International Poverty Line

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Definition: International Poverty Line

An international monetary threshold below which people are considered to be in poverty. International poverty line is calculated by the world bank. The international poverty line was roughly estimated at $1 a day which was revised in 2005 to $1.25 by world bank. It is calculated as a mean of the national poverty lines of 15 poorest countries. The average of national poverty lines of all developing nations is set at $2.


The international poverty line is criticized as having income slightly less than or more than the poverty threshold will not make much difference as the effects of poverty are continuous and low income may affect different people in different ways. It depends completely on the quantitative measures such as income and other human development factors such as health and education are not quantified. Most poor people live in middle income countries. The critics suggest to use poverty indices such as income inequality matrices.


17% of people in developing countries lived at or less than $1.25 a day in 2011. Almost 1 billion people will live on less than $1.25 a day in 2015. The world bank’s mission “Our Dream is a World Free of Poverty” along with welfare of underprivileged as well as to end extreme poverty and promote shared prosperity.


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