dollar a day

Redefining the poverty line in Indonesia

A cashew nut farmer on the island of Flores, located in the Nusa Tenggara Timur province of Indonesia. Photo: <a href="http://www.flickr.com/photos/jelle/2330986745/in/set-72157604109125532/">jasperwiet (flickr)</a>
A cashew nut farmer on the island of Flores, located in the Nusa Tenggara Timur province of Indonesia. Photo: jasperwiet (flickr)

Indonesia is setting its own poverty line at less than $1 a day. When a country comes up with its own definition of "poverty", can global policy makers trust it.

Indonesia’s equation to measure its own poverty line is based on a series of calculations for what poor people spend money on — including housing, food, education and health care, also accounting for cost differences between urban and rural areas, according to a recent blog post from The Economist. And conveniently, this homegrown equation says only 30 million out of Indonesia's 245 million population live below the poverty line.

What the equation doesn’t account for is more important. From 2004 to 2009, during which Indonesian GDP per capita shot up 38 percent, the World Bank's estimate of Indonesia's poverty rate fell only slightly, from 16.7 percent to 14.2 percent. The Indonesian poverty equation doesn't capture the deep socioeconomic differences between urban and rural areas that has preserved this inequality.

Despite Indonesia's efforts to eliminate statistical poverty, the facts are clear — 100 million Indonesians still live under $2 a day. Considering the World Bank sets the poverty line at $1.25 a day, the Indonesian government's insistence that only 30 million are living in poverty becomes clouded.

Although countries creating their own measurements for the poverty line may be useful, in the Indonesian case it seems wrought with discrepancies. Setting the poverty line below $1 a day may look good on paper, but doesn’t help those who are struggling and certainly can’t be utilized on an international basis.

The Tricky Business of Feeding Oneself on a Dollar a Day

Over one billion people live on less than one dollar a day, according to the U.N. But what can you actually buy with a dollar?

It seems like something that would vary across countries. Luckily, the World Food Programme recently released a series of videos in which it seeks to answer that question. Country specialists in Nepal, Cambodia, Ethiopia, Haiti, Guatemala, Somalia, Kenya, and the Philippines each went to their local markets with the equivalent of about one U.S. dollar and attempted to put together a meal. Watch as Reem Nada visits a market in Alexandria, Egypt.

The shorts are entertaining, but present a rather bleak reality. Almost all of the investigators come up short nutritionally. In Nepal, Deepesh Das Shresta leaves the market holding a few small bananas and a loaf of white bread. Meat is categorically too expensive, and staying within budget means many investigators can’t purchase all of the components necessary to create the meals that are considered cultural staples. It appears that those living on less than a dollar a day are also living far below their daily caloric and nutrient requirements.

Feeding oneself on less than a dollar is tricky business under the best of circumstances. Even worse, the recent volatility of the price of staple foods such as rice has jumped three times since 2008, says the New York Times — meaning that dollar must now be stretched even further.

The rest of the videos can be found on the World Food Programme website. The videos for Ethiopia, Kenya, and the Philippines are listed separately.

Margo Conner is a senior at Lewis & Clark College in Portland, Oregon, majoring in international affairs. Read her other contributions to Global Envision.

Dining on a Dollar

Topics: Food
Countries: United States

Eating on a dollar a day. For two eager Californians, it was an experiment. But for nearly a billion people in the developing world, it’s a daily reality.

The one-dollar diet project started as an attempt to cut grocery costs, say Kerri Leonard and Christopher Greenslate. The couple also wanted to get their friends and family thinking about world hunger issues. The World Bank estimates that 969 million people in the world get by on less than $1 a day.

To feed themselves for a month, Leonard and Greenslate bought rice and beans in bulk and made everything from scratch. Eating less meant eating less healthier — most of the time, they couldn’t afford fresh produce.

The project stirred a healthy conversation on the couple’s blog, ranging from supportive culinary tips to criticism that the two were eating — but not living — in true poverty. Poor people who can’t afford food also struggle, for example, to get fuel for cooking, Dartmouth professor Susanne Friedberg told the Christian Science Monitor. And how far a dollar reaches depends entirely on one’s environment.

“If you live on a dollar a day and you have land and enough hands to work it and the rains are good, the dollar is irrelevant,” Friedberg said. “If you live in a city and depend on the market for food, then you are really suffering.”

From the Archives

Controversy Over World Bank Trade and Poverty Estimates

Previously filed under: Opinions and Editorials
William Kline raises questions about the reality of World Bank poverty pictures.

Stories We're Watching

Jobs for Billionaires - By Joshua E. Keating

Foreign Policy - Thu, 05/24/2012 - 07:25
A few problems back here on Earth in need of some serious capital.

Panda glasses are Toms shoes for your face

Washington Post - Innovations - Thu, 05/24/2012 - 02:30
Growing up in a Chinese home, Vincent Ko saw the many uses of bamboo — in the kitchen utensils, decorations and even furniture. Years later, as a recent Georgetown University graduate, Ko began to wonder if the trendy Asian grass had a place in fashion — in sunglasses, to be exact.

Old Ways Disappearing In The New Mongolia

NPR - Thu, 05/24/2012 - 00:17
With desertification, drought and a booming mining industry, Mongolians are leaving the traditional life of herding. Herdsman Bat-Erdene Badam says he will be the last in his family to tend livestock. His children are trading in their nomadic lives for more stable, often urban jobs.

Two Worlds, One Climate - By Peter Passell

Foreign Policy - Wed, 05/23/2012 - 14:35
Forget Kyoto. There’s a much better way to persuade the developing world to fight climate change.

Brazil and China, Oiling the Wheels of Business

Inter Press Service - development - Mon, 05/28/2012 - 06:21
China's voracious demand for energy has prompted it to embrace Brazil as a major oil partner, fuelling the dramatic expansion of Chinese companies in this South American country. But while some see this as a boost to the Brazilian economy, others fear that it poses a risk to this country's future self-sufficiency.

Recent comments

Countries

An initiative of Mercy Corps
“You must be the change
you wish to see in the world”
Mahatma Gandhi
Learn more about Mercy Corps >

Efficiency

Over the last five years, more than 89% of Mercy Corps' resources have been allocated directly to programs

Excellence

America's premier charity evaluator gives Mercy Corps four stars in organizational efficiency. Click here to learn more.

High Value

Every dollar you donate to Mercy Corps helps us secure $11.16 in donated food and other critical supplies.

Mercy Corps — Dept. W — 45 SW Ankeny — Portland, OR 97204
All original content Copyright © 2009 Mercy Corps. Quoted and linked content is property of the creator(s). Mercy Corps will not sell, rent or trade your personal information.