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Basic needs


 
 

The basic needs approach is one of the major approaches to the measurement of absolute poverty. It attempts to define the absolute minimum resources necessary for long-term physical well-being, usually in terms of consumption goodsConsumption (economics)

In economics, consumption refers to the final use of goods and services to provide utility....
. The poverty line is then defined as the amount of incomeIncome

Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a...
 required to satisfy those needs.

A traditional list of immediate "basic needs" is food (including water), shelter, and clothingFacts About Clothing

Clothing is defined, in its broadest sense, as coverings for the torso and limbs as well as coverings for the hands , feet ...
. Many modern lists emphasize the minimum level of consumption of 'basic needs' of not just foodFood

Food is any substance, usually comprised primarily of carbohydrates, fats, vitamins, water and/or proteins, that can be eate...
, waterWater

Water is a tasteless, odorless substance that is essential to all known forms of life and is known as the universal solve...
, and shelter, but also sanitationSanitation Overview

Sanitation is a term for the hygienic disposal or recycling of waste materials, particularly human excrement and urine....
, educationEducation

Education is the process by which an individual is encouraged and enabled to develop fully his or her innate potential; it m...
, and healthcare. Different agencies use different lists.

Related approaches, taking their cue from the work of Amartya SenAmartya Sen

Dr Amartya Kumar Sen CH , is an economist and a winner of the Bank of Sweden Prize in Economic Sciences in 1998, for his ...
, focus on 'capabilities' rather than consumption.

In the developmentEconomic development

Economic development is the development of the economic wealth of countries or regions for the well-being of their inhabitan...
 discourse, the basic needs model focuses on the measurement of what is believed to be an eradicable level of povertyPoverty

Poverty is understood in many senses....
. Development programsDevelopment

Development has meaning in several contexts:...
 following the basic needs approach do not invest in economically productiveProductivity

In economics, productivity is the amount of output created per unit input used....
 activities that will help a societySociety

A society is a grouping of individuals, which is characterised by common interest and may have distinctive culture and inst...
 carry its own weight in the future, rather it focuses on allowing the society to consume just enough to rise above the poverty line and meet its basic needs. These programs focus more on subsistence than fairness. Nevertheless, in terms of "measurement", the basic needs or absolute approach is important. The 1995 world summit on social development in Copenhagen had, as one of its principal declarations that all nations of the world should develop measures of both absolute and relative poverty and should gear national policies to "eradicate absolute poverty by a target date specified by each country in its national context."

Basic needs approach in different countries

Canada


Professor Chris Sarlo, an economistEconomist

An economist is an individual who studies, develops, and applies theories and concepts from economics, and writes about econ...
 at Nipissing UniversityNipissing University

Nipissing University is a primarily undergraduate university with a reputation for excellence in numerous programs and areas...
 in North Bay, Canada and a senior fellow of the Fraser InstituteFraser Institute

The Fraser Institute is a libertarian think tank based in Canada....
, uses Statistics CanadaStatistics Canada

Statistics Canada is the Canadian federal government bureau commissioned with producing statistics to help better understan...
's socio-economic databases, particularly the Survey of Household Spending to determine the cost of a list of household necessities. The list includes foodFood

Food is any substance, usually comprised primarily of carbohydrates, fats, vitamins, water and/or proteins, that can be eate...
, shelter, clothingClothing

Clothing is defined, in its broadest sense, as coverings for the torso and limbs as well as coverings for the hands , feet ...
, health careHealth care

Health care or healthcare is the prevention, treatment, and management of illness and the preservation of mental and p...
, personal careHygiene

Hygiene is commonly understood as preventing infection through cleanliness....
, essential furnishingsFurniture

Furniture is the collective term for the movable objects which may support the human body , provide storage, or hold objects...
, transportation and communicationCommunication

Communication is the process of sharing information....
, laundryLaundry

Laundry can be:* items of clothing and other textiles that require washing,...
, home insuranceHome insurance Summary

Home insurance, or homeowners insurance, is an insurance policy that combines various personal insurance protections w...
, and miscellaneous; it assumes that education is provided freely to all residents of Canada. This is calculated for various communities across Canada and adjusted for family size. With this information, he determines the proportion of Canadian households that have insufficient income to afford those necessities. Since the early 1970s, the poverty rate has declined from about 12% of Canadian households to about 5%.

The Philippines

The Municipality of Rosario, BatangasRosario, Batangas

Rosario is a 1st class municipality in the province of Batangas, Philippines....
, PhilippinesPhilippines

The Philippines , officially the Republic of the Philippines , is an island nation located in the Malay archipelago in...
 implemented its Aksyon ng Bayan Rosario 2001 And BeyondAksyon ng Bayan Rosario 2001 And Beyond Summary

The Aksyon ng Bayan Rosario 2001 And Beyond Human and Ecological Security Plan was formulated by virtue of Executive Order ...
 Human and Ecological Security Plan using this concept as a core strategy through the Minimum Basic Needs Approach to Improved Quality of Life - Community-Based Information System (MBN-CBIS) prescribed by the Philippine Government. This approach helped the municipal government identify priority families and communities for intervention, as well as rationalize the allocation of its social development funds.

United States of America

In the United States, the equivalent measures are called self-sufficiency standards or living income standards. Unlike the federal poverty level (FPL), which is calculated from a single, national variable (cost of food), these models assume that different households have different needs, based on factors such as the number and age of children in the household, and the cost of housing in the particular area (usually a county) that they live in. In keeping with the principles of basic needs, these measurements do not include any extra money for entertainment, savings, debt payment, or unusual or avoidable expenses, such as vehicle repairs. It assumes that adults will be working and pay taxes; it also includes costs of all government, charitable, and family subsidies, such as free medical care through MedicaidMedicaid

Medicaid is the US health insurance program for individuals and families with low incomes and resources....
, free food from the USDA food stamps program or a food bankFood bank

A food bank is a place where food, typically non-perishable goods, are offered to nonprofit agencies for distribution to peo...
, or free childcareFacts About Childcare

Childcare is the act of caring for and supervising minor children....
 from a grandparent. All of these costs are ignored by the official FPL measurement, but included in a self-sufficiency standard.

Minimum expenses vary by region. For housing, child care, food, transportation, health care, and other necessary expenses, plus net taxes, a family in middle-class Warren CountyWarren County, Pennsylvania

Warren County is a county located in the U.S....
 in northwestern PennsylvaniaPennsylvania

The Commonwealth of Pennsylvania is a state in the northeastern part of the United States....
 of one adult and two children (one preschooler, one school-aged) needed a minimum income of $30,269 to pay its own way in 2006. Child care is the largest expense in this budget, followed by housing, taxes, and food. The same family, living in the wealthy Seattle regionKing County, Washington

King County is located in the U.S....
 of WashingtonWashington

Washington is a state in the Pacific Northwest of the United States....
 would need to earn $48,269 to be self-sufficient. These figures contrast sharply with the FPL for that year, which was just $16,600 for any three-person household.

See also

  • Anthropological theories of valueAnthropological theories of value

    Anthropological theories of value attempt to expand on the traditional theories of value used by economists or ethicists....
  • Maslow's hierarchy of needsMaslow's hierarchy of needs

    Maslow's Hierarchy of Needs is a theory in psychology that Abraham Maslow proposed in his 1943 paper A Theory of Human Mot...
  • Living wageLiving wage Summary

    The term "living wage" is used by advocates to refer to the minimum hourly wage necessary for a person to achieve some speci...
    , a wage that is high enough to meet basic needs