Poverty is the state of one who lacks a certain relative amount of material possessions or money.

Poverty is relative to, and is the antonym of, wealth. Extreme poverty is also called penury. Absolute poverty or destitution refers to the one who lacks basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live in absolute poverty today. Relative poverty refers to lacking a usual or socially acceptable level of resources or income as compared with others within a society or country. For most of history poverty had been mostly accepted as inevitable as traditional modes of production were insufficient to give an entire population a comfortable standard of living. After the industrial revolution, mass production in factories made wealth increasingly more inexpensive and accessible. Of more importance is the modernization of agriculture, such as fertilizers, in order to provide enough yield to feed the population. People who practise asceticism intentionally live in economic poverty so as to attain spiritual wealth. The supply of basic needs can be restricted by constraints on government services such as corruption, debt and loan conditionalities and by the brain drain of health care and educational professionals. Strategies of increasing income to make basic needs more affordable typically include welfare, economic freedom, and providing financial services. Today, poverty reduction is a major goal and issue for many international organizations such as the United Nations and the World Bank. What is poverty?

What does it mean to be poor? How is poverty measured? Third World countries are often described as developing while the First World, industrialized nations are often developed. What does it mean to describe a nation as developing? A lack of material wealth does not necessarily mean that one is deprived. A strong economy in a developed nation doesnt mean much when a significant percentage (even a majority) of the population is struggling to survive. Successful development can imply many things, such as (though not limited to): An improvement in living standards and access to all basic needs such that a person has enough food, water, shelter, clothing, health, education, etc;

A stable political, social and economic environment, with associated political, social and economic freedoms, such as (though not limited to) equitable ownership of land and property; The ability to make free and informed choices that are not coerced; Be able to participate in a democratic environment with the ability to have a say in ones own future; What is poverty? Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation and freedom. Poverty is a call to action - for the poor and the wealthy alike - a call to change the world so that many more may have enough to eat, adequate shelter, access to education and health, protection from violence, and a voice in what happens in their communities. Poverty is the state of being without, often associated with need, hardship and lack of resources across a wide range of circumstances. Why is this? Is it enough to blame poor people for their own predicament? Have they been lazy, made poor decisions, and been solely responsible for their plight? What about their government? Have they pursued policies that actually harm successful development? Such causes of poverty and inequality are no doubt real. But often less discussed are deeper and more global causes of poverty. Behind the increasing interconnectedness promised by globalization, are global decisions, policies, and practices. These are typically influenced, driven, or formulated by the rich and powerful. These can be leaders of rich countries or other global actors such as multinational corporations, institutions, and influential people. In the face of such enormous external influence, the governments of poor nations and their people are often powerless. As a result, in the global context, a few get wealthy while the majority struggle. back to top Millennium Development Goals

The uneven progress of development is worrying. The flows of trade and capital that integrate the global economy may bring benefits to millions, but poverty and suffering persist. Responding to such concerns, governments and international development agencies have begun to reexamine the way they operate. In September 2000, 189 countries signed the Millennium Declaration, which led to the adoption of the Millennium Development Goals (MDGs). The MDGs are a set of eight goals for which 18 numerical targets have been set and over 40 quantifiable indicators have been identified. The goals are: Eradicate extreme poverty and hunger Achieve universal primary education Promote gender equality and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, malaria, and other diseases Ensure environmental sustainability Develop a global partnership for development. back to top Measuring Poverty Measuring poverty at the country level A common method used to measure poverty is based on incomes or consumption levels. A person is considered poor if his or her consumption or income level falls below some minimum level necessary to meet basic needs. This minimum level is usually called the "poverty line". What is necessary to satisfy basic needs varies across time and societies. Therefore, poverty lines vary in time and place, and each country uses lines which are appropriate to its level of development, societal norms and values. Information on consumption and income is obtained through sample surveys, with which households are asked to answer detailed questions on their spending habits and sources of income. Such surveys are conducted more or less regularly in most countries. These sample survey data collection

