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Europe and Central Asia

Relative versus absolute poverty headcount ratios: the full breakdown

Juan Feng's picture
Also available in: 中文

Most countries in the world measure their poverty using an absolute threshold, or in other words, a fixed standard of what households should be able to count on in order to meet their basic needs. A few countries, however, have chosen to measure their poverty using a relative threshold, that is, a cutoff point in relation to the overall distribution of income or consumption in a country.

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The chart above shows the differences between relative and absolute poverty headcount ratios for countries that have measured both. You can select other countries from the drop down list, but for example, you can see that Romania switched from measuring poverty in absolute terms to measuring poverty in relative terms in 2006.  Absolute poverty headcount ratios steadily declined from 35.9% in 2000 to 13.8% in 2006. However, by relative measures, the national poverty headcount ratio in 2006 was 24.8%.  This does not mean that poverty bumped up in 2006. These two numbers are simply not comparable, but what exactly do they both mean?

Identifying poor-rich gaps in accessing maternal health care

Haruna Kashiwase's picture

The most recent data show significant strides in reducing maternal mortality at the national level over the past 20 years.  Improvements in access to maternal health care, especially in skilled birth assistance, have contributed to the reduction of maternal mortality. 

While these improvements are impressive, the national level data often mask inequalities in skilled birth assistance within countries. There may be gaps within a country, for example, where wealthy women might have better access than women from poor households. According to the World Health Organization, "The high number of maternal deaths in some areas of the world reflects inequities in access to health services, and highlights the gap between rich and poor."

Global child mortality rate dropped 49% since 1990

Emi Suzuki's picture
Also available in: 中文 | العربية | Español | Français

The under-5 mortality rate worldwide has fallen by 49% since 1990, according to new child mortality estimates and press release launched today. This information is also summarized in the report Levels and Trends in Child Mortality 2014 by the United Nations Inter-Agency Group for Child Mortality Estimation (UN IGME).  Put another way, about 17,000 fewer children under-5 died each day in 2013 than in 1990.

These rates are falling faster than at any other time during the past two decades: from a 1.2% annual reduction during 1990-1995 to a 4% reduction during 2005-2013. 

More children making it to their fifth birthday
The major improvements in under-5 child survival since 1990 are attributable to better access to affordable, quality health care, as well as the expansion of health programs that reach the most vulnerable newborns and children.

The 49% drop – from 90 deaths per 1,000 live births in 1990, to 46 deaths in 2013 – means that a baby born today has a dramatically better chance of survival to age 5 compared with a baby born in 1990.   

More progress needed to achieve the global Millennium Development Goal 4 target
Four out of 6 World Bank Group regions are on track to achieve Millennium Development Goal 4 (MDG 4), which is to reduce the under-5 mortality rate by two-thirds by 2015.  Sub-Saharan Africa and South Asia are two regions where the rates of decline remain insufficient to reach MDG 4 on a global scale.  In 2013, the highest under-5 mortality rate was in Sub-Saharan Africa, where there were 92 deaths per 1,000 live births or where 1 in 11 children die before reaching the age of 5.

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Does Your Country Export What It Should?

Siddhesh Kaushik's picture

Customs reforms have made trade easier in Georgia. Photo - Irakli Tabagari / World Bank.One of the core principles of trade economics is that of “comparative advantage.” First described by David Ricardo, the theory says that countries are best off if they specialize in products that they can make relatively more efficiently – with lower opportunity cost – than other countries. If this happens, the theory goes, global welfare will increase. This concept is more difficult than it sounds, however – as Paul Krugman has pointed out quite eloquently – and benefits from illustration.

Basketball genius Michael Jordan stars in one example sometimes used in textbooks and classrooms: If Jordan mows his lawn faster than anyone else in the neighborhood, he has anabsolute advantage in lawn mowing. But that doesn’t mean that he should mow his neighbor John Smith’s lawn, because that would come at an opportunity cost: in the same two hours it would take Jordan to cut the grass, he could earn much more by playing basketball or making a commercial.

While it is difficult to measure comparative advantage in world trade, one indicator is something called “Revealed Comparative Advantage” (RCA). This is a measure of how a country’s exports compare to those of a bigger group, such as a region or the rest of the world. For example, if a country’s RCA in wheat is high (typically greater than one), that means wheat makes up a higher share of that country’s total exports than it does of the world’s exports. This suggests that that country is a more efficient wheat-producer than the average country.

But countries don’t always produce the products in which they have a revealed comparative advantage. Sometimes Michael Jordan mows the lawn. Let’s take a look at a couple of examples from this new data visualization tool.

World Bank to publish Purchasing Power Parities in March 2014

Grant Cameron's picture
In June 2013 we announced the upcoming release of the results from the 2011 round of the International Comparison Program (ICP). The results will include ICP 2011 benchmark PPPs and related volume measures for 199 participating countries/economies.

<1000 days to the MDGs: Data Dashboards to Monitor the last Stretch

Johan Mistiaen's picture
Also available in: Español | Français | العربية

Data on Millennium Development Goals (MDG) indicator trends for developing countries and for different groups of countries are curated in the World Development Indicator (WDI) database.  Each year we use these data in the Global Monitoring Report (GMR) to track progress on the MDGs.  Many colleagues, as well as non-Bank staff, approach us on a weekly basis with questions regarding where their region, or country, or sector stands in regard to achieving the core MDGs.  Oftentimes in the same breath, they will also ask us whether or when we expect that a particular country or region will meet a certain MDG.  

With less than 1,000 days remaining to the MDG deadline, work on the Post-2015 agenda is in full swing. In response to the growing demand for additional info about GMR analytics and the underlying data, we developed a suite of open and interactive data diagnostics dashboards available at: http://data.worldbank.org/mdgs.  Below is an extract which summarizes the progress status towards meeting various MDGs among countries in various regions, income and other groups.  Select different indicators and highlight categories of progress status to interact with the visualization.

 

Seeing Between the Lines: Visualizing Global Poverty Trends

Johan Mistiaen's picture

Last month, while World Bank President Jim Yong Kim launched the gender data portal, U.S. Secretary of State Hillary Clinton remarked that “data not only measures progress, it inspires it”.  Indeed when data is both relevant and effectively communicated, it can help to inform policies, identify challenges, and catalyze changes and innovations that deliver development results.

With that goal in mind, we started an Open Data Lab.  One of our objectives is to help the development community become more effective data communicators by experimenting with different data visualization techniques and tools.  The human brain finds it easier to process data and information if it is presented as an image rather than raw numbers or words.  And visualizations that let and encourage users to interact with data can deepen their understanding of the information presented.