How should poverty be measured?

The number of poor people around the globe is perhaps among the most essential statistics in international development. Arriving at the most accurate and inclusive figure, however, is quite a challenge.

There are at least two ways of measuring how many poor people there are in the world. One is by using the World Bank’s international poverty line of $1.25 per person per day, which is based on the average national poverty lines of the world’s 15 poorest countries.  Some institutions also peg this international poverty line at $2 per person per day, which is the average for all developing countries.

A second way of measuring the number of poor people is by using poverty lines as defined by specific countries. Ugo Gentillini of the World Food Program and Andy Sumner of the Institute of Development Studies explain the relevance of this second method in a guest post on Oxfam GB’s From Poverty to Power blog:

Which method do you think is more relevant to today’s global scene? Have your say, leave a comment below.

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