Attributes Quote by Thomas Pogge
“By using general consumption PPPs, the World Bank is, in effect, saying to the poor: "Sure, you cannot buy as much food as the dollar value we attribute to your income would buy in the United States. But then you can buy much more by way of services than you could buy with this PPP equivalent in the United States." But what consolation is this? The poor do not buy services - they are services, on their luckier days.”
About This Quote
Source Report: World Bank Poverty Measurement Discussion, 2010
The quote critiques using PPP to compare poor households to US standards, noting that services are scarce for the poor, making the comparison misleading.
In simple terms: PPP comparisons ignore real service scarcity for the poor.
Key Takeaway
Recognize limits of PPP in poverty analysis.
Themes
poverty measurement
economic inequality
development policy
global finance
Mood
critical
reflective
Type
analytical
policy
When to use this quote
- policy design
- academic research
- NGO advocacy
- public discourse
Key Concepts
Purchasing power parity
real income
service access
Questions to Reflect On
- How can we better measure welfare for those lacking services?
- What alternatives to PPP could improve poverty assessments?
A Different Perspective
PPP may mask true welfare gaps and misguide aid.
