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The commonly used one dollar a day standard, measured in 1985 international prices and adjusted to local currency rising purchasing power parities, was chosen for the World Bank's World Development Report 1990: Poverty because it is typical of the poverty lines in low-income countries. Purchasing power parity exchange rates, such as those from the Penn World Tables are used because they take into account the local prices of goods and services that are not traded internationally...

Purchasing power parity exchange rates, such as those from the Penn World Tables are used because they take into account the local prices of goods and services that are not traded internationally. But purchasing power parity rates were designed not for comparing aggregates from national accounts. As a result there is no uncertainty that an international poverty line measure the same degree of deprivation across countries (10)...

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