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Even Higher Global Inequality than Previously Thought: A Note on Global Inequality Calculations using the 2005 International Comparison Program Results

Using the new results of the International Comparison Program 2005, the author reestimates inequalities between mean country incomes and global inequality among world citizens. All types of international inequality are found to be greater than previously thought (that is, as calculated using earlier data on countries' price levels). The main reason for the higher inequalities is that domestic price levels in most populous Asian countries (China, India, Philippines, Bangladesh) are some 40 percent higher than previously estimated. This implies not only higher global inequality but significantly greater global poverty head counts.