When it comes to poverty, there is a huge amount of definitions that explain the term. The definition of poverty has important implications from the point of view of policy making, politics and academic debates. Each point of view has its own value judgments and explanations. Over time, new definitions have emerged in debates, yet there is no single, universally acceptable definition of poverty. Definitions usually set the boundaries of terminology and are often subject to limitations and criticisms. According to the World Bank definition, the term lack refers to the scarcity of economic resources while the term inability refers to the lack of competence to be part of a community (Bellu & Liberati, 2005). It is now widely believed that any definition can be applied taking into consideration the historical, social and cultural contexts in which it is stated. This consensus has enabled many new definitions of poverty and all definitions are linked to their respective context. In general, the definition of poverty can vary based on their extent; whether they are limited to the material core; and whether they also contain relational factors linked to poverty. For example, the United Nations has broadly defined the term as “a violation of human dignity,” “lack of participation in decision-making,” “susceptibility to violence,” and “powerlessness” (Langmore, 2000, p.37). These definitions also vary depending on the means of measuring material resources or actual output in an individual's life. In other words, it is defined on the basis of income and standard of living. For the purpose of this essay, the main discussion will be limited to the definition of poverty in the words of Amartya Sen. Furthermore, this...... half of the paper ......985), Commodities and Capabilities, Oxford: Elsevier Science Publishers.Sen, A. (1985a), .Well-being, Agency and Freedom: the Dewey Lectures., Journal of Philosophy, 82(4), 169.221.Sen, A, (1988), .The Concept of Development., in Hollis Chenery and Thirukodikaval N. Srinivasan (eds.), Handbook of Development Economics, Vol.1, North Holland: Elsevier Science Publishers, pp. 10.26.Sen, A. (1992), Inequality Re-examined, Oxford: Clarendon Press.Sen, A. (1993), .Capability and well-being. in Martha C. Nussbaum and Amartya K. Sen (eds.), The Quality of Life, Oxford: Clarendon Press, pp. 30-53Sen, A. (2005), .Human Rights and Capabilities., Journal of Human Development, 6( 2), 151-66.Wagle, U. R. (2004). A multidimensional approach to poverty: economic well-being, capability and social inclusion in the city of Kathmandu. University of Massachusetts , 399.