Thoughts and proposals for a more effective measurement of poverty

Abstract

The paper begins with some critical observations by the author on the poverty measures currently used, which makes the poverty situation highly dependent on where a person lives, and examples of this will be provided. The author believes that a better identification of poverty is possible. Starting from the concept that the collective imagination has of the rich as people who own many objects (meaning by “object” also certain savings products), including status symbols, the author proposes some measures of poverty based not on income but on assets (exactly on owning or not owning certain things) or on the ability to purchase certain goods One of these techniques measures absolute poverty, the other two, relative poverty. The paper ends with some consideration on point of weakness and of force of the measured proposed.