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International Comparison Program (ICP)

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.

Celebrating 50 years of measuring world economies

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].

A visitor to the World Bank’s atrium on May 23, 2018 would have seen a who’s who of eminent economists and statisticians congregating to celebrate the 50th anniversary of the International Comparison Program. Organized by the Global ICP Unit based in the World Bank in Washington, D.C, a large local, and virtual, audience gathered to hear the thoughts and reflections of major ICP players at the “50 Years of Measuring World Economies” event.

Event: 50 Years of Measuring World Economies – Wednesday May 23, 2018 at 4pm EST

Nada Hamadeh's picture
Join us live online or in-person on Wednesday at 4pm for "50 Years of Measuring World Economies" event held at the World Bank James D. Wolfensohn Atrium in Washington, DC.
 
The International Comparison Program (ICP) – the world’s largest global data initiative led by the World Bank under the auspices of the United Nations Statistical Commission – is celebrating its 50th anniversary this year. Since the initiation of the ICP as a modest research project at the University of Pennsylvania by Irving Kravis, Alan Heston and Robert Summers in 1968, the Program has grown to cover about 200 countries and 20 global, regional and sub-regional agencies.
 

To commemorate this milestone, World Bank Group Chief Executive Officer Kristalina Georgieva, 2015 Nobel Laureate in economics Sir Angus Deaton, and Georgetown University Provost Robert M. Groves will come together at an event to discuss the challenges and opportunities for investing in evidence for sustainable development. In addition, Lawrence H. Summers, the 71st Secretary of the US Treasury and son of ICP co-founder Robert Summers, will share a recorded tribute. A video produced by the World Bank for the occasion will showcase the history and impact of the ICP.

Can modern technologies facilitate spatial and temporal price analysis?

Marko Rissanen's picture
Also available in: Français

The International Comparison Program (ICP) team in the World Bank Development Data Group commissioned a pilot data collection study utilizing modern information and communication technologies in 15 countries―Argentina, Bangladesh, Brazil, Cambodia, Colombia, Ghana, Indonesia, Kenya, Malawi, Nigeria, Peru, Philippines, South Africa, Venezuela and Vietnam―from December 2015 to August 2016.

The main aim of the pilot was to study the feasibility of a crowdsourced price data collection approach for a variety of spatial and temporal price studies and other applications. The anticipated benefits of the approach were the openness, accessibility, level of granularity, and timeliness of the collected data and related metadata; traits rarely true for datasets typically available to policymakers and researchers.

The data was collected through a privately-operated network of paid on-the-ground contributors that had access to a smartphone and a data collection application designed for the pilot. Price collection tasks and related guidance were pushed through the application to specific geographical locations. The contributors carried out the requested collection tasks and submitted price data and related metadata using the application. The contributors were subsequently compensated based on the task location and degree of difficulty.

The collected price data covers 162 tightly specified items for a variety of household goods and services, including food and non-alcoholic beverages; alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; furnishings, household equipment and routine household maintenance; health; transport; communication; recreation and culture; education; restaurants and hotels; and miscellaneous goods and services. The use of common item specifications aimed at ensuring the quality, as well as intra- and inter-country comparability, of the collected data.

In total, as many as 1,262,458 price observations―ranging from 196,188 observations for Brazil to 14,102 observations for Cambodia―were collected during the pilot. The figure below shows the cumulative number of collected price observations and outlets covered per each pilot country and month (mouse over the dashboard for additional details).

Figure 1: Cumulative number of price observations collected during the pilot