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September 2018

Global poverty in 2015: PovcalNet’s new estimates and improved documentation

Christoph Lakner's picture

PovcalNet released new poverty estimates last week, indicating that in 2015, 10 percent of the global population were living on less than the international poverty line (IPL), currently set at US$1.90 per person per day in 2011 purchasing power parity (PPP). This estimate is based on a series of new data and revisions, including more than 1,600 household surveys from 164 countries, national accounts, population estimates, inflation data, and purchasing power parity data. The new poverty numbers were released on September 19 and will be part of “Poverty and Shared Prosperity 2018: Piecing Together the Poverty Puzzle,” a report to be published on October 17, End Poverty Day.

We’re also launching a Global Poverty Monitoring Technical Note Series which describes the data, methods and assumptions underpinning the World Bank’s global poverty estimates published in PovcalNet. With this update, we’re releasing four new notes in this series, including the “What’s New” note that will accompany each of the semi-annual updates to PovcalNet. The other notes cover different aspects of the price adjustments embedded in the global poverty estimates, such as adjustments for inflation and price differences across countries

Begun as a research project by Martin Ravallion, Shaohua Chen and others, PovcalNet has become the official source for monitoring the World Bank’s Twin Goals, the Millennium Development Goals (MDG), and now Sustainable Development Goal 1.1. PovcalNet is managed jointly by the Data and Research Groups within the World Bank’s Development Economics Division. It draws heavily upon a strong collaboration with the Poverty and Equity Global Practice, which is responsible for gathering and harmonizing the underlying survey data.

PovcalNet does much more than simply providing the most recent global poverty estimates. It’s a computational tool that allows users to estimate poverty rates for regions, sets of countries or individual countries, over time and at any poverty line. It also provides several distributional measures, such as the Gini index and income shares for the various decile groups.

The most recent PovcalNet data show us that over the last few decades, remarkable progress has been made in reducing extreme poverty. The world attained the first MDG target—cutting the 1990 poverty rate in half by 2015—six years ahead of schedule. With continued reductions, the global poverty rate, defined as the share of world’s population living below the IPL, has dropped from 35.9 percent in 1990 to 10 percent in 2015 – more than a 70 percent reduction.

In the last quarter century, global poverty dropped by more than 70 percent

 

Measuring India’s economy using PPPs shows it surpassed France 25 years ago

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].

Earlier this summer, new data published by the World Bank showed that the Gross Domestic Product (GDP) of India had recently surpassed that of France, and that it was on track to overtake the UK economy too. Many news outlets jumped upon this new ranking of India’s economy, now sixth from top. But most media articles did not mention that the World Bank’s other measure, which compares GDP across countries using purchasing power parities (PPPs), has placed India ahead of both France and the UK for the last 25 years.

The number of extremely poor people continues to rise in Sub-Saharan Africa

Divyanshi Wadhwa's picture
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Globally, extreme poverty has rapidly declined. New poverty estimates by the World Bank suggest that the number of extremely poor people—those who live on $1.90 a day or less—has fallen from 1.9 billion in 1990 to about 736 million in 2015.

However, the number of people living in extreme poverty is on the rise in Sub-Saharan Africa, comprising more than half of the extreme poor in 2015. Forecasts also indicate that by 2030, nearly 9 in 10 extremely poor people will live in Sub-Saharan Africa. Find more information and the latest poverty estimates at World Bank PovcalNet and Poverty & Equity Data portal.

 

New child and adolescent mortality estimates show remarkable progress, but 17,000 children under 15 still died every day in 2017

Emi Suzuki's picture

This blog is based on new mortality estimates released today by the United Nations Inter-agency Group for Child Mortality Estimation (UN IGME)

There has been remarkable progress in reducing mortality among children and young adolescents in the past several decades. Between 1990 and 2017, the global under-five mortality rate dropped by 58 percent from 93 deaths per 1,000 live births to 39 deaths per 1,000 live births. During the last 17 years, the reduction in under-five mortality rates accelerated to an average 4% annual reduction, compared to an average 1.9% annual reduction between 1990 and 2000. For children aged 5-14, mortality dropped by 53 percent, from 15 deaths to 7 deaths per 1,000 children.