GOAL 1 GOAL 3 - World Bankpubdocs.worldbank.org/en/878611525840006052/ICP50... · Sri Lanka Education Sector Assessment: Achievements, Challenges, and Policy Options. Brazil Malaysia

icp.worldbank.orgInternational Comparison Program

PPPs AND THE SUSTAINABLE DEVELOPMENT GOALS (SDGs)

Build resilient infrastructure, promote inclusive and

sustainable industrialization and foster innovation

GOAL 7

Energy intensity is measured in PPP terms

GOAL 9

PPPs provide cross country comparisons of both investment in R&D and CO2 emissions per

value added in industry

GOAL 1

PPPs are used to set the international poverty l ine

SDGs Ensure access to affordable, reliable,

sustainable and modern energy for all

GOAL 3

PPPs are used in estimating maternal mortality and the impact of health costs on

the poorest

Ensure healthy lives and promote well-being for

all at all ages

GOAL 8

Labor productivity measures are estimated using PPPs

Promote sustained, inclusive and sustainable economic growth,

full and productive employment and decent work for all

End poverty in all its forms everywhere

GOAL 10

Income growth of poorest and labor

share are both measured in PPP term

Reduce inequality within and among

countries

ICP50-posters-v2.indd 6 4/11/18 12:34 PM


PPPs AND THE REAL SIZE OF WORLD ECONOMIES

Per capita GDP (PPP-based, US$)

5000 1,000 2,000 5,000 10,000 20,000 50,000 100,000 200,000

Saudi Arabia

H o n d u ra s

U n ited K in g d o m

Switzerland

D e n m a rk

C a n a d a

Russian Fed.

Singapore

Indonesia

K e n ya

An g o la

United States

Ja p a n

Ita ly

Egypt, Arab. Rep.

Ma la ys ia

United Arab Emirates

C h ile

No rwa y

Portugal

Qatar

Sudan

Ethiopia

Macao SAR, China

L u xe m b o u rg

B u ru n d i

C o m o ro s

L ib e riaMo z a m b iq u e

Fiji

B a h a m a s

South Africa

ChinaNigeria

Pakistan

France

Australia

0

20

40

60

80

100

120

140

160

180

200

Pric

e le

vel i

ndex

(wor

ld a

vera

ge =

100

)

SingletonsCaribbean Western AsiaLatin AmericaEurostat-OECDCISAsia and the PacificAfrica

African low-income economies

Middle-income economies

Eurostat-OECD high-income economies

Small high-incomeeconomies

G e rm a n y

India

Brazil

Small high-incomeeconomies

Price levels, standards of living and size of economies, 2011

Source: International Comparison Program (2015). Purchasing Power Parities and the Real Size of World Economies: A Comprehensive Report of the 2011 ICP.


PPPs IN POVERTY MEASUREMENT

0 20 40 60

World

Europe and Northern America

Australia and New Zealand

Northern Africa and Western Asia

Eastern and South-Eastern Asia

Latin America and the Caribbean

Central and Southern Asia

Oceania*

Sub-Saharan Africa

Population living on less than 2011 PPP $1.90 a dayShare (%)

20131999

To answer this and other questions on global poverty, the World Bank and the United Nations use an international poverty line anchored to the 2011 ICP PPPs. This line acts as a cut-off point that separates those living above or below the US$1.90/day (in 2011 PPP terms) threshold.

Proportion of population living below US$ 1.90/ day (2011 PPP), 1999 and 2013 (%)

What percentage of people around the world live on less than US$1.90/day?

Note: Oceania* refers to Oceania excluding Australia and New Zealand.

Source: United Nations (2017). The Sustainable Development Goals Report 2017.


PPPs AND THE ENVIRONMENT

CO2 emissions (kg per PPP $ of GDP), 2014

0.02 1.03CO2 emissions (kg per PPP $ of GDP)

Source: World Bank Open Data (2018).

How can we compare the level of CO2 emissions across the world?


PPPs IN HUMAN DEVELOPMENT

PPPs are instrumental for comparing health and education expenditures and costs around the world

Source: World Bank (2016). Montenegro - Achieving Sustainable and Inclusive Growth Amidst High Volatility Project.

Total Health Expenditure and GDP per capita in Eastern Europe and Central Asia, 1995-2013

ALB

AZE

BLRBIH

BGR

HRV

KAZ

KGZ

MKD

MDA

MNE

POL

ROM

RUSSRB

TJK

TUR

TKM

UKR

UZB

GEO

ALB

AZE

BLRBIH

BGR

HRV

KAZ

KGZ

MKD

MDA

MNE

POL

ROM

RUS

SRB

TJK

TUR

TKM

UKR

UZB

GEO

0

200

400

600

800

1,000

1,200

1,400

1,600

0 4,000 8,000 12,000 16,000 20,000 24,000

Heal

th e

xpen

ditu

re p

er c

apita

, PPP

(con

stan

t 201

1 in

tern

atio

nal $

)

GDP per capita, PPP (constant 2011 international $)

Linear (1995‐2004 average) Linear (2005‐2013 average)

1995‐2004 average 2005‐2013 average

Spending on Public Education, an International Perspective, 2012/2013

Source: World Bank (2017). Sri Lanka Education Sector Assessment: Achievements, Challenges, and Policy Options.

