Measurement and Nature of Absolute Poverty in Least Development Countries

This paper provides new national accounts consistent poverty estimates for low-income countries. The paper compares the properties of the new estimates that are based on household survey means to existing World Bank estimates . The new estimates are used to reflect on recent controversies regarding the relationship between economic growth and poverty reduction. It is argued that the controversy is mainly due to the lack of a distinction between what one can refer to as ‘generalized extreme poverty’ in low-income countries and the more ‘normal’ poverty situations in higher income economies.