Chapter III the Poverty of Poverty Measurement
45 Chapter III The poverty of poverty measurement Measuring poverty accurately is important within the context of gauging the scale of the poverty challenge, formulating policies and assessing their effectiveness. However, measurement is never simply a counting and collating exercise and it is necessary, at the outset, to define what is meant by the term “poverty”. Extensive problems can arise at this very first step, and there are likely to be serious differences in the perceptions and motivations of those who define and measure poverty. Even if there is some consensus, there may not be agreement on what policies are appropriate for eliminating poverty. As noted earlier, in most developed countries, there has emerged a shift in focus from absolute to relative poverty, stemming from the realization that the perception and experience of poverty have a social dimension. Although abso- lute poverty may all but disappear as countries become richer, the subjective perception of poverty and relative deprivation will not. As a result, led by the European Union (EU), most rich countries (with the notable exception of the United States of America), have shifted to an approach entailing relative rather than absolute poverty lines. Those countries treat poverty as a proportion, say, 50 or 60 per cent, of the median per capita income for any year. This relative measure brings the important dimension of inequality into the definition. Alongside this shift in definition, there has been increasing emphasis on monitoring and addressing deficits in several dimensions beyond income, for example, housing, education, health, environment and communication. Thus, the prime concern with the material dimensions of poverty alone has expanded to encompass a more holistic template of the components of well-being, includ- ing various non-material, psychosocial and environmental dimensions.
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