Difficulties in Measuring Poverty

This section explains why measuring poverty is difficult and why relying on income alone misses important dimensions like education, health, sanitation, and access to services. It contrasts absolute and relative poverty measures, introduces tools such as the International Poverty Line and the Multidimensional Poverty Index, and highlights practical challenges like PPP adjustments and regional disparities. It then outlines key causes of inequality and poverty, including inequality of opportunity, differences in human capital and resource ownership, discrimination, unequal status and power, fiscal policy design, and globalization. Understanding these issues helps students evaluate how poverty is measured and why policy responses can succeed or fail.