A Global Count of the Extreme Poor in 2012
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World Bank, Washington, DC
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The 2014 release of a new set of
purchasing power parity conversion factors (PPPs) for 2011
has prompted a revision of the international poverty line.
In order to preserve the integrity of the goalposts for
international targets such as the Sustainable Development
Goals and the World Bank’s twin goals, the new poverty line
was chosen so as to preserve the definition and real
purchasing power of the earlier $1.25 line (in 2005 PPPs) in
poor countries. Using the new 2011 PPPs, the new line equals
$1.90 per person per day. The higher value of the line in US
dollars reflects the fact that the new PPPs yield a
relatively lower purchasing power of that currency vis-à-vis
those of most poor countries. Because the line was designed
to preserve real purchasing power in poor countries, the
revisions lead to relatively small changes in global poverty
incidence: from 14.5 percent in the old method to 14.1
percent in the new method for 2011. In 2012, the new
reference year for the global count, we find 12.7 percent of
the world’s population, or 897 million people, are living in
extreme poverty. There are changes in the regional
composition of poverty, but they are also relatively small.
This paper documents the detailed methodological decisions
taken in the process of updating both the poverty line and
the consumption and income distributions at the country
level, including issues of inter-temporal and spatial price
adjustments. It also describes various caveats, limitations,
perils and pitfalls of the approach taken.
Palabras clave
LIVING STANDARDS, PER CAPITA CONSUMPTION, POVERTY THRESHOLD, REGIONAL COMPOSITION, RISKS, HOUSEHOLD SURVEY, HOUSEHOLD SIZE, CONSUMPTION EXPENDITURES, POVERTY LINE, ECONOMIC GROWTH, REGIONAL PATTERNS, POVERTY LEVELS, INCOME POVERTY, INCOME, FOOD CONSUMPTION, REGIONAL AGGREGATES, POVERTY ESTIMATES, POVERTY RATES, INCOME REGIONS, NATIONAL POVERTY LINE, CONSUMPTION DATA, HOUSING, POLITICAL ECONOMY, FOOD POLICY, RURAL INCOMES, NATIONAL POVERTY, REGIONAL PROFILE, POOR PEOPLE, EXTREME POVERTY LINE, INTERNATIONAL POVERTY LINES, DEVELOPMENT GOALS, GLOBAL POVERTY, RURAL POPULATION, CURRENT POVERTY, MEASURES, POVERTY MEASURES, NATIONAL POVERTY LINES, REGION, POVERTY REDUCTION, REGIONAL POVERTY, MEASURING POVERTY, FOOD POVERTY LINE, POVERTY GAP, FOOD PRICE, INTERNATIONAL POVERTY COMPARISONS, POLITICAL CONSTRAINTS, EXCHANGE RATES, POVERTY INCIDENCE, INTERNATIONAL POVERTY LINE, HOUSEHOLD INCOME, DATA ISSUES, ESTIMATES OF POVERTY, INFLATION RATE, HOUSEHOLD SURVEYS, CONSUMPTION EXPENDITURE, FOOD EXPENDITURES, CONSUMPTION POVERTY, REGIONAL LEVELS, CHANGES IN POVERTY, CARIBBEAN REGION, POVERTY HEADCOUNT RATE, POVERTY PROFILE, FOOD ITEMS, RURAL POVERTY LINE, WELFARE VARIABLE, POVERTY LINES, CONSUMPTION, POVERTY DATA, HUMAN ENERGY, COUNTRY LEVEL, DEVELOPMENT REPORT, POVERTY COMPARISONS, FOOD POVERTY, POVERTY MEASUREMENT, AGGREGATE POVERTY, REGIONAL DIFFERENCES, INCOME DISTRIBUTIONS, POOR COUNTRIES, RURAL POVERTY RATES, MEASUREMENT OF POVERTY, CONSUMPTION MEASURE, RURAL POVERTY, INCOME DISTRIBUTION, ABSOLUTE POVERTY, RURAL POVERTY LINES, RURAL, NUTRITION, AGRICULTURAL ACTIVITIES, ECONOMIC DEVELOPMENT, POOR POPULATION, WELFARE MEASURES, REGIONS, EXTREME POVERTY, SPATIAL DISTRIBUTION, ABSOLUTE POVERTY LINE, RURAL AREAS, POVERTY, REGIONAL DISTRIBUTION, NATIONAL POVERTY HEADCOUNT, ABSOLUTE TERMS, INCIDENCE OF POVERTY, HOUSEHOLD CONSUMPTION, REGIONAL POVERTY MEASURES, POVERTY UPDATE, CONSUMER PRICE INDEX, DECLINE IN POVERTY, POLICY RESEARCH, POVERTY RATE, POOR, POVERTY ASSESSMENT, CONSUMPTION PER CAPITA, FOOD PRICES, POVERTY ANALYSIS, DEVELOPMENT POLICY, INEQUALITY, SPATIAL DIFFERENCES, POOR PERSON