How are all countries rich and poor to define poverty?

As of 1 January 2016, countries, like big vessels, will begin sailing towards this new development north from different harbors. But how will they calibrate their ‘navigation instruments’ to set their course?

The 2030 Agenda is very clear in this respect. Paragraph 55 reads: ‘[…] Targets are defined as aspirational and global, with each Government setting its own national targets guided by the global level of ambition but taking into account national circumstances.’

As an example, let us consider Sustainable Development Goal 1: ‘End poverty in all its forms everywhere’.

First and foremost, countries, both rich and poor, will need poverty lines (not all countries have one) to set targets and measure progress towards this goal. Countries have different options and these largely depend on their respective level of development:

Option 1: Absolute poverty lines, including the recent updated World Bank Global poverty line of US $1.90/day, are widely used by developing countries, since large portions of their populations count on a limited number of goods to meet their basic needs.

Options 2: As income level rises, countries may opt to use relative poverty lines, which is set on the basis of what people perceive as the minimum income (or consumption) that a person, or household, needs in a specific society to not be considered poor.

Option 3:  The subjective poverty line, which is set on the basis of what people perceive as the minimum income (or consumption) that a person, or household, needs in a specific society to not be considered poor.

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Source & Copyright: UNDP