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Global Database of Shared Prosperity (GDSP) 13th Edition Summary

Key Findings

• Indicator Update: This update introduces the 13th edition of the Global Database of Shared Prosperity, focusing on the annualized growth rate of income/consumption for the poorest 40% of the population ("bottom 40 percent").

• Data Period: The 13th edition covers data for 88 economies from circa 2016–2021, representing approximately 4.3 billion people, or 56% of the global population in 2021.

• Country Changes:

  • Added 14 new countries: Albania, Benin, Burkina Faso, Cote d'Ivoire, Chad, Guinea-Bissau, Jamaica, Mali, Mauritania, Niger, Senegal, Togo, Tunisia, Zambia.
  • Removed 6 countries due to survey data unavailability within the selected period (i.e., Armenia, Lao PDR, Mongolia, Pakistan, UAE, Seychelles).
  • South Asia data now only covers Sri Lanka, with 1% of the population, highlighting data challenges in low-income and fragile states.

Methodological Changes

• Data Requirements: For a country to have shared prosperity data, it must have two comparable household surveys with data collected within two years of 2016 and 2021.
• Weighted Calculation: For countries like China, estimates use grouped data and parametric Lorenz curves due to unavailability of microdata.

Coverage by Region

• Top Regions: Europe and Central Asia (ECA) and East Asia and Pacific (EAP) cover around 90% of their populations. Latin America and the Caribbean (LAC) covers 88%.
• Middle East and North Africa (MENA): Covers 50% of the population with data gaps.
• South Asia: Reduced drastically to 1% due to unavailable surveys for India and Pakistan.
• Sub-Saharan Africa (SSA): Doubled coverage from 15% to 30% with the addition of eleven countries.

Measurement Spells

• The measurement period (2016–2021) varies by country due to survey availability. Tables are provided detailing the exact survey pairings used for different countries.

Challenges

• Global Poverty vs. Shared Prosperity: Monitoring shared prosperity is harder than global poverty estimates due to data comparability and frequency constraints.
• Low-Income Countries: Coverage remains low in fragile/conflict-affected nations and small island states.

Key Indicators and Definitions

Shared prosperity is computed using the formula for annualized growth rate in mean consumption/income of the bottom 40%. Supporting indicators include:

• growthm50: Annualized median income/consumption growth.
• growthtotal: Annualized mean income/consumption growth.

Technical Details

• The GDSP uses harmonized microdata from the Poverty & Inequality Platform (PIP) and other repositories.
• The dashboard at https://pip.worldbank.org enables exploration of regional data trends.

This 13th edition significantly expands geographical coverage but faces limitations in low-income countries, underscoring continuing methodological challenges in measuring inequalities.