Progress out of Poverty Index (PPI) – The #1 Poverty Measurement Resource

Eliminating poverty is only possible if it can be measured. There are a number of poverty measurement tools like unemployment, income level, and savings. But what if you need a leading and not a lagging indicator? What if you need to compare countries?

That’s where the Progress out of Poverty Index (PPI) comes in.

What is the progress out of poverty index?

The Progress out of Poverty Index is a simple tool designed to help businesses and non-profits who have a mission to support the poor. The index can be measured at the household level, but is often aggregated and reported at the region or country.

Rather than simply report lagging indicators such as wealth, savings or income, the PPI aims to predict the probability that a household enters into poverty.

The questions are country specific, and include simple things like ‘What material is your roof made out of? How many of your children are in school’ according to the PPI website.

The tool was originally created by the Grameen Foundation, the Consultative Group to Assist the Poor and Ford Foundation

What are the 10 questions that constitue the poverty probability index?

The questions vary by what country the survey is designed for. While PPI does not publish the questions, the two examples on their website are as follows:

  •  “What material is your roof made out of?
  • How many of your children are in school?”

The answers are then matched to a set of criteria, which helps a surveyor understand that household’s poverty level.

What is the poverty line in various countries around the world?

The poverty line is not the same throughout the world. According to Worldvision, the poverty line occurs at the following level ov income.

  • $1.91 per person per day for 33 low-income nations
  • $3.21 per person per day for 32 lower-middle-income nations
  • $5.48 per person per day for 32 upper-middle-income nations
  • $21.70 per person per day for 29 high-income nations

What are some other poverty measurement resources?

Though the PPI is one of the most wide-spread, influential means of measuring poverty, there are a number of other means of assessing poverty. Here are a few of the more reputable ones.

Poverty Stoplight

USAID Poverty Assessment Tool (PAT)

CASHPOR House Index

Participatory Wealth Ranking