Understanding Poverty:
Definition, Types,
Dimensions, and
Approaches to
Measurement
Compiled by: John Michael V. Acuzar, RSW
What is Poverty?
Poverty refers to the condition where individuals
or communities lack the financial resources and essentials
for a minimum standard of living. According to the World
Bank (2021), poverty is the pronounced deprivation in
well-being, encompassing aspects such as access to basic
services, education, healthcare, and sanitation.
In the Philippines, poverty is defined as the
inability to meet the minimum standards of food, health,
education, and living conditions. The Philippine Statistics
Authority (PSA) defines a family as poor if its income falls
below the poverty threshold, the minimum income
needed to meet basic food and non-food needs (PSA,
2022).
Global Perspective on Poverty
Globally, poverty is a widespread issue affecting
billions, though its severity and characteristics can differ
by region (Sen, 1999). According to the World Bank,
over 700 million people live on less than $2.15 per day
(World Bank, 2021).
National Perspective on Poverty
In the Philippine context, poverty is defined as
the inability to meet the minimum standards of food,
health, education, and living conditions. The Philippine
Statistics Authority (PSA) defines a family as poor if its
income falls below the poverty threshold, the minimum
income needed to meet basic food and non-food needs
(PSA, 2022).
Types of Poverty
• Absolute Poverty
• Relative Poverty
• Situational Poverty
• Generational Poverty
Absolute Poverty
Absolute poverty refers to a condition
where individuals cannot meet the basic
necessities of life such as food, clothing,
and shelter.
Relative Poverty
Relative poverty is when individuals or
groups fall significantly below the average
income or living standards of a particular
society. It is a comparison to the broader
societal context (Townsend, 1979).
Situational Poverty
Situational poverty occurs when people fall
into poverty due to unexpected crises, such
as job loss, natural disasters, or health
issues. It is often temporary but can
become long-term without adequate
support (Bradshaw, 2006).
Generational Poverty
refers to individuals or communities who
experience poverty for long periods and
becoming a cycle passed from one generation
to generations. These individuals often face
social exclusion, limited access to
opportunities, and a lack of mobility (Hulme &
Shepherd, 2003).
Dimensions of Poverty
Multidimensional Nature of Poverty
Poverty is not just about income; it includes several
other dimensions that impact an individual’s overall
well-being. According to the United Nations
Development Programme (UNDP), multidimensional
poverty encompasses factors such as health, education,
and living standards (UNDP, 2020).
Key Dimensions
Income: Inadequate access to financial resources to meet basic needs.
Health: Poor access to healthcare services, malnutrition, and high infant
mortality rates are signs of deprivation in health (Alkire & Foster, 2011).
Education: Limited access to quality education, high dropout rates, and low
literacy levels perpetuate cycles of poverty (World Bank, 2021).
Living Standards: Deprivation in housing, access to clean water, sanitation,
and electricity are key indicators of multidimensional poverty (UNDP, 2020).
Approaches in Measuring Poverty
Income-Based Approach
The income-based approach defines poverty by assessing whether an individual's or
household's income falls below a certain threshold, such as the international poverty line of $2.15 per
day (World Bank, 2021).
Food Threshold
The food threshold is another metric used in the Philippines, which refers to the minimum
income required to meet basic nutritional needs. In 2021, the food threshold was approximately ₱8,379
per month for a family of five (PSA, 2022).
Multidimensional Poverty Index (MPI)
Developed by the UNDP and the Oxford Poverty and Human Development Initiative, the
Multidimensional Poverty Index (MPI) goes beyond income to measure poverty across various
dimensions, including education, health, and living standards (Alkire & Foster, 2011).
Approaches in Measuring Poverty
Capability Approach (Amartya Sen)
According to Amartya Sen (1999), poverty is a lack of capabilities to live a life one values. This
approach focuses on the real freedoms or opportunities people have to achieve well-being, such as the
capability to access education or healthcare.
Human Poverty Index (HPI)
Introduced by the UNDP, the Human Poverty Index (HPI) measures poverty by focusing on
indicators such as life expectancy, education, and standard of living. It emphasizes non-monetary
aspects of poverty (UNDP, 1997).
Example: Countries with high levels of income inequality but relatively good access to
healthcare may still score poorly on the HPI.
Sustainable
Development Goal 1
End Poverty The global effort to
eradicate poverty is a key part of the United
Nations' Sustainable Development Goals
(SDGs). SDG 1 aims to eliminate extreme
poverty by 2030, recognizing the need for
multidimensional measures to achieve this goal
(United Nations, 2015).
Poverty Reduction Programs
in the Philippines
Pantawid Pamilyang Pilipino Program (4Ps)
The 4Ps is the flagship poverty reduction program in
the Philippines, targeting low-income families by
providing conditional cash transfers for health and
education (NEDA, 2020).
Philippine Development Plan 2023–2028
The Philippine Development Plan includes strategies to
reduce poverty by investing in infrastructure, expanding
social protection, and promoting inclusive economic
growth (NEDA, 2022).
Related Theories of Poverty
Addressing poverty is a moral, economic, and political imperative for
achieving global development and social justice (Sen, 1999). A holistic
understanding of poverty requires examining its different dimensions, such as
health, education, and living standards.
Individualistic Theory
This theory explains poverty as a result of
personal failings, such as lack of effort or poor
decision-making (Bradshaw, 2006). In the
Philippine context, individuals who cannot find
stable employment may be seen as
responsible for their own poverty due to low
education levels or lack of skills. However, this
view overlooks systemic issues.
Structural Theory
Structural theories suggest that poverty is
caused by larger economic and social
structures, such as class inequality,
discrimination, and lack of access to education
and healthcare (Rubington & Weinberg, 2015).
In the Philippines, poverty is linked to unequal
distribution of resources, with wealth
concentrated in urban centers like Metro
Manila while rural areas remain impoverished
(World Bank, 2022).
Conflict Theory (Marxist
Perspective)
Conflict theory views poverty as a result of
class struggles. Karl Marx argues that poverty
exists because the capitalist system benefits
the wealthy while exploiting the working class
(Marx & Engels, 1848/1998). In the Philippines,
this theory can explain the concentration of
wealth among elites and the widespread
poverty of the working class, especially in the
agricultural sector.
Culture of Poverty Theory
Proposed by Oscar Lewis, this theory suggests
that poverty creates a distinct subculture with
its own values and behaviors that are passed
down through generations (Lewis, 1961). In
the Philippines, this can be seen in
communities where poverty has become
ingrained over generations, particularly in
slum areas or marginalized indigenous groups.
Dependency Theory
Dependency theory posits that poverty in
developing nations is a result of exploitation
by wealthier nations, often through
colonialism and global capitalism (Frank,
1966). In the Philippines, historical factors such
as colonization by Spain and the United States
have shaped the country’s economic
dependence on foreign capital and
international markets.
Modernization Theory
This theory suggests that poverty is caused by
the failure of some countries to modernize
and adopt the institutions of more developed
nations (Rostow, 1960). In the Philippines,
poverty is sometimes attributed to the slow
pace of industrialization and modernization in
rural areas.
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Lewis, O. (1961). The children of Sánchez: Autobiography of a Mexican family. Vintage Books.
Marx, K., & Engels, F. (1998). The communist manifesto. Oxford University Press. (Original work published 1848)
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