LIUC 2008, R.Helg
Monetary Poverty
Extreme poverty around the world has been reduced since 1820 if we control for
population increase. In absolute terms in has continuously increased between
1820 and 1980. After it has reduced
World Poverty 1a: World population with less than 1.08
US$ (PPP) per day (old estimates)
1820
83,9
%
1929
56,3
1950
54,8
1960
44
1970
35,6
1980
31,5
1987*
28,3
1992
23,7
1998* 2005°
23,4
17,2
million 886,8 1149,7 1175,7 1230,7 1342,6 1431,2 1183,2 1176,0 1175,1 931,3
Source: Bourguignon e Morrison (2002), for * Chen e Ravallion (2001), for ° Chen,Ravallion (2008)
World Poverty 1b: World population with less than 1.25
US$ (PPP) per day (new estimates)
1981
52,2
%
million
1987
41,8
1993
38,9
1999
33,7
2005
25,7
1913,3 1718,2 1785,1 1695,4 1399,6
Source: Chen e Ravallion (2008)
Non-Monetary Poverty
Continuous reduction in all regions
World Poverty 2: Human Development
geographic areas (weighted average)
Australasia
North America
Western Europe
Eastern Europe
Latin America
Eastern Asia
China
Sourth Asia
Africa
Source: Crafts (2000)
1870
0.539
0.462
0.374
1913
0.784
0.729
0.606
0.278
0.236
0.055
1950
0.856
0.864
0.789
0.634
0.442
0.306
0.159
0.166
0.181
Index
1995
0.933
0.945
0.933
0.786
0.802
0.746
0.650
0.449
0.435
for
LIUC 2008, R.Helg
Three different approaches to measuring inequality
in the world
Main source of
data
Unit of
observation
Welfare concept
National
currency
conversion
Within-country
distribution
(inequality)
Results:
- 1820-1980
- 1980-2000
Concept 1:
unweighted
inter-national
inequality
National
accounts
Country
GDP or GNP per
capita
Concept 2:
weighted international
inequality
National
accounts
Country
(weighted by its
population)
GDP or GNP per
capita
Concept 3:
“true” world
inequality
Household
surveys
Individual
Mean per capita
disposable
income or
expenditures
Market exchange rate or PPP exchange rate
(but different PPP concepts used)
Ignored
Ignored
Included
Increase
Increase
Increase
Reduction
Increase
Reduction
Source: adapted from Milanovic (2002)
LIUC 2008, R.Helg
World Income Inequality 1: the long run
(mean logarithmic deviation)
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
source: Bourguignon-Morrison
0.0
18
20
18
50
18
70
18
90
Within group inequality
19
10
19
29
19
50
Between group inequality
19
60
19
70
19
80
19
92
Total inequality
World income inequality has continuously increased between 1820 and
1980.
Note the inversion in relevance of the two components: between 1820
and 1930 within country inequality has been the most important
component of world income inequality. After 1930 the leading
component has become across country inequality.
LIUC 2008, R.Helg
World Income Inequality 2: the last 30 years
(mean logarithmic deviation)
0.9
0.8
0.7
0.6
0.5
0.4
0.3
source: Sala-i-M artin (2002)
0.2
19
70
19
71
19
72
19
73
19
74
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
0.1
Within group inequality
Betw een group inequality
Total inequality
In the last 20 years world income inequality has inverted its trend and started
reducing. This evolution is mainly due to the fast convergence in per capita
income between China (from 1980) and India (from 1990), on one side, and the
developed countries, on the other.
Note also the increase in the role played by within country inequality.
LIUC 2008, R.Helg
World Income Inequality 3: comparison of various
studies (another measure: Gini coefficient)
Fonte: Sala-i-Martin (2005)
LIUC 2008, R.Helg
Monetary Poverty in World Regions
Fonte: Sala-i-Martin (2005)