By measures of “relative” poverty—how someone’s standard of living compares with that of others—the world is far from eliminating poverty
’s number-one goal. It is also a priority for many countries. To succeed, multilateral organisations and national governments need good policy—and a way to track their progress. So how should they define and measure poverty?
Unsurprisingly, these thresholds vary by country. In America, for instance, an individual was deemed poor by the government in 2022 if they earned less than around $41 a day; the similar threshold in Ethiopia is $2 a day. These definitions help governments identify who should benefit from policies to alleviate poverty.
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