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Benchmarking global poverty reduction

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  • Ravallion, Martin

Abstract

Against what standards should we judge the developing world's overall performance against poverty going forward? The paper proposes two measures, each with both"optimistic"and"ambitious"targets for 2022, 10 years from the time of writing. The first measure is absolute consumption poverty, as judged by what"poverty"means in the poorest countries. The second is a new measure of global poverty combining absolute poverty with country-specific social inclusion needs, consistently with national poverty lines. The optimistic benchmark would entail an absolute poverty rate of 9 percent in 2022, and a combined poverty rate of 40 percent, including the allowance for social inclusion. The more ambitious targets would bring the absolute rate down to 3 percent and the combined rate to 33 percent. The optimistic target would maintain the (impressive) progress against poverty of the last 20 years, without global crises to stall that progress. The ambitious target would require about a 1 percentage point higher growth rate for the gross domestic product of the developing world, as long as this did not come with a reduction in the household sector's share or any further increase in overall inequality beyond its level in 2008. Alternatively, the 3 percent target could be reached at currently expected growth rates but at the lower level of inequality found in 1999.

Suggested Citation

  • Ravallion, Martin, 2012. "Benchmarking global poverty reduction," Policy Research Working Paper Series 6205, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6205
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    References listed on IDEAS

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    1. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications, The World Bank, number 6586.
    2. Luis López-Calva & Eduardo Ortiz-Juarez, 2014. "A vulnerability approach to the definition of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 23-47, March.
    3. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, Oxford University Press, vol. 125(4), pages 1577-1625.
    4. Martin Ravallion & Shaohua Chen & Prem Sangraula, 2009. "Dollar a Day Revisited," World Bank Economic Review, World Bank Group, vol. 23(2), pages 163-184, June.
    5. Francisco H.G. Ferreira & Julian Messina & Jamele Rigolini & Luis-Felipe López-Calva & Maria Ana Lugo & Renos Vakis, 2013. "Economic Mobility and the Rise of the Latin American Middle Class
      [La movilidad económica y el crecimiento de la clase media en América Latina]
      ," World Bank Publications, The World Bank, number 11858.
    6. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
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    Cited by:

    1. Peter Edward & Andy Sumner, 2014. "The Poor, the Prosperous and the ?Inbetweeners?: A Fresh Perspective on Global Society, Inequality and Growth," Working Papers 122, International Policy Centre for Inclusive Growth.
    2. Armando Barrientos, 2016. "Inequality, Poverty, and Antipoverty Transfers," Working Papers id:11190, eSocialSciences.
    3. Sudarno SUMARTO & Sarah MOSELLE, 2015. "Addressing Poverty and Vulnerability in ASEAN: An Analysis of Measures and Implications Going Forward," Working Papers DP-2015-63, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Brooks, Douglas H. & Joshi, Kaushal & McArthur, John W. & Rhee, Changyong & Wan, Guanghua, 2014. "A ZEN approach to post-2015 development goals for Asia and the Pacific," Ecological Economics, Elsevier, vol. 107(C), pages 392-401.
    5. Birdsall, Nancy & Lustig, Nora & Meyer, Christian J., 2014. "The Strugglers: The New Poor in Latin America?," World Development, Elsevier, vol. 60(C), pages 132-146.

    More about this item

    Keywords

    Rural Poverty Reduction; Achieving Shared Growth; Regional Economic Development; Inequality;

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