explain the different approaches to understanding and measuring poverty. Why is the matter of understanding and measuring poverty important in discussions about development?

• Monetary Approach - the most straightforward approach, measures poverty though lack of income or material resources. "People are poor if they don't have money
• Capability Approach - defines poverty as the lack of opportunities to enjoy the kind of lives people value. "One can be rich but sick and unable to enjoy his wealth; he is greatly deprived therefore, he is poor"
• Social Exclusion - a person is poor if he or she is being excluded by other members of society
• Participatory Approach - poverty from the eyes of the poor. Through collated testimonials from poor members of society, common themes and a broad definition of poverty is born.

Understanding ang measuring poverty is important in discussions about development because without a way to measure or understand poverty, it is impossible to compare the ratio of the poor from the rich and middle-class population. Through measuring poverty, we are able to have an overview of how an economy is doing, and how much more it can improve.