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Twinning the goals : how can promoting shared prosperity help to reduce global poverty?

Author: Christoph Lakner; Mario Negre; Espen Beer Prydz; World Bank. Development Research Group. Poverty and Inequality Team.
Publisher: [Washington, D.C.] : World Bank, ©2014.
Series: Policy research working papers, 7106.
Edition/Format:   eBook : Document : International government publication : English
Database:WorldCat
Summary:
In 2013, the World Bank adopted two goals: First, reduce global extreme poverty to 3 percent by 2030. Second, promote shared prosperity defined as the income growth of the bottom 40 percent of the population within a country. This paper simulates the global poverty headcount under three growth scenarios for the bottom 40 percent up to 2030. The analysis deploys a set of "shared prosperity premiums," in which the  Read more...
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Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Christoph Lakner; Mario Negre; Espen Beer Prydz; World Bank. Development Research Group. Poverty and Inequality Team.
OCLC Number: 896140729
Notes: "November 2014."
'World Bank Group, Development Research Group, Poverty and Inequality Team."
Description: 1 online resource (29 pages) : illustrations.
Series Title: Policy research working papers, 7106.
Responsibility: Christoph Lakner, Mario Negre, and Espen Beer Prydz.

Abstract:

In 2013, the World Bank adopted two goals: First, reduce global extreme poverty to 3 percent by 2030. Second, promote shared prosperity defined as the income growth of the bottom 40 percent of the population within a country. This paper simulates the global poverty headcount under three growth scenarios for the bottom 40 percent up to 2030. The analysis deploys a set of "shared prosperity premiums," in which the bottom 40 percent in each country grows at a differential rate from the projected growth in the mean. With no distributional change, the global headcount reaches between 6.7 and 4.7 percent in 2030, depending on the average growth scenario used for the simulations. However, if the incomes of the bottom 40 percent grow 2 percentage points faster than the mean, the World Bank's poverty goal is achieved with the global poverty falling to below 3 percent in 2030 in the scenarios which average growth rates are extrapolated from the early 2000s. While such a "shared prosperity premium" is not unprecedented in recent growth spells, maintaining it over 20 years in every country is optimistic. The paper shows that in the baseline growth scenario, the global poverty rate could either reach the 3 percent target, or be close to 10 percent, depending on the "shared prosperity premium."

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