods, leading to widespread poverty. Refugees and internally
displaced persons often experience severe poverty due to loss of property, jobs, and social support.
Ineffective Policies: Government policies that do not address the root causes of poverty or provide
insufficient social safety nets can exacerbate the situation. Policies that do not focus on creating job
opportunities, improving education, and healthcare services can keep poverty levels high.

Limited Social Welfare Programs: In many developing countries, the lack of social welfare programs
(e.g., unemployment benefits, food assistance, or affordable healthcare) leaves vulnerable populations
at greater risk of falling into or remaining in poverty.

4. Global Factors

Global Trade and Economic Systems: International trade policies and economic systems often benefit
wealthier countries while exploiting poorer nations. Developing countries may struggle with debt
repayment, unfair trade terms, or the lack of access to global markets, which perpetuates poverty.

Climate Change and Environmental Factors: Natural disasters, climate change, and environmental
degradation (e.g., droughts, floods, soil erosion) can devastate communities, particularly in developing
countries that depend on agriculture. Loss of crops and livelihoods often leads to poverty.

Globalization: While globalization has led to increased economic growth in many parts of the world, it
has also created winners and losers. Many low-skilled workers in developing countries have been left
behind as jobs in manufacturing and agriculture are outsourced to countries with lower labor costs.

5. Historical Factors

Colonialism: The legacy of colonialism continues to affect many nations, particularly in Africa, Asia, and
Latin America. Colonial powers often extracted resources from their colonies without regard for the
long-term economic development of the indigenous populations, leaving many countries with
underdeveloped economies and political instability.

Historical Inequality: Societies with a long history of social inequality, such as caste systems, feudal
structures, or racial segregation, can have lingering effects that perpetuate poverty for marginalized
groups over generations.

6. Cultural and Psychological Factors

Culture of Poverty: Some theorists argue that a "culture of poverty" exists, where individuals born into
poverty may develop attitudes and behaviors that make it more difficult for them to escape poverty.
These behaviors might include reliance on social welfare programs, lower aspirations for education, and
a focus on short-term survival rather than long-term planning.

Psychological Barriers: Poverty can create stress and a sense of hopelessness, leading to psychological
barriers that prevent people from seeking opportunities or taking actions to improve their situation.

Extent of Poverty in Pakistan

Poverty Rate: According to the World Bank, approximately 24.3% of Pakistan’s population lived below
the national poverty line in 2019. However, this number is expected to fluctuate, with the economic
challenges such as inflation, unemployment, and natural disasters contributing to worsening poverty
levels.
Urban vs. Rural Divide: Poverty is more prevalent in rural areas compared to urban areas. A large portion
of Pakistan’s population relies on agriculture, and rural communities often face challenges such as
limited access to education, healthcare, and basic infrastructure.

Multidimensional Poverty: Poverty in Pakistan is not just about income levels but also about access to
basic services such as education, healthcare, and sanitation. Many poor people in Pakistan suffer from a
lack of quality education and healthcare, and they live in inadequate housing.

1. Health Effects

Malnutrition and Hunger: One of the most immediate effects of poverty is food insecurity. People in
poverty often cannot afford enough nutritious food, leading to malnutrition, stunted growth in children,
and increased susceptibility to diseases.

Poor Health Outcomes: Poverty is closely linked to poor health. Individuals living in poverty are less
likely to have access to adequate healthcare, resulting in higher rates of preventable diseases. For
example, diseases like tuberculosis, diarrhea, and respiratory infections are more common among the
poor.

Shorter Life Expectancy: Due to inadequate healthcare, poor nutrition, and exposure to harmful living
conditions, individuals in poverty tend to have a lower life expectancy compared to wealthier
populations.

Mental Health Issues: Living in poverty can lead to chronic stress, anxiety, and depression. The constant
struggle to meet basic needs can take a toll on a person’s mental well-being, making it even harder to
break free from the cycle of poverty.

2. Educational Effects

Lack of Access to Education: Poverty often limits access to quality education. Families living in poverty
may not be able to afford school fees, uniforms, or transportation costs. As a result, children may drop
out of school early, perpetuating the cycle of poverty.

Lower Educational Attainment: Even if children are able to attend school, they may not receive quality
education due to overcrowded classrooms, inadequate infrastructure, or lack of trained teachers. This
leads to low literacy rates and poor academic performance, which reduces future employment
opportunities.

Limited Social Mobility: Without proper education, individuals are more likely to remain stuck in low-
paying jobs or informal sectors. This lack of upward mobility prevents them from improving their
financial situation and escaping poverty.

3. Economic Effects

Limited Job Opportunities: People living in poverty often do not have the skills or education needed to
access higher-paying jobs, which traps them in low-wage, unstable employment. This lack of
employment opportunities reduces economic productivity and innovation.

