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Has World Poverty Really Fallen?

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  • Sanjay G. Reddy
  • Camelia Minoiu

Abstract

We evaluate the claim that world consumption poverty has fallen since 1990 in light of alternative assumptions about the extent of initial poverty and the rate of subsequent poverty reduction in China, India, and the rest of the developing world. We use two poverty indicators: the aggregate headcount and the headcount ratio, and consider two widely‐used international poverty lines ($1/day and $2/day). We conclude that, because of uncertainties in relation to the extent and trend of poverty in China, India, and the rest of the developing world, global poverty may or may not have increased. The extent of the estimated increase or decrease in world poverty is critically dependent on the assumptions made. Our conclusions highlight the importance of improving the quality of global poverty statistics.

Suggested Citation

  • Sanjay G. Reddy & Camelia Minoiu, 2007. "Has World Poverty Really Fallen?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(3), pages 484-502, September.
    • Handle: RePEc:bla:revinw:v:53:y:2007:i:3:p:484-502
    DOI: 10.1111/j.1475-4991.2007.00240.x
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    Cited by:

    1. Pinkovskiy, Maxim L., 2013. "World welfare is rising: Estimation using nonparametric bounds on welfare measures," Journal of Public Economics, Elsevier, vol. 97(C), pages 176-195.
    2. Ms. Camelia Minoiu & Sanjay Reddy, 2008. "Kernel Density Estimation Based on Grouped Data: The Case of Poverty Assessment," IMF Working Papers 2008/183, International Monetary Fund.
    3. Camelia Minoiu & Sanjay G. Reddy, 2008. "Chinese Poverty: Assessing The Impact Of Alternative Assumptions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 572-596, December.
    4. Subramanian, Sreenivasan, 2012. "Variable Populations and the Measurement of Poverty and Inequality," WIDER Working Paper Series 053, World Institute for Development Economic Research (UNU-WIDER).
    5. Satyajit Majumdar & Gordhan K. Saini, 2016. "CSR in India: Critical Review and Exploring Entrepreneurial Opportunities," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 2(1), pages 56-79, January.
    6. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    7. Elvia Shauki, 2011. "Perceptions on corporate social responsibility: A study in capturing public confidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(3), pages 200-208, May.
    8. Edward, Peter & Sumner, Andy, 2014. "Estimating the Scale and Geography of Global Poverty Now and in the Future: How Much Difference Do Method and Assumptions Make?," World Development, Elsevier, vol. 58(C), pages 67-82.
    9. repec:unu:wpaper:wp2012-53 is not listed on IDEAS
    10. Ahmed Moustapha Mfokeu & Elie Virgile Chrysostome & Jean-Pierre Gueyie & Olivier Ebenezer Mun Ngapna, 2023. "Consumer Motivation behind the Use of Ecological Charcoal in Cameroon," Sustainability, MDPI, vol. 15(3), pages 1-22, January.
    11. Sreenivasan Subramanian, 2012. "Variable Populations and the Measurement of Poverty and Inequality," WIDER Working Paper Series wp-2012-053, World Institute for Development Economic Research (UNU-WIDER).
    12. Kawamura, Kohei, 2008. "Communication for Public Goods," SIRE Discussion Papers 2008-25, Scottish Institute for Research in Economics (SIRE).
    13. Kohei Kawamura, 2008. "Communication for Public Goods," Edinburgh School of Economics Discussion Paper Series 182, Edinburgh School of Economics, University of Edinburgh.
    14. Kaushik Basu, 2016. "Beyond the Invisible Hand: Groundwork for a New Economics," Economics Books, Princeton University Press, edition 1, number 9299.
    15. Charlotte Guénard & Sandrine Mesplé‐Somps, 2010. "Measuring Inequalities: Do Household Surveys Paint A Realistic Picture?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(3), pages 519-538, September.

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