Benchmarking Global Poverty Reduction

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.

Bibliographic Details

Main Author:	Ravallion, Martin
Language:	English en_US
Published:	2012-09
Subjects:	ABSOLUTE POVERTY, ANNUAL GROWTH, ANNUAL GROWTH RATE, ANNUALIZED CHANGE, AVERAGE GROWTH, AVERAGE GROWTH RATE, AVERAGE INCOME, AVERAGE RATE, CHANGES IN POVERTY, CONSTANT ELASTICITY, CONSUMPTION POVERTY, COUNTERFACTUAL, COUNTRY DATA, COUNTRY INEQUALITY, COUNTRY LEVEL, COUNTRY PERFORMANCE, COUNTRY SPECIFIC, CROSS-COUNTRY COMPARISONS, CUMULATIVE DISTRIBUTION, CUMULATIVE DISTRIBUTION FUNCTION, DATA SET, DECLINE IN POVERTY, DECLINING INEQUALITY, DECOMPOSABLE INCOME INEQUALITY MEASURES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPING WORLD, DEVELOPMENT ECONOMICS, DEVELOPMENT GOALS, DEVELOPMENT POLICY, DISTRIBUTION FUNCTIONS, DISTRIBUTIONAL CHANGE, DISTRIBUTIONAL CHANGES, ECONOMIC ANALYSIS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC INEQUALITY, ECONOMIC REVIEW, ELASTICITY, EXTREME POVERTY, FINANCIAL CRISIS, GLOBAL ECONOMY, GLOBAL LEVEL, GLOBAL MARKETS, GLOBAL POVERTY, GROWTH PROCESS, GROWTH PROSPECTS, GROWTH RATE, GROWTH RATES, GROWTH TARGET, HIGH GROWTH, HIGHER INEQUALITY, HOUSEHOLD CONSUMPTION, HOUSEHOLD CONSUMPTION PER CAPITA, HOUSEHOLD LIVING STANDARDS, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HUMAN RIGHTS, IMPACT ON POVERTY, INCOME, INCOME DISTRIBUTION, INCOME GAP, INCOME INEQUALITY, INCOME LEVELS, INDIVIDUAL COUNTRIES, INEQUALITY, INEQUALITY CONSTANT, INEQUALITY INDEX, INEQUALITY MEASURE, INEQUALITY MEASURES, INEQUALITY REDUCTION, INEQUALITY WILL, INTERNATIONAL POVERTY LINE, LOW-INCOME COUNTRIES, MACROECONOMIC POLICIES, MEAN CONSUMPTION, MEAN LOG DEVIATION, MEASUREMENT ERRORS, MEASUREMENT OF POVERTY, MEASURING POVERTY, MIDDLE CLASS, NATIONAL ACCOUNTS, NATIONAL POVERTY, NATIONAL POVERTY LINES, NATURAL RESOURCES, NEGATIVE GROWTH, ORDINARY REGRESSIONS, POINT DECLINE, POLICY DISCUSSIONS, POLICY RESEARCH, POOR, POOR COUNTRIES, POOR HOUSEHOLDS, POOR PEOPLE, POOR POLICIES, POPULATION GROWTH, POPULATION SHARE, POPULATION SUB-GROUPS, POSITIVE GROWTH, POVERTY ACROSS COUNTRIES, POVERTY DECLINE, POVERTY ESTIMATES, POVERTY GAP, POVERTY GAP INDEX, POVERTY HEADCOUNT, POVERTY HEADCOUNT INDEX, POVERTY INCIDENCE, POVERTY INDEX, POVERTY LINE, POVERTY MEASURE, POVERTY MEASUREMENT, POVERTY MEASURES, POVERTY POVERTY, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, POVERTY REDUCTION EFFORTS, POVERTY TARGET, POWER PARITY, PRIVATE CONSUMPTION, PRO-POOR, PRO-POOR GROWTH, PUBLIC SUPPORT, QUANTILE REGRESSIONS, REAL INCOME, REDUCING INEQUALITY, REDUCING POVERTY, REGIONAL BREAKDOWN, RELATIVE DISTRIBUTION, RELATIVE INEQUALITY, RELATIVE POVERTY, RICH COUNTRIES, RISING INEQUALITY, RURAL, RURAL AREAS, RURAL POPULATION, SERIES OBSERVATIONS, STANDARD DEVIATION, TOTAL POVERTY, TOTAL POVERTY RATE, WELFARE INDICATOR,
Online Access:	http://documents.worldbank.org/curated/en/2012/09/16878201/benchmarking-global-poverty-reduction https://hdl.handle.net/10986/12095
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