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Poverty

Monitoring the SDGs with purchasing power parities

Edie Purdie's picture

The ICP blog series explores ideas and issues under the International Comparison Program umbrella – including innovations in price and data collection, discussions on purpose and methodology, as well the use of purchasing power parities in the growing world of development data. Authors from across the globe, whether ICP practitioners or researchers making use of ICP data, are encouraged to submit relevant blogs for consideration to [email protected].

It has been over three years since countries adopted the UN’s 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals. From the outset, a number of targets were identified to help pinpoint the desired outcomes within these broad areas – 169 in total. Monitoring progress towards each of these targets relies on data originating in countries, and which are often collected in partnership with regional and international organizations. The World Bank’s Atlas of Sustainable Development Goals used such data to visualize trends and comparisons across the globe, drawing on data from World Development Indicators and many other sources.

Purchasing Power Parity (PPP) data, from the International Comparison Program, play an important role in this monitoring: by eliminating the effect of price level differences between countries they allow us to measure living standards and other economic trends in real, comparable terms.  PPPs are utilized in a number of the official SDG indicators, but also in other associated indicators, which help us to explore the underlying issues and impacts of the goals and targets more deeply.  The four charts presented here exemplify the crucial insights PPPs help provide in SDG monitoring and analysis.

Goal 1 seeks to eradicate poverty in all its forms by 2030. Extreme poverty is measured using the international poverty line of $1.90 a day using 2011 PPPs. The use of PPPs ensures that the poverty line represents the same standard of living in every county. Higher poverty lines used by the World Bank better measure poverty in lower-middle and upper-middle income countries.  Using these poverty lines, we can visualize the shifts in population living at various standards of living.

Celebrating 40 years of engagement with Maldives

Idah Z. Pswarayi-Riddihough's picture
The World Bank Group (WBG) and Maldives have had a trusted partnership for the past 40 years, which has seen tremendous growth and development in the country.

Over this period, Maldives has transformed from being among the poorest countries in the world to having a per capita GDP of over $10,000 and boasts impressive human development achievements, with a life expectancy of over 77 years and nearly 100% literacy.

However, vulnerability to environmental sustainability and climate change are among the challenges that the country faces. 

To help respond to them, the WBG continues to work closely with Maldives to help realize the aspirations of its people through enhancing employment and economic opportunities, strengthening natural resources management and climate resilience, while improving public financial management and policy-making through strengthening institutions.

Here are five milestones of our engagement:

1. Joining the World Bank
Maldives joins World Bank
Photo Credit: World Bank Group Archives
On January 13, 1978, Maldives became the 131st member of the World Bank and the International Development Association (IDA), the fund that helps the poorest countries through interest-free credits.

The Articles of Agreements were signed by His Excellency Fathulla Jameel, Permanent Representative of the Republic of Maldives to the United Nations. At that time, Maldives had a GDP per capita of just over $200 and had achieved independence only 13 years prior.

2. First project signing
Maldives 1st Project Signing
Photo Credit: World Bank Group Archives

 Maldives signed its first project to help increase fisheries production with the World Bank on June 4, 1979.

The project helped mechanize fishing craft, established repair centers, and installed navigational aids to increase the safety of fishing operations.

Those present for the signing from left to right, Said El-Naggar, Executive Director of the World Bank for Maldives, His Excellency Ahamed Zaki, Ambassador and Permanent Representative of Maldives to the United Nations, and Robert Picciottto, Projects Director for South Asia.

South Asia: A bright spot in darkening economic skies?

Hartwig Schafer's picture
South Asia is set to remain relatively insulated from some of the rising uncertainties that are looming large on the global economic horizon. The region will retain its top spot as the world’s fastest-growing region. The Siddhirganj Power Project in Bangladesh. Credit: Ismail Ferdous/World Bank

If, like me, you’re a firm believer in New Year’s resolutions, early January ushers in the prospect of renewed energy and exciting opportunities. And as tradition has it, it’s also a time to enter the prediction game.
 
Sadly, when it comes to the global economy, this year’s outlook is taking a somber turn.
 
In the aptly titled Darkening Skies, the World Bank’s new edition of its twice-a-year Global Economic Prospects report shows that risks are looming large on the economic horizon.
 
To sum up:  In emerging market and developing economies, the lingering effects of recent financial market stress on several large economies, a further deceleration in commodity exporters are likely to stall growth at a weaker-than-expected 4.2 percent this year.
 
On a positive note, South Asia is set to remain relatively insulated from some of these rising global uncertainties and will retain its top spot as the world’s fastest-growing region.
 
Bucking the global decelerating trend, growth in South Asia is expected to accelerate to 7.1 percent in 2019 from 6.9 percent in the year just ended, bolstered in part by stronger investments and robust consumption.  

Among the region’s largest economies, India is forecast to grow at 7.5 percent in fiscal year 2019-20 while Bangladesh is expected to moderate to 7 percent in fiscal year 2018-19. Sri Lanka is seen speeding up slightly to 4 percent in 2019.
 
Notably, and despite increasing conflicts and growing fragility, Afghanistan is expected to increase its growth to  2.7 percent rate this year.

In this otherwise positive outlook, Pakistan’s growth is projected to slow to 3.7 percent in fiscal year 2018-19 as the country is tightening its financial conditions to help counter rising inflation and external vulnerabilities.

However, activity is projected to rebound and average 4.6 percent over the medium term.

Half of the world’s poor live in just 5 countries

Roy Katayama's picture

Of the world’s 736 million extreme poor in 2015, 368 million—half of the total—lived in just 5 countries. The 5 countries with the highest number of extreme poor are (in descending order): India, Nigeria, Democratic Republic of Congo, Ethiopia, and Bangladesh. They also happen to be the most populous countries of South Asia and Sub-Saharan Africa, the two regions that together account for 85 percent (629 million) of the world’s poor. Therefore, to make significant continued progress towards the global target of reducing extreme poverty (those living on less than $1.90 a day) to less than 3 percent by 2030, large reductions in poverty in these five countries will be crucial.

