Global Poverty Goals and Prices : How Purchasing Power Parity Matters

Jolliffe, Dean Mitchell ; Prydz, Espen Beer

World Bank, Washington, DC

关键词: POVERTY THRESHOLD;    LIVING STANDARDS;    PER CAPITA CONSUMPTION;    HEADCOUNT RATIO;    GROWTH RATES;   

DOI  :  10.1596/1813-9450-7256
RP-ID  :  WPS7256

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

With the recent release of the 2011purchasing power parity (PPP) data from the InternationalComparison Program (ICP), analysts and institutions areconfronted with the question of whether and how to use themfor global poverty estimation. The previous round of PPPdata from 2005 led to a large increase in the estimatednumber of poor in the world. The 2011 price data suggestthat developing countries’ incomes in PPP-adjusted dollarsare significantly higher than indicated by the 2005 PPPdata. This has created the anticipation that the new PPPdata will decrease significantly the count of poor people inthe world. This paper presents evidence that if the globalpoverty line is updated with the 2011 PPP data based on thesame set of national poverty lines that define the $1.25line in 2005 PPPs, and if the 2011 PPP conversion factorsare used without adjustments to selected countries, the 2011poverty rate is within half a percentage point of thecurrent global estimate based on 2005 PPPs.The analysisalso indicates that the goal of ‘ending’ extreme poverty by2030 continues to be an ambitious one.