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Has World Poverty Really Fallen?

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Author Info
Sanjay G. Reddy
Camelia Minoiu

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Abstract

We evaluate the claim that world consumption poverty has fallen since 1990 in light of alternative assumptions about the extent of initial poverty and the rate of subsequent poverty reduction in China, India, and the rest of the developing world. We use two poverty indicators: the aggregate headcount and the headcount ratio, and consider two widely-used international poverty lines ($1/day and $2/day). We conclude that, because of uncertainties in relation to the extent and trend of poverty in China, India, and the rest of the developing world, global poverty may or may not have increased. The extent of the estimated increase or decrease in world poverty is critically dependent on the assumptions made. Our conclusions highlight the importance of improving the quality of global poverty statistics. Copyright © 2007 The Authors; Journal compilation © International Association for Research in Income and Wealth 2007.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1475-4991.2007.00240.x/enhancedabs
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Income and Wealth.

Volume (Year): 53 (2007)
Issue (Month): 3 (09)
Pages: 484-502
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Handle: RePEc:bla:revinw:v:53:y:2007:i:3:p:484-502

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  1. Sanjay G. Reddy & Camelia Minoiu, 2006. "Chinese Poverty: Assessing the Impact of Alternative Assumptions," Working Papers 25, International Policy Centre for Inclusive Growth. [Downloadable!]
    Other versions:
  2. Sanjay Reddy, 2009. "The Emperor's New Suit: Global Poverty Estimates Reappraised," SCEPA Working Papers 2009-11, Schwartz Center for Economic Policy Analysis (SCEPA), The New School. [Downloadable!]
  3. Camelia Minoiu & Sanjay Reddy, 2008. "Kernel Density Estimation Based on Grouped Data: The Case of Poverty Assessment," IMF Working Papers 08/183, International Monetary Fund. [Downloadable!]
  4. Kohei Kawamura, 2008. "Inequality, Happiness and Relative Concerns: What Actually is their Relationship?," ESE Discussion Papers 182, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
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This page was last updated on 2009-11-22.

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