Even today poverty is a serious problem in both developing and developed countries. Before 1989 Czechoslovakia was a communist state with a centrally planned economy. In November 1989 the Velvet Revolution restored democracy in the country and on 1 January 1993 Czechoslovakia split into two...

It is always difficult to define the one and only measure of poverty, as there are different concepts of poverty based on a number of welfare indicators. The paper discuses main approaches to individual welfare measurement. A measure of individual welfare in the concept of relative deprivation...