Dependence on Social Welfare Programs: Many people in poverty rely on government or charitable aid
to meet basic needs. While these programs are essential in the short term, long-term dependence on
social welfare can hinder the economic development of both individuals and society, as it doesn't
address the root causes of poverty.

Reduced Economic Growth: A significant portion of the population living in poverty means fewer people
are able to contribute to economic growth in the form of taxes, consumption, and productivity. This can
slow down national economic development and create a stagnating economy.

4. Social Effects

Crime and Social Unrest: Poverty can contribute to higher crime rates. People struggling to meet basic
needs may resort to illegal activities, such as theft, drug trafficking, or gang violence, to survive. High
levels of inequality can also lead to social unrest, protests, or political instability.

Social Exclusion: Poverty often results in social exclusion, where individuals and communities are
marginalized. People living in poverty are frequently denied opportunities to participate in social,
cultural, or economic activities, which leads to isolation and stigmatization.

Intergenerational Poverty: Children born into poverty often grow up facing the same struggles as their
parents. This can lead to a generational cycle of poverty, where families remain trapped in low-income
conditions for many years.

5. Housing and Living Conditions

Poor Housing Quality: People living in poverty are often forced to live in inadequate housing, such as
slums, informal settlements, or overcrowded conditions. These areas may lack basic amenities like clean
water, sanitation, and electricity, which further impacts health and quality of life.

Increased Vulnerability to Disasters: Poor communities are more vulnerable to natural disasters, such as
floods, earthquakes, or hurricanes. They often live in areas that are prone to environmental risks and
lack the resources to rebuild or recover after disasters.

Unsafe Living Environments: Poverty often forces people to live in neighborhoods with high crime rates,
pollution, and environmental hazards. These unsafe environments contribute to stress and poor health,
further trapping people in poverty.

6. Psychological Effects

Chronic Stress: The constant struggle to meet basic needs, such as food, shelter, and healthcare, creates
chronic stress. This can lead to mental health issues like anxiety, depression, and a sense of
hopelessness, making it difficult for individuals to break free from poverty.

Feelings of Helplessness: People in poverty may feel powerless and unable to improve their
circumstances. This lack of control over their lives can reduce motivation, lower self-esteem, and make it
harder for individuals to take the steps necessary to escape poverty.

7. Impact on Children and Future Generations

Child Labor: Children in poor families may be forced to work instead of attending school, which prevents
them from receiving an education and limits their future opportunities. Child labor perpetuates the cycle
of poverty as children are unable to escape their socio-economic conditions.
Long-Term Development Issues: Growing up in poverty affects children's physical and cognitive
development. Poor nutrition, limited access to education, and lack of medical care can lead to long-term
developmental delays, reducing their ability to succeed in adulthood.

Higher Mortality Rates: Children in poor families are more likely to suffer from malnutrition and diseases
that are preventable, which leads to higher infant and child mortality rates in impoverished
communities.

8. Environmental Effects

Overuse of Natural Resources: Poor communities often rely on natural resources like forests, rivers, and
land to survive. Over-extraction of these resources can lead to environmental degradation, such as
deforestation and soil erosion, which worsens poverty by diminishing available resources.

Climate Change Impact: The poor are disproportionately affected by climate change, as they often lack
the resources to adapt to environmental changes like floods, droughts, or extreme temperatures. This
exacerbates poverty and makes it harder to break the cycle of deprivation.

Solutions to Poverty:

 Access to Quality Education: Provide free, quality education for all, with a focus on vocational
training and skill development to increase employability.
 Job Creation: Foster economic growth by promoting small businesses, creating job
opportunities, and ensuring fair wages for workers.
 Social Safety Nets: Implement social welfare programs like cash transfers, unemployment
benefits, and healthcare subsidies to support low-income families.
 Affordable Healthcare: Ensure access to affordable healthcare services, including preventive
care and treatment, to reduce financial burdens due to illness.
 Economic Inequality Reduction: Enforce progressive taxation, promote fair distribution of
wealth, and focus on inclusive economic growth.
 Affordable Housing: Provide affordable housing options and upgrade informal settlements to
improve living conditions for low-income families.
 Gender Equality: Empower women by providing equal access to education, employment, and
healthcare, which can help break the cycle of poverty.
 Rural Development: Support small farmers with access to land, credit, technology, and market
opportunities to reduce rural poverty.
 Address Corruption: Promote transparency and accountability in government to ensure that
resources for poverty reduction are used effectively.
 Climate Change Adaptation: Implement climate-resilient practices and provide resources to help
poor communities adapt to environmental changes, such as droughts or floods.
Reference:

https://www.jagranjosh.com/general-knowledge/what-is-poverty-and-its-types-1523453034-1

https://www.britannica.com/topic/poverty

https://www.concern.net/news/causes-of-poverty

https://www.adb.org/where-we-work/pakistan/poverty

https://borgenproject.org/5-effects-poverty/

https://plancanada.ca/stories/5-ways-to-end-poverty