Insights into the reality of “poverty" over the last decade highlight the complex and multidimensional nature of the term. Countries with the same level of income per capita have can have very different social indicators — for instance, some South Pacific countries have moderate levels of income per capita but poor social indicators (see Map 1). The understanding of poverty has expanded from an income or consumption-based measure, to one which includes many components such as social indicators, environmental and gender issues, accountability and vulnerability.
In line with these improved understandings of poverty, the following definition will help guide the poverty framework:
“Australia’s aid program focuses on reducing the incidence and severity of poverty in the Asia-Pacific region. The poor are defined as those who suffer a level of deprivation such that they are unable to meet minimum standards of well-being. Critical aspects of wellbeing include:
- adequate resources for attaining the basic necessities of food, water, shelter, and clothing
- access to acceptable levels of health and education
- accountability from state institutions and civil society, and
- freedom from excessive vulnerability to adverse shocks."
This multi-faceted definition must be considered in the context of local circumstances. The understanding of poverty will differ between the slums of Jakarta and a fishing village in the Pacific. Work on understanding poverty should seek to link in with a partner government’s own definition of the poor, but not necessarily be limited to it. Given the difficulties of obtaining clear information on all these elements, analysis of poverty will often concentrate on material issues such as income, assets, and social indicators. However, direct poverty-targeted interventions should consider all elements of poverty.
