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Reduce inequality within and among countries.

The growth rate in the welfare aggregate of bottom 40% is computed as the annualized average growth rate in per capita real consumption or income of the bottom 40% of the income distribution in a country from household surveys over a roughly 5-year period. The national average growth rate in the welfare aggregate is computed as the annualized average growth rate in per capita real consumption or income of the total population in a country from household surveys over a roughly 5-year period. The bottom 40 percent differs across countries depending on the welfare distribution, and it can change over time within a country.

Statistical Institute of Belize (SIB) 

Statistical Institute of Belize (SIB) 

World Bank (WB)

Annually

Percentage (%)

Improvements in shared prosperity require both a growing economy and a consideration of equity. Shared prosperity explicitly recognizes that while growth is necessary for improving economic welfare in a society, progress is measured by how those gains are shared with its poorest members. Moreover, in an inclusive society it is not enough to raise everyone above an absolute minimum standard of living; it must ensure that economic growth increases prosperity among the poor over time. The decision to measure shared prosperity based on income or consumption was not taken to ignore the many other dimensions of welfare. It is motivated by the need for an indicator that is easy to understand, communicate, and measure—though measurement challenges exist. Indeed, shared prosperity comprises many dimensions of well-being of the less well-off, and when analyzing shared prosperity in the context of a country, it is important to consider a wide range of indicators of welfare.

To progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average.

No disaggregation available.

Growth rates are calculated as annualized average growth rates over a roughly five-year period. Since many countries do not conduct surveys on a precise five-year schedule, the following rules guide selection of the survey years used to calculate the growth rates in the 2015 update: the final year of the growth period (T1) is the most recent year of a survey but no earlier than 2010, and the initial year (T0) is as close to T1 – 5 as possible, within a two-year band. Thus, the gap between initial and final survey years ranges from three to seven years. If two surveys are equidistant from T1 – 5, other things being equal, the more recent survey year is selected as T0. The comparability of welfare aggregates (income or consumption) for the years chosen for T0 and T1 is assessed for every country. If comparability across the two surveys is a major concern, the selection criteria are re-applied to select the next best survey year. Once two surveys are selected for a country, the annualized growth of mean per capita real income or consumption is computed by first estimating the mean per capita real income or consumption of the bottom 40 percent of the welfare distribution in years T0 and T1 and then computing the annual average growth rate between those years using a compound growth formula, (Mean in T_1)/(Mean in T_0 )^(1/( T_1- T_0 ))-1. Growth of mean per capita real income or consumption of the total population is computed in the same way using data for the total population.

This indicator measures the average growth rate in per capita real consumption or income of the bottom 40% of the income distribution in a country from household surveys over a roughly 5-year period.

There are mainly two limitations of shared prosperity indicators: data availability and data quality.

The Global Database of Shared Prosperity was prepared by the Global Poverty Working Group, which comprises poverty measurement specialists of different departments of the World Bank Group. The database’s primary source of data is the World Bank Group’s PovcalNet database, an interactive computational tool that allows users to replicate the World Bank Group’s official poverty estimates measured at international poverty lines ($1.90 or $3.10 per day per capita).

All the metadata shown in this document was gathered from United Nation Statistics Division. The metadata was extracted from https://unstats.un.org/sdgs/metadata/.