International Comparison Program (ICP)
Part of: GS Prelims and Mains II – International Organization; International Programs
- World Bank released new PPPs for the reference year 2017, under the International Comparison Program (ICP).
- ICP is a partnership of various statistical administrations of up to 199 countries guided by the World Bank.
- The Program produces internationally comparable price and volume measures for gross domestic product (GDP).
- Its component expenditures are based on purchasing power parities (PPPs).
- The ICP tries to make different countries GDPs comparable by calculating them in PPP both currency converters and spatial price deflators.
Important value additions:
What Is Purchasing Power Parity (PPP)?
- PPP is a popular macroeconomic analysis metric which is used to compare economic productivity and standards of living between countries.
- PPP is an economic theory that compares different countries’ currencies through a “basket of goods” approach.
Do you know?
- ICP is one of the largest statistical initiatives in the world. It is managed by the World Bank under the auspices of the United Nations Statistical Commission, and relies on a partnership of international, regional, sub-regional, and national agencies working under a robust governance framework and following an established statistical methodology.
- India has participated in almost all ICP rounds since its inception in 1970.
- India is participating in the current phase of International Comparison Programme (ICP) with reference to 2017.
- India is third-largest economy in terms of its PPP-based share in global actual individual consumption and global gross capital formation.
- The next ICP comparison will be conducted for the reference year 2021.
For more details, refer – https://www.worldbank.org/en/programs/icp