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Debates on the Measurement of Global Poverty$
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Sudhir Anand, Paul Segal, and Joseph E. Stiglitz

Print publication date: 2010

Print ISBN-13: 9780199558032

Published to Oxford Scholarship Online: May 2010

DOI: 10.1093/acprof:oso/9780199558032.001.0001

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China is Poorer than We Thought, but No Less Successful in the Fight against Poverty 1

China is Poorer than We Thought, but No Less Successful in the Fight against Poverty 1

(p.327) 13 China is Poorer than We Thought, but No Less Successful in the Fight against Poverty1
Debates on the Measurement of Global Poverty

Shaohua Chen

Martin Ravallion

Oxford University Press

In 2005, China participated for the first time in the International Comparison Program (ICP), which collects primary data across countries on the prices for an internationally comparable list of goods and services. This chapter examines the implications of the new Purchasing Power Parity (PPP) rate for China's poverty rate and how it has changed over time. It provides estimates with and without adjustment for a likely sampling bias in the ICP data. Using an international poverty line of US$ 1.25 at 2005 PPP, the results show a substantially higher poverty rate for China than past estimates, with about 15% of the population living in consumption poverty, implying about 130 million more poor by this standard. The income poverty rate in 2005 is 10%, implying about 65 million more people living in poverty. However, the new ICP data suggest an even larger reduction in the number of poor since 1981.

Keywords:   China, International Comparison Program, purchasing power parity, poverty line

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