Syndicate content

Global Economy

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.

Chart 1


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?

Kenya’s re-based national accounts: myths, facts, and the consequences

Johan Mistiaen's picture

A month ago, the Kenya National Bureau of Statistics (KNBS) Kenya released a set of re-based and revised National Accounts Statistics (NAS), the culmination of an exercise that started in 2010.  Press coverage, reactions from investors and the public have been generally favorable, but some confusion still looms regarding some of the facts and consequences.  We wrote this blog post to debunk some of the myths.

NAS, including Gross Domestic Product (GDP), are typically measured by reference to the economic structure in a “base” year.  Statisticians sample businesses in different industries to collect data that measures how fast they are growing.  The weight they give to each sector depends on its importance to the economy in the base year.  As time passes and the structure of the economy changes, these figures become less and less accurate.

Re-basing is a process of using more recently collected data to replace an old base year with a new one to reflect the structural changes in the economy.  Re-basing also provides an opportunity to add new or more comprehensive data, incorporate new or better statistical methods, and apply advancements in classification and compilation standards. The current gold standard is the 2008 System of National Accounts (SNA).

Where in the world are young people out of work?

Leila Rafei's picture
Also available in: Français | العربية | Español

As International Youth Day approaches next week, I've found myself wondering what are the primary issues affecting young people throughout the world. One topic that seems to be a common thread across regions and income groups is youth unemployment, which remains more than double the rate of unemployment for the general population.

It's well known that youth populations are on the rise in the developing world, particularly. What does this mean for the millions of young people who enter the workforce every year?

Youth unemployment is defined as individuals aged 15-24 who are without work, but are currently available for work and have sought it in the recent past. Below, I analyze data from World Development Indicators. These data come originally from the International Labour Organization (ILO), which produces its own estimates that are harmonized to account for inconsistences in the data source, definition, and methodologies. ILO estimates may differ from official unemployment statistics produced by national statistical offices.  

Asia maintains lowest levels of youth unemployment
Regional levels of youth unemployment have barely changed in the past two decades. South Asia and East Asia and Pacific have maintained the lowest rates, hovering at about 10% for the last 20 years. Meanwhile, the Middle East and North Africa region has had the highest rate of youth unemployment since the 1990s, and clocked in a figure of about 27% in 2012. The biggest increase in the youth unemployment rate has been in the Europe and Central Asia region, where after years of steady decline rates have risen to over 20% since the financial crisis in 2008.

Chart 1

ICP 2011: 7 Million Prices, 199 Economies, 8 Regions, and 15 Partners

Haishan Fu's picture
Also available in: 中文

On behalf of the International Comparison Program (ICP) Executive Board and the World Bank, I’d like to thank everyone who’s contributed to the success of the 2011 round. The results are now available in report form, as a data download, and through interactive applications.
 
The largest global statistical program 
The ICP is hosted by the World Bank, and estimates purchasing power parities, or PPPs, for use as currency converters to compare the size and price levels of economies around the world. In terms of geographic scope, implementation time frame and institutional partnerships, many people consider it to be the largest ever global statistical initiative. It’s conducted under the authority of the United Nations Statistical Commission, and the 2011 ICP round collected over 7 million prices from 199 economies in eight regions, with the help of 15 regional and international partners. It’s the most extensive effort to measure PPPs ever undertaken.

Collecting Country Debt Data: 63 Years and Counting

Jung Weil's picture
IDS 2014
What word has four letters, one syllable, no weight but can still be crushing? If you guessed debt, you are correct. The World Bank has had a Debt Reporting System (DRS) since 1951, and it's still going strong.

Although the World Bank collaborates with international agencies that work with external debt and debt-related statistics (the Bank for International Settlements (BIS), the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and others), the World Bank has the international mandate to collect external debt data, and we maintain comprehensive external debt information.

World Bank sees stronger global growth on account of firming up of activity in high-income countries

The world economy is projected to strengthen this year, with growth in high-income economies appearing to be finally turning the corner five years after the global financial crisis, according to the World Bank’s newly-released Global Economic Prospects (GEP) report.
 

 

Reviewing the World Bank’s Analytical Country Classification: An Update

Shaida Badiee's picture

On July 1, we updated the analytical country classification, which groups economies of the world into four categories based on 2012 GNI per capita estimates: low income, lower-middle income, upper-middle income, and high income. This has prompted some questions related to the review of this classification scheme, which we announced late last year and for which we solicited and received your feedback. I thought it would be useful to post an update.