CHILD POVERTY AND INEQUALITY: THE WAY FORWARD

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these matters. Papers in this volume discuss child poverty


measurement, trends in global poverty and inequality, outcomes for


children, and policies to address them.


We start by revising how poverty is measured, calling for new


multidimensional poverty measurements to better appreciate the


reality of children in the world. According to orthodox estimations


of an international extreme poverty line of $1 a day, the total


number of poor people around the world has declined drastically;


approximately one billion people have escaped extreme poverty


since 1981. This approach celebrates that poverty reduction of this


magnitude is unparalleled in history; never before have so many


people been lifted out of poverty over such a brief period of time.


However, many have noted shortcomings in these estimates. To


start, while the number of people living in extreme poverty on less


than $1 a day (adjusted to $1.25 a day measured at 2005


international prices), declined globally from 1.9 billion in 1981 to


1.4 billion in 2005, this decline was largely due to progress in China


and East Asia; however, the absolute number of people living in


poverty actually went up during this period in Sub-Saharan Africa,


as in many developing countries in other regions. Additionally,


there are concerns about an international income-based poverty line


as a meaningful measure of poverty. Evidence suggests that such


poverty lines misrepresent the actual extent of poverty. Many


criticisms have emerged on how they are adjusted with time; for


instance, the World Bank’s adjustment of poverty lines is not based


on the United States rate of inflation; had it been taken into


account, the original $1 a day would have become $1.45 a day for


2005, with obvious implications for the corresponding estimates of


people in poverty, and hence, for the achievement of the


Millennium Development Goals poverty target by 2015. Further,


the companion $2 a day poverty line was never adjusted. Even if


extreme poverty has reduced significantly in some countries like

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