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Quantifying the magnitude and severity of absolute poverty in the developing world in the mid-1980s

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  • Ravallion, Martin
  • Datt, Gaurav
  • van de Walle, Dominique
  • Chan, Elaine

Abstract

In counting the poor, and measuring the severity of absolute poverty, one faces a number of difficult questions. What poverty line should be used? Should one use the same poverty line across all countries? How should one adjust for differences across countries in the purchasing power of their currencies at official exchange rates? This paper proposes a methodology for addressing these questions and others, and gives aggregate results for 86 developing countries in the mid-1980s. The paper aims to make a necessarily rough but methodologically consistent assessment ofthe magnitude and severity of absolute poverty, based on recent available data. It suggests three possible interpretations of an"absolute poverty line"which might be considered appropriate for this purpose. It is followed by an empirical examination of poverty lines for a number of countries, both developing and developed. It discusses issues which arise in measuring poverty from readily available data on income distribution and outlines the approach used to measure poverty in countries for which such data are not available. The paper presents and discusses estimates of the prevalence and severity of absolute poverty in the developing countries in the mid-1980s. It also discusses some of the implications of these results, particularly their bearing on the prospects for future poverty alleviation.

Suggested Citation

  • Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique & Chan, Elaine, 1991. "Quantifying the magnitude and severity of absolute poverty in the developing world in the mid-1980s," Policy Research Working Paper Series 587, The World Bank.
  • Handle: RePEc:wbk:wbrwps:587
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    References listed on IDEAS

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    Cited by:

    1. Yasuyuki Sawada & Pan A. Yotopoulos, 2006. "Growth and Poverty Reduction Under Globalization: The Systematic Impact of Exchange Rate Misalignment," Discussion Papers 06-014, Stanford Institute for Economic Policy Research.
    2. Moatsos, Michail, 2020. "Global Absolute Poverty: The Evolution of its Measurement," EconStor Preprints 216642, ZBW - Leibniz Information Centre for Economics.
    3. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire," American Economic Review, American Economic Association, vol. 107(12), pages 3690-3721, December.
    4. Moatsos, Michail, 2020. "Why PPP exchange rates should be avoided in global poverty estimates," EconStor Preprints 218972, ZBW - Leibniz Information Centre for Economics.
    5. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire REVISED," Working Papers 20170005, New York University Abu Dhabi, Department of Social Science, revised Jun 2017.
    6. Moatsos Michail, 2016. "Global Absolute Poverty: Behind the Veil of Dollars," Journal of Globalization and Development, De Gruyter, vol. 7(2), pages 1-28, December.
    7. Katsushi S. Imai & Bilal Maleb, 2015. "Rural and Urban Poverty Estimates for Developing Countries: Methodologies," Discussion Paper Series DP2015-07, Research Institute for Economics & Business Administration, Kobe University.
    8. Moatsos, Michail, 2020. "The devil in the details: The core disadvantage of the International Poverty Line," EconStor Preprints 218971, ZBW - Leibniz Information Centre for Economics.

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