Transient poverty
Also called: Transitory poverty · Topic: Poverty and Inequality: Measurement and Policy · NCERT: Beyond NCERT
Meaning
Transient poverty is temporary. Households move in and out of poverty after shocks such as illness, crop failure, job loss or a sudden jump in prices. This movement in and out is called "churning". Many households just above the poverty line are vulnerable, which means they face a real risk of falling below it. Transient poverty needs protection that switches on during a shock: crop and health insurance, employment guarantees and safety nets.
Example
A small farmer's crop fails in a drought, so the family's spending drops below the poverty line for a year. After a good harvest the next year, they climb back above it. Wage employment on public works and crop insurance help such a household get through the bad year.
Don't confuse with
- Chronic poverty: the household stays poor for long periods or across generations. It needs asset building and human capital, not just short-term relief.