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Question

Write a note on different categories of poverty.

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Solution

We can categorise the poor into three categories:

1. Chronic Poor: Those who are below the poverty line most of the time and reach above the poverty line once in a while are called the chronic poor. It includes:

(a) Always Poor: Those who are always below the poverty line.

(b) Usually Poor: Those who are mostly below the poverty line but once in a while they cross the poverty line.

2. Transient poor: Those people who keep fluctuating between the category of poor and non-poor are called transient poor. It includes:

(a) Churning poor: Those people who regularly move in and out of poverty. These are seasonally employed people. When they have jobs, they are above the poverty line and when they don't have a job they are below the poverty line.

(b) Occasionally poor: Those who are rich most of the time but sometimes, out of a business fluctuation or other mishappening, become poor.

3. Non-Poor: These are the people who have never ever crossed below the poverty line.


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