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What is comparative poverty?

Updated: 10/19/2022
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13y ago

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Comparative poverty is a measure of poverty, which is also used as a measure of inequality. It refers to looking at poverty in comparison with others. For example, if you live in a country where there is a lot of inequality, where there are very rich people living in proximity to very poor people, it is argued, that the poor in countries like these are more aware of their poverty as they can compare it with the wealth of others living relatively close to them. At the same time, if you are poor in a country where most other people are poor, it is further argued, that you will not be as aware of your poverty as you are comparing yourself to other poor people. Therefore comparative poverty refers to what poor people can compare themselves with and how that affects their own perceptions of their poverty.

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How does poverty in one nation have an impact beyond that nation?

Poverty in one nation would mean that: -The potential output from that country is not made and therefore, the countries that trade with it would fail to exploit and benefit from their comparative advantages. -Poverty would mean hat there would be aids given out from the more richer countries. This in return would mean higher expenditures for this country. -Since poverty is closely linked to political instability, this would mean a greater trouble for world security. -If the level of poverty is high enough to affect the government, it would mean that they are more likely to default on their foreign debts. -The level of poverty would also mean that for the neighboring countries, they would need to watch out for the flow of immigrants running away from the country in poverty for a better life. THis, if uncontrolled would create a huge social problem. -


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