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La Fissazione della International Poverty Line: una nuova proposta applicata al Vietnam
[Setting a new International Poverty Line: a new proposal applied to Vietnam]

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  • Pansini, Rosaria Vega

Abstract

The poverty line, which has been set by the World Bank in 1990 at 1.08USD/day PPA contains three major errors: it does not refer to a clear definition of poverty; it uses wrong PPA factors converting national poverty lines and it is based on limited data from two countries with the highest poverty incidence. All these errors lead to a systematic underestimate of world poverty. The objective of the paper is be then to evaluate the accuracy of international poverty estimates produced by the World Bank. The case study analyzed in the paper is Vietnam, a country which experiences impressive achievements in term of poverty reduction in the last twenty years. The specific aim of this study is then twofold. Firs, it will construct a new international poverty line using different PPA conversion factors giving more weight to goods consumed by the poorest people. Second, it will design a poverty map for Vietnam using this new poverty threshold. Results indicate that using more accurate PPA conversion factors poverty rates are much higher than the current estimates and this suggest a general revision in the method of setting an international poverty threshold.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4923.

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Date of creation: Jul 2004
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Handle: RePEc:pra:mprapa:4923

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Related research

Keywords: povertà; disuguaglianza; linee di povertà; poverty map;

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References

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  1. Minot, Nicholas & Baulch, Bob, 2002. "The spatial distribution of poverty in Vietnam and the potential for targeting," MTID discussion papers 42, International Food Policy Research Institute (IFPRI).
  2. Swinkels, Rob & Turk, Carrie, 2003. "Strategic planning for poverty reduction in Vietnam : progress and challenges for meeting the localized Millennium Development Goals," Policy Research Working Paper Series 2961, The World Bank.
  3. Adam McCarty, 2001. "Economy of Vietnam," Development and Comp Systems 0110002, EconWPA.
  4. Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique, 1991. "Quantifying Absolute Poverty in the Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-61, December.
  5. Massoud Karshenas, 2002. "Measurement and Nature of Absolute Poverty in Least Developed Countries," Working Papers 129, Department of Economics, SOAS, University of London, UK.
  6. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  7. Angus Deaton, 2003. "How to Monitor Poverty for the Millennium Development Goals," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 4(3), pages 353-378.
  8. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
  9. Chen, Shaohua & Datt, Gaurav & Ravallion, Martin, 1994. "Is Poverty Increasing in the Developing World?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(4), pages 359-76, December.
  10. Minot, Nicholas, 2000. "Generating Disaggregated Poverty Maps: An Application to Vietnam," World Development, Elsevier, vol. 28(2), pages 319-331, February.
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