Review of Poverty Concepts and Indicators

This paper presents an overview of different concepts of poverty and approaches to its measurement. The variation in concepts reveals the multidimensional nature of poverty. Poverty can be conceived as absolute or relative, as lack of income or failure to attain capabilities. It can be chronic or temporary, is sometimes closely associated with inequity, and is often correlated with vulnerabilities and social exclusion. The concepts used to define poverty determine the methods employed to measure it and the subsequent policy and programme packages to address it. The paper reviews the main types and families of indicators that have emerged over time, highlighting their strengths and weaknesses. It concludes with practical guidance to inform the choice of poverty indicators at country level.