<P> The poverty threshold , poverty limit or poverty line is the minimum level of income deemed adequate in a particular country . In practice , like the definition of poverty , the official or common understanding of the poverty line is significantly higher in developed countries than in developing countries . In 2008 , the World Bank came out with a figure ( revised largely due to inflation ) of $1.25 a day at 2005 purchasing - power parity ( PPP ) . In October 2015 , the World Bank updated the international poverty line to $1.90 a day . The new figure of $1.90 is based on ICP purchasing power parity ( PPP ) calculations and represents the international equivalent of what $1.90 could buy in the US in 2011 . The new IPL replaces the $1.25 per day figure , which used 2005 data . Most scholars agree that it better reflects today 's reality , particularly new price levels in developing countries . The common international poverty line has in the past been roughly $1 a day . At present the percentage of the global population living under extreme poverty is likely to fall below 10 % according to the World Bank projections released in 2015 . </P>
<P> The poverty threshold , poverty limit or poverty line is the minimum level of income deemed adequate in a particular country . In practice , like the definition of poverty , the official or common understanding of the poverty line is significantly higher in developed countries than in developing countries . In 2008 , the World Bank came out with a figure ( revised largely due to inflation ) of $1.25 a day at 2005 purchasing - power parity ( PPP ) . In October 2015 , the World Bank updated the international poverty line to $1.90 a day . The new figure of $1.90 is based on ICP purchasing power parity ( PPP ) calculations and represents the international equivalent of what $1.90 could buy in the US in 2011 . The new IPL replaces the $1.25 per day figure , which used 2005 data . Most scholars agree that it better reflects today 's reality , particularly new price levels in developing countries . The common international poverty line has in the past been roughly $1 a day . At present the percentage of the global population living under extreme poverty is likely to fall below 10 % according to the World Bank projections released in 2015 . </P>
the calculation of the poverty line is based on
the calculation of the poverty line is based on
ICP purchasing power parity
ICP purchasing power parity