Just as Asian economies started to recover from the global recession, policymakers and markets have started to worry about unwarranted asset price increases.
The international community has endorsed the Millenium Development Goal of reducing the poverty rate in the developing world by 50% over the 25 years, 1990-2015. While the target is arbitrary, it is nonetheless important to have a stretch goal like this to challenge us all to make the world a better place. To measure progress, naturally we need pretty good estimates of global poverty. The World Bank is the leading bean counter in this exercise. It just today released new estimates of global poverty that have the potential to illuminate the progress, but also the potential to confuse a lot of people. The research department of the World Bank has changed its global poverty line from $1 per day to $1.25 per day and has found about 468 million more poor people than it had previously estimated. About 135 million of these newly found poor are in China. How does one make sense of these new numbers? Here are some pointers: