Part of: GS Prelims and Mains II – International Organization; International Programs
In news:
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.
