Current Poverty Measures

📊 The OPM, developed in the 1960s, calculates poverty based on pre-tax cash income. It compares a family's income to a set of poverty thresholds determined by family size, composition, and the age of the householder.

💡 Example:

In 2019, the poverty threshold for a family of four with two children under 18 years old was $26,017. If this family's pre-tax cash income was below $26,017, all members would be considered in poverty.

✅ Pros:

Simplicity and ease of calculation
Consistent measurement over time
Widely used and recognized

❌ Cons:

Outdated consumption patterns
Limited resource definition
Ignores essential expenses
Overestimates/underestimates poverty

📈 The SPM, introduced in 2011, offers a more comprehensive assessment of poverty by addressing many of the OPM's shortcomings.

🔍 Key Features:

Expands resource definition (includes non-cash benefits)
Accounts for essential expenses
Adjusts for geographic differences
Utilizes a more inclusive family definition

✅ Pros:

More accurate reflection of economic well-being
Contemporary perspective on poverty
Accounts for geographic variations

❌ Cons:

Limited historical data
More complex to calculate
Not yet widely used for policy purposes

🍽️ This measure assesses whether households have consistent access to enough food for an active, healthy life, addressing hunger as a form of poverty.

🔑 Key Aspects:

Evaluates food access and availability
Considers nutritional quality
Assesses consistency of food supply

This measure provides insights into a specific aspect of poverty, focusing on the fundamental need for adequate nutrition.

💼 This measure calculates the income necessary for a household to meet basic needs without subsidies, taking into account local costs of living.

📊 Factors Considered:

Housing costs
Childcare expenses
Food costs
Transportation expenses
Healthcare costs

The Self-Sufficiency Standard provides a more realistic picture of what it takes for families to make ends meet in different geographic areas.

🌐 Developed by the UN, the MPI considers factors like education, health, and living standards, recognizing that poverty goes beyond just a lack of income.

🔍 Key Dimensions:

Education (years of schooling, school attendance)
Health (nutrition, child mortality)
Living Standards (electricity, sanitation, drinking water, housing, cooking fuel, assets)

The MPI provides a more comprehensive view of poverty, capturing various aspects of deprivation that individuals and families may experience.