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Global poverty: definitions and 
developments 
Teppo Eskelinen 
teppo.eskelinen@uef.fi
Basics on global poverty (1) 
• Roughly 1/3 of humanity live in material poverty 
(”three worlds”). For some, poverty is bearable, 
for some not 
• Long-term concern of the international 
community 
• Definitions of poverty vary, as do ideas about 
”extreme” or ”acute” poverty 
• For example, is ”extreme” an acute or an 
ongoing condition?
Basics on global poverty (2) 
• Poverty is heavily concentrated in Africa, Asia 
and South America, but poverty of citizens does 
not equal poverty of a country 
• Changing geography of global poverty: from 
low to middle income countries 
• Global goals of alleviating poverty: the MDGs. 
Focus to poverty directly, not only economic 
growth 
• Change of societal conditions crucial: 
urbanisation, resource depletion, climate 
change, migration.
Definitions of poverty (1): Economic 
* Global ”poverty line” 
* Measures inflation & purchasing power -adjusted 
income 
* Defined at $1,25 a day and $2 a day 
* Medians of national poverty lines of poor 
countries 
* Does not correspond to basic needs 
* Public services, subsistence production etc not 
calculated
Definitions of poverty (2): Ethical 
* Poverty is an ethical problem, not a technical 
notion of low purchading power 
* Death: ”one tsunami every two weeks” 
* Human rights: social and economic 
* Human dignity, possibility to self-respect 
* Capability: possibility to function in a ”truly 
human” way 
* Freedom: satisfaction of basic needs as a 
prerequisite for freedom 
* Utilitarian: avoiding unnecessary suffering
Definitions of poverty (3): 
Multidimensional 
* Meeting basic needs is relevant for capability, 
freedom etc 
* Economic measurements can be seen as 
estimates of whether ethical concerns are met 
→ Level of overlap? Reducability to economics? 
→ Importance of context (need for money)
…continued 
 Problem of arbitrary poverty line 
 Perhaps poverty is a too complex phenomenon 
to be measured by one quantitative measure 
 On the other hand, documentation and policy 
relevance
Social human being 
* Poverty lines: count only individually held value, 
not social ties, which can be the most important 
variable in one’s felt experience of deprivation 
* The Kibera mystery 
* The problem of the drunk 
->People seem to often choose social ties over 
individual well-being, even in acute situations
Trends in poverty (1) 
* $1,25 (billions of people) 
Year world world excl. China 
1980 1,9 1,1 
1990 1,9 1,2 
2000 1,7 1,2 
2010 1,3 1,1 
Latin America: strong decrease in 2000->, SSA 
strong increase, South Asia constant
Trends in poverty (2) 
* $2 (billions of people) 
Year world world excl. China 
1980 2,5 1,6 
1990 2,9 1,9 
2000 2,9 2,1 
2010 2,5 2,1 
Latin America: decrease 2000->, South Asia 
increase, SSA strong increase, North Africa 
constant
Trends in poverty (3) 
Poverty lines directly corresponding with basic 
needs: we do not know for sure. 
Hunger: (FAO) 
*Decrease until 2007, after 2007 steady 
*Energy intake -based estimate for chronic hunger 
*SSA increase, Asia decrease, China fairly 
constant
Trends in poverty (4) 
The situation is better if we assess proportion of 
global population rather than number of poor 
→ Which is morally more accurate? 
->Might give a misleading idea on global goals

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Global poverty: definitions and developments

  • 1. Global poverty: definitions and developments Teppo Eskelinen teppo.eskelinen@uef.fi
  • 2. Basics on global poverty (1) • Roughly 1/3 of humanity live in material poverty (”three worlds”). For some, poverty is bearable, for some not • Long-term concern of the international community • Definitions of poverty vary, as do ideas about ”extreme” or ”acute” poverty • For example, is ”extreme” an acute or an ongoing condition?
  • 3. Basics on global poverty (2) • Poverty is heavily concentrated in Africa, Asia and South America, but poverty of citizens does not equal poverty of a country • Changing geography of global poverty: from low to middle income countries • Global goals of alleviating poverty: the MDGs. Focus to poverty directly, not only economic growth • Change of societal conditions crucial: urbanisation, resource depletion, climate change, migration.
  • 4. Definitions of poverty (1): Economic * Global ”poverty line” * Measures inflation & purchasing power -adjusted income * Defined at $1,25 a day and $2 a day * Medians of national poverty lines of poor countries * Does not correspond to basic needs * Public services, subsistence production etc not calculated
  • 5. Definitions of poverty (2): Ethical * Poverty is an ethical problem, not a technical notion of low purchading power * Death: ”one tsunami every two weeks” * Human rights: social and economic * Human dignity, possibility to self-respect * Capability: possibility to function in a ”truly human” way * Freedom: satisfaction of basic needs as a prerequisite for freedom * Utilitarian: avoiding unnecessary suffering
  • 6. Definitions of poverty (3): Multidimensional * Meeting basic needs is relevant for capability, freedom etc * Economic measurements can be seen as estimates of whether ethical concerns are met → Level of overlap? Reducability to economics? → Importance of context (need for money)
  • 7. …continued  Problem of arbitrary poverty line  Perhaps poverty is a too complex phenomenon to be measured by one quantitative measure  On the other hand, documentation and policy relevance
  • 8. Social human being * Poverty lines: count only individually held value, not social ties, which can be the most important variable in one’s felt experience of deprivation * The Kibera mystery * The problem of the drunk ->People seem to often choose social ties over individual well-being, even in acute situations
  • 9. Trends in poverty (1) * $1,25 (billions of people) Year world world excl. China 1980 1,9 1,1 1990 1,9 1,2 2000 1,7 1,2 2010 1,3 1,1 Latin America: strong decrease in 2000->, SSA strong increase, South Asia constant
  • 10. Trends in poverty (2) * $2 (billions of people) Year world world excl. China 1980 2,5 1,6 1990 2,9 1,9 2000 2,9 2,1 2010 2,5 2,1 Latin America: decrease 2000->, South Asia increase, SSA strong increase, North Africa constant
  • 11. Trends in poverty (3) Poverty lines directly corresponding with basic needs: we do not know for sure. Hunger: (FAO) *Decrease until 2007, after 2007 steady *Energy intake -based estimate for chronic hunger *SSA increase, Asia decrease, China fairly constant
  • 12. Trends in poverty (4) The situation is better if we assess proportion of global population rather than number of poor → Which is morally more accurate? ->Might give a misleading idea on global goals