International Poverty Line

DEFINITION of 'International Poverty Line'

An international monetary threshold under which an individual is considered to be living in poverty. It is calculated by taking the poverty threshold from each country - given the value of the goods needed to sustain one adult - and converting it to dollars. The international poverty line was originally set to roughly $1 a day. When purchasing power parity and all goods consumed are considered in the calculation of the line, it allows organizations to determine which populations are considered to be in absolute poverty.

BREAKING DOWN 'International Poverty Line'

Using the international poverty line to determine how well off a population is can be misleading, as the line can be low enough that adding a small amount of additional income will not create an appreciable difference in a person's quality of life. In addition, it can be difficult to quantify other indicators, such as education and health, thus masking the total economic impact on a population.

RELATED TERMS
  1. Poverty

    A state or condition in which a person or community lacks the ...
  2. Federal Poverty Level - FPL

    The set minimum amount of gross income that a family needs for ...
  3. Jeffrey Sachs

    An American economist who is director of the Earth Institute. ...
  4. Economic Collapse

    A complete breakdown of a national, regional or territorial economy. ...
  5. World Bank Group

    Five international organizations dedicated to providing financial ...
  6. Economic Refugee

    A person who leaves their home country for a new country, in ...
Related Articles
  1. Markets

    Understanding Poverty

    Poverty exists when a person’s or community’s basic needs are not being met because financial resources are lacking.
  2. Personal Finance

    Educating About Poverty Through Frugal Living

    Live Below the Line is a challenge that hopes to raise awareness about poverty in the U.S. These tips can help you cut your budget so that you can take part in the challenge.
  3. Markets

    America's Poorest States in 2015

    Learn the reasons Mississippi, New Mexico, Louisiana, Georgia and Kentucky are the poorest states in the United States, as of 2015.
  4. Markets

    The Impact Of Financial Crisis On Women

    The female population is feeling the effects of global financial crisis harder than the rest.
  5. Markets

    The World Bank's All-Important World Development Indicators (WDI)

    The World Development Indicators are the world's economic scorecards: they evaluate where nearly every country stands and how far it has yet to go.
  6. Investing

    Which Income Class Are You?

    This article identifies the various income classes in America. Find out which class you fall under.
  7. Personal Finance

    The Minimum Wage: Does It Matter?

    The numbers show that a fight for a living wage is more important than a fight for a raise in minimum wage.
  8. Markets

    Why the Bay Area's Economy is on Fire (for Now)

    The Bay Area's economy has the strongest job market and wage growth in the country. How long will it last?
  9. Markets

    Are We Losing The Middle Class?

    Find out where your income and lifestyle put you compared to the national average.
  10. Markets

    World Bank Data For Dummies

    Developing countries can't always afford to track the data crucial to setting the right economic policies and programs. That's where the World Bank steps in.
RELATED FAQS
  1. Is China a developed country?

    Understand why China, despite having the world's second-largest economy and third-largest military, is not yet classified ... Read Answer >>
  2. What is the difference between International Monetary Fund and the World Bank?

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ... Read Answer >>
  3. How and when is the 10% penalty collected when someone less than 59 withdraws the ...

    Our 28 year old daughter has decided to enter a convent. In doing so she has liquidated all of her assets to be debt free ... Read Answer >>
  4. What are the nations with the highest PPP (purchasing power parity) with respect ...

    Learn which nations have the highest PPP with respect to the U.S. while reviewing the differences of calculating GDP in market ... Read Answer >>
  5. Where is cost of living lowest in the world?

    Learn how the cost of living is the lowest in India based on numbers derived from the CPI and organizations like Expatistan ... Read Answer >>
  6. How important a metric is PPP (purchasing power parity?)

    Find out why calculations and comparisons of the purchasing power parity (PPP) in different countries can have a real impact ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center