IDEAS home Printed from https://ideas.repec.org/p/got/gotcrc/189.html
   My bibliography  Save this paper

$1.90 Per Day: What Does it Say?

Author

Listed:
  • Sanjay G. Reddy

    (The New School for Social Research)

  • Rahul Lahoti

    (Georg-August-University Göttingen)

Abstract

The World Bank’s global poverty estimates suffer from deep-seated problems arising from a single source, the lack of a standard for identifying who is poor and who is not that is consistent and meaningful. The new choice of an international poverty line of $1.90 (2011 PPP) does not in any way resolve these problems. We present alternate estimates of global, regional and national poverty based on reasoning as to what the Bank’s own method, consistently applied, would entail. These show an increase in the absolute number of poor since 1980 or 1990 for certain choices of poverty line. However, we recommend an approach to income poverty assessment that is altogether different, focusing directly on identifying the real requirements of human beings to attain incomedependent human capabilities.

Suggested Citation

  • Sanjay G. Reddy & Rahul Lahoti, 2015. "$1.90 Per Day: What Does it Say?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 189, Courant Research Centre PEG.
  • Handle: RePEc:got:gotcrc:189
    as

    Download full text from publisher

    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_189.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Subramanian,, 2012. "The Poverty Line: Oxford India Short Introductions," OUP Catalogue, Oxford University Press, number 9780198086086.
    2. Angus Deaton, 2003. "How to Monitor Poverty for the Millennium Development Goals," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 4(3), pages 353-378.
    3. Jolliffe, Dean & Prydz, Espen Beer, 2015. "Global Poverty Goals and Prices: How Purchasing Power Parity Matters," IZA Discussion Papers 9064, Institute of Labor Economics (IZA).
    4. Angus Deaton, 2010. "Price Indexes, Inequality, and the Measurement of World Poverty," American Economic Review, American Economic Association, vol. 100(1), pages 5-34, March.
    5. repec:pri:rpdevs:spatial_price_differences_in_large_countries-_10-jul_2011_complete is not listed on IDEAS
    6. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," The World Bank Research Observer, World Bank, vol. 19(2), pages 141-169.
    7. repec:pri:rpdevs:deaton_poverty_mdg is not listed on IDEAS
    8. repec:pri:rpdevs:presidential%20address%2017january%202010%20all is not listed on IDEAS
    9. Hassoun, Nicole & Subramanian, S., 2012. "An aspect of variable population poverty comparisons," Journal of Development Economics, Elsevier, vol. 98(2), pages 238-241.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Collin Constantine, 2020. "A Community Divided: Top Incomes in CARICOM Member States," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(3), pages 738-758, July.
    2. Langridge Nicholas & Buchs Milena & Howard Neil, 2023. "An Ecological Basic Income? Examining the Ecological Credentials of Basic Income Through a Review of Selected Pilot Interventions," Basic Income Studies, De Gruyter, vol. 18(1), pages 47-87, June.
    3. Ziheng Shangguan & Jianping Liu & Mark Yaolin Wang & Shaojun Chen & Ruilian Zhang, 2023. "Have Water Conservancy Project Resettlers in Contemporary China Really Been Lifted Out of Poverty? Re-Measurement Based on Relative Poverty and Consumption Poverty," Land, MDPI, vol. 12(1), pages 1-15, January.
    4. Amita Majumder & Ranjan Ray & Sattwik Santra, 2016. "Global and Country Poverty Rates, Welfare Rankings of the Regions and Purchasing Power Parities: How Robust Are the Results?," Monash Economics Working Papers 11-16, Monash University, Department of Economics.
    5. Christopher Hoy & Andy Sumner, 2021. "The End of Global Poverty: Is the UN Sustainable Development Goal 1 (Still) Achievable?," Global Policy, London School of Economics and Political Science, vol. 12(4), pages 419-429, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco H. G. Ferreira & Shaohua Chen & Andrew Dabalen & Yuri Dikhanov & Nada Hamadeh & Dean Jolliffe & Ambar Narayan & Espen Beer Prydz & Ana Revenga & Prem Sangraula & Umar Serajuddin & Nobuo Yosh, 2016. "A global count of the extreme poor in 2012: data issues, methodology and initial results," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 141-172, June.
    2. Leonardo Lucchetti & Andrés Castañeda & Santiago Garriga & Leonardo Gasparini & Daniel Valderrama, 2018. "How Sensitive Is Regional Poverty Measurement in Latin America to the Value of the Poverty Line?," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2018), pages 33-58, November.
    3. Dean Jolliffe & Espen Beer Prydz, 2016. "Estimating international poverty lines from comparable national thresholds," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 185-198, June.
    4. Cockburn, John & Duclos, Jean-Yves & Zabsonré, Agnès, 2014. "Is global social welfare increasing? A critical-level enquiry," Journal of Public Economics, Elsevier, vol. 118(C), pages 151-162.
    5. Moatsos Michail, 2016. "Global Absolute Poverty: Behind the Veil of Dollars," Journal of Globalization and Development, De Gruyter, vol. 7(2), pages 1-28, December.
    6. Ugo Gentilini & Patrick Webb, 2005. "How Are We Doing on Poverty and Hunger Reduction?: A New Measure of Country-Level Progress," Working Papers in Food Policy and Nutrition 31, Friedman School of Nutrition Science and Policy.
    7. Nora Lustig & Jacques Silber, 2016. "Global Poverty Lines: An Introduction," Working Papers 1603, Tulane University, Department of Economics.
    8. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2015. "Lights, Camera,... Income! Estimating Poverty Using National Accounts, Survey Means and Lights," LIS Working papers 645, LIS Cross-National Data Center in Luxembourg.
    9. Sudhir Anand & Paul Segal, 2008. "What Do We Know about Global Income Inequality?," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 57-94, March.
    10. Maxim L. Pinkovskiy & Xavier X. Sala-i-Martin, 2014. "Lights, camera,...income! Estimating poverty using national accounts, survey means, and lights," Staff Reports 669, Federal Reserve Bank of New York.
    11. Dhongde, Shatakshee & Minoiu, Camelia, 2013. "Global Poverty Estimates: A Sensitivity Analysis," World Development, Elsevier, vol. 44(C), pages 1-13.
    12. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    13. 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.
    14. Martin Ravallion, 2016. "Toward better global poverty measures," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 227-248, June.
    15. 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.
    16. Maryam Abdu & Enrique Delamonica, 2018. "Multidimensional Child Poverty: From Complex Weighting to Simple Representation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(3), pages 881-905, April.
    17. Juan Carlos Chavez - Martin del Campo, 2008. "Poverty Goals," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 4(2), pages 27-34, Enero-Jun.
    18. Nanak Kakwani & Hyun H. Son, 2016. "Global poverty estimates based on 2011 purchasing power parity: where should the new poverty line be drawn?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 173-184, June.
    19. Nora Lustig & Jacques Silber, 2016. "Introduction to the Special Issue on Global Poverty Lines," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 129-140, June.
    20. Fofack, Hippolyte, 2008. "Technology trap and poverty trap in Sub-Saharan Africa," Policy Research Working Paper Series 4582, The World Bank.

    More about this item

    Keywords

    Global Poverty; International Poverty Line; World Bank; Welfare; Capability; alternate estimates; purchasing power parity;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:got:gotcrc:189. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dominik Noe (email available below). General contact details of provider: http://www.uni-goettingen.de/en/82144.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.