Proponents of defining poverty as an absolute condi- basic-needs standard will be a far more useful tion claim that to be poor is to lack certain basic policy tool for evaluating anti-poverty policies necessities. A poor person is homeless, dependent on than the more purely "relative" counterparts.... food banks, or in some other way lacking. This The advantages of the basic-needs approach newer, controversial definition is described in the first to defining poverty are the following: article below. A contrary view that supports the idea . it closely conforms to dictionary definitions of relative poverty is presented in the second. Which of poverty, reflecting common usage; is the better way to measure poverty? . it conforms to the understanding that most people living on low incomes have of Measuring Poverty in poverty, as shown in surveys; Canada, 2001 . it conforms more closely to journalistic use, as terms like "hunger," "real deprivation," 6 6 A basic-needs standard of living would and "hardship" are frequently seen describing have all of one's basic necessities covered at a the poor; standard of quality considered minimally . it incorporates an aspect of "relativity" by decent in contemporary society.... The precise setting the type and quality of necessities at nature of this standard will depend on the list the level that is considered minimally decent of necessities selected. I have put forward a list in contemporary society. of physical needs or items closely connected to The debate over absolute and relative those physical needs and have deliberately approaches has raged over the years. While all omitted amenities [items that make life pleas- poverty lines are relative, "absolute" measures ant]. My list includes food providing a nutri- tend to relate to the basic necessities of life and tious diet that satisfies all norms of energy, omit, deliberately, items that are widely regarded balance, and palatability and that is purchased as non-necessities. [It also measures poverty using at grocery stores using no savings strategies; a concrete standard, so people know exactly of shelter that consists of apartment accommoda- what the poor are deprived.] The objective for tion that is not subsidized and is appropriate in those using a "necessities" approach is clearly to size for the family and includes all the usual measure the extent of real material deprivation furnishings and appliances; clothing purchased rather than comparative deprivation. 9 9 new at popular department stores; a telephone Source: Excerpts from "Measuring Poverty in Canada" by with local telephone service; all necessary Chris Sarlo from household supplies; household insurance; reprinted by permission of the Fraser Institute. laundry requirements; public transportation; personal care; any out-of-pocket health-care needs; and a small amount for school supplies QUESTIONS and correspondence. The estimated annual cost 1. What is this writer's central argument against of this standard of living ... for a single person defining poverty in relative terms? in 2000 is about $8900.... 2. How does he define poverty? The basic-needs standard of living is the 3. How would the number of Canadians identified appropriate level to use as a poverty threshold. as poor change if statisticians used this writer's It is, I believe, most consistent with commonly basic-needs definition of poverty? held notions of poverty. It is also far more use- ful in making credible comparisons, both over 4. Which stakeholders would most likely favour this time and internationally. In that regard, the approach to determining a poverty line