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Poverty

Behind Closed Doors: how traditional measures of poverty mask inequality inside the household and a new look at possible solutions

Caren Grown's picture

During the days coming up to, and after October 17, when many stories, numbers, and calls for action will mark the International Day for the Eradication of Poverty, we want to invite you to think for a second on what you imagine a poor household to be like. Is this a husband, wife, and children, or maybe an elderly couple? Are the children girls or boys? And more importantly, do all experience the same deprivations and challenges from the situation they live in?  In a recent blog post and paper, we showed that looking at who lives in poor homes—from gender differences to household composition more broadly—matters  to better understand and tackle poverty.

Globally, female and male poverty rates—defined as the share of women and men who live in poor households—are very similar (12.8 and 12.3 percent, respectively, based on 2013 data). Even in the two regions with the largest number of poor people (and highest poverty rates)—South Asia and Sub-Saharan Africa—gender differences in poverty rates are quite small. This is true for the regions, but also for individual countries, irrespective of their share of poor people. Why is that the case? As Chapter 5 of the 2018 Poverty and Shared Prosperity Report explains, our standard monetary poverty indicator is measured by household, not by individual. So, a person is classified as either poor or nonpoor according to the poverty status of the household in which she or he lives. This approach critically assumes everyone in the household shares equally in household consumption—be they a father, a young child, or a daughter-in-law.  By design, it thus masks differences in individual poverty within a household.

Notwithstanding this shortcoming, when we look a bit deeper the information we have today still shows visible gender differences in poverty rates. Take age, for example. We know that there are more poor children than poor adults, and while we do not find that poverty rates differ much between girls and boys at the early stages of life, stark differences appear between men and women during the peak productive and reproductive years.

Incomes of the poorest are growing in 3 of every 4 economies

Maria Ana Lugo's picture

In much of the world today, the incomes of the poor are growing. The World Bank calls this concept shared prosperity, defined as the average annual growth in income or consumption of the poorest 40 percent (the bottom 40) within each country. So, if shared prosperity in a country is positive, the poor are getting richer.

In addition, the shared prosperity premium is defined as the difference between the annual income or consumption growth rate of the bottom 40 and the annual growth rate of the mean in the economy. A positive premium indicates that the bottom 40 are getting a larger share of overall income in the economy.

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

 

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

Divyanshi Wadhwa's picture
Also available in: Español | Français | العربية | 中文

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.

 

Cured Into Destitution: the risk of financial catastrophe after surgery

Kathryn Wall's picture
Also available in: العربية | Español

Low-income countries face the highest risk of financial catastrophe due to surgery and have made the slowest progress

Five billion people—two thirds of the world’s population—lack access to safe, timely, and affordable surgical, anesthesia, and obstetric (SAO) care, as World Bank Group President Dr. Jim Yong Kim stated. Of the myriad barriers to accessing SAO care—safety, for example, or the lack of a well-trained workforce—one of the largest is financial. For patients, surgery can be very expensive. Not only can the financial burden of seeking surgical care be a formidable obstacle to those who need surgery, it can also have a devastating impact on those who are able to receive it. Over two billion people cannot afford surgery if they needed it today, and, of those who get surgery every year, an estimated 33 million of them will undergo financial hardship from its direct costs—81 million when the ancillary costs of care like transportation and food are included.

Introducing two new dashboards in the Health, Nutrition and Population data portal

Haruna Kashiwase's picture

We’re pleased to launch new dashboards in the Health, Nutrition and Population Portal, following the portal’s revamp last year. The renewed HNP portal has two main dashboards covering Population and Health. Both dashboards are designed to be interactive data visualization tools where users can see various population and health indicators. Users can access various charts and maps by selecting specific time, country or region and indicators. We have added new indicators, charts and new health topics such as Universal Health Coverage and Surgery and Anesthesia. Below are some examples of stories gleaned from our dashboards.