2018: A year of influence, impact and cooperation on global issues through social media

Zubedah Robinson's picture


​In 2018, the themes of climate change, disruptive technology, and human capital were not only priorities for the World Bank Group, but for governments, private companies, and international organizations of all kinds. The level of partnership online among these groups has been unprecedented as the world collectively tries to address global challenges.

The same kind of cooperation that is driving impact on the ground is also driving awareness and advocacy more broadly as the world rises to these challenges. Below are just a few examples of how collaboration online has strengthened and amplified the global effort to end poverty in 2018 across three key themes.

How is the Human Capital Index prompting action?

Jason Weaver's picture
Students at the Zanaki Primary School in Dar es Salaam, Tanzania. © Sarah Farhat/World Bank
Students at the Zanaki Primary School in Dar es Salaam, Tanzania. © Sarah Farhat/World Bank

Whew, it’s out!

On October 11, 2018, the World Bank Group released its inaugural Human Capital Index (HCI), a tool that quantifies the contribution of health and education to the productivity of a country’s next generation of workers. The question underpinning the HCI asks, “How much human capital can a child born today expect to acquire by age 18, given the risks to poor health and poor education that prevail in the country where she lives?” Globally, 56 percent of children born today will lose more than half their potential lifetime earnings because governments and other stakeholders are not currently making effective investments to ensure a healthy, educated, and resilient population ready for the workplace of the future.

To drive urgent action on human capital development, the Bank Group’s Human Capital Project (HCP) is working on two other fronts beyond the Human Capital Index. These are Measurement & Research and Country Engagement.

Stronger social accountability, key to closing “human capital gap”

Jeff Thindwa's picture



With the creation of the World Bank’s Human Capital project and launch of the Human Capital Index in October 2018 it is fitting for social accountability practitioners to ask how countries would be able to close the ‘human capital gap’ and to be accountable for their efforts?

An individual look at poverty, across multiple dimensions

Isis Gaddis's picture

What we (don’t) know about gender gaps in multidimensional poverty …

Gender gaps are pervasive in many dimensions of well-being. Globally, almost two-thirds of the world’s illiterate adults are women, because of past (and sometimes present) gender inequalities in access to schooling. Women are also often more “time poor” than men due to the double burden of labor market activities and domestic chores and more “asset poor” due to gender biased laws, traditions and institutions.

South Asia's new superfood or just fishy business?

Pawan Patil's picture
Across South Asia, four known species of indigenous, fully mature, small food-fish – now dubbed ‘NutriFish’ have nutritional and health benefits for pregnant and lactating women and young children when consumed over the first one thousand days. Here, children from Kothi, Odisha in India show their curiosity and share their excitement with a new kind of harvest happening in their village. Credit: Arun Padiyar
Kale, Kefir, and Quinoa have now joined the ranks of better-known foods like Blueberries, Orange Sweet Potato, and Salmon on family dinner tables across the world.

Considered superior for their health and nutrition benefits, these so-called ‘Superfoods’, often considered “new” by the public are now ever-popularized by celebrity chefs and have become all the rage of foodies from San Francisco to Singapore.   

We live in a world of paradox, where old world and almost forgotten food like Quinoa (which dates back as a staple food over three thousand years to Andean civilization but largely disappeared with the arrival of the Spanish) is now back on the menu.  

Salmon, a staple part of Nordic diets from paleolithic times and woven into the culture of native populations across northwestern Canada and many other superfoods share comparable stories.

And, there are many other old world foods, indigenously known, disappearing but not fully forgotten, yet to be re-discovered.

Food is also now advancing to the front-line of the war on poverty

A health and human capital crisis is now sweeping the world, and a lack of diverse, accessible, affordable, and available nourishing foods is increasingly blamed.  

For example, obesity, from poor diet and poor exercise has tripled since 1975 to almost two billion people today.  

Undernutrition contributes to 45 percent of all deaths of children under five years old (3.5 million each year), much of it avoidable, but difficult to detect as it remains “hidden.”  

Policy makers and stewards of national economies are starting to wake up to the fact that poor nutrition has massive economic implications too, reducing GDP by 3-11 percent, depending on the country. 

While economies such as Bangladesh, India, and Pakistan may look strong, just as bellies look full, critical micronutrients and vitamins, essential for healthy physical and cognitive development over the first 1,000 days of life are largely missing from diets of many developing countries and are a proven drag to educational attainment and economic prosperity.  

And parents, from both rich and poor nations alike, seem to know something is not quite right. 

If healthier food choices that are accessible, affordable, and readily available are better known, would parents purchase such food from the market for their families?     

With a small grant from the World Bank-administered South Asia Food and Nutrition Initiative (SAFANSI) supported by the EU and the United Kingdom, a partnership with WorldFish was established to test this premise.  

A 60 second TV spot, a collaboration between scientists, economists, a private sector digital media company, broadcasters and the Government of Bangladesh, was created and broadcast across the nation on two occasions and watched by over 25 million people.  

A parallel radio program was also developed and aired reaching millions more, particularly the rural poor and marginalized communities.
 
NutriFish1000 TV

 

A light-touch method to improve accurate reporting of IDP’s food consumption

Utz Pape's picture

To design effective and durable relief programs for refugees and internally displaced people (IDPs), it is essential to understand the nature and context of the challenges the people living in these situations face. That’s why we have recently started to measure consumption and estimate rates of poverty among displaced populations. Through understanding the most acute challenges that vulnerable populations face, relief can be targeted to where support is needed most.


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