Final answer:
The World Bank defines extreme poverty as living on less than $1.90 a day, a level of deprivation that threatens survival by lacking basic necessities. Additional poverty thresholds include living on less than $3.20 and $5.50 a day, to acknowledge those still vulnerable despite being above the traditional extreme poverty line.
Step-by-step explanation:
The World Bank defines extreme poverty as living on less than $1.90 per day. This measure, previously known as absolute poverty, was historically the primary focus for assessing the number of people living in severe deprivation of basic necessities such as adequate food, clean water, safe housing, and access to healthcare. In 2018, recognizing that individuals earning slightly above this threshold remain vulnerable, the World Bank introduced additional categorizations for poverty including thresholds of $3.20 and $5.50 per day.
In contrast to relative poverty, which is based on a family's or individual's ability to maintain an average standard of living, extreme poverty represents a condition where survival is at risk due to the inability to afford basic human needs. Despite a 20-year decline in extreme poverty rates, the COVID-19 pandemic has had a profound impact on global poverty levels, highlighting the importance of these measures.
It is important to note that these thresholds adjust for price differences between countries and for inflation over time, utilizing 'international-$' for consistency in global comparisons.