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How can we improve global poverty measures?

File Created On:
April, 2016

Published by the Center for Global Development, the working paper "Toward Better Global Poverty Measures" presents a more coherent and detailed method for measuring global poverty. Based on three main focuses - the past measurement of absolute poverty, recent progress of the poorest, and comparison of price levels - the deficiency of existing measurement of poverty is highlighted.

Abstract: While much progress has been made over the last 25 years in measuring global poverty, there are a number of challenges ahead. The paper discusses three sets of problems: (i) how to allow for social effects on welfare, recognizing the identification issues involved; (ii) the need to monitor progress in raising the consumption floor above its biological level, in addition to counting the number of people living near the floor; and (iii) addressing the longstanding concerns about prevailing approaches to making inter-country comparisons of price levels facing poor people. Some suggestions are offered for operational solutions, building on past research.

Read full paper here : http://www.cgdev.org/publication/toward-better-global-poverty-measures-w...