Pobreza

What Is Pobreza?

Pobreza, or poverty, is a socioeconomic indicator that describes a condition in which individuals or households lack the financial resources and essential necessities for a minimum standard of living. This fundamental concept in economic measurement signifies a state of deprivation, extending beyond mere lack of income to include insufficient access to food, safe drinking water, sanitation facilities, healthcare, education, and other basic services. Understanding pobreza is crucial for analyzing income distribution and developing effective social safety net policies. Pobreza is a complex phenomenon influenced by various factors, including unemployment rate, inflation, and lack of economic growth.

History and Origin

The systematic measurement of poverty is a relatively modern endeavor, evolving alongside increased public and governmental interest in social welfare. Early attempts to define and quantify poverty emerged in the late 19th and early 20th centuries. For example, British social reformers like Charles Booth and Seebohm Rowntree conducted detailed surveys of living conditions, setting early benchmarks for what constituted a "poverty line." Rowntree, in particular, established an absolute poverty line based on nutritional requirements and the cost of basic necessities.²³

In the United States, the official poverty measure was developed in the 1960s by Mollie Orshansky of the Social Security Administration.²² Her methodology, based on the cost of a minimum food diet multiplied by three, became the widely adopted standard during President Lyndon Johnson's "War on Poverty."²⁰, ²¹ Globally, efforts to measure extreme poverty gained significant traction from the 1980s onwards, with the World Bank introducing the first international poverty line in 1990.¹⁹ This initial line, set at $1.00 per person per day (in 1985 purchasing power parity), aimed to provide a consistent benchmark for global comparisons.¹⁸ The international poverty line has been updated over time to reflect changing economic realities and purchasing power, with the latest update in June 2025 raising it from $2.15 to $3 per day in 2021 international dollars.¹⁷

Key Takeaways

• Pobreza (poverty) describes a condition of lacking essential resources for a minimum standard of living.
• It is typically measured by comparing income or consumption against a predetermined poverty line.
• Poverty can be absolute, referring to a severe lack of basic necessities, or relative, defined in relation to the median income of a society.
• The measurement of pobreza extends beyond income to include access to health, education, and other fundamental services.
• Global organizations and national governments utilize poverty data to track progress and implement fiscal policy and social programs.

Formula and Calculation

While there isn't a single universal formula for "pobreza" itself, its most common quantification relies on the concept of a poverty line. A poverty line is a threshold of income or consumption below which individuals or households are considered to be in poverty.

The calculation of a poverty line typically involves:

1. Defining Basic Needs: Identifying the minimum requirements for food, shelter, clothing, and other essential services to maintain a healthy and active life.
2. Costing the Basket: Calculating the monetary cost of this basket of goods and services. This cost is then adjusted for family size and composition.
3. Establishing the Threshold: This monetary value becomes the poverty line.

For instance, the U.S. Census Bureau calculates official poverty thresholds by comparing pretax money income to a national poverty threshold adjusted by family composition.¹⁶ If a family's total income falls below this threshold, they are classified as being in poverty.¹⁵

Internationally, the World Bank uses International Poverty Lines, which are uniform thresholds expressed in purchasing power parity (PPP) adjusted dollars to account for differences in the cost of living across countries. The current International Poverty Line for extreme poverty is $3.00 per person per day.¹⁴ This allows for consistent comparisons of poverty levels across diverse developing economies.

Interpreting the Pobreza

Interpreting poverty data involves understanding the type of poverty being measured and the context. Absolute poverty indicates a severe lack of basic necessities, often seen in the context of global extreme poverty, where individuals cannot meet fundamental needs like food, water, and shelter. Relative poverty, conversely, defines individuals as poor if their income falls below a certain percentage (e.g., 50% or 60%) of the median income in their specific society. This highlights disparities within a country, even if basic needs are met.

When evaluating poverty figures, it is essential to consider the methodology used, such as whether it relies solely on income or incorporates multidimensional indicators like the Human Development Index. For example, the U.S. Census Bureau reports both an official poverty measure and a Supplemental Poverty Measure (SPM), with the SPM providing a broader view by including non-cash benefits and certain expenses.¹², ¹³ A rise in the poverty rate signifies that a larger proportion of the population is falling below the established threshold, often correlating with broader economic indicators like a decline in Gross Domestic Product or rising cost of living.

Hypothetical Example

Consider a hypothetical family of four in a country where the official poverty line for a family of this size is $25,000 per year. The family consists of two adults and two children.

• Step 1: Calculate Total Household Income.

  • Adult 1 earns $15,000 annually from a part-time job.
  • Adult 2 earns $8,000 annually from seasonal work.
  • The total household income is $15,000 + $8,000 = $23,000.

