The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty

Chen, Shaohua; Ravallion, Martin

doi:10.1162/qjec.2010.125.4.1577

Cited by 659 publications

(450 citation statements)

References 23 publications

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“…These decisions reflect a mix of theoretical foundations, empirical analysis, and knowledge of country and region context. The present update of global poverty numbers (for the year 2012) follows closely the methods used by Chen and Ravallion (2010) based on the 2005 PPPs and PovcalNet data. While these estimates have been widely used for the monitoring of the MDGs and World Bank goals, some of the details that underpin them have not always been well understood.…”

Section: Data and Methodsologymentioning

confidence: 95%

“…These countries are home to a large share of the world's poor, and their vast geographies may allow for particularly large ruralurban disparities in both prices and living standards. For estimates based on the 2005 PPPs, adjustments to the PPPs for India and China were also motivated by a concern that the 2005 ICP price collection was heavily concentrated in urban areas and that the national PPPs therefore possibly had an urban bias (Ravallion and Chen, 2010;Chen and Ravallion, 2008;Ravallion, 2008).…”

Section: Rural and Urban Ppps For China India And Indonesiamentioning

confidence: 99%

“…The new line is still derived from the same fifteen national poverty lines that Ravallion et al (2009) The estimates produced in this paper apply the same methods as Chen and Ravallion (2010) and are based on data from PovcalNet, the database maintained by the World Bank for monitoring global poverty in recent years. 7 The most recent version of PovcalNet, contains data from more than one thousand surveys covering 131 developing countries, and 21 high income countries.…”

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confidence: 99%

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A Global Count of the Extreme Poor in 2012: Data Issues, Methodology and Initial Results

Ferreira¹,

Chen²,

Dabalen³

et al. 2015

Policy Research Working Papers

177

211

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents inIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. 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.

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Section: Data and Methodsologymentioning

confidence: 95%

Section: Rural and Urban Ppps For China India And Indonesiamentioning

confidence: 99%

mentioning

confidence: 99%

See 1 more Smart Citation

A Global Count of the Extreme Poor in 2012: Data Issues, Methodology and Initial Results

Ferreira¹,

Chen²,

Dabalen³

et al. 2015

Policy Research Working Papers

177

211

View full text Add to dashboard Cite

show abstract

“…Table 1 shows the top ten countries having highest population in the world of which India and China have almost 37% of total population in the world. (Chen, Ravallion, 2010). It is the fact that regions such as Asia, Sub-Saharan and Latin America and Caribbean and Asia and Pacific account for vast majority of poor in the world.…”

Section: Introductionmentioning

confidence: 99%

An Empirical Study on the Nexus of Poverty, GDP Growth, Dependency Ratio and Employment in Developing Countries

Vijayakumar¹

2013

JOC

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The paper has scrutinized the nexus among poverty, economic growth, employment and dependency ratio in developing countries. The primary intension behind this study is to find out the association between variables such as poverty, economic growth, agricultural and industrial employment and dependency ratio due to the gap in the existing literature. This study fully relies on cross country data and involves forty one countries which have been selected from Asia, Latin America and Sub-Saharan Africa. For this study, OLS method, correlation and econometric tools have been employed. Two models employed in the analysis are goodness of fit because both p-value and F-statistics in the models are less than 5%. The results bring to light the fact that age dependency ratio has had a tremendous impact on poverty and poverty has had a relatively very high impact on the age dependency ratio. Even though Industrial employment has a negative association with poverty incidence, it does not have a significant impact on poverty. The finding that economic growth, poverty and industrial employment significantly affect the age dependency ratio in model two is practicable and consistent with economic theories. Thus stable economic growth with an increase in labour productivity and labour intensive technology is an active remedy for solving this problem.

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“…It is a precondition for valid comparisons, given the Nunangat and Canada as a whole. The same sorts of constraints explain why major efforts have been deployed internationally to produce specific measurements for specific situations (e.g., Lanjouw and Ravallion, 1995;Bahri, 2004;Batana, 2008;Streak et al, 2009;Chen and Ravallion, 2010;Bisiaux, 2011). Indeed, the low income threshold based on half-median revenue would reveal nothing if applied to the poorest countries in the world; conversely, the method of the "$1.25 a day" that is used for those countries would reveal nothing if applied in the wealthier ones.…”

Section: Limitations Of the Measurementmentioning

confidence: 98%

Monetary Poverty in Inuit Nunangat

Duhaime¹,

Édouard²

2015

ARCTIC

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ABSTRACT. This article measures for the first time the scope of poverty in Inuit Nunangat, the four regions of the Canadian Arctic where Inuit people live. On the basis of a monetary definition of poverty, we propose and apply a method adapted to key characteristics of the Inuit condition. For each region, we developed a low income measure (LIM) that takes household composition and consumer prices into account, using data from the master file of the 2006 Census of Canada and surveys by Aboriginal Affairs and Northern Development Canada on the Revised Northern Food Basket. For Inuit Nunangat as a whole, the low income measure was $22 216 and the low income rate (LIR) was 44%. Values vary among regions: in Nunavik, for example, the low income rate is 37.5%. However, throughout Inuit Nunangat, poverty rates are significantly higher than those observed in Canada. We recommend further statistical exploration to better identify not only the factors correlated with households living in poverty, but also a qualitative approach to produce an Inuit emic perspective. Both tools are necessary for informed policy to fight against poverty.Key words: poverty; income; measurement; methodology; Inuit Nunangat; Inuvialuit; Nunavut; Nunavik; Nunatsiavut; Canada RÉSUMÉ. Cet article mesure, pour la première fois, l'étendue de la pauvreté dans l'Inuit Nunangat, les quatre régions de l'Arctique canadien habitées par les Inuits. En nous fondant sur une définition monétaire de la pauvreté, nous proposons une méthode qui tient compte de caractéristiques de la condition inuite : pour chacune des régions, nous avons développé une mesure du faible revenu (MFR) qui reflète la composition des ménages par l'utilisation des données du fichier-maître du Recensement du Canada de 2006, et les prix à la consommation par l'utilisation des données du Panier de provision nordique révisé calculé par le ministère des Affaires autochtones et du Développement du Nord du Canada. Pour l'ensemble de l'Inuit Nunangat, la mesure du faible revenu (MFR) obtenue se situait à 22 216 $, et le taux de faible revenu (TFR) était de 44 %. Les résultats varient selon les régions : au Nunavik, par exemple, le taux de faible revenu est de 37,5 %. Néanmoins, les taux de pauvreté dans l'Inuit Nunangat sont significativement plus élevés que ceux observés au Canada. Nous recommandons que des études subséquentes approfondissent la question, d'abord des études statistiques avancées pour identifier les caractéristiques associées à la pauvreté monétaire, ensuite des études qualitatives pour dépasser la définition monétaire de la pauvreté et parvenir à une définition émique, c'est-à-dire, une définition qui rendrait compte de la perception inuite de la pauvreté. Ces deux types d'études constitueraient des apports nécessaires pour mieux orienter les politiques de lutte à la pauvreté.

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The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty

Cited by 659 publications

References 23 publications

A Global Count of the Extreme Poor in 2012: Data Issues, Methodology and Initial Results

A Global Count of the Extreme Poor in 2012: Data Issues, Methodology and Initial Results

An Empirical Study on the Nexus of Poverty, GDP Growth, Dependency Ratio and Employment in Developing Countries

Monetary Poverty in Inuit Nunangat

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