Introduction

• The terms poverty and social exclusion imply undesirable states that require intervention to improve individuals’ situations.
• Poverty and social exclusion are often seen as social problems that need to be addressed.
• Societies have created institutions to address these problems, collectively referred to as the welfare state.
• This chapter explores the challenges of defining and measuring poverty, the causes of poverty and social exclusion, and potential solutions for alleviating or eliminating these issues.
• The welfare state has been considered an effective means of addressing poverty, social exclusion, and other social problems.
• Some sociologists argue that the welfare state does little to reduce poverty and social exclusion, and others even claim it contributes to poverty.
• There are competing perspectives on the role of the welfare state, ranging from those who believe it is essential for solving social issues, to those who view it as creating more problems.
• The terms poverty, social exclusion, and welfare state are all controversial.
• Definitions of poverty and social exclusion will be explored, and the welfare state will be discussed in detail later in the chapter.
• Asa Briggs, a historian, defines the welfare state as “a state in which organised power is deliberately used (through politics and administration) in an effort to modify the play of market forces.”
• According to Briggs, the welfare state arises when governments determine that private enterprise fails to meet the social needs of citizens.
• The welfare state may intervene by providing services such as health care, education, social housing, transport, and social services, or by redistributing resources to those in need through a benefits system.
• Before addressing the controversies surrounding the welfare state, the chapter will first focus on two major social problems it aims to tackle: poverty and social exclusion.

The Definition and Measurement of Poverty

Absolute and Relative Poverty

• To explain the existence of poverty or decide on solutions, it is crucial to first define poverty.
• The definition of poverty matters because it influences how much poverty is perceived and affects explanations and potential solutions.
• Ruth Lister (2004) emphasizes that “how we define poverty is critical to political, policy and academic debates about the concept,” linking it to explanations and solutions.
• Some definitions minimize the amount of poverty believed to exist, suggesting it can be addressed with minor reforms.
• Other definitions argue that poverty is still widespread and requires greater changes to tackle the problem.
• It is important to explore competing definitions of poverty.
• Since the 19th century, researchers have aimed to establish a fixed standard for measuring poverty.
• There have been three main areas of controversy over the basic principles of this standard.
• First, researchers disagree on whether poverty should be measured in absolute or relative terms.
• Some argue that there is a common minimum standard that can be applied to all societies, below which individuals are considered to be ‘in poverty’.
• Measures of absolute poverty are typically based on the idea of subsistence, where people are in poverty if they lack resources to maintain human life.
• Supporters of relative poverty reject the absolute standard, arguing that poverty definitions must relate to the standards of a particular society at a particular time.
• According to relative poverty, the dividing line between the poor and others varies based on how affluent a society is.