INTB 3351 Week 13 study guide

INTB 3351 Week 13 study guide - INTB 3351 History of...

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INTB 3351 History of Globalization Website Study Guide The World Bank, PovertyNet Overview: “Understanding, Measuring, and Overcoming Poverty” 1. How does the World Bank measure poverty at the country level? How does it measure poverty at the global level? How would describe the trend in global poverty levels during the second age of globalization? 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. 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 $1.25 and $2 per day (2005 Purchasing Power Parity terms). Using improved price data from the latest (2005) round of the International Comparison Program, new poverty estimates released in August 2008 show that about 1.4 billion people in the developing world (one in four) were living on less than $1.25 a day in 2005, down from 1.9 billion (one in two) in 1981. The
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This note was uploaded on 08/10/2010 for the course INTB AND T 3352 taught by Professor Newmanandpriest during the Spring '09 term at University of Houston.

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INTB 3351 Week 13 study guide - INTB 3351 History of...

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