Why do different countries use different poverty line?
**Introduction**
Different countries use different poverty lines because poverty is a complex and multifaceted issue that varies across nations due to various social, economic, and cultural factors. Poverty lines are used as a tool to measure and define poverty within a specific country, and they are set based on a range of considerations and methodologies.
**Economic and Social Factors**
1. **Standard of Living**: The poverty line is influenced by the standard of living in a country. Countries with higher living standards tend to have higher poverty lines.
2. **Economic Development**: The level of economic development plays a significant role in determining the poverty line. Developed countries often have higher poverty lines due to higher costs of living and higher income levels.
3. **Income Distribution**: The distribution of income within a country affects the poverty line. Countries with greater income inequality may have higher poverty lines to capture a larger proportion of the population living in poverty.
4. **Cost of Basic Needs**: The cost of basic necessities such as food, housing, healthcare, and education varies across countries. The poverty line is set to reflect the cost of meeting these basic needs, which can differ significantly between nations.
**Cultural and Social Factors**
1. **Social Norms and Expectations**: Different countries have varying social norms and expectations regarding living standards and adequate income levels. The poverty line is influenced by these cultural factors, as it aims to define a minimum standard of living acceptable within a particular society.
2. **Social Welfare Systems**: The presence and effectiveness of social welfare systems impact the poverty line. Countries with robust welfare programs may have higher poverty lines, as they consider additional factors such as access to healthcare, education, and social protection.
3. **Demographic Composition**: The demographic composition of a country also affects the poverty line. For instance, countries with a higher proportion of elderly or children may set different poverty lines to account for the specific needs of these age groups.
**Policy Objectives and International Comparisons**
1. **Policy Objectives**: Each country has its own policy objectives and priorities when it comes to poverty reduction. The poverty line is set accordingly to align with these objectives and guide policy interventions.
2. **International Comparisons**: Poverty lines may vary across countries to facilitate international comparisons. Different countries may use different methodologies to calculate poverty, making it important to establish comparable figures for global analysis and cooperation.
**Conclusion**
Different countries use different poverty lines due to a combination of economic, social, and cultural factors. The poverty line reflects the specific context of each country, including its standard of living, economic development, income distribution, cost of basic needs, social norms, welfare systems, demographic composition, policy objectives, and the need for international comparisons. By understanding and addressing these factors, policymakers can develop more accurate poverty measures and formulate targeted strategies to alleviate poverty within their respective nations.
Why do different countries use different poverty line?
A common method used to measure poverty is best on the income or a consumption level of a person. which country use an imaginary line that is considered approximate for its existing level of development and its accepted minimum social Norms.for example a person not having a car in the United States us may be considered poor but in India owning a car is still considered a luxurious.therefore the World bank use uniform standard for the poverty line is minimum availability is $1 per person for a day but now it is converted to 1. $5 per person per day.
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