• Step 2: Compare Income to Poverty Line.

  • The family's total income ($23,000) is less than the poverty line ($25,000).

• Step 3: Determine Poverty Status.

  • Based on this comparison, the family is considered to be living in pobreza. This highlights a gap between their earnings and the minimum income deemed necessary for basic subsistence, underscoring the challenges they face in meeting fundamental needs despite some level of income.

This scenario illustrates how a family, despite having working members, can still fall below the poverty threshold due to low wages or insufficient work hours, emphasizing the importance of factors like minimum wage policies.

Practical Applications

Poverty measurements have wide-ranging practical applications in public policy, international development, and economic analysis. Governments use these statistics to identify vulnerable populations and design targeted interventions, such as welfare programs, unemployment benefits, and educational initiatives. For example, the U.S. Census Bureau provides detailed poverty data which informs various federal and state programs.¹¹

International organizations like the World Bank utilize poverty data to monitor global trends and allocate aid to countries most in need. Their Poverty and Inequality Platform helps users find historical and current information related to key development indicators and track progress toward development targets.⁹, ¹⁰ This data is crucial for assessing the impact of global events, monetary policy shifts, and investment flows on vulnerable populations worldwide. Understanding regional poverty rates can also influence foreign direct investment decisions, as high poverty can sometimes indicate market instability or a less developed consumer base.⁷, ⁸

Limitations and Criticisms

While essential, the measurement of pobreza faces several limitations and criticisms. A primary critique often revolves around the reliance on a single income threshold, which may not fully capture the complex realities of deprivation. Income-based measures can overlook non-cash benefits, variations in the cost of living within regions, or differences in household needs. For instance, the official U.S. poverty measure does not fully account for government programs like food stamps or for regional cost-of-living differences, leading to the development of alternative measures like the Supplemental Poverty Measure.⁶

Furthermore, traditional poverty metrics often fail to capture multidimensional aspects of poverty, such as access to healthcare, education quality, and infrastructure, which significantly impact an individual's well-being. This has led to the development of alternative frameworks, such as the Multidimensional Poverty Index (MPI), which considers deprivation across health, education, and living standards. The Organisation for Economic Co-operation and Development (OECD) also emphasizes moving "beyond GDP" to measure well-being more comprehensively, acknowledging that economic output alone does not reflect the quality of life or progress.⁴, ⁵ Critics also point out that poverty lines, particularly international ones, are often arbitrary and do not always reflect local perceptions of poverty or the diverse challenges faced by different communities, contributing to the debate on the true extent of the wealth gap.

Pobreza vs. Desigualdad

While often discussed together, pobreza (poverty) and desigualdad (inequality) are distinct but related economic concepts.

Pobreza refers to a condition of insufficient resources, regardless of how others are faring. Desigualdad, on the other hand, describes the spread or gap between the rich and the poor. A country can have low poverty but high inequality, meaning that while few people are poor, there's a vast difference between the richest and poorest segments of society. Conversely, a country could have high poverty but relatively low inequality if most of its population is equally poor. Addressing one does not automatically resolve the other, making both crucial considerations in economic policy and economic analysis.

FAQs

What are the main types of pobreza?

The main types are absolute pobreza, where individuals lack the basic necessities for survival (food, shelter, water), and relative pobreza, where individuals have significantly less income or resources than the average person in their society, preventing them from participating fully in community life.

How is global pobreza measured?

Global pobreza is typically measured using international poverty lines established by organizations like the World Bank. These lines are set in purchasing power parity (PPP) adjusted dollars to account for varying costs of living across countries, allowing for cross-country comparisons of extreme poverty.

Can economic growth reduce pobreza?

Yes, sustained economic growth can significantly reduce poverty by creating jobs, increasing incomes, and expanding access to goods and services. However, the impact of growth on poverty also depends on how equitably the benefits of that growth are distributed among the population.

What is the difference between the official poverty measure and the supplemental poverty measure in the U.S.?

The official poverty measure in the U.S. compares pretax cash income to a set of thresholds that vary by family size and composition. The Supplemental Poverty Measure (SPM) provides a more comprehensive picture by also accounting for non-cash government benefits (like food assistance and housing subsidies) and certain necessary expenses not included in the official measure, such as taxes, work expenses, and medical out-of-pocket spending.¹

How do governments address pobreza?

Governments address pobreza through various strategies, including implementing social safety net programs, setting minimum wage laws, investing in education and healthcare, promoting job creation, and designing fiscal policy and monetary policy aimed at equitable economic development.