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Issues in Setting Absolute Poverty Lines

By Nanak Kakwani

Poverty and Social Development Paper No. 3

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This paper explains the development of absolute poverty lines. It discusses different methodologies to construct poverty thresholds.

The paper evaluates the poverty lines of several Asian countries-India, Pakistan, Bangladesh, Nepal, and Thailand. It concludes that most countries in Asia do not have consistent poverty lines. Thus, there are problems in the identification of the poor.

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Contents

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1. Introduction
2. Some Basic Properties of Absolute Poverty Lines
3. Nutritional Requirements
4. Direct Calorie Intake Method
5. Food Energy Intake Method
6. Country Examples Using the Fei Method
7. The Cost of Basic Needs
8. What is the Best Practice for Setting a Poverty Line
9. The One-Dollar-A-Day Poverty Line
10. Concluding Remarks

References