World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Worldwide Data Collection: Purchasing Power

Worldwide Data Collection Effort To Enable Comparison Of Purchasing Power Across Countries

WASHINGTON, February 24, 2005 — How does China’s economic situation compare with that of its neighbors and trading partners? How much does a dollar buy in Indonesia compared with the U.S.? Is a person earning 250 nairas in Nigeria better or worse off than someone earning 9 pounds in Egypt? To answer these and other important questions about the welfare of people living in developing countries, the World Bank has launched a new round of international price data collection under the framework of the International Comparison Program (ICP).


The primary purpose of the ICP is to generate Purchasing Power Parity (PPP) data to convert GDP and its sub-aggregates-reported in different currencies—into a standard common currency that equalizes the real purchasing power of each of the currencies. PPP conversion rates permit comparison of real economic outputs across countries at a common set of average international prices. They are analogous to time-series indexes, which measure changes in national output over time at constant prices.


“The world’s largest-ever and most complex statistical price collection program is underway,” said Dennis Trewin, Australian Statistician and Chair of the ICP Executive Board. “Survey workers in over a hundred developing countries have either started or will soon be collecting price data for over a thousand selected products, including various kinds of food, clothing, and housing, among others.”


This massive exercise is being undertaken under the auspices of the World Bank in cooperation with national statistical offices and supported by regional and international development agencies. Planning of the data collection program began over a year ago. The results, available in 2006, will be combined with those from similar surveys undertaken by the Statistical Office of the European Union (Eurostat) and the Organization for Economic Cooperation and Development’s (OECD) Purchasing Power Parity Program. This exercise will enable economists, statisticians, and policymakers to make accurate comparisons of prices, purchasing power, and well being in more than 150 countries.


Purchasing power parities (PPP), calculated from data collected by the International Comparisons Program have been widely used to estimate absolute poverty measured at the international poverty line of $1 per person per day. PPP-adjusted GDP per capita estimates constitute an integral part of the United Nations Development Program’sUNDP’s Human Development Index. (HDI


“The International Comparison Program is at the forefront of our efforts to promote growth and fight poverty,” said François Bourguignon, the World Bank’s Chief Economist and Senior Vice President for Development Economics. “Only by measuring real purchasing power, can we accurately shape our policies and work with the development community to help the neediest.”


Because they remove the distortions caused by market exchange rates, purchasing power parities allow more accurate comparisons of the size of national economies and their competitiveness.

“The ICP is a tremendous resource not just for governments,” said Fred Vogel, the ICP Global Manager, “but also for all those who have an interest in the global economy, including economic researchers, multinational companies and development agencies, all of which need accurate information on relative price levels and national incomes of various countries, in order to make sound and informed assessments, decisions or policy choices.”


The ICP’s global office is at the World Bank, but it relies on regional coordination offices to manage liaison with participating countries. These are located in the offices of the African Development Bank, the Asian Development Bank, the Statistical Committee of the Commonwealth of Independent States, the UN Economic Commission for Latin America and the Caribbean, Statistics Canada, the UN Economic and Social Commission for Western Asia, and at Eurostat and the OECD. The ICP data, once collected, will be made available in an integrated software system known as ICP Tool Pack, which will be distributed free of charge to all participating countries and regional coordination offices as a capacity building effort to improve the quality of both ICP and Consumer Price Index computations..


“In addition to improving the quality of data available to all countries, the ICP offers an opportunity to the partners to join the World Bank in helping developing countries improve their statistics-gathering capacity,” said Shaida Badiee, Director of the World Bank’s Data Group.


© Scoop Media

 
 
 
 
 
World Headlines

 

At The UN: Paris Climate Agreement Moves Closer To Entry Into Force

The Paris Agreement on climate change moved closer toward entering into force in 2016 as 31 more countries joined the agreement today at a special event hosted by United Nations Secretary-General Ban Ki-moon. More>>

ALSO:

ALSO:

Gordon Campbell: On The End Game In Spain (And Other World News)

The coverage of international news seems almost entirely dependent on a random selection of whatever some overseas news agency happens to be carrying overnight... Here are a few interesting international stories that have largely flown beneath the radar this past week. More>>

Amnesty/Human Rights Watch: Appalling Abuse, Neglect Of Refugees On Nauru

Refugees and asylum seekers on Nauru, most of whom have been held there for three years, routinely face neglect by health workers and other service providers who have been hired by the Australian government, as well as frequent unpunished assaults by local Nauruans. More>>

ALSO:

Other Australian Detention

Gordon Campbell: On The Censorship Havoc In South Africa’s State Broadcaster

Demands have included an order to staff that there should be no further negative news about the country’s President Jacob Zuma, and SABC camera operators responsible for choosing camera angles that have allegedly made the President ‘look shorter’ were to be retrained... More>>

ALSO:

Gordon Campbell: On A Bad Week For Malcolm Turnbull, And The Queen

Malcolm Turnbull’s immediate goal – mere survival – is still within his grasp... In every other respect though, this election has been a total disaster for the Liberals. More>>

ALSO:

Gordon Campbell: On Bidding Bye Bye To Boris

Boris Johnson’s exit from the contest for Conservative Party leadership supports the conspiracy theory that he never really expected the “Leave” option to win the referendum – and he has no intention now of picking up the poisoned chalice that managing the outcome will entail... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news