[extropy-chat] Seven cents an hour?

[Jack Parkinson]

> From: Alfio Puglisi <alfio.puglisi at gmail.com>
> Subject: Re: [extropy-chat] Seven cents an hour?
> To: ExI chat list <extropy-chat at lists.extropy.org>
> Message-ID:
> <4902d9990511120405l93d571biaac6125698296285 at mail.gmail.com>
> Content-Type: text/plain; charset=ISO-8859-1
>
> On 11/12/05, Joseph Bloch <transhumanist at goldenfuture.net> wrote:
>> I've always wondered about those statistics, which say that people in
>> under-developed countries make $x an hour. Do those figures take into
>> account the buying power of a dollar in that country?
>
> They don't. And, as you say, taking into account purchasing power
> makes those figures more reasonable.
>
> Alfio

Poverty can never be called reasonable. By definition it is less than the 
level required for basic neccessities. The basis for the statistics is 
well-established this snip from: 
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/EXTPA/0,,contentMDK:20153855~menuPK:435040~pagePK:148956~piPK:216618~theSitePK:430367,00.html


Measuring poverty at the country level
A common method used to measure poverty is based on incomes or consumption 
levels. A person is considered poor if his or her consumption or income 
level falls below some minimum level necessary to meet basic needs. This 
minimum level is usually called the "poverty line". What is necessary to 
satisfy basic needs varies across time and societies. Therefore, poverty 
lines vary in time and place, and each country uses lines which are 
appropriate to its level of development, societal norms and values.

Information on consumption and income is obtained through sample surveys, 
with which households are asked to answer detailed questions on their 
spending habits and sources of income. Such surveys are conducted more or 
less regularly in most countries. These sample survey data collection 
methods are increasingly being complemented by participatory methods, where 
people are asked what their basic needs are and what poverty means for them. 
Interestingly, new research shows a high degree of concordance between 
poverty lines based on objective and subjective assessments of needs.

For details on methodology, see the Measuring Poverty topic in the Poverty 
Analysis site. For data see Data and Data Sources.

Measuring poverty at the global level
When estimating poverty worldwide, the same reference poverty line has to be 
used, and expressed in a common unit across countries. Therefore, for the 
purpose of global aggregation and comparison, the World Bank uses reference 
lines set at $1 and $2 per day (more precisely $1.08 and $2.15 in 1993 
Purchasing Power Parity terms). It has been estimated that in 2001, 1.1 
billion people had consumption levels below $1 a day and 2.7 billion lived 
on less than $2 a day. These figures are lower than earlier estimates, 
indicating that some progress has taken place, but they still remain too 
high in terms of human suffering, and much more remains to be done.

The Global Poverty Monitoring Database, by Chen and Ravallion at the World 
Bank contains global and regional poverty estimates for the years 1981, 
1984, 1987, 1990, 1993, 1996, 1999 and 2001 as well as data on the share of 
people living below the national poverty line by country for the years when 
household surveys are available. The methodology used for the Global Poverty 
Monitoring Database is explained by Ravallion and Chen in "How did the 
world's poorest fare in the 1990s?" (2000) . For new estimates, see their 
paper "How Have the World's Poorest Fared Since the Early 1980s? " 
(2004)(232Kb PDF).

Recent years have witnessed a lively debate on global poverty measurement. 
For more information go to The Global Poverty Numbers Debate.

Jack Parkinson