Impacts of Policies on Poverty – Relative Poverty Lines

A reading from my class, “The Challenges of Global Poverty“, this analytical paper discusses the measures of how to calculate Relative Poverty.

Impacts of Policies on Poverty – Relative Poverty Lines is by Lorenzo Giovanni Bellù, Agricultural Policy Support Service, Policy Assistance Division, FAO, Rome, Italy Paolo Liberati, University of Urbino, “Carlo Bo”, Institute of Economics, Urbino, Italy for the Food and Agriculture Organization of the United Nations, FAO.

This paper covers the differences of IL (Income Levels) and IP (Income Positions), their definitions, and how to calculate both. For those who are curious as to what exactly defines “poverty”, this is a useful tool to use. The steps are easy to follow, well described, and have relevant examples to ensure that the concepts provided make sense.

The paper’s summary explains:

“This module illustrates how to define “relative”poverty lines, i.e. poverty lines based on approaches that consider the welfare position of each individual or household in relation to the welfare position of other individuals or households belonging to the same community. In particular, the module, after emphasizing the importance of the relative poverty conceptin policy work, discusses two methods to define relative poverty lines: a) the “income levels” method; and b) the “income positions” method. It also shows in what these methods differ, and how they can be made operational, by means of step-by-step procedures and examples. In policy work, relativist concepts of poverty are widely used.”

To read Impacts of Policies on Poverty – Relative Poverty Lines for yourself, click here. It is in PDF, so you can download it and read it a little at a time. I’ll wait. I also welcome you to post your thoughts below so we can discuss this further!

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