India’s population is projected to surpass that of China around 2022

China, with 1.4 billion people, is the most populous country in the world in 2017. However, India, the second most populous country with 1.3 billion people, is projected to surpass China’s population by 2022. China’s total fertility rate (the number of children per woman) has also declined sharply since the 1970s.

Applications open for third round of funding for collaborative data innovation projects

World Bank Data Team's picture
Photo Credit: The Crowd and The Cloud


The Global Partnership for Sustainable Development Data and the World Bank Development Data Group are pleased to announce that applications are now open for a third round of support for innovative collaborations for data production, dissemination, and use. This follows two previous rounds of funding awarded in 2017 and earlier in 2018.

This initiative is supported by the World Bank’s Trust Fund for Statistical Capacity Building (TFSCB) with financing from the United Kingdom’s Department for International Development (DFID), the Government of Korea and the Department of Foreign Affairs and Trade of Ireland.

Scaling local data and synergies with official statistics

The themes for this year’s call for proposals are scaling local data for impact, which aims to target innovations that have an established proof of concept which benefits local decision-making, and fostering synergies between the communities of non-official data and official statistics, which looks for collaborations that take advantage of the relative strengths and responsibilities of official (i.e. governmental) and non-official (e.g.,private sector, civil society, social enterprises and academia) actors in the data ecosystem.

The 2018 Atlas of Sustainable Development Goals: an all-new visual guide to data and development

World Bank Data Team's picture
Also available in: Español | العربية | Français
Download PDF (30Mb) / View Online

“The World Bank is one of the world’s largest producers of development data and research. But our responsibility does not stop with making these global public goods available; we need to make them understandable to a general audience.

When both the public and policy makers share an evidence-based view of the world, real advances in social and economic development, such as achieving the Sustainable Development Goals (SDGs), become possible.” - Shanta Devarajan

We’re pleased to release the 2018 Atlas of Sustainable Development Goals. With over 180 maps and charts, the new publication shows the progress societies are making towards the 17 SDGs.

It’s filled with annotated data visualizations, which can be reproducibly built from source code and data. You can view the SDG Atlas online, download the PDF publication (30Mb), and access the data and source code behind the figures.

This Atlas would not be possible without the efforts of statisticians and data scientists working in national and international agencies around the world. It is produced in collaboration with the professionals across the World Bank’s data and research groups, and our sectoral global practices.
 

Trends and analysis for the 17 SDGs

Data science competition: predicting poverty is hard - can you do it better?

Tariq Khokhar's picture
 

If you want to reduce poverty, you have to be able to identify the poor. But measuring poverty is difficult and expensive, as it requires the collection of detailed data on household consumption or income. We just launched a competition together with data science platform Driven Data, to help us see how well we can predict a household’s poverty status based on easy-to-collect information and using machine learning algorithms.

The competition supplies a set of training data with anonymized qualitative variables from household surveys in 3 countries, including the “poor” or “not poor” classification for each observation.

The challenge is to build models which can accurately classify households from a different set of test data (with the poor/not poor classification removed!) for the same 3 countries, and then submit them for scoring. Performance is measured by the mean log loss for the 3 countries which tells us how accurate the classification models developed are.

Prizes are $6,000; $4,000; and $2,500 for the top 3 performing entries, plus a $2,500 bonus prize for the top-performing entry from a low- or lower-middle income country. The deadline for entries is February 28th 2018.

You can read the full problem description and enter the competition here, and see the Driven Data team’s “benchmark solution” based on a random forest classifier.

Good luck - we look forward to seeing your solutions!

Chart: 100 Million People Pushed into Poverty by Health Costs in 2010

Tariq Khokhar's picture
Also available in: 中文 | Español | العربية | Français



Universal health coverage (UHC) means that all people can obtain the health services they need without suffering financial hardship. A new report produced by the World Bank and the World Health Organization, finds that health expenditures are pushing about 100 million people per year into “extreme poverty,” those who live on $1.90 or less a day; and about 180 million per year into poverty using a $3.10 per day threshold.

You can access the report, data, interactive visualizations, and background papers at: http://data.worldbank.org/universal-health-coverage/

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