Poverty Facts and Stats ? Global Issues. This figure is based on purchasing power parity (PPP), which basically suggests that prices of goods in countries tend to equate under floating exchange rates and therefore people would be able to purchase the same quantity of goods in any country for a given sum of money.
That is, the notion that a dollar should buy the same amount in all countries. Hence if a poor person in a poor country living on a dollar a day moved to the U.S. with no changes to their income, they would still be living on a dollar a day. The new poverty line of $1.25 a day was recently announced by the World Bank (in 2008). For many years before that it had been $1 a day. Gapminder: Unveiling the beauty of statistics for a fact based world view. Free Economic Indicators Charts, Historical Data, News and Forecasts.