"The $2.15 international poverty line remains a valid and comparable global benchmark"

"median of national poverty lines in low-income countries (LICs), lower-middle-income countries (LMICs), and upper-middle-income countries (UMICs), converted to US dollars using PPP exchange rates. The extreme poverty line of US$1.90 (2011 PPP) increased to US$2.15 (2017 PPP). The higher poverty line typically used to measure poverty in LMICs was updated from US$3.20 (2011 PPP) to US$3.65 (2017 PPP) and in UMICs from US$5.50 (2011 PPP) to US$6.85 (2017 PPP). This change, however, does not mean the new extreme poverty line is now higher, and therefore more people will be counted as living in extreme poverty. The increase in the international poverty line from US$1.90 to US$2.15 primarily reflects the difference between 2017 and 2011 nominal dollar values. The change in the global poverty rate due to these updated poverty lines is thus negligible. As a result, the new extreme poverty line does not dramatically change the number of people living in extreme poverty in 2019. Extreme poverty decreases slightly, by 0.3 percentage point, to 8.4 percent, reducing the global count of the extreme poor by 20 million. This is also true of the increase from US$3.20 to US$3.65 for LMICs, and thus the poverty rate also increases slightly at the global level by 0.5 percentage point. In UMICs, the national poverty lines have increased in real terms, on average, so the change in the international poverty line from US$5.50 to US$6.85 represents an increase in real as well as nominal terms. The global poverty rate at this line increased from 43 percent to 47 percent. 4 POVERTY AND SHARED PROSPERITY 2022 FIGURE O.2 Recent global inequality trends were reversed in 2020 Sources: World Bank estimates based on Mahler, Yonzan, and Lakner, forthcoming; World Bank, Poverty and Inequality Platform, https://pip​ .worldbank​.org; World Bank, Global Economic Prospects database, https://databank.worldbank.org/source/global-economic-prospects. Note: Panel a shows the global Gini index for 1950 to 2020. “Historical data” for the period 1990–2019 are from the Poverty and Inequality Platform. “Backcast” estimates are extrapolated backward from the 1990 lineup using growth in national accounts. National accounts data before 1990 are from World Bank, World Development Indicators database, https://databank.worldbank.org/source/world-development​ -indicators; International Monetary Fund, World Economic Outlook, https://www.imf.org/en/Publications/SPROLLs/world-economic-outlook​ -databases; Bolt and van Zanden 2020. “Current projection” uses the nowcast methodology outlined in chapter 1 and a variety of data sources to project the latest 2019 lined-up estimate to 2020. “Pre-COVID-19 projection” extrapolates the 2019 lineup to 2020 using per capita gross domestic product (GDP) growth forecasts from the January 2020 Global Economic Prospects database. Panel b shows the annual change in the global Gini Index, in Gini points. Pre-COVID-19 projection Current projection 63 60 66 69 72 a. Global inequality (Gini index) Backcast Historical data Backcast Historical data b. Annual percentage change in global inequality 1950"

"from the June 2022 Global Economic Prospects (GEP) database to project poverty up to 2024. The “Pre-COVID-19 projection” uses the January 2020 GEP growth rate to project poverty to 2022. Both scenarios use the country-level average annual historical (2010–19) growth rate to project poverty in the remaining years. “3 percent target” is based on the estimated number of poor in 2030 (255 million). Pre-COVID-19 projection Current projection 0 2 4 6 8 10 12 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Historical data 3 percent target 3 percent target 0 100 200 300 400 500 600 700 800 Millions Percent 900 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 a. Poverty rate b. Number of poor Historical data 6.5 8.4 9.3 8.8 8.4 6.8 551 648 719 690 667 574 58 POVERTY AND SHARED PROSPERITY 2022 Notes 1. The first United Nations Sustainable Development Goal calls for a global effort to “end poverty in all its forms everywhere” (United Nations 2017). The World Bank set a target of reducing global poverty to below 3 percent by 2030. Box 1.1 in Poverty and Shared Prosperity 2018 (World Bank 2018) describes how  the World Bank’s corporate goals align with the Sustainable Development Goals. 2. This reduction in pace is not just because the percentage point changes are smaller—per centage point changes are smaller at lower rates (Ravallion 2003)—but also because the average annual percentage change in poverty fell from 8 percent to 5 percent. 3. Following the coverage rule of the Poverty and Inequality Platform (PIP), regional estimates for South Asia were only reported until 2014 in Poverty and Shared Prosperity 2020 (in that report, see box 1.2; in this report see table 1C.4 in online annex 1C). 4. As discussed in online annex 1B, the World Bank will continue to make the 2011 PPPs- based estimates available to users via PIP. The objective is to ensure transparency and replicability and to address the recommenda tion of the Atkinson Commission on Global Poverty that the World Bank continue to report poverty estimates on the basis of the 2011 PPPs until 2030. 5. Data coverage for 2017 refers to the data available at the time of writing Poverty and Shared Prosperity 2020. PIP’s data coverage for 2017 for Sub-Saharan Africa is currently 87 percent. 6. For example, several countries collected wel fare data via phone interviews, replacing or complementing traditional in-person inter views. Moreover, in several countries the wel fare aggregate used to measure poverty has been adapted to better capture the full extent of the COVID-19 shock—see Castaneda Aguilar et al. (2022a) for further details. 7. Because of this limited data availability and the incomparability in household welfare"