[OPE-L:6255] Re: Poverty line

From: Michael Perelman (michael@ECST.CSUCHICO.EDU)
Date: Mon Dec 24 2001 - 18:03:06 EST


These numbers sound a bit strange -- surely, $4,000 a year would not put a
person above the poverty line in United States.[

Geert REUTEN wrote:

> I have been reading in the UNDP "Human Development Report 2001"
> The previous report I read was that of 1999, so my question below may in
> fact apply (also) to the 2000 Report.
>
> For its definition of the "poverty line" for  "developed" (rich) countries
> the UNDP adopts the US definition. In 1999 (and 2000?) this was fixed at
> $14.40 a day. (For other rich countries this amount is calibrated on the
> basis of Purchasing Power Parity (PPS).)
> In the 2001 Report the poverty line has been reduced to $11 a day! The
> argument is that the US now adopts the $11 poverty line.
>
> For your information: the 1999 Report provides the figure of 14.2% of the
> US population under the poverty line. In the 2001 Report this is 14% (i.e.
> at $11; at $14.40 it would obviously have been much higher). The UK, e.g.,
> does worse even for the new line: at $14.40 in the 1999 report some 13.7%
> of the population was below; at $11 in the 2001 report 16%.
>
> Now my questions:
> 1. Has there been public discussion in the US about the poverty line
> reduction?
> 2. Does anybody know if there has been resistance within the UNDP of
> adopting the adapted US line?
> 3. Does anybody know about statistics maintaining the previous line?
>
> Finally, as a Christmas statistic I can inform you that the USA provides
> development aid amounting to $33 per US head per year (the year 1999). The
> average for all (about 25) rich countries together for 1999 is no more than
> $66 per head. [In 1990 this figure was $55 for the USA and $72 for the rich
> countries on average. "Top" aid is by Denmark, moving from $248 per head in
> 1990 to $331 per head in 1999.]
> On the other side of the balance this means that developing countries
> receive aid of on average $8.30 per head per year (1999).
>
> Comradely,
> Geert

--

Michael Perelman
Economics Department
California State University
michael@ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901



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