Measuring poverty and income distribution in Southeast Asia

Abstract

The paper surveys the extensive research on the measurement of poverty and inequality in Southeast Asia over the last five decades. It examines the work carried out by both independent scholars and international agencies including the World Bank and the Asian Development Bank. The paper argues that the household surveys carried out by national statistical agencies across the region, and used by most researchers, are often flawed. These flaws have led to rather misleading results both for individual countries and for cross‐country comparisons. Further problems have been found in the data on purchasing power parities (PPP) which have been used by the World Bank to estimate poverty both in Southeast Asia and in other developing countries. The paper also points out that estimates of poverty and inequality are often politically sensitive, and argues that a more accurate understanding of the estimation problems will only emerge if governments support rather than suppress open debate over measurement problems.