The present project on the purchasing power parities for the global measurement of
poverty is cast within the context of two major developments in the global scene. The
first context is the need for reliable and internationally comparable estimates of global
poverty in an increasingly globalized world. The second context relevant to the pilot
project is the timing of the next Phase of the International Comparison Program (ICP).
What are the principal benefits of globalisation to the poorer countries of the world?
Has globalisation resulted in a significant reduction in the number of poor in the
world? Answers to these questions require an appropriate methodology for the
estimation of the number of global poor and for studying the nature and extent of
poverty. Within the general parameters of such endeavours, there is also an increasing
need to assess the global inequality and the growth performance of some of the most
populous nations in the world. In addition to the research agenda on global poverty
resulting from the growing debate on globalisation, several international organisations
including the World Bank have taken a lead role in poverty alleviation programs in
the world. These organisations have a mandate to eradicate poverty and create a world
without poor. As a part of their ongoing activities in this area, these organisations
routinely obtain estimates of the number of poor in the world. The Human
Development Report provides estimates of global poor using the one and two dollar a
day poverty lines.