Abstract: One of the main goals of the World Bank is to help bring an end to extreme poverty by 2030, understood as less than 3% of the world population living in extreme poverty by that time. This presentation is about how the Bank monitors progress towards this goal, and the assumptions and data inputs used to estimate global poverty.
In 2012, the latest reference year for the global count, we find that 897 million people (12.7 percent of the world’s population) are living in extreme poverty, defined as living on less than $1.90 per day. The presentation will include an explanation of how the new $1.90 international poverty line was established, along with a discussion of how incorporating the most recent purchasing power parity conversion factors (PPPs) from 2011 have changed the value of this line and our understanding of the profile of global poverty.
The discussion will also cover several methodological decisions taken in the process of updating both the poverty line and the consumption and income distributions at the country level, including issues of inter-temporal and spatial price adjustments.
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