SDC actively acknowledges that poverty definitions should be context-specific and integrate the views of people living in poverty. As a working definition, SDC understands poverty as a multidimensional concept along five capability dimensions. Absolute poverty occurs when people lack basic necessities for survival while relative poverty refers to people experiencing a standard of living much worse compared to other members of a predefined population. Poverty is therefore strongly linked to inequality and is embedded in power relations. Reducing poverty means contributing to more people living in dignity.