methods are increasingly being complemented by participatory methods, where people are asked what their basic needs are and what poverty means for them. Interestingly, new research shows a high degree of concordance between poverty lines based on objective and subjective assessments of needs. Measuring poverty at the global level When estimating poverty worldwide, the same reference poverty line has to be used, and expressed in a common unit across countries. Therefore, for the purpose of global aggregation and comparison, the World Bank uses reference lines set at $1 and $2 per day (more precisely $1.08 and $2.15 in 1993 Purchasing Power Parity terms). It has been estimated that in 2001, 1.1 billion people had consumption levels below $1 a day and 2.7 billion lived on less than $2 a day. These figures are lower than earlier estimates, indicating that some progress has taken place, but they still remain too high in terms of human suffering, and much more remains to be done. back to top Responding to Poverty Achievement of the Millennium Development Goals (a .pdf Document; 3.12 MB) requires rising above current trends and substantially accelerating progress toward these goals. There is an urgent need for all parties developing and developed countries, as well as multilateral agencies to scale up action. The Global Monitoring Report 2004 (3.12 Mb PDF) suggests areas for particular attention for the three main groups of actors involved.

Priorities for developing countries: improving the enabling climate for private sector activity strengthening capacity in the public sector and improving the quality of governance scaling up investment in infrastructure and ensuring its effectiveness enhancing the effectiveness of service delivery in human development Priorities for developed countries: sustaining stable and strong growth in the global economy ensuring a successful, pro-development and timely outcome of the Doha Round providing more and better aid

improving policy coherence for development Priorities for international financial institutions: refining and strengthening institutional roles in low-income countries furthering progress on the results agenda improving selectivity and coordination of agency programs

How to Overcome Poverty Avoid counter-productive spending behaviors. Assuming responsibility for ending poverty entails cutting habits out of your life that contribute to poverty. Unnecessary spending. Don't spend money on anything you don't need. Additionally, avoid paying full price for items that can be bought on sale, with coupons or through discount avenues such as auction sites, pawn shops, thrift stores, yard sales and consignment shops. Betting on chance, rather than planning for a future. Studies show that the poor spend nearly twice as much on lottery tickets than the affluent. Statistically speaking, this type of spending rarely pays off, and contributes to poverty. Take advantage of government welfare programs. These programs can be used as a stepping stone for overcoming poverty, if you use the funds to offset your living expenses while you advance your financial situation. Apply with local, state and national government agencies for things like food, healthcare, education loans and grants, rent and utility assistance. 3 Increase your income. Effectively ending poverty requires that you have a steady stream of income that not only covers your monthly financial obligations, but that also allows you to save for and invest in a future without poverty. You may employ 1 or a combination of these methods to increase your income: Job advancement. Ask for a raise at your current job, or apply for a higher-paying position within your organization of employment. Second job. Taking a part-time job on the side can provide you with the temporary means for overcoming poverty while you work toward more permanent, full-time opportunities.

Side work. If you have a marketable talent or skill, then you can use it to generate extra income for overcoming poverty. For example, you can babysit, cook meals, clean houses, mow lawns, do handyman repairs or paint to make extra money. Alternatives to occupational income. Having yard sales, auctioning items on auction websites, donating blood and participating in medical research studies are examples of ways you can increase your income outside of work. 4 Learn about money management. When you are on a restricted budget, it is important that you take measures to organize and allocate your income funds so that you are meeting your financial obligations as well as accounting for your future goals. Meet with a professional at a financial institution to discuss balancing a checking account, creating a savings plan and using credit accounts. 5 Secure your future. Once you overcome poverty in the present, you can ensure your chances at staying poverty-free by taking the following steps: Education. Studies show that an education is invaluable to increasing your income and overcoming poverty for good. Education opens the door to numerous and varietal employment opportunities that would otherwise be unavailable to you. Moreover, education better equips you to navigate through the sometimes complex network of government aid programs and money management techniques - both of which contribute to your ability to stay out of poverty. Investments. Speak with a financial advisor about investment vehicles that you can use to leverage a small amount of money into a larger one. This way you can make your money work for you, toward your goal of permanently overcoming poverty. Job benefits. Invest in employer retirement programs. Even the smallest monthly investment will add up over the long run, especially if your employer offers company matching.