Dikhanov, YuriFerreira, Francisco H. G.Hamadeh, NadaChen, ShaohuaDabalen, AndrewPrydz, Espen BeerJolliffe, DeanSangraula, PremNarayan, AmbarSerajuddin, UmarYoshida, NobuoRevenga, Ana2015-11-042015-11-042015-10https://hdl.handle.net/10986/22854The 2014 release of a new set of purchasing power parity conversion factors (PPPs) for 2011 has prompted a revision of the international poverty line. In order to preserve the integrity of the goalposts for international targets such as the Sustainable Development Goals and the World Bank’s twin goals, the new poverty line was chosen so as to preserve the definition and real purchasing power of the earlier $1.25 line (in 2005 PPPs) in poor countries. Using the new 2011 PPPs, the new line equals $1.90 per person per day. The higher value of the line in US dollars reflects the fact that the new PPPs yield a relatively lower purchasing power of that currency vis-à-vis those of most poor countries. Because the line was designed to preserve real purchasing power in poor countries, the revisions lead to relatively small changes in global poverty incidence: from 14.5 percent in the old method to 14.1 percent in the new method for 2011. In 2012, the new reference year for the global count, we find 12.7 percent of the world’s population, or 897 million people, are living in extreme poverty. There are changes in the regional composition of poverty, but they are also relatively small. This paper documents the detailed 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. It also describes various caveats, limitations, perils and pitfalls of the approach taken.en-USCC BY 3.0 IGOLIVING STANDARDSPER CAPITA CONSUMPTIONPOVERTY THRESHOLDREGIONAL COMPOSITIONRISKSHOUSEHOLD SURVEYHOUSEHOLD SIZECONSUMPTION EXPENDITURESPOVERTY LINEECONOMIC GROWTHREGIONAL PATTERNSPOVERTY LEVELSINCOME POVERTYINCOMEFOOD CONSUMPTIONREGIONAL AGGREGATESPOVERTY ESTIMATESPOVERTY RATESINCOME REGIONSNATIONAL POVERTY LINECONSUMPTION DATAHOUSINGPOLITICAL ECONOMYFOOD POLICYRURAL INCOMESNATIONAL POVERTYREGIONAL PROFILEPOOR PEOPLEEXTREME POVERTY LINEINTERNATIONAL POVERTY LINESDEVELOPMENT GOALSGLOBAL POVERTYRURAL POPULATIONCURRENT POVERTYMEASURESPOVERTY MEASURESNATIONAL POVERTY LINESREGIONPOVERTY REDUCTIONREGIONAL POVERTYMEASURING POVERTYFOOD POVERTY LINEPOVERTY GAPFOOD PRICEINTERNATIONAL POVERTY COMPARISONSPOLITICAL CONSTRAINTSEXCHANGE RATESPOVERTY INCIDENCEINTERNATIONAL POVERTY LINEHOUSEHOLD INCOMEDATA ISSUESESTIMATES OF POVERTYINFLATION RATEHOUSEHOLD SURVEYSCONSUMPTION EXPENDITUREFOOD EXPENDITURESCONSUMPTION POVERTYREGIONAL LEVELSCHANGES IN POVERTYCARIBBEAN REGIONPOVERTY HEADCOUNT RATEPOVERTY PROFILEFOOD ITEMSRURAL POVERTY LINEWELFARE VARIABLEPOVERTY LINESCONSUMPTIONPOVERTY DATAHUMAN ENERGYCOUNTRY LEVELDEVELOPMENT REPORTPOVERTY COMPARISONSFOOD POVERTYPOVERTY MEASUREMENTAGGREGATE POVERTYREGIONAL DIFFERENCESINCOME DISTRIBUTIONSPOOR COUNTRIESRURAL POVERTY RATESMEASUREMENT OF POVERTYCONSUMPTION MEASURERURAL POVERTYINCOME DISTRIBUTIONABSOLUTE POVERTYRURAL POVERTY LINESRURALNUTRITIONAGRICULTURAL ACTIVITIESECONOMIC DEVELOPMENTPOOR POPULATIONWELFARE MEASURESREGIONSEXTREME POVERTYSPATIAL DISTRIBUTIONABSOLUTE POVERTY LINERURAL AREASPOVERTYREGIONAL DISTRIBUTIONNATIONAL POVERTY HEADCOUNTABSOLUTE TERMSINCIDENCE OF POVERTYHOUSEHOLD CONSUMPTIONREGIONAL POVERTY MEASURESPOVERTY UPDATECONSUMER PRICE INDEXDECLINE IN POVERTYPOLICY RESEARCHPOVERTY RATEPOORPOVERTY ASSESSMENTCONSUMPTION PER CAPITAFOOD PRICESPOVERTY ANALYSISDEVELOPMENT POLICYINEQUALITYSPATIAL DIFFERENCESPOOR PERSONWorking PaperWorld Bank10.1596/1813-9450-7432