Brazil

MalaysiaMexicoSouth Africa

Thailand

Chile

Korea, Rep.

Indonesia

Sri Lanka

0 10,000 20,000 30,000

5

10

15

20

25

30

35

40

Shar

e of

tota

l gov

ernm

ent e

xpen

ditu

res

(%)

GDP per capita (purchasing power parity)

Source: EdStats, 2012/13 or nearest year available. Note: Bubble size corresponds to public spending as a share of GDP.


Brazil

MalaysiaMexicoSouth Africa

Thailand

Chile

Korea, Rep.

Indonesia

Sri Lanka

0 10,000 20,000 30,000

5

10

15

20

25

30

35

40

Shar

e of

tota

l gov

ernm

ent e

xpen

ditu

res

(%)

GDP per capita (purchasing power parity)

Source: EdStats, 2012/13 or nearest year available. Note: Bubble size corresponds to public spending as a share of GDP.



PPPs IN TRADE, COMPETITIVENESS AND PRODUCTIVITY

PPPs are used for comparing competitiveness and labor productivity across countries and regions

GCI pillar

1

2

3

4

5

6

7

Best global

Average LACBest LAC

Worst LACMedian LAC

InnovationBusinesssophistication

Market size

Technological readiness

Financial market

development

Labor market

efficiency

Goods market

efficiency

Highereducation

and training

Health and primary

education

Macro-economic

environment

InfrastructureInstitutions

Luxembourg

NewZealand

SwitzerlandSingapore

Singapore

FinlandNorway

Panama

Chile

Costa Rica

Chile

Costa Rica

Panama Costa Rica

Hong KongSAR

PanamaJamaica

Uruguay

Finland

Uruguay

China

BrazilSwitzerlandSwitzerland

0

20

40

60

80

100

South Asia Middle East(excluding N. Africa)


East Asiaand Pacific

Africa Central andEastern Europe

Annual output/worker (US$ PPP, in thousands)

Source: World Economic Forum (2017). The Global Competitiveness Report 2017-2018.

Global Competitiveness Index score range for Latin American and the Caribbean across the 12 pillars, 2017-2018

GCI pillar

1

2

3

4

5

6

7

Best global

Average LACBest LAC

Worst LACMedian LAC

InnovationBusinesssophistication

Market size

Technological readiness

Financial market

development

Labor market

efficiency

Goods market

efficiency

Highereducation

and training

Health and primary

education

Macro-economic

environment

InfrastructureInstitutions

Luxembourg

NewZealand

SwitzerlandSingapore

Singapore

FinlandNorway

Panama

Chile

Costa Rica

Chile

Costa Rica

Panama Costa Rica

Hong KongSAR

PanamaJamaica

Uruguay

Finland

Uruguay

China

BrazilSwitzerlandSwitzerland

0

20

40

60

80

100

South Asia Middle East(excluding N. Africa)


East Asiaand Pacific

Africa Central andEastern Europe

Annual output/worker (US$ PPP, in thousands)

Estimates of average labor productivity across regions, 2015

Source: World Bank (2017). The Africa competitiveness report 2017 - Addressing Africa’s demographic dividend.


R12

R6

R9

R11

R10

R8

R2

R5

R3

R7

R1

CAR

NCR

R4B

R4A

CARAGA

ARMM

Global PPPs can be used to adjust for price differences between countries. Subnational PPPs, on the other hand, can be used to adjust for price differences within a country, say, states in Brazil, emirates in the UAE, or regions in the Philippines.

SUBNATIONAL PPPs

Source: Dikhanov, Palayandy, and Capilit (2011). Subnational Purchasing Power Parities toward Integration of ICP and CPI: The Case of the Philippines.

Personal Consumption Expenditure, Quarterly Regional Price Index, the

Philippines, 2005–2010

0.85

0.95

1.05

1.15

1.25

1.35

1.45

Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

201020092008200720062005

R12

R6

R9

R11

R10

R8

R2

R5

R3

PHI

R7

R1

CAR

R4B

R4A

CARAGA

NCR

ARMM

Pric

e Le

vels

: Phi

lippi

nes

Q1

2005

= 1

.00

Note: Price levels by region are presented relative to the Philippines national average price level in the first quarter of 2005.

Documents

GOAL 1 GOAL 3 - World Bankpubdocs.worldbank.org/en/878611525840006052/ICP50... · Sri Lanka Education Sector Assessment: Achievements, Challenges, and Policy Options. Brazil Malaysia