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This analytical tool illustrates how to define “relative” poverty lines, i.e. poverty lines based on approaches that consider the welfare position of each individual or household in relation to the welfare position of other individuals or households belonging to the same community. In particular, the module, after emphasizing the importance of the relative poverty concept in policy work, discusses two methods to define relative poverty lines: a) the “income levels” method; and b) the “income positions” method. It also shows in what these methods differ, and how they can be made operational, by means of step-by-step procedures and examples. In policy work, relativist concepts of poverty are widely used. 

for more information, see also:

• Impacts of Policies on Poverty. The Definition of Poverty. EASYPol Series 004
• Impacts of Policies on Poverty. Absolute Poverty Lines. EASYPol Series 005
• Impacts of Policies on Poverty. Basic Poverty Measures. EASYPol Series 007
• Poverty Analysis: Poverty and Dominance. EASYPol Series 035

This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development and food security). To find other EASYPol series' resources, go to the Policy Support and Governance website>Resources and type "EASYPol" in the free text search.