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Abstract
In this note we approach the question of relative poverty from a different angle. Fixing the
poverty line, we ask: What is the extent of poverty relative to the resources available in the
society to eradicate it? We argue that the same level of poverty is “worse” if the resources
available to address it are greater. We characterize a class of indices that measure Poverty
Reduction Failure and provide an empirical illustration of their suitability using data for 94
country observations in 2001.