1. Global Poverty Goals and Prices : How Purchasing Power Parity Matters
- Author
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Jolliffe, Dean Mitchell and Prydz, Espen Beer
- Subjects
MEASURES ,POPULATION LIVING IN EXTREME POVERTY ,AVERAGE GROWTH RATE ,CITIES ,GROWTH RATES ,CROSS COUNTRY ,GLOBAL POVERTY ,ECONOMIC GROWTH ,EXTREME POVERTY ,WELFARE MEASURE ,EXCHANGE RATES ,COLLABORATIVE EFFORT ,INFLATION ,POOR COUNTRIES ,EXTREME POVERTY LINE ,NATIONAL ACCOUNTS ,POOR ,POPULATION ,INCOME ,CONSUMPTION PER CAPITA ,POVERTY RATES ,INFLATION RATE ,POVERTY ,CONSUMER PRICE INDEX ,CHANGES IN POVERTY ,MEAN VALUE ,PER CAPITA INCOME ,RESEARCH GROUP ,DEVELOPMENT RESEARCH ,GROWTH ,SIGNIFICANT EFFECT ,BASIC NEEDS ,LOW POVERTY RATES ,LIVING STANDARDS ,DEVELOPMENT ECONOMICS ,LOW-INCOME COUNTRIES ,COUNTRY–SPECIFIC ,DEVELOPING WORLD ,POVERTY PROFILE ,NATIONAL POVERTY LINE ,REDUCED POVERTY ,POVERTY LEVEL ,CONSUMPTION ,GDP PER CAPITA ,DEVELOPMENT POLICY ,INCOME LEVELS ,RELATIVE PRICES ,MEASURING POVERTY ,NATIONAL POVERTY RATE ,EXTREME POVERTY LINES ,HOUSEHOLD SURVEYS ,INEQUALITY ,ECONOMIC DEVELOPMENT ,POVERTY INCREASES ,CONSUMPTION EXPENDITURE ,DEFINITIONS OF POVERTY ,COMPARATIVE ANALYSIS OF POVERTY ,DECLINE IN POVERTY ,NATIONAL POVERTY HEADCOUNT ,HOUSEHOLD SURVEY ,CONSUMPTION DATA ,DEVELOPMENT GOALS ,REGIONAL PROFILE ,UNDERSTANDING OF POVERTY ,POVERTY MEASURES ,INCOME DISTRIBUTION ,NATIONAL POVERTY ,POVERTY STATUS ,AVERAGE GROWTH ,COUNTRY LEVEL ,POVERTY MEASUREMENT ,PURCHASING POWER PARITY ,AVERAGE INCOME ,REGIONS ,POVERTY ANALYSIS ,POVERTY ESTIMATES ,NATIONAL POVERTY LINES ,EXCHANGE RATE ,POOR PEOPLE ,CURRENCY ,COST OF LIVING ,DATA QUALITY ,POVERTY DATA ,RURAL PRICES ,INTERNATIONAL ORGANIZATIONS ,PPP ,PUBLIC POLICY ,ABSOLUTE POVERTY ,GLOBAL LEVEL ,POLICY RESEARCH ,REGION ,POVERTY INDICATOR ,GROWTH RATE ,DEVELOPING COUNTRIES ,PER CAPITA CONSUMPTION ,INTERNATIONAL POVERTY LINE ,CUMULATIVE DISTRIBUTION ,POVERTY LINES ,POVERTY THRESHOLD ,INCOME DISTRIBUTIONS ,ECONOMICS ,DEVELOPMENT INDICATORS ,RURAL ,POVERTY LINE ,CAPITA INCOME ,CURRENCY EXCHANGE ,MEAN INCOME ,HEADCOUNT RATIO ,INTERNATIONAL POVERTY LINES ,RICH COUNTRIES ,URBAN AREAS ,ESTIMATES OF POVERTY ,LOCAL CURRENCY ,WEIGHT ,POVERTY RATE ,DATA COLLECTION - Abstract
With the recent release of the 2011 purchasing power parity (PPP) data from the International Comparison Program (ICP), analysts and institutions are confronted with the question of whether and how to use them for global poverty estimation. The previous round of PPP data from 2005 led to a large increase in the estimated number of poor in the world. The 2011 price data suggest that developing countries’ incomes in PPP-adjusted dollars are significantly higher than indicated by the 2005 PPP data. This has created the anticipation that the new PPP data will decrease significantly the count of poor people in the world. This paper presents evidence that if the global poverty line is updated with the 2011 PPP data based on the same set of national poverty lines that define the $1.25 line in 2005 PPPs, and if the 2011 PPP conversion factors are used without adjustments to selected countries, the 2011 poverty rate is within half a percentage point of the current global estimate based on 2005 PPPs. The analysis also indicates that the goal of ‘ending’ extreme poverty by 2030 continues to be an ambitious one.
- Published